Axcelis Raises Outlook as Revenue Rebounds
The chip-equipment maker projected third-quarter revenue of approximately $230 million.
Axcelis Technologies Inc. (ACLS) reported a second-quarter revenue rebound, with sales rising 10.6% from a year earlier to $215.2 million and increasing 8.2% sequentially.
The semiconductor-equipment maker also upgraded its 2026 outlook to year-over-year revenue growth after previously expecting sales to remain relatively flat. Robust Memory demand, positive Power-market momentum and improving engagement and utilization in General Mature markets drove this outlook.
The quarter extended a recovery from first-quarter revenue of $199.0 million, though sales remained below the $238.3 million recorded in the fourth quarter of 2024. Axcelis exceeded its prior second-quarter forecast by $10.2 million as stronger system shipments and higher customer service and installed-base, or CS&I, volume lifted results.
Product revenue increased 9.3% from a year earlier to $200.5 million. Services revenue grew faster, rising 31.8% to $14.7 million from $11.1 million.
GAAP diluted earnings rose to $0.75 a share from $0.30 sequentially and exceeded the company's prior forecast by $0.18. Earnings remained below the year-earlier $0.98 a share. Non-GAAP earnings climbed to $1.06 a share from $0.72 in the first quarter, also topping the prior outlook.
Profitability recovered alongside revenue. GAAP gross margin increased to 42.4% from 40.5% sequentially, while GAAP operating margin rose to 9.4% from 4.0%. Both remained below their year-earlier levels. Adjusted EBITDA increased 29.6% sequentially to $36.0 million, while its margin narrowed to 16.7% from 20.0% a year earlier.
Transaction and integration costs related to the Veeco merger totaled $4.8 million during the quarter and $15.2 million for the first half. Those costs contributed to the difference between Axcelis's 9.4% GAAP operating margin and 14.7% non-GAAP margin.
For the third quarter, Axcelis expects approximately $230 million of revenue, about 6.9% above the second quarter, with GAAP earnings of roughly $0.76 a share and non-GAAP earnings of about $1.11 a share. Operating cash flow fell to $18.4 million from $39.7 million a year earlier, and quarterly share repurchases dropped to $244,000 from $45.3 million.