Axcelis Technologies, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenue reaching $213.6 million, a decrease of 16.7% from $256.6 million in the same period of 2024. The company's product revenue fell by 18.5% to $201.2 million, while service revenue increased by 27.3% to $12.4 million. For the nine months ending September 30, 2025, total revenue was $600.7 million, down 21.5% from $765.4 million in the prior year. Net income for the third quarter was $26.0 million, or $0.83 per diluted share, compared to $48.6 million, or $1.49 per diluted share, in the same quarter last year.
The decline in revenue was attributed primarily to a decrease in system sales, which accounted for 94.2% of total revenue in the third quarter. The geopolitical environment and trade tariffs did not significantly impact the company's financial results, although management continues to monitor these factors. The company reported that its ten largest customers represented 53.7% of total revenue for the nine months ended September 30, 2025, indicating a concentration of risk in its customer base.
Operationally, Axcelis has made strategic moves, including the announcement of a merger agreement with Veeco Instruments Inc. on September 30, 2025. This merger is expected to close in the second half of 2026, subject to regulatory approvals and stockholder consent. The company also reported an increase in its cash and cash equivalents to $187.5 million as of September 30, 2025, up from $123.5 million at the end of 2024, which provides a buffer for future investments and operational needs.
In terms of expenses, total operating expenses for the third quarter were $63.8 million, slightly up from $63.1 million in the previous year. Research and development expenses decreased by 6.6% to $24.6 million, while general and administrative expenses rose by 17.4% to $23.3 million, primarily due to increased merger-related professional fees. The company continues to focus on maintaining a strong cash position to support its operations and potential growth opportunities.
Looking ahead, Axcelis anticipates that the merger with Veeco will enhance its market position and operational capabilities. The company is also evaluating the impact of recent legislative changes on its tax obligations and overall financial strategy. Despite the challenges faced in the semiconductor market, management remains optimistic about future growth driven by ongoing investments in technology and product development.
About AXCELIS TECHNOLOGIES INC
Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and semiconductor processing equipment used in chip fabrication. Its core product line, the Purion family, serves leading global semiconductor manufacturers, focusing on high precision, productivity, and process control. Axcelis supports customers with aftermarket services including upgrades, spare parts, and training. The company operates a direct sales model targeting semiconductor fabs worldwide, emphasizing technology leadership, operational excellence, and customer satisfaction.
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