Axcelis Technologies Reports 23.7% Revenue Decline in Q1 2025

Axcelis Technologies, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $192.6 million, down 23.7% from $252.4 million in the same period last year. The decrease was primarily driven by a 24.9% drop in product revenue, which fell to $182.8 million from $243.4 million. In contrast, services revenue increased by 8.8% to $9.7 million, compared to $9.0 million in the prior year. The company's net income also decreased, totaling $28.6 million, or $0.89 per share, down from $51.6 million, or $1.58 per share, in the first quarter of 2024.

The company's gross profit for the quarter was $88.8 million, resulting in a gross margin of 46.1%, slightly up from 46.0% in the previous year. Operating expenses remained relatively stable at $59.6 million, with research and development costs increasing by 5.7% to $27.1 million. The overall operating income was $29.2 million, down from $56.5 million in the prior year, reflecting the impact of reduced sales and increased operational costs.

In terms of strategic developments, Axcelis has continued to focus on its core business of ion implantation equipment for semiconductor manufacturing. The company has not reported any significant acquisitions or organizational changes during this period. However, it has been actively managing its stock repurchase program, with an additional $100 million authorized in March 2025, bringing the total available for repurchases to $215 million. During the first quarter, Axcelis repurchased approximately 274,000 shares at an average price of $66.22 per share.

Operationally, Axcelis reported a total of 32,129,538 shares of common stock outstanding as of May 2, 2025. The company’s customer base remains concentrated, with its ten largest customers accounting for 67.3% of total revenue. The geopolitical environment has not significantly impacted the company’s financial results, although management is developing plans to mitigate potential risks associated with trade tariffs.

Looking ahead, Axcelis anticipates that its existing cash and cash equivalents, totaling $184 million, along with $403 million in short-term investments, will be sufficient to meet its operational needs. The company remains committed to investing in research and development to drive future growth, despite the current challenges in the semiconductor market. Management has indicated that they are closely monitoring market conditions and customer demand to adapt their strategies accordingly.