Axcelis Technologies Inc at Bank of America Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Duksan Jang - Bank of America Securities - Analyst : Yeah. Well now on to the fun stuff. Just so for those unfamiliar with the story, would you mind giving us a brief overview of what you do and do you serve and maybe your competitive advantages?

Question: Duksan Jang - Bank of America Securities - Analyst : Sure. Let's focus on the near term for a little bit. You just had your Q1 earnings call. Maybe could you provide us a summary of where you are in the cycle, what you're seeing in the market? And also more importantly, the sentiment might have changed as of late just given a lot of new investments out there. Maybe could you explain a little bit about what you're seeing as well?

Question: Duksan Jang - Bank of America Securities - Analyst : Sure. Just one more question before we get to power. I mean, you're definitely seeing this near-term recovery come through, but there are also concerns that mature node in general is slowing down. I don't want to name specific customers, but we've heard from a couple others base both in the US and in China that they are cutting CapEx. So would that impact your outlook at all?

Question: Duksan Jang - Bank of America Securities - Analyst : Yeah, got it. And now on to the highlight of the business, power devices. Roughly 60% of your sales today. And you've also been one of the pioneers kind of in the supply chain, but we're also hearing that the demand sustainability might not be there, especially given the end market EVs are slowing down China, there are some oversupply concerns as well. But you mentioned record sales last year. So how can we reconcile these differences on what gives you this confidence and visibility that would be helpful? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 06, 2024 / 6:20PM, ACLS.OQ - Axcelis Technologies Inc at Bank of America Global Technology Conference

Question: Duksan Jang - Bank of America Securities - Analyst : Would you say there are any metrics that you look at to maybe calculate any potential oversupply or overutilization as your customer with double ordering? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 06, 2024 / 6:20PM, ACLS.OQ - Axcelis Technologies Inc at Bank of America Global Technology Conference

Question: Duksan Jang - Bank of America Securities - Analyst : What would you say about the competitive dynamic today? I mean, you said Chinese or China increased their local self-sufficiency. Would that also apply to ion implant tools themselves? Are you seeing any threats from local vendors there?

Question: Duksan Jang - Bank of America Securities - Analyst : Would you be able to talk about your US and Japanese competitors? Then I bring this up because Gartner's latest WIP data shows that they gained a little bit of ion implant share last year. Despite you guys doing so well, record revenue, a huge sales increase in power devices. So are they gaining share from you or is it just the other markets?

Question: Duksan Jang - Bank of America Securities - Analyst : Makes sense. Let's talk about memory then, you said a recovery is likely to begin in Q4? You've got a free base, the rest of the industry, I would say the end markets, the DRAM vendors, also some of the other equipment vendors. They've been seeing the recovery a little bit earlier. So would you say there's timing differences just because of the nature of your tools? Or is it because we're seeing lower memory implant intensity is this more of a structural change?

Question: Duksan Jang - Bank of America Securities - Analyst : Got it. I do want to save some time for the financials. You've laid out a 2025 model. I assume the sales portion might have been pushed out a little bit, but you've been pretty much on target with gross margins. But with this lower sales run rate, how should we think about OpEx? What's going to help you get to your OpEx potential target?

Question: Duksan Jang - Bank of America Securities - Analyst : I know we're running out of time. But if I may squeeze one last one, you're having an Investor Day here in San Francisco next month, we wouldn't want to for spoiler for the show, but if you could give a trailer, that would be helpful?

Question: Duksan Jang - Bank of America Securities - Analyst : Sounds good.

Question: Duksan Jang - Bank of America Securities - Analyst : Well, thank you, Jamie. Thank you, Doug.