Axcelis Technologies Inc Q2 2024 Earnings Call Transcript

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

Question: Jed Dorsheimer - William Blair - Analyst : Hi. Thanks for taking my question. I guess, just it's been less than a month for since your Capital Markets Day. I'm curious, as you look at the business and you kind of segment the systems, it seems like, the power business continues to maybe bounce on the bottom or get a little bit worse while you're seeing, continued strength from silicon carbide. Has there been any changes since your Capital Markets Day, recognizing it's relatively recent that would change that opinion or give you more or

Question: Jed Dorsheimer - William Blair - Analyst : Well, thank you. And, that kind of leads me to my follow-up. I mean, all of that sounds very reasonable and -- but as we look at `25 and the $1.3 billion, it seems like the pathways to that are getting narrower and narrower. So I'm just curious at what point do you reassess, that expectation in 2025?

Question: Tom Diffely - D.A. Davidson - Analyst : Yeah. Good morning, and thank you for the question. Just curious on the backlog and bookings, it looks like the backlog fell by more than the delta between the bookings and the revenue. I'm just curious if there were any cancellations or push-outs that you saw?

Question: Tom Diffely - D.A. Davidson - Analyst : Okay. So nothing of note. Alright. And then, Russell, I was hoping you could maybe point us towards a few of the end markets that you're really paying attention to or end market products to drive the General Mature business over the next year? I mean, are there certain key products launches out there that you think are kind of key to your recovery?

Question: Tom Diffely - D.A. Davidson - Analyst : Okay. And then, just finally on the automotive front, do you need to see an automotive recovery before you make more progress in the Japanese market or are those two things not necessarily tied together? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 12:30PM, ACLS.OQ - Q2 2024 Axcelis Technologies Inc Earnings Call

Question: Tom Diffely - D.A. Davidson - Analyst : Great. Well, thanks for the extra color.

Question: Craig Ellis - B. Riley Securitie - Analyst : Yeah. Thanks for taking the questions and, nice execution in 2Q guys. Jamie, I wanted to start by following up on one of Jed's question. It's more near-term. As we look at the potential for modest half on half gains, it seems like what we're saying is that revenues for the full-year could be around $1.25 billion to $1.45 billion. So the question is, is that the right range? And I know you indicated that there was some pull-in activity in 2Q. But beyond that is there any change to what you're expecting in the second half versus three months ago?

Question: Craig Ellis - B. Riley Securitie - Analyst : That's really helpful. Thanks, Jamie. And then, the second question is more of a longer term question, and it also follows up an earlier increase. So I totally get where you are in the annual planning process and that leaving the company challenged with making a call on next year's 1.3b potential. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 12:30PM, ACLS.OQ - Q2 2024 Axcelis Technologies Inc Earnings Call But I'm wondering, if you can comment on, where the business might be if we just set aside the potential for end market improvement, which requires a crystal ball from here to year-end. But absent any improvement and in a kind of a market neutral environment, any color on what calendar `25 might look like so we can better interpret how it might shake out as we go through the next three to six months? Thanks.

Question: Craig Ellis - B. Riley Securitie - Analyst : Yeah. It sure helped to get better PCs and smartphones. So appreciate the help, Jamie. Good luck, guys.

Question: Ross Cole - Needham & Company - Analyst : Hi. Thank you for taking my question on behalf of Charles Shi. I was wondering, looking into the third quarter, do you expect the breakdown of system revenue to remain rather consistent with what you're seeing this quarter? And then do you expect any shifts in the revenue by segment going into the fourth quarter full-year? Thank you.

Question: Ross Cole - Needham & Company - Analyst : Great. Thank you. And then if I can follow-up on your expectations for a NAND recovery, as the market does remain soft, are you expecting the demand to drive growth in earlier 2025 and maybe later on in the year? Thank you.

Question: Ross Cole - Needham & Company - Analyst : Great. Thank you, Russ.

Question: Duksan Jang - Bank of America - Analyst : Hi. Thank you for taking my question. I'm just following up on an earlier pull in question. Because you've already preannounced results for Q2 in early July. I was just curious what changed since then. And then if you could just provide a little bit more color on the customer profile, how much the pull in was and if it's a one-time phenomenon?

Question: Duksan Jang - Bank of America - Analyst : Understood. And then one on silicon IGBT, and hopefully my math is correct, but I think in Q2 you've done around $39 million in sales. That's quite an uplift from Q1, it seems like. So do you continue to see that strength going into second half? And over the long-term, how much of a contribution does this have to be to get to your $1.3 billion model and then your $1.6 billion. Thank you so much.

Question: Duksan Jang - Bank of America - Analyst : Got it. And then if I just may have one more. We've been hearing a lot that China EVs are doing quite well, but the Western demand is a little bit more subdued. So I'm curious if you're seeing similar profiles out there just around that demand would be great. Thank you.

Question: Duksan Jang - Bank of America - Analyst : Thank you.

Question: Jack Egan - Charter Equity Research, Inc - Analyst : Hey, guys. Thanks for taking the questions. So you guided for a slight increase in revenue in the fourth quarter and then you mentioned memory is probably going to kick back in that quarter, in the fourth quarter. So does that imply that with the flat to up or slightly up revenue guide that there might be some weakness elsewhere? Or is it just that the actual impact of the memory rebound in the fourth quarter is pretty small?

Question: Jack Egan - Charter Equity Research, Inc - Analyst : Okay. That makes sense. And on the IGBT softness, there have been a few prominent trends there over the past few years. Obviously, we've seen China build out pretty good bit of capacity for IGBTs. And then also some of the leaders in Europe and the US have kind of started moving to 300 millimeter Power wafers. So can you kind of give us a general idea of where that IGBT softness is coming from? I mean, it sounds like it's probably outside of China with China being pretty strong. But is it just kind of a general slowdown after a few years of strong growth? Or is there something else at play?

Question: Jack Egan - Charter Equity Research, Inc - Analyst : Got it. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 12:30PM, ACLS.OQ - Q2 2024 Axcelis Technologies Inc Earnings Call

Question: Mark Miller - The Benchmark Company - Analyst : Thank you for the question. Just wondering if you can give some detail on the emails that are currently underway.

Question: Mark Miller - The Benchmark Company - Analyst : The ones underway, please.

Question: Mark Miller - The Benchmark Company - Analyst : What do you expect the tools currently under evaluation to be signed off one?

Question: Mark Miller - The Benchmark Company - Analyst : Thank you.