ACLS - Earnings call transcript Q1 2020 | Axcelis Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Axcelis Technologies call to discuss the company's Results for the First Quarter of 2020. My name is Julie and I will be your coordinator for today. At this time, all participants are in listen-only mode.

We will be facilitating a question-and-answer session towards the end of this conference. [Operator Instructions]

to call, presentation CEO Mary Technologies. like host to of now today's for Puma, would turn over the your Axcelis I President and proceed Please ma'am.

Mary Puma

President is Thank President Vice Marketing Brewer, me Julie. Corporate and today Strategy. you, Executive Lawson, With of Vice and and Executive CFO; Doug Kevin

call participating would so like any to are all remotely, for difficulties. We apologize technical in this I in advance

Playback release service not release. seen also in on a issued press last have our available described night, you on If our available of website. will be as our is it copy website press our

Please today are future forward-looking that Harbor our results revenues, the under expectations SEC's Safe note for comments made statements provision. other profits and about

to are These business. report, in we forward-looking you statements in based described and management's which urge are Form review. subject risks to These other the our on XX-K, risks current in are detail our inherent filings, annual SEC and expectations

expectations. differ do Our may actual to assume any We not results materially these statements. obligation our update forward-looking from current

families laser-focused we and Investor like managing period. carefully in difficult Axcelis, hope global At strategic you the we this during our September. are are this that remain But emphasize healthy I we to unprecedented situation. outlined would at on objectives through I Day your

achieved During model. business the path the Ion milestones key to we first long-term our to implantation quarter, along two market and leadership in

our Purion first order received we Japan. First, from

a and closed on we Second, received follow first evaluation Dragon Purion order. the

accomplishments ensuring and health continuing their to our dedication while employees The these top our and of our is priority made customers. possible, has safety, significant serve

level end to for high support meet meet our their we customers and thank and also our and suppliers global extraordinary the customer strive continuing customer a Purion to in products. give to factory, thank world those employees locations are around of interest who diligently the at the to our as in U.S. want working our home like to you the field in I personally would I heartfelt commitments.

Our per financial was strong. performance above Revenue million. first very of Earnings for was share consensus. quarter well the $XXX and first $X.XX quarter was guidance

first XX%. shipment the DRAM of remaining mix Europe, first During Mature and accounted The of the memory the quarter, for XX%, shipments, system and foundry our quarter geographic and XX% logic shipments for U.S. in Korea our XX% Taiwan XX% China our customers was XX%, X%. the XX%, NAND. accounted

pandemic today's critical that While generated understand is uncertainty for new it industry remains the the has and world challenges in XXXX, is important semiconductor strong. and COVID-XX fundamentally to

required associated day-to-day to uncontrollable business the investment. basis government economies, our pandemic-driven a of and exiting cycle, impact policies, capacity on period to down a Near-term, our of just we manage lower on suppliers. a The world be industry reactions is and relative hurdles will with customers global the

both we expect that done result, to a has customers' As in products investment to a understand develop and can see work significant capacity market technology market for critical still and to advantage. Axcelis segments competitive provide our segments.

COVID-XX differently the see expect We market to react to individual segments challenges.

high in working example, for products and products At and slowed. streaming, communications. This automotive demand. sheltering for have related demand products and time, are semiconductor aviation, same in required for video home place PCs, for Currently, to from includes the

Ion with and manufacturing provide to our these even us specific their with challenges. solutions time, Our work them expertise to knowledge segments implant during difficult closely allow best this customers market for across the

customer investment over as have highly base products diverse down of in well-positioned last several Purion broad developed a during and result are We years. the the we by cycle Purion the and new

In memory all the first new evaluations, quarter, we for closed three applications.

is and This high at NAND current for customer. was most evaluations technologically first One implanter. Dragon the a of Purion advanced our newest these

in tool Dragon the first as received follow-on the order and that also shipped first Purion well. We quarter

other HXXX, systems, advanced our is of the two the Purion the high for for sensor tool XEmax, device image high a Purion most and very also new which energy for applications is on Purion focused level interest designed market. power The the

announced Purion device customer. for power a in XE We also first Japan, a order our Purion

It that begun the be will the growth XXXX. infrastructure new difficult forget industry the easy still and driven accelerate We communications of likely time will in build this is during to into what capability technology. is XG by cycle, extended beginning XXXX XG an has believe and

cycle memory expands, XXXX. infrastructure the other drive devices a XG-capable new phones will As beginning and strong in

beginning there and growth technology bigger strong pandemic this ever applications that are will XXXX, from extremely process even in industrial segment. more very and growth IoT be mature strong driven and One in another thing clearly that cycle the which the upcoming this drive emerges cycle. them for positioned Following support is the than is Axcelis than the will of requirements to that well technology during XG communication last, critical

to like I'd operational Now Kevin discuss turn our to some it details. to financials and over

Kevin Brewer

good and morning. Mary, you, Thank

performance, an strong are to current like to a quarter provide some situation. we respond I discuss actions pandemic on I'd to the our very to of update first Before minute the taking take

that areas to employees, of effort our business and I'll for our saying our extraordinary by suppliers of all customer products. continuing the start due remain demand operational

priority, all and the and doing work safe best Axcelis a are employees for employees. to environment time, this a well-being During we of health create remains our our top

we factory, have from working physical For and our home. safeguards use distancing a home in Everyone who required must have like is work can who work of from implemented those masks.

and challenges in customer impact The support visibility. protocols. are potentially put and our potential our normally uncontrollable our It not teams quarter, while guidance limited did safety government customers, could Mary Field-based following both to provide has path. would. the continuing economic she for required pandemic as

providing not guidance. be As we a formal result, will

creates greater on QX QX. than disruption Based chain active. But and backlog at normal revenue will strong our and products QX and could continues the similar finished uncertainty customer strength activity potential QX to indicating levels, very for I Flotation orders, discussions bookings highlight including around current be unknowns, services. However, and that the record Axcelis current supply remain demand be many our results. to

Now QX $XX.X QX. $XX.X turning system to $XXX.X sales in our at our QX QX. compared $XXX million compared for compared QX. quarter were XX.X% to of above of to QX XX.X% in in XX% results. guidance above revenue QX. revenue compared at the to million million total accounted CS&I top million, finished sales $XX.X the Four sales were customers QX million in first finished or to same in our XX as well $XX.X million at QX. customers

$XXX.X QX. to compared in to QX, our due QX. deferred million QX Backlog below X.XX and million $XX.X $XXX including a expenses. with in QX QX timing of finished was compared million SG&A at $XX.X ratio R&D combined million spending of system of bookings approximately were $XX versus in in million million to X.XX and QX guidance book-to-bill $XX.X revenue,

the were For QX. expenses in XX.X% operating -- of XX revenue quarter, XX.X% or to compared million $XX.X

quarter $XX.X is QX margin million. at three R&D tools, above the gross gross closure the was evaluation lower due Purion in was and to than first including with XX.X% in guidance $XX.X million compared to normal margin of QX SG&A XX.XX% QX. Dragon. the

and targets million XX%, be and gross not track expect achieve to on income QX Although, to full or formal target compared $X.XX QX year share margin million at providing was we per $XX.X share million operating guidance million guidance, gross we in $XXX in we $X.X $X.XX Operating above to in or of and models. remain margin profit than our million $XX.X to QX. QX greater QX finished compared still $XXX net our are per profit XX.X%.

QX. million finished QX. tools, inventory X.X at Inventory million Cash the X.X finished $XXX.X receivables was turns, to compared to $XXX.X from excluding to operations ended million in evaluation $XX.X QX were in in quarter million $XX.X million at $XX.X QX million QX. million. $XXX.X QX. were QX million at in to in compared $XX.X QX in QX. $XXX.X compared payable compared $XX.X million to compared cash accounts

a of million we our program. quarter, the repurchase suspended In repurchased but have stock, common $X.X

a will maintain investment strategy uncertain conservative while these during We the continuing invest to in business times. cash

Axcelis momentum. with entered XXXX great

have some million has achieving $XXX pandemic the lost models. focus $XXX near-term shown challenges, on we our target million not and While us

for expectations products, we customers Purion our intend which Our to have achieve. to continue high

I you back your for now closing Mary the well hope times. to I families this will and that are comments. challenging all of turn during call

Mary Puma

Kevin. you, Thank

with a remain focused of product customer performance on a base, the pleased Purion has balance and team and a are executing the strong for competitive rest year. quarter and Axcelis sheet We well excellent dedicated first diverse employees. line, our a broad of

strengths pull We on leadership us are Ion to result market in through in and counting implantation. period these difficult this

it open And for with like up to Julie? I'd questions. that,

Operator

first question comes Ho Instructions] Your from with Stifel. [Operator Patrick

Patrick Ho

much. QX? gross from Whether hear glad and it quarter logistics to chain, supply of well. COVID-XX there cost, utilization? can And were profile? see on you on how impact is Thank for manufacturing the anything very whether in And the off, you did Maybe an QX? much was a it everyone nice margin you Kevin, discuss any impact even any Congrats start on to or had

Kevin Brewer

Thanks, Yes. Patrick.

So me start around little putting expenses. operating by a off let framework just

we some want people because other of is are the there factories. are couple the places. social in It's inefficiencies from us it's We a seeing the So we in are cleaning to factory. impact of the in that in There's some – hitting within coronavirus supplies, freight, distancing. so supplying addition

move workspaces to had We've out.

QX, as line the So million high me probably order $X.X OpEx the And now, for in for and margin. around gross ask in across QX, working that. number that's and at the this $X time, spread, point right you a if we're it's million as to of Patrick,

expenses, go our which to because terms look going I to when on put to revenue we're the based field. products tool in we and plan currently there slowing everything to investing we're of not new down similar If up to is not We're that $XX at in my you expenses need we put in on that both about in down the the QX, investments. operating are slowing in creep do, a achieved, million QX

situation. this if of QX impact know I'm thinking some to more at time. I'm talking it and in is well there you're QX, – this a it's at point probably – it's aware now, assuming everybody in as at bit. QX we're But – look freight that of right is. it's normal type event. I a just that I of little it a back So type

have ended. right very and and it's get shipments freight to pretty consolidated carriers difficult much mean, material to bring in I out forwarders now

probably piece that where with into freight I that that is does is a along flushes cost. our impact OpEx. some So are one peers into there margin, lot of the gross that, seeing but predominantly think of from And a area go

So buckets. across the that's all probably

Patrick Ho

your about And capital system evaluation the appears sticking a going inventory levels, given that disruption? on standpoint, of you as inventory internal going features your how follow-up little the And helpful. do inventory working From even Great. sheet customers from Obviously, the chain, feel you inventory yourself potential to the of buffer bit balance building maybe, to Kevin, that building the any users. how management. your do mentioned and entire a feel to and turns That's to about your you up the question, improved, further supply some within end be for given customers. their

Kevin Brewer

Yes.

that's good Patrick. So question, a

get everybody it line sure to getting to So, wants in parked. make they're

are driving doing we're the at same lead again, group we're the the material now. little a items, lead looked doing. We've MRP probably the our that, long and also We're items. extra So, for thing earlier. offsets looking We've long right at material adjusted our time bit some lead peer

been watched has from in in in trying chain to We've ahead world Europe, move this event. the California. day-by-day So, because stay we're starting a supply it Asia, of around the

you pull And material thing, can we with almost too, driving had we're revenue to trying strong see And a is now -- bit. thing similar can even a are see of in little ahead stay try so right some And it. the little bit do even our QX. ahead And customers can spare ahead. again, to service a only you CS&I regions a we in to parts

that So, I everybody is it's a think game right now.

it. we're yes, trying of ahead to So stay

Patrick Ho

and China. from a a question in business? terms for March me mix? on Was primarily market you that And and little And Mary, the healthy environment, for level pretty of final saw color Can of color mix the revenues little between foundry give domestic? of bit maybe it between Great. maybe

Mary Puma

Okay.

with that Right China given in the active. very region the we're is And demand the a activity China Axcelis. segments. is primarily a process to segment revenues domestic activity memory in seeing of quarter. significant not very coming Even technology, from customers. It continues from a would that some across there typically obviously we mature process China XX% right all We're but comes global mature of the our portion And manufacturers. approximately from I for important are though only semiconductor in So, our business Chinese seeing any the seeing be the say companies is of really now, a now, customers. of runs domestic quite technology bit mix

active I would a image also very the us. segment say And for to be sensors, continues

that. So, we for continue to watch

prepared. We are

We have we're place those watching. teams the do accept shipments things the and are that all in to and installations

So, region, and that, an that's active we're right to now, we're happy it. very serve prepared

Patrick Ho

you, Thank Great. very much.

Operator

your And from Craig FBR. comes Riley next with B. Ellis question

Craig Ellis

thanks that and Yes, tools Kevin, with with for evaluation I was if there congratulations start the to some large -- the clarifications. reduction, of good business on set in the quarter. wanted investor One, number I we execution are quarter. the ongoing we taking on COVID expansion?. to Purion different an question precluded the just on looked deck, But there wanted adjustments first in start going things cost upward would where aside that nice in and that system trend Purion the and that margin stayed margin performance have have would see we with at unusually

Kevin Brewer

Yes.

biggest look what I it if at the impact gross negative basis margin. that was points of QX Craig, XXX contributed, about -- So, was on that

the see So, margin flowing but things haven't There would basically point area. to been. the you QX, the capitalized buildup you some through that add Most hit gross and can we and if in back, how that bring expenses and lot line, where QX yet time. exactly the of we are do starts a back on because through hit of really it have future they in variances

was basis tools it the eval about about QX points So, was all really and like negative XXX of impact.

cost we're our out on of point terms right of activity, maps. the still In road

that. and folks up talking while from things you're everything. and think keeping aware impacted many I not with for to that factory has Even the though a we've keeping of with home, both and a coronavirus a with with up we've chain do lot up got the doing keeping well events purchasing in are the and we're continue are of about all it, working we're Engineers groups. support been supply lean things,

is people in the manufacturing, and up. keeping point in is supervision this the the the else people home At are some time, from some factory good But news labor support. everybody direct working

with with do still the I'm everything on both maps, we million we $XXX So, the have road And targets target margin we're million to and $XXX in still wanted our track. models. very comfortable our

Craig Ellis

this good Very and environment. certainly a significant accomplishment in

there's that you further that quarter, clarifying point. per one-ish below tools or specific just Just be to the Is some for they funnel. on Not see but looking evaluation guidance, reasonable would color what that? or it think above in

Kevin Brewer

we there's many QX. you, this tell I'll disclosed in than more going what evals So out year

average of I've OpEx got a gross that plenty it, margins So that's because the accounted year about part than greater there's in still evals and seeing hits for of when the Craig. that chunk there, line. investment, I talk of But full big XX%,

number a out closed. coming this we've us cards three was the of though evals in this an against even evals are got of, unusually stacked We quarter. fair So had

a We continuing And fine very margin, from better. presentation. is also mix still to can high at investor you of had see it's Unfortunately, a our but lower get current.

forward, I that QX, against the still we XX average had still above going this But on I'm QX. with at quarter. this So I our said, even going we a what for stacked year few XX.X, us -- based to start things like QX, looking be is expect full

Craig Ellis

That’s great.

Doug Lawson

to key HXXX, for so targets XEmax, future add the Purion the course evals the forth, thing year. products, Dragon The of this are for one and relative wanted just those over evals. Craig, Purion expectations to new

towards really growth model XXX, that's of the products the So and those seeded. getting towards part especially the XXX is

Craig Ellis

within for we Thanks, might what just could Doug. second key mature uncertainty, given how of DRAM the backlog mean the bookings I trend any and you're on with color guidance some first some memory, Mary, quarter? Absolutely. that wanted for the segments if the the seeing specific And there's mix quarter, see but any to on then color added and in strength know might foundry? get not what business the of color? I

Mary Puma

Okay.

look tell bookings what you for the the I So first like can quarter.

in can tools We and in come quarter, that I typically typically quarter. give have you the those bookings it. shipped color one said But around are same some

memory So the mature bookings for that between NAND. memory. between process was And QX, it was even actually and XX/XX in technology split pretty and also, split DRAM

sense. give that you a will So

mentioned call up. last our for are seeing strength we approximately for memory. believe of about how we going shipments in our has QX in us QX. And well. spending we that It into And XX% And that QX, we on in talked as started memory were memory picked

Given impact we specific all we forward, the XXXX. increase have COVID-XX assess have any fact hard still on in the that potential But on, the going it's that to will XXXX memory and to that going spending the activity memory. segment expect particularly

has for devices. obviously We a impact us power automotive that an been impact which or impacted, on has mentioned negative

So we've technology specifically some automotive. in mature seen of a where process slowdown customers of are little the areas focused bit on

But base a line, only is we other large customer continues demand And diverse Purion be attribute positive. than not but strong. that, having to to product having that strong really that

segments, demand, think downward we while some of that may hoping will we're continues and we strong. segments, moving fluctuations But forward. be a in there other in be fluctuations, us market that impact in that that a for think will buffer be somewhat so some And some to provide general, there market positive

Craig Ellis

the with us I helpful. lot for really potentially the out if it sense down conversations in customers. know any with strong beyond things just you you of meeting flattish quarter as up And relates those are the linearity, customer wondering, any Mary, color first given to time help for if there. from a second the environment spend is half? That's Thanks how linearity. just setting could insights Any I'm year's

Mary Puma

going customers. hard any what just we really impact further be of know tell color, business observations we've down to mentioned of economic what's the had But that just then hard their It's the will Yeah. segments. the from is on going look some what's obviously to impact or forward. And demand based happen in I going their on some that customers a that's at our and on of their moving business. is don't now to right run terms how part the are taking market

So we continue to watch that.

I But things quite us. continue be strong. that monitoring on sales basis as said, now a daily are to right teams And that and feeding our into

now uncertainty So right demand of we around as as that other of I have a are the going that good there QX, into for a said, is but factors handle lot on think he pretty the obviously Kevin explained. some

and point Craig, it's much at further out predictions. that So hard to this any make really than look

Craig Ellis

Congratulations Mary. Understandable. Thank on performance you. the

Mary Puma

Thanks.

Operator

And with your Christian Schwab Craig-Hallum next question comes Capital. from

Christian Schwab

morning Good quarter. Great Hi. guys.

Kevin Brewer

Thanks.

Christian Schwab

more great. goes on QX. movement place. that more cautiousness Just strong is as If color in any top the cautiousness any that or the could looking would there little on the you the in quarter -- see the that push-outs customer backlog exact clarity addition, or a on, of for is bit to issues, it When have currently chain there, restrictions, be line provide concern components, guidance clarity certain there's you could you extremely -- over the fears actually supply at you're getting give is

Kevin Brewer

Yes.

the it's matter things fact, push like who customer. now about I'm point. probably chain. all not pull a more than to of demand of customers point right out in supply there's frankly, a the as around this From Christian, So And worried at view,

shutdowns. got in have dealt for out coming that discrete we global. like been keeping I have where the were really still factories of we've than temporary where per with We've to that with supply California. factories things We've chain shift example. things It had is XX might have a more very had of outbreak Mexico, virus from track had the can't shutdowns mean, people is cables,

So the environment supply daily caution is really with changing around the chain.

right may and suppliers shutting -- And a be got look example. know slowing where it again, who's state down of critical operates, to and gets for our supplier there's but can a certainly sudden, people them regulations you've and at now And delivering. back not it's we all down,

now. probably the can So right I most that's color get

why dealing things. are we with little that's being because cautious, we're So on a daily we're bit a basis,

have it on to of go large and that only chain. stop a takes lot fairly We these a can There's you. a supply couple components implanters,

Christian Schwab

or Great. NAND predominant your through continue additions each for finally Is the impacting thoughts, -- Can to That's into about memory begin improved Doug, a reason expectations some see your for impact guys' to of growth believe guys versus an step, you ongoing spending? guys clarity of due XXXX memory growing or or to environment on do Mary fabulous? XXXX. fabulous in Mary capacity no color. that, the spending and in change you you in your long-term demand, the capacity talked and be and intensity beginnings in would that have for we'll DRAM. transitions then, Any And give visions us that color, as on that node capital technology

Doug Lawson

Okay.

and underinvested, especially side a capacity. So I now last as technology of call, -- little in a right the we memory year, on on fair bit amount there's said the there's activity, so think the

crisis. would expect see start So big capacity, where changed the is capacity which XXXX XXXX, of grand it really things that throughout we hasn't still point the we'll continues increases, the COVID-XX on in really scheme to manner.

the of There's in there's seeing activity difficult steps Dragon product -- some there's lot those so we're of a NAND of a So and a implant lot steps. forth. the Hence, some more energy in lot interest of of and to activity interest, high more in relative those steps. the

more adds. it's capacity at with by this little technology think a I Christian, probably point, driven So some

they steps does some layer affect it which for implant -- add the capacity more the need do mean required implanters. add implants within impact usually as but it rebalance and doesn't that sense mind, there's some implant balance in counts, the factory, does in to directly Keep the count, next people layer

is, think, So for XXXX combination the XXXX and see step-up a we're adds. going to really capacity it's where in I

Christian Schwab

tool then the the of And XXXX? leading indicator for as Dragon, out last watching particular potentially in much this gains Should year be eval throughout there. we my Great. kind the eval of question. tools, in market Congratulations share on the

Mary Puma

go mean, I ahead. Doug, – we Yes.

Doug Lawson

of the going what XXX was products have like guess, important the Christian, but are was – the was XXX new say, at talked the are of things I very The we one the VXE that products, and Purion and the the the indicators HXXX, that to model power for I model, Well, very Investor important XXX how ones some tools over growth. model. the devices very XEmax, think some of current newer dragging model, the I the critical are will towards Day the for about some influence

is drivers at So – having be the product the longer-term nearer the are model. set the products, model term, for current evals main think I it impact than the looking on should for as new much more the XXX

Christian Schwab

helpful. very Okay. That's you. All right. Thank

Operator

next comes Tom from your And question D.A. Davidson. Diffely with

Tom Diffely

Yes. morning. Good

flat be gross I are coming you margin the cost bit first, for, even from a extra are clarification the guess, quarter-over-quarter, Kevin. revenues extra think some – So sounds corona though if there like the costs – It up little margins a coronavirus? from will

Kevin Brewer

expect quarter-by-quarter to margin get to XX% And I see year, this have fully baked activity QX to the And in into going QX point, have where, throughout this out not I majority full know going point, evals the in have at I expand, this to do. have margin business we'll we're QX, on at Based better based continue know continue which Yes. currently to there's of play year, hit what it, those we're the does mix, I is QX the impact, gross the at on which I on to as Yes. that, the for the assumptions. point, today. that that than the see greater in – impact we're cost three

Tom Diffely

Yes.

to at end how with the from very A that. for see specifically see while, great. order do when the here, look all for to little get at companies And the on very there Okay. shipment the Dragon, market products, out? rolling a the markets? That's we obviously you helpful. NAND DRAM logic and so or market, it look color ultimately new looking you a stay a are Does three that then then But nice would and be or follow-on

Doug Lawson

Okay.

it logic initial logic and – the see for the and the There's strong DRAM side. their started interest And interest in on demand just in we'll strong based customer their looked out. needs And has So, that both on at technology still NAND the as roll on side side. there's started the advanced product well.

agents the applications So what the for of for of strategy fits team each different think, and they of marketing for the of and and needs Tom, of and the customers, we technologies. the recipe can't each for go specifics have But Purion team the into I Dragon the customers. sales a for each sort the combination

think starting this as DRAM I see year activity to see into over surprise So it's and of certainly you next to me well. with Dragon, expect NAND, should course wouldn't the year

Tom Diffely

Okay.

advantages a Dragon the evident not structure? more on it's based DRAM on more or versus suited towards where technology the NAND situation are the So

Doug Lawson

demand. not it's specific No, Yeah. absolutely

existing of all three requirements it's – on uniformity So products whether those have the NAND, technologies, the all of market. than at is logic, the structural that similar Dragon or and better things advanced DRAM

Tom Diffely

Great.

penetration you And is that Okay. market for then right the big into finally, at Japanese look a the now? how market, when

Mary Puma

XX% represents we of – overall actually billion $X that ion about the Japan actually Japan think that think Implanter. We

So, have about there $XXX for not we million, a sold number of years.

a was because we're we a Just It very for did excited just recently systems, a legacy Purion a broke from product. our Japanese in some customer. receive application device back power sold but and Purion first for

that, in expand market we many So, have believe into customers opportunities we other to other now segments.

from the Japanese process want and Screen, Screen have years because Axcelis working we the with customers working with But the sales We're directly last lab. in equipment are is customers. large we've two with their learned ion collaborate an to associated that to from very technical of We closely Implanter. the highly with actually that, continuing buy of over one things

years, the recently over and few organization, fact, building have, we we in a to manager. own staff a been And So Japanese direct our team. Axcelis continuing hired last we're Japanese country new

So it. we're go it's a large to aggressively planning and opportunity after

Tom Diffely

color. Thank you. your Great. Okay. Appreciate

Doug Lawson

let if is add is the lesser market is model, one model. just have something This XXX -- thing. this another think can Tom, XXX Japanese that one march on more the to me where impact important we on the I

be time. we'll And so we something it's some patient and expect that with will take

Tom Diffely

Okay. Thanks guys.

Operator

Steelhead David from comes Duley, Securities. question next Your

David Duley

questions I of Most the book-to-bill, strength orders in the still few. and guess answered, guess, substantially, up and have been book-to-bill, your first the orders I were my a have is Yeah. But out but X.X. you in question got you talk shakes surge your you revenues, just about would everything was we've that expect, would flat you kind expect if why be as Could implied orders? flat. of I

Kevin Brewer

commitments. at could point, know with we looking gets day-to-day, we're happen in what chain again, this disruptions. from believe can don't we what we what our of is, deliver supply And Well, of terms way on kind in

could But at day-to-day feel point, again, the there's could similar. be we interrupted. this it So be things that

million. I think strong out the mean, pretty backlog I backlog, a it's have or too, We $XXX order coming

at little can we bit, this a just up time see So that's we going be things in to are where going but point up to...

David Duley

quarter, to is one during of the you're this than the rather quarter, backlog out more lot booking guess, going assumption. ship So I ship a

Kevin Brewer

a of lot -- quoting activity. mean, it's still still I We

strong QX point. remains quarter. activity -- be mean this at we strong another that Quotation bookings So doesn't it can't

numbers, and the at seen that customer I that quotation backlog, is the on seeing, to the And think demand in seen, that still products. the So key a based we're QX Axcelis haven't news at hasn't real on point. activity least we and expecting so we're based bookings fall-off for this good is far continue

David Duley

Okay.

So it's revenue you point? the say supply customers fair any to constraints that driven have than demand side from rather this at on or

Kevin Brewer

Absolutely for QX, yes. Yes.

David Duley

Okay. And…

Doug Lawson

and forth When forth. a add out mature the get the bit some could technologies, I if those specialty you Dave, and so the of in markets segmented longer guys And and so markets into little plan terms of do on process just that. POs and

same -- alone more the which quarter together. and in much the when to tends book very are ship bookings is some memory, some these -- So in of necessarily close be markets not versus

David Duley

you as kind And geographic agents the do gets domestic you the And and into the think I the European guess, guide of the come one a activity of expect we their for exposure might to seeing Okay. improves? in you as they are I can China. improve first, that, a good pandemic they to goes, Chinese curve? far guys be U.S. as have when realize that economy to And of point went then Chinese same what lot and substantially out. then, revenue first the But were

Mary Puma

did the I the quarter, So Dave, They part. pandemic. of I most change actually fabs think job the they don't while going, from continue height were saw significant a during for in keeping The to even first a things good through China, pretty would demand we going the say, run. of

fabs. I I'm those goes thank making installed We really and we the for didn't that continue those equipment to to in in equipment any But new significant happen. say see that China. to our slowdown not actually employees going We want without challenges, in service fabs.

the part, QX, is So asking bit change in chain hasn't bit nervous significant if customers some moving if not out anything, business usual. but any been a any pull-ins, pretty have I been for accelerated most earlier, as a about little maybe products, they're much supply say, that way sure Kevin they things I'm little There projects issues. laying their what in much would as acceleration have mentioned that's into are in for and the it's as it

to to able ship products and And are we on we take, they're in time cases, them us can earlier. make take to continue work to so their they earlier happy that out some sure get us shipments contact the and with if

David Duley

me evaluation quarter, Okay. Final far during the I is, the three. as that placed I were mentioned, systems guess, March question as for

in one You the evals. for or got evals? evaluation when systems quarter, other from follow-on follow-ons other for the those those would follow-on expect orders orders of current we we two Would expect

Mary Puma

meaning customers, short-term, the something evals. the the think investment evals time. on They timing those given see the I that some for are quarters. it's are of plans of on in of those We've But working quarter, the going all things don't going been I memory So, with the maybe that a of were necessarily to applications. we're customer think long and next two even

It's just planning right an on simply I'm with investment. And of make result pandemic. have things not and customers the those when what's now to a going function of as are those any of sure changed going significantly a

that for in known advance a something we while. or I knew think have it's

David Duley

questions. my answering for Thanks Great.

Operator

Mark question [Operator Benchmark Instructions] from with Your Miller next Company. comes The

Mark Miller

I'm is at Thank healthy everyone you question. for Axcelis. glad the staying

Kevin Brewer

Thanks Mark.

Mark Miller

You're welcome.

tools terms eval do any of currently? have Japan tools, In in eval you

Mary Puma

we're any in No, that we Japan seeing to tool an eval don't eval. The not be is going currently. tools have

now right are outstanding customer used year. we sensor will within forecasting by that We an is have this being one close that image evaluation

as and the mentioned, to working we we right going that evals with the have have additional year. But we're customers of on products and will new out mentioned, Doug lot throughout see Kevin market a now

significant of again, a Kevin our driving XXX It's model. mentioned, it's the to for us investment. But In for for make operating great year. of is expenses the which, one and XXX number things fact, as a the evals for going future out, the

Mark Miller

component believe I in impact correct? mentioned you weren't the major really terms of that Was for equipment you you supply because of seeing your any virus. said

Kevin Brewer

No.

and -- So yes no. guess, well, I

so been and But far have of been we're factory most So, them daily the issues definitely been nothing on there's basis, hard. date in others. some taken down impacted the we've than longer able But stuff. It's to resolve Mark. in put of work around around the things. terms working this had, issues to the to able point, a at We've of we've starts us been has

what suppliers their mentioned, is had I deal actually -- to the down but there for to know had have as this know factories and And I are don't where unknown I shut they at some I and probably are of I some biggest time. outbreaks with impact point. know, the the what discrete there And don't smaller know. we a period of

of kind we're around. that's what So, navigating

know to world restrictions. various to in have of of governments where handle a there the going the think the are We are on do I suppliers. we of terms good our capacity what around

You with. working know what limitations the are

what is but buy. buy we daily a on change and go basis parts there's into millions could that's that parts, parts this about discrete -- we more of again, components a of the So, lot

So, it's even to whatever. or capacitor component transist know hard it could discrete happen any or

anyway, this So what working know around point, Mark. we're at we

Mark Miller

that the more tax rate normal to You of of corporate back quarters March go to Is benefited quarter. a year? the in from lower rate this rest the tax corporate in going

Kevin Brewer

in mean, I think to could to going Yes, we've is quoted I'm different pickups always if be we're not we're going sure there. I There -- -- still XX%. XX%,

but We up tax QX. example, still come have we're credit, was for it it where through, R&D working from probably in that will

Mark Miller

was was low, it the reason? R&D Was What so the credit in? tax phasing

Kevin Brewer

was that a through credits we in. there that had we Yes, phased

Mark Miller

Thank you.

Operator

Craig And Riley your Ellis comes question next FBR. with from B.

Craig Ellis

Yes. Two, Thanks follow-up. for please. the taking

so? what's or is First depiction Is XX% that stay XXs it the to on, sales. China, has over of high historically mid- the back seeing in been view Mary, potential towards the about China hearing around that fair then from we're the a quarter seems to next team of that more what drift

Mary Puma

China. do that a out the I'm large I give contribute you portion expect going rest of we to on moving guidance any will say to year. it the through of Craig, to our continue revenues not

Craig Ellis

one Analyst where team Day, work slides goes the XXX the relative new the the technology, I models, more the Okay. for custom to the and across opportunities done of membrane, And XX market mature XXX product logic advanced, and the question product. incremental then Day. follow-up At to Analyst is strategic, it more to across XX sees company process implant segmentation recipes those as in had thought interesting that back and

and placing those XX in recipes? move team XXXX, the what where Mary, product will in incremental year we terms of progress, expect should exit we into XX be XXXX through this do could As to we And there?

Mary Puma

want Doug, that? do take to you

Doug Lawson

Sure.

So, is we're XEmax the image key Craig, sensor after recipes. the that space in a several going product

lot that other closed time over we the So certainly hope valuation the one expect systems follow-on And we'll that of has see Dragon in and would into and a first activity interest, before. frame NAND the you're for as discussing. DRAM that I mentioned first over of Purion we would for hopefully has NAND questions, eval that expect a and in that order, additional cycle. logic and

device me, Purion Purion is market. power then the first the targeted And is HXXX, and -- at excuse H foremost

the for to so those because reducing customers a is there's lot much of overall of key applications, devices. a there And which interest their cost it's tool productive the in more

new that I see next applications So evals systems. of many years we you that should especially, over couple think many of -- and described, three of this those

Craig Ellis

Thanks, That's great. team.

Doug Lawson

Thanks, Craig.

Kevin Brewer

you. Thank

Mary Puma

you. Thank

Operator

closing the call to conclude will And call. does I the Q&A the remarks. Mary now it make Puma turn of back who over portion will some

Mary Puma

call, Thank this us like thank virtually our everyone conferences I'd Julie. to can we for you, you join listening hope to several and for spring.

Sector XX. Conference Insight be Cowen XXXX and Stifel the XXXX Institutional Conference Media will The Conference on Technology XXth the on Craig-Hallum X. Telecom Annual in Cross and XX, Investor on We May participating May June

you roadshows please stay We We your B. the support, non-deal and quarter. thank healthy. participating and D.A. Riley in during with will Davidson virtual for also be continued

Operator

presentation. the conference. concludes Thank you today's in participation This for your

disconnect. now may You

Axcelis (ACLS) 6 May 202020 Q1 Earnings call transcript