ACLS - Earnings call transcript Q3 2020 | Axcelis Technologies, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Axcelis Technologies Call to discuss the company's Results for the Third Quarter 2020. My name is Katherine and I’ll be your coordinator for today. At this time, all participants are in a 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 go Please ma'am. ahead,

Mary Puma

President is you, President Vice Marketing Brewer, Thank me Corporate and today Strategy. With Executive Lawson, Katherine. 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

provision. and site. release based Playback not our management's our seen report, that will as business. on detail urge These SEC a forward-looking results issued Form press subject statements last profits, are These to our in about filings, have our annual review. which are available inherent forward-looking site statements current risks night, made for you on comments available If Harbor our under press be in expectations future and in of the Web XX-K, service Safe also Web the note on risks to revenues, described our is you it other copy other are today expectations release. are and our Please we in SEC's described

driving Despite brought. expectations. Our turns Axcelis and joining to materially the many actual differ our do growth this, a has and certainly Good key Purion from XXXX on obligation twists in an the us. year results assume year. not has thank be any update current unusual statements. may forward-looking has markets for these while We morning you to focus addressing proven maintained

from the lab Beverly of to COVID-XX protocols, health facility is of we our working the in and continue home. other capacity our environment. operating full at recommended Let’s top implementation start all employees with which employees safety the with priority, Through run manufacturing the our

safe meet in working to with around that their our teams thank requirements are the products. our and are around guidelines employees we Purion to like to customers want also able we I of customers diligently our world I thank local high strive satisfy closely suppliers would support, to continuing to manner. our commitments. to customer in interest sales their personally customer and their as a according for working world extraordinary who the operating to meet are ensure the level Our are our

met third and Our million million XX.X% quarter the financial with third at $X.XX, consensus. per of quarter for performance of balance share guidance exceeded cash was $XXX.X or $XXX.X quarter Revenue margins earnings gross and of a end.

and third the Europe mature The The to for Korea. with the strong systems significantly to XX%, in continuing of than which aftermarket Axcelis, Japan strength a our and is of mix XX%, our shipments in X%. third where expected critical as been foundry quarter quarter. mix through China Our revenue to refer of area contributed and memory highlighted went this during This continued been has again CS&I, be gross technology or what systems especially markets for business, once strength down. XXX% we to margin. mature an slowed logic longer process quarter, mature in also the X% geographic shipments both third China market strength our logic with market year, Axcelis the foundry has the the customers. Korea China of highlights This this

continue significant a toward the will mature also be foundry to expect for in account percentage although of fourth our shipments. logic. QX, China will heavily quarter shipments We be will there memory quarter some weighted

technology equipment the of During mature important to certain Chinese quarter, restrictions foundry Axcelis new SMIC. and semiconductor on in customer, third sales the market. imposed customer U.S. an the SMIC process materials the government is especially

applications of parts SMIC as new a the license they the After require to for, ship careful are for restrictions. the that examination mature used thoroughly currently licenses have shipment. future. receive expect are that will in we systems will We Tools needed assessed and affected we and our

guidance. to turning Now

expect given revenue Using will and guidance, is than to million well expected for Axcelis million, of performance year-over-year. of fourth $XXX per that revenues operating the several total models be to quarter, XX% and approximately less next For our of in gross over strengthen, is will earnings the target revenues approximately QX profit memory we spending be $XXX share up million account Axcelis XXXX. When approximately years. of $XXX memory positioned $X.XX. margins strong approximately of XX% does This $XX million XX%, achieve

business Continued growth of models. Purion products is to long-term achieving our the key

shipped Purion three high this is increasing and new During power expected segment. We is Purion the device a The HXXX Purion company. our we quarter, leading play in for XXX in a Axcelis power to evaluations. market and key first critical base device product current market the third the share shipped role a to customer market

key customer. a The is two for logic million first leading The Purion logic other $XXX evaluations segment systems, are a market for model. advanced H shipped our focus advanced to the

second for of Purion for This our our customer. penetration a Purion existing expansion sensors; and NAND Purion within the logic; product that Purion a of segments field. both for is application. at Purion a systems powered long-term customers Purion includes a evaluation in evaluations strategies an HXXX applications; $XXX million footprint Purion a models. the for devices; the H and products, focused represent new to At The QX, both we had a six customer XEmax, existing new uses Dragon Expanding element image Purion Purion of DRAM critical a acceptance the NAND advanced our footprint on the VXE the into for end XE. $XXX H These shipped our market H million currently of second and and

additional adoption. to over evaluation with units next year expect Purion to ship customers continue we We closely as on further the work

the reviews I Kevin would takeaways. four summarize to key Before financials, like

technology the strong growing ion and very mature implant Axcelis this the process in First, leader market segment. and market is is

needed important shipments. an Axcelis to receive we for and market for we licenses SMIC that continue expect will be China currently Second, as will

to Purion extremely is be expected mature XXXX And well technology and support will positioned our strong to is process growth. family memory fourth, recover and product to in this business. future Chinese additive Third, the

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

Kevin Brewer

and employees the in-line Axcelis outstanding delivered third you, supply drove Thank earnings chain partners. to share revenue and with above around good estimates. work Mary, gross continuing performance consensus thanks performance, morning. well and solid quarter Strong per company guidance margin

top the well priority. During of health this and ongoing our remains employees pandemic, a being

best for We at our working create safe a are everyone doing Axcelis. to environment

been required from distancing, For so in continue million by work while in Axcelis following continuing support to masks. to have virtual and party and revenue sales successfully working use solutions. achieve customer continuing home, physical and of enforcing protocols. country-specific screening, million required models. daily so creative employees, teams We invest we'll remain is products our do focused to models, now. support and employees Field-based from to $XXX Everyone Tool $XXX face factory, completed our third required target for to can channels on work installations and while home our we’re are customers who these

including finished customers finished million million investing I XX% million in QX. can specific of to for due revenue, million QX aimed productivity quarter, versus the XX parts $XX.X in capital strong QX QX. backlog QX. quarter We and Additionally, or system book at in million customers to had QX, expenses fluctuate the $XX.X bit system bill utilization of order to QX revenue in $XX.X were quarter now top in QX. finished a compared capability $XX.X QX quite capacity. QX. $XXX.X will a in consumables of to and sales compared CS&I to [ph]. driven at Backlog for new to million in QX compared with $XXX of X.XX ratio bookings million a our to technologies manufacturing the at in sales Three spending Bookings were to third QX. of to within million deferred spending in fab at $XX.X same turn XX.X% growing higher was SG&A QX $XX.X R&D the at $XX.X QX. some revenue QX QX. and results. $XX.X of XX.X% improving $XX.X quarter with working were million spare revenue with the likely and or quarter. bookings XX% R&D quarter. third accounted Shipments $XX.X or customers we to by practices at above. to the entire have combined in in million was SG&A already date million and compared and million. customers and million XX% $XXX.X compared exceeded been compared maintaining remained compared $XX.X sales level the and QX million total X.XX in

in as QX units. VXE to expect $XXX QX. pandemic. by over We numerous mix Purion target gross product to highlighted we costs evaluation margin higher gross expect also to and contribution, margin and million evaluation and Through approximately mix to fluctuate was margin associated margin extensions, gross ongoing time, the was and support our consensus gross $X.XX million per XX.X% closure QX compared compared efforts. is compared $XX of approximately efforts planned million expenses in sales operating margin and improve strong million model. of our additional cost-out in some around systems net Gross XX.X% $XXX well product $XX.X share the in be QX. $XX.X level QX gross margins and income million or in was a XX% $X.XX QX with driven and per million CS&I profit can QX. QX QX based contribution, on or to Operating XX%. CS&I product to $XX.X ongoing finished expected customer year with above million $XX.X quarter-to-quarter cost-out to at share full be at

million pandemic-related compared ended inventory million timing the support million million across forecasting Inventory inventory QX to accounts at $XX.X shipments in Cash QX expense in of $XX.X X.X turns, additional QX compared million and in of million in excluding to from at tools. in $XX.X are $XXX.X due spread $XXX.X to compared operations payable X.X $XXX.X compared We QX. eval finished $XXX the QX. evaluation to finished X.X at of QX receivables tools, to $XX.X QX approximately P&L. million QX million QX. in million. million in $XX.X to cash compared was to QX. quarter were

program a stock hold we on maintain as remains Our repurchase continue cash conservative to strategy.

Axcelis revisiting Board in to this with and plans our capital develop to be will return the forward. expect QX to investors moving We

the of strong and prospects automotive about XXXX with and market. excited recovery XXXX finishing are the memory We the in are momentum

We $XXX and our needed $XXX have model. necessary to in target investments products and million for infrastructure continued make the million our

Purion continue Our our have for products high I’ll Mary And to the now closing to achieve back which call for customers comments. intend to we expectations you. turn Thank

Mary Puma

Kevin. Thank you,

in our We quarter as XXXX pleased overall. third expected performance as performance financial with are well our

base, model. business new evaluation and Axcelis competitive to both strong a target are on to Purion-based in will product position We line, employees. sheet, diverse for These Axcelis drive strengths extensions will broad open to market I'd the growth, Purion balance a that team Katherine. to of our continue shipments and and and are leadership a like has questions, keep Purion excited up a product by enhanced implantation. of achieve track ultimately recent upcoming that, With customer it ion that products the our dedicated

Operator

[Operator Instructions].

Our first question from with comes Stifel. Ho Patrick

is Your open. line

Patrick Ho

segment? off very of saw first mix” you terms the of maybe that changes little of and quarter, on any see third Thank the can that strengthened color whether a the quarter “market and mature you more third in the much the congrats of you a on terms quarter. Mary, in note you [ph], during give nice types technology devices in

Mary Puma

So, going as a just strengths, recovered really it's business. a said positive in automotive we We to is lot the device image power in that particular, growing the memory technology – market. of mature the hasn't yet. and that's very mature we see and said, and general foundry be see recovering and process market sensor for strong We

segment. QX So, back memory But to no shipments we expect do had to QX. bit a systems in come memory the in we

China in technology So quite mature in us fourth that segment actually mix And segment is our But strongest going the the change quarter. general, the be segment for strong. is a will bit. process to

QX. we you of had know, XX% in As shipments

would strong China from in get be of to segment. that say we And continue in will the business QX. it process mature So the I majority technology the is

that region So continue from to or well. see come we'll from segment business that as as well,

Doug Lawson

to just bit little a to Patrick, that. add

mature the utilization running rates. So high at are foundries very

is work little to related to in mentioned, of from the and environment. and home all the all the as just monitors automotive all to in recovers. that addition is strength the strength But in sensors, had benefited so into starting that power as that a products image go parts gaming market glue TVs from And Mary device come back and lot material making stuff logic, the actually systems the

a markets. to the So mature that's boost of a bit little

Patrick Ho

you Maybe, the of helpful. Kevin, CS&I gross follow-up mentioned terms question, efforts. in Great. as margins, how as mix my cost-out well as That's

given talked quarter-to-quarter As on quarter basis you've evaluation kind we impact gross in units a biggest margins? that the the the at December of the affect terms QX, look about, of variables is that

Kevin Brewer

Yes.

So we've said accretive. as CS&I, always that's you Patrick, kind out, point of

So have big a that whenever CS&I we certainly of helps. mix

that the high Purion themselves, medium energy It there. relative current page highest lag Within point in margin this with investor does have high we presentation. the show the being products of and products the gross in current kind the

margin year, though said, remember, QX. what as hits, to And So, eval does to evals be versus Evaluation we're those mix move more because with our start And off shift average drag. as product point range, if XX%, a high it margins. typically is will I or is it. tools, high we going XX% more the those you move CS&I a in we there over. full when there We're even year current in [indiscernible] is versus in several you convert are this had energy out, tough systems, all got of

what of in, So is alleviate certainly quarter. that. mix sometimes the going some going help depending is impact can the you to they evals the rest forward, come doing, of But as the

drive detailed But got our If have with perfect have to as think like models a got been We've we've we costs forward storm, target XXX. towards a lower executing in that for and place out. evals, And said, lot roadmaps I and XXX there continuing [indiscernible] we margins we a the you of that of those move out high is you currents models. are that's storm. and the perfect lot to I

Patrick Ho

you very much. Thank Great.

Kevin Brewer

Thanks, Patrick.

Mary Puma

you. Thank

Operator

you. Thank

B. next Craig with Riley. Ellis question Our from comes

Your line open. is

Craig Ellis

and good the Thank and financial the team the you execution questions strategic taking for congratulations in quarter. on

up So, commentary. of Mary, start wanted I on CS&I to some by off following your just

So the structurally the resetting higher 'XX XX with temporal are back consecutive above something third we just likely or term the we that million. XXs, to believe we that's where in revenues mid would quarter sales quarter calendar saw more is XXs potential the was Do near you to think seeing go the as into that second segment low about range?

Mary Puma

percentage. goes the now of what's in seeing time, also a that China, now utilization path stock with of we been minimum risks about there's geopolitical Right given fab our saying foundries, customers in it's levels, our And going for XXXX based runs to talking it and this particularly what just at XX% maintain the Well, we've at past level or back to the today high said. on businesses Doug in have we're going a recently. that's is, of we're the Basically, revenues. not all on and China been pandemic give high some service but around point a been Recently, pretty in what XX% that CS&I know revenues. we around running of our good

now, brings. a place XX% But and give again, have the be. is good again, think to we're I see wait right And not that what at point. to for a range just forecast this to we'll XXXX going So,

Craig Ellis

Okay, abundant that's very moving up. signs seen certainly the that and helpful. are high absolutely utilizations foundry foundry And side, mature is IBM on we've

inventory so can receive timeline you on you ship how we the once on do licensed that to and what Kevin, help color you you a just manage expect next licenses? way for where issues products point, would actually But submissions can the When about SMIC. you other helpful Going to that are? understand China you like? that do back the And, very think stand steps received, with us

Mary Puma

just help So worked way it. the the situation very means to We've our as outside industry attorneys, business, It of just came that counsel, the trade work with to just very our end carefully abreast our of keep with recently. and very, understand hard worked legal semi, September. was And of kind group us restrictions out for what a we've us. exactly through

So assessed thoroughly new as the I said, restrictions. we've

tools that through U.S. are guidelines. will to a steps and We there government the We're the to parts license ship required that that require the in going have all Axcelis future. are identified meet

at time, the we are confidence going that so granted to point I this And have as be required we said, in licenses.

point, all There's in that. give this So say process to to really at Craig. it's more nothing specific other than

Kevin Brewer

which licenses with technology Yes. our And review a too comfort be of Craig, a Mary pretty being as this – thorough assumptions. in from these said, bit more we're point terms an used little the confidence we're And that inventory point, our too, on on we again, ahead, going driving gives granted. tools to will are at us did

So it for guidance, up And in it any where think whether end inventory, we're now we're CS&I. potential placements. everything systems right we've moving to builds, forward of QX our for in be with within impact be factored got with whether we going

Craig Ellis

Got the you how Kevin. then OpEx tools helpful? guide fourth identify you've evaluation be many for incorporated into then quarter certainly Can it. And housekeeping, and would

Kevin Brewer

Yes.

currently we in field. the tools have So evaluation XX

I three there eval what we we to are but think and one, Typically, it's at had now there's pretty six close any to additional tools there, go time, not right double. double point probably out. out double, planned in tools maybe two, have if

the some going more going interest as in on there's the product lot lot with to those things is or drag the extensions forward with going help is So right this a a over talk the to about, of of too, the product And the tools. customers moving product. of extensions, we that activity now newer of one margins in

now grow. right it's there out likely So there is and substantial amount to

Craig Ellis

for Good you.

Mary Puma

color. some add to just Craig,

evaluations process a Dragon DRAM, one’s Purion So, two three is do We've NAND. area. one there on going H mature got it, HXXX a for a math the Purion H if for for are in devices sensors. kind on power then image And there one’s high energy then the technology Purion there's for One memory; logic. two of are for you tools and in Purion advanced

them four the kind high of that's segment. then of are of are So energy. And and mix by two current high them

the actually area see in. in growth. largest high So an implant is we're current and very can evaluations trying out talked in drive is that market nice significant we there it's we play because we've across the that mix current for some high as to Having four really all that's the we a about, segment really segments and think important, the where tools

So very out it XXX more Kevin field to And as good. we to in put us is and XXX the said, drive towards expect help models. our

Craig Ellis

lastly FICA housekeeping. I Indeed. costs Anything of else XQ? and that quarter. for the some beyond be we we I'd beyond in on could, that look we should would expect And Kevin, first see fourth quarter if the OpEx, as fringe aware

Kevin Brewer

No.

that this for point before there, the think in XXX And this I of $XX now [ph] said to a It's we've models XXX number as XX% to percent range is is evals million while, XXX-XXX, got a range revenue. of out. we're and going I've going it out that stay especially to I have think the we model. model XX%

too. we've So been for running And a we've got little pandemic that. now expenses

but across I P&L, it's said, As it's hitting everywhere. cut the

$XX we're here So I think range, while for a at this million point. this

Craig Ellis

it. Thanks, Got everybody.

Kevin Brewer

Okay. Craig. Thanks,

Operator

Thank you.

with question Our Christian Schwab comes from Craig-Hallum. next

open. is line Your

Christian Schwab

But so do through on calls, beginning prolonged of was market quarter. how between execution memory that call, the I addressed we been recovery the the in kind XXXX? memory if after Mary, Congratulations at the see go apologize conference the of Great. highlighted as you a slowdown already. it's we I Hi. good

Mary Puma

Okay.

of assess for it's that. memory an systems So, we to the of in that's in We quarter. that the to see And the year, talk and the said spending do right some to now. beginning But the fourth still to come revenues we first like shy And likely memory we quarter. the third and customers where increase account And it kind expect had actually in XX% in in of are our in situation. in our could no watch in memory expect half about others We're We at XXXX. continuing of memory did shipments we industry, XXXX. come XXXX. slightly of back the

Christian Schwab

to to potential end you how you more your as today are when NAND recovery And over XXXX? talking for does XX-XX DRAM the looking customers, or to it we’ve or of you're mix, look in come

Doug Lawson

remember Christian, all participate it's don't – for starts. about The it's mix us, additions. significantly wafer We in Doug. NAND

bit wafer with So for And on wafer more DRAM, the it's little NAND, shrink, but start additions. about again, starts. again a

starts then is – up right now So zero clearly both shipments the it DRAM this for year. and it's of It quarter looks kind moves likely NAND. through split between quarter next bottom, pick to and with the us,

is course, so decide are to which on little going the customers and, a bit And how depend of to ramping ramp customers first.

products, pretty been both soon think of several the wafer over been add so to there's probably starting a activity pricing need a starts quarters we're I there. layers see adding some lot they've has and DRAM and there. months, flat So actually, NAND, several last to

see both. we'll So, I think

Christian Schwab

Okay, I great. only you. had. That’s the Thank question

Doug Lawson

Thanks.

Operator

you. Thank

Tom Our from Davidson. D.A. comes next with question Diffely

Your line open. is

Tom Diffely

morning Good Yes. nice in having quarter. no light the in good. That's memory pretty of results and the

Mary, equipment any it of companies a receive So, situation, up license have get and have the indication of been how given any you other takes licenses long following China to the on kind yet? just

Mary Puma

other watching answer our talking in and waiting peers through this The we're and time. talking and – to just semi at point is to

just everybody's think trying means. learn what to I this all

what at as point, we the before, know – So timeline we confidence is. required will the is, granted answer licenses. the have really be said we don't are I we this But

Tom Diffely

view Okay. work your though the until of process? the with this impacting kind quarter initial fourth of you And delayed business through some is

Mary Puma

sell. of of a can't a had to impact again, had about lot think But but from work fourth that just quarter. that the it a and not the in standpoint quarters. say on move all significant out Again, do, we it's – systems things parts I we

and So job together. digging a has just the everything pieces done through the nice team pulling really

to is And applied in we've for is out. need point on. to this plays see we’ll apply and continue time, at we for it what the QX and we'll how move process what So

Tom Diffely

when the look to on will right the now, at be tools? which to or end programs evaluation volume based getting, field And you Okay. do feedback you the you're the of new the manufacturing first for then markets tools in go think the

Mary Puma

that tools, the technology think customers is I come it's said fruition, our high will, think memory market because sensors. I have there. I it's energy mostly sorry, very memory, I'm will data sensors on especially Also a – will actually lot just a to mature perform very and which image process of a strong and – in image how our tools –

buys memory Purion the from the we when think I I H and Dragon. high market will putting see ramps also, recover, we volume when both we're will current that tools memory the in, the see it some think up, clearly

customers and to tool I then tedious think customer and into year and our our customer approval qualification, production. with very of into get to then logic customer advanced has putting as it you at evaluation put is a least know, or work long, a to process. It's actually one their

be So And would directly than several could it to script that's tied we tied volume that's model see to actually little that. think the our that indicate $XXX mentioned some think see we’ll I before longer a volume any one to the years in bit out which to start million, the take buys I I $XXX more that million on.

Tom Diffely

Japan in evaluation the the going how with on older update any finally, tool? is Then great. Okay,

Mary Puma

had do there tools an for we've Well, and legacy it's those in several older Japan We not have tool. years.

new evaluation referring Is the a for went quite going qualification you So well. that is what power device now brand it's and to? actually Purion is actually XE under installed a customer. that right been were It's through and

Tom Diffely

Yes.

Mary Puma

All right.

Tom Diffely

Thanks for this the morning. time

Mary Puma

Thanks. Okay.

Operator

Instructions]. [Operator you. Thank

with Securities. question Duley next Our from comes Steelhead David

open. is line Your

David Duley

a is Thanks the but my you size what of not share you market percentage as the with, this on the have is, market? the help taking you the the penetrating just focus specifically guess review and or you question. for really implant important up goals share market I portion in maybe a of this current about of size And largest market. Do a now could what of my of us piece should pick it's the if big your the I implant progress high overall I how first market? overall of know market for is market guys, question for in. just think area in that's to market segment we think the really

Doug Lawson

is this Dave, Doug.

we of market typically plus implant the minus $X cycle. kind XX%, about billion said depending are we size, is the So in or where in on

high in oscillate a Our is factors. that the billion, it's the that this bit end view One The again, like at more to be growing be X.X is caused on cycle. probably being and top on by point couple of we'll probably will growth higher on intensive the there's VXE side, the [ph] little energy depending a the of of implant are growth segments much ASPs. purchasing tools their as a high Those implant and very and degree, XEmax, some like intensive. to market result especially And sensor, the are, two image the sensor power device. especially the as energy which well very as

of is then that that's current growing So the side that's driving from And also TAM material as a result requirements. proportionally, and those growing more are up – the perspective. modification

ranges applications positioned high current productivity with growth the very now with XX% specific areas think for share, in share very the the And in And estimate exact really all we're the then far newest at H, specifically again, goes, from targeting hard logic VXE. to everybody. version so, the Dragon some as dose. more Purion of we high high for of as to the current products very especially key and TAM, in market share rest. like have current In is looking And up as high XX% and as the well we implants high of challenging because we get makes low the that at product the is XX% is applications, don't Purion difficult, some high the XX% that track But share, these customers. our energy do high new space, on energy advanced with targeted market to memory data it's are H, well medium energy and

David Duley

And goes, Japanese market CMOS the three big the progress of customers as how have comment your getting the an sensor potentially you world. idea overall around key and obviously, Maybe as image penetrating it's customer section is? there's customer? or market And that growing that about or on do into far the a four

Doug Lawson

Yes.

process the market, the sensor standard steps on comment So image of size to foundries image very in do flows piece. don't sensor logic standard we it's A – sensors lot exact image on difficult. additional are of mature built the with because mature some

So specific estimate we which don't specifics that, it's the image difficult the to piece to to break market. and energy sensor the high really more is out relative

really image is can't of growing we're a as sensor implant far size quite substantially. I exact you whole So for then the customer targeting really all market you're market as utilizing The with as to, referring customers, a and metals an critical substantially, The give And boost image advanced then sensors. more contamination that. reduces is And are capability image for quite brings technology the the the image the issues enabling VXE the importantly, advanced XEmax. which higher much maybe energy which levels, XEmax for most sensors. sensors

looking edge leading sensor whole will those So at. things image that the companies be be will a as two

David Duley

Great. Thank you.

Doug Lawson

Thanks, Dave.

Operator

Miller with The comes Mark Our next Company. Benchmark from question

line is Your open.

Mark Miller

that you H? wanted to clarify a The things. Purion a high tool the power device, that just tool, I couple energy was shipped

Mary Puma

Purion it device was power tool HXXX. a the The was a No. evaluation, –

tool. So current it a high was

Mark Miller

Okay. Purion HXXX.

ship. was There sensor that? talking shipment. an of to image tool What one was Okay. the I also to type was

Mary Puma

then high a shipments Purion energy image was a VXE. a two a and the XEmax There – and Purion tools. Well, sensor were XEmax

Mark Miller

upgrades your Okay. to their competitor you in technological making seen Have of anything terms tools? any

Doug Lawson

like continuously a making our products, our strongly we're customers about having Our with that products, and for Axcelis the of and ownership improvements. market the of our that both competitor one things capabilities is improving competitor cost always productivity is them. competitive levels of It's overall

market and continue the XEmax believe terms their we also that a So, for Purion technology current of in in but our technology, use also VXE, forward device. in and key tremendous key XE, to image terms us Purion of power markets, growing the like be Dragon sensor in leaders is is leap

Mark Miller

Thank you.

Doug Lawson

Thanks.

Operator

Thank you.

with Bolton Quinn from Our Needham. next question comes

line open. is Your

Quinn Bolton

within of come margin. sound sequentially, Hi, the asked, Most been roughly any gross Doesn't XX% is back an like really really margins product to like in Kevin, I it have wanted flat basis questions guys. XXX just guess, Revenue I margin yet mix I – systems? absorption to revenue down is think change of roughly sounds so the it at it's flat sales. about issue, kind CS&I my points. is but of

just trying either expectations shipments make So or I've all like lower systems the it it's recognize the got sure right. mix tools? revenue some got And your moving parts be perhaps to within on eval margin to so to a feels

Kevin Brewer

QX in the it’s – Quinn, mix Yes. the mix. systems

a it's basically high of So mix impacting high and current number. energy QX the that's the

Quinn Bolton

it. Got

a H the then high And have to high previously in very you. I high in on for you a make for going and this is H that share unit NAND, replace rather Purion been tool eval energy expansive guys energy than where to you coming applications have know sort Purion Thank Purion NAND Okay. of H TAM DRAM. used? into I sure that may just both wanted at customer

Mary Puma

us actually fab. for It a it's customer a is. a new new and and new it's It's customer

So it is expansion for us.

Quinn Bolton

Great.

very Okay. you much. Thank

Doug Lawson

Thank you.

Operator

Thank now you. I will over of call who the Q&A call. few portion closing concludes to will back turn Puma the make Mary a This remarks. the

Mary Puma

joining We Katherine. with you talk you all several for I'd today. virtually hope you, to Thank investor events. at us thank upcoming like to

and in The Optical Laser D.A. Conference. will We in participating Conference be Cap Summit next Davidson December, Benchmark CEO the and and week Semi

and virtual expect NVRs well. healthy. We to several continued We during stay you conduct support as quarter thank your also please for the

Operator

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

You disconnect. may Everyone, a day. great have now

Axcelis (ACLS) 6 Nov 202020 Q3 Earnings call transcript