ACLS - Earnings call transcript Q1 2021 | 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 First Quarter 2021. My name is Chelsea, and I will 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] As a reminder, this conference is being recorded for replay purposes. 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 Chelsea. Corporate and today Strategy. you, Executive Lawson, With of Vice and and Executive CFO; Doug Kevin

call participating are all remotely. We in this

would I in apologize any for So, advance to like technical difficulties.

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

forward-looking Axcelis results at Good line. you share in strength per the as for Revenue from first of product may driven differ momentum the with these expectations. and current XX.X%. quarter do gross Purion earnings margins overall morning semiconductor a $XXX.X assume the market, growing posted us. another actual combined of by the of any strong was million strong with $X.XX, to for result update our joining not thank obligation Our We materially statements. quarter

margin. of have through revenue million. our once support base, them of couldn't and what the pandemic. on these as in revenue times. QX going without or our the by installed market in tool performance QX to area Purion upgrades mature with utilization, well be for think and mature to a employees. achieved This trade the growing business these of manage to was tensions their strong quarter, CS&I used aftermarket $XX.X the In strong result again high many difficult the growing They contributed Our XX% significant challenging refer We was significantly brought sales. to CS&I the fab results gross for through China customers. continued an to have continued to continuing strength process technology and Axcelis, dedication like of foundry/logic first complexities I'd and shipments we

we increase shipments went Even Technology account segment memory The Process of memory to XXXX. full-year believe the system expected than the greater revenues with of other the will for in XX% in for customers. Mature year, NAND later the revenue XX%

applied the parts Since licenses, government We be placed not export shipments During parts for anticipated. quarter licenses all first than began we foundry to the and U.S. granted were to approved shipping required the SMIC. customer, the List, process meaning SMIC. shop but issued were the SMIC, that to of fourth in XXXX, have found quarter, on Early QX, Axcelis export Chinese SMIC. no for licenses our and are these approval systems or able Entity we licenses slower immediately in to systems any first to were

to process. our this relative reflects guidance Our expectations

quarter was result, the a mix systems the XX%, XX%. in our and geographic As shipments XX%, of first Europe Korea China

strong quite particular, Chinese a Technology across domestic with down remained market segments. that base shipments segment, was of the multiple percentage from in domestic the in quarter, customer and China country strong. multinational in last Mature Although we customers have Process Business

rate will earnings between and the signify between million, $X.XX. QX revenue revenue of run quarter, XX.X%, $XX midpoint $XXX second we of the For million $X.XX and approximately share per this between Hitting model. quarterly $XXX margins profit our $XX and million of $XXX guidance expect of gross million, million reaching operating the and

is ahead the year for schedule. goal full-year In XXXX, a achieving track exceed fact, this revenue Axcelis to of in million $XXX on

strength market two Given Purion products the extension, we and come things. have trends base product of and to believe new

it's million developments can a implant-driven $XXX model XXXX. potential also possible expected, there stronger our before forward is perhaps than second, to exciting end hitting Axcelis we than expected growth. that that path very and achieve. that can sooner rate a the $XXX beyond And that reach quarterly First, model revenue point of an run These million for are

important call the markets update to sensor Axcelis. provide very market turning short The are over I'd to and products a like key Before to and image on our device Kevin, segments. power

a in sensor markets. specialty image customers, Purion As before, Purion to device as hold we we silicon have well in implant carbide these power quarter, the Purion multiple silicon second we to as VXEs In HXXX customers. leadership position and M carbide systems silicon carbide said both of shipped

tools of new first key HXXX needs. Evaluations the provide a penetrating six of are focused customers, implant currently new suite developing shipment Purion footprint can at silicon field the carbide supporting power have customers, ion Purion on Purion their of existing support to the products with in With evaluation all We full increasing segment. tool, device customers growth. Axcelis and to future now

two shipped Purion sensor target sensor, image a first During Dragon, evaluation in Hs, use Purion evaluation a XEmaxes power development. and a advanced Purion NAND, for XEmax a a image The second across including Purion advanced closed segments, systems, the and six VXE, DRAM, HXXX, the devices. positioned we Purion evaluation two quarter, are customer Purion logic, of to include key which and

We expect systems contribute to these growth. to future our Kevin?

Kevin Brewer

to quarter all our partners. delivered supply of chain and financial Axcelis employees morning. of first good work and Mary, thanks performance outstanding you, the continuing Thank strong

employees ongoing protocols top XXXX doing that health of implemented work pandemic, in we and this are our remains Axcelis. at for place. and priority, during the safe a remain Pandemic-related During our to a best were create everyone wellbeing environment

closely these Our pandemic and is required. update the monitoring response team as to situation, continues actions

to manufacturing revenue. take $XXX beyond have can rate. capacity Plus, place bring in run growth than we growth decided since we in quickly that manufacturing more this on believe to our achieve sufficient excited about additional us capacity. million are are anticipate, seeing We have currently the accelerating we We

Our is manufacturing capacity for our some customer largest operations of focused adding team satisfaction. the increasing closer of goal customers on to

driven first million, to to QX in Turning quarter $XXX.X compared at $XX sales $XXX.X strong in sales. financial million, the used compared $XX.X QX in million was QX. million CS&I tool system QX. finished at revenue to CS&I million to in upgrades finished result, revenue revenue $XX.X million, $XX compared by were QX. QX

for total second-half XX.X% sales, compared X.XX million, system QX, revenue sales QX at of including was finished or deferred to in customers million, of XX% QX were compared quarter QX, in One new in ratio per customer million compared at the $XX.X of million, We versus $XX.X CS&I was combined XX.X% to R&D $XX.X of R&D million a $XX.X QX. with revenue, expect was book-to-bill spending SG&A to compared at QX revenue, X.XX bookings Backlog approximately million. of million, record SG&A in a XX.X% QX. QX in our X% XX.X% $XX in in $XXX.X or $XXX.X to QX. QX. and top quarter. XX the $XXX.X in Axcelis, million and QX, accounted recommend QX. modeling million for in QX $XXX.X million $XX with to above our compared

and of CS&I, QX revenue. QX cross-sell our at approximately by gross be QX XX.X% guidance, XX% similar strength mix, and activity. We spending to above was continued expect product margin to driven in

tool's memory margin We are evaluation and on based QX margin mix, from Gross the to gross guiding customer XX.X%. continue of will contribution level of quality, product approximately revenue quarter-to-quarter business. fluctuate CS&I and

some higher in will in QX. $XX.X experience protocol profit million from linger the are I which cost compared to QX related pandemic year. million We continuing $XX.X placing at throughout Operating to finished expect

$X.XX guiding profit million. $XX per or to was of to $XX.X per compared are income million operating We QX share $X.XX QX. in net share QX $XX.X $XX million approximately or

million QX. worth the QX cash to were accounts million. in and EPS In we the million due $X.XX million ended at at million payable reflects QX $XX.X $X.XX. to known $XX.X in inventory as million was inventory strength X.X, $XX.X QX. ongoing in the cash to expert approximately and QX. compared customer same compared license about industry $XXX.X QX. to in $XX.X situation. compared to finished guiding at the and receivables of are $XX QX tools Axcelis million We speculation. the excited million In quarter, $XX.X increased inventory I million product. the million the operation This QX quarter impact $XXX.X am of finished tools repurchased to the export $XXX.X trends finished from in QX compared coronavirus license $XXX.X excluding guidance any QX share demand for generated evaluation of QX.

repurchase through enabling the is to We balance investment program. have returning shareholders level strong which share capital our while sheet a right business the

I the manufacturing for all that improving and And Hopefully during normal is you. and time. customer comments. back Mary now hope of become at healthy pandemic. results. get satisfaction people Thank call vaccinated, are you as capacity we the your staying Additional targeted more finally can back family her to our supporting group to I'll turn closing

Mary Puma

Kevin. you, Thank

open services products our support I are investment for plan customer The move strong in address continuing the We drive like financial increasing and to The requirements post-COVID our in ingredients up capacity of content are to adoption environment. new Axcelis the differentiated Purion and implantation. growth ever customer multi-year future on by as these the we encouraged will emerging it segments. and a technology and of for industry manufacturing all invest opportunities. infrastructure, expand chip that, means all bode and of accelerate into R&D, ion questions. in capitalize The that will and across of cycle in to our place excited capacity. With incentive to likely global would uses TAM the implant trends and has adoption leadership challenging for the wells success and

Operator

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

Patrick Ho

quarter. few and one we with next other but some biggest will program, very moving with in at of the and the as you influences the much, as I impact on evaluation nice you're cross-sell the you well margins few and the only pieces are have quarter, doing mentioned very next first the potentially several mix Kevin. assistance, performed quarters two Gross there look the over about What next Thank for Actually gross quarters. continued talked you or questions over way quarters? margins impact customer congrats moving pieces it, even you is

Kevin Brewer

the I would Yes, of Yes, thanks, year last to the think gross margins Patrick. we thought year. beginning similar in so be

right probably to year. or exceed If we beat and ahead our with of look roadmap, revenues this model would where we now million it are $XXX thought where cross-sell expect now be, at what we we you are certainly revenue

evals the the have So, are [converting] cross-sell we always that roadmaps are volumes bit been farther, but have plan. in those kind little of [indiscernible] [Ph],

So, on we it's I low-end ranges. was come that, We've this year. there. or don't though I above could margin we're think Even ahead in those Patrick, into bit million gross little track for -- model we're got our targets $XXX gross that to say certainly of a wrong of revenue margin our

at point year that's a or plus the XX% I to range So, is minus bit, think where at going this little be.

and all of we a everything So, pieces and make these change. stuff evals even continuing moving all are and with to accelerating again

we going are solid very year margin. I think to gross So, have

Patrick Ho

my chain the And Kevin, supply the is that's inventory follow-up helpful. on question Great, situation. [indiscernible] and

an evaluation perspective. still there itself, customer meet moving and chain just inventory one, from you only, levels it, picking again, are ecosystem eval the the and your demand, guys very call are, lot that procure but constraints ability well into supply and you actually with managing field? up, these in to a of parts But systems supplies inventory managed it to how and to demand get not systems, your Given

Kevin Brewer

Yes.

long So, philosophy right [doing I you real to flush my acknowledge planning I in. But the got the] The not been we've sure thing make holding think we for going sales be of with we've was have [Ph] are through. continued in mean get get I the to long trick we're our inventory is ahead would we've the material. place this churns pandemic since started it really And always driving line because with if able lead. little of out now. lead a to are back

pop So, of that is daily chain shape, is not new, think everybody is now. that good doubt no There is doing Axcelis There that. through The right Everybody a goes It's obviously are that's just at view. in hard supply doing group well issues this well. from basis. I peer as running remarkably point. not well pretty Patrick, is on But point up we right?

there. bit pressure it, I the we And to that think we it, stay doing. there's maybe we year. be which this should the good But inventory sooner to little ahead So, have need of drive on key a plan execute is

Patrick Ho

much. very you Thank Great.

Kevin Brewer

thank Yes, you.

Operator

Riley Craig question from next Your comes Ellis Securities. with B.

Craig Ellis

Yes, but thanks for the not intermediate and congratulations on only on strategic goal. the question. the all the quarterly long-term team taking And to progress execution,

just us average so of you as any in that the we might about implies results So, see Mary, that year? at a the start the back-half so visibility the for can share on go a quarter confident of you that with nice I calendar million the wanted on guidance XQ you to to $XXX feeling least given linearity see and of have the through the with year, company million, back-half is 'XX, the thoughts question XQ we $XXX question and just on

Mary Puma

Thanks very Craig. much,

And our At expect continuing million $XXX to all XXXX as We market the demand exceed 'XX business are revenue data remaining essentially sow by run we of through XXX the to strong up see means point, is for expect the holding we that cylinders. and and you even those be we that this that year. think on this and segments. strong most great the seeds all we points out multiyear are cycle, even year build markets hit So, across a rate and this to future. hitting said,

such terms extremely mature is as segments, mature IoT, in the devices process drives So, remains sensors. in for technology general us. the There market technology which strong strength of

image sensors. got have We

our segment We XXXX. over power we recovery of for mature part automotive. quite the that throughout is said, the and the devices. the account because are confidence those is got in our remainder even expect we of But and driving technology Memory revenue are strong XX% as systems seeing have of And in growing, process increasing of I year. is to what

So, going on. that's see the to what going we major be driver of

that, to memory recovers will will obliviously be Although be lever. it additive strong another and as

throughout So, we strong because product, of six continue plus we fact things feel of are in exceeding of of in line segments, the to terms both be extensions, plus We the the the Purion product think in and future. that market additional field the real have products, aligned product the and the stars we all with out will evals going the are market the portfolio in that strong that terms XXXX. base confidence the

guidance the of given year. second-half for haven't We the

did to minimum just at in terms the You math what of XXX. exceed a would need happen to

it move at we we So, leave And year clarity as share. the think this further point, can data, we we throughout will and I and there. get

We will certainly you. with that do

Craig Ellis

SAM door? target really the is, the on basis and thanks of To it quite question engender, that fair. the question, expansion million commitments some just that what calendar bigger other that of hear is question things there year? extent customizations, term basis, longer and success that just but model for is we those million with on could to would maybe driving logic a the The the foundry get multiyear next rate is $XXX leading second rate a for that guys a quarterly run time run extent to basis the color. the a That's significant 'XX. that expectation potential on for not to alternatively, we've product in And significant they what point nice the then And all also that the are the playing to some really CapEx on seen, really really some target $XXX

Mary Puma

need million saying Well, $XXX and segments with hit across of said all million targets. would us we've me strong $XXX just to to be really Yes. our for revenue the always let markets start that

expecting mentioned, those what to the we're in into line. few success the the coming obviously, by that I as is the our of next year So, doing absolutely, But and markets over of strong and extensions, continue we're line Purion next a from lot And some years. product is product markets. driven being

even in in evaluations two So, are process that the of the mature field memory. are in are I today, at look Three technology. out them if

power image one advanced And sensor one device. two and is logic. So they're

So, just do penetrate further need logic, into we about business in have briefly will and to And model, to make mature our evaluation we're And with place us, move progress with XXX the that so, beyond high incredibly now, we we're market both we image and we segment. the market, that working or said the right the of and talk center done to into very that that, image more additional center work well. logic for turn there. some to implant excited as strong that advanced really other said, market sensor even the we customers segment are that driven pretty in that's power advance that we shine. believe the and high process specialty in we've testing really technology tools. But devices, energy the leader products in The products segment, energy, we very presence into where

is the XEmax tools Now tool, into device and energy highest the our going Purion the market. power

HXXX, can of fact So, all reason future those current, for growth. the the silicon-carbide key model. the I product Purion even of current believe drivers the high full Purion tools really underlying across that really get $XXX are spectrum the of the believe medium we And line, our energy, beyond are all million high and so we that the

Craig Ellis

encouraging. Very

Okay, go ahead.

Doug Lawson

Great. This is Doug.

Craig Ellis

Doug. Yes,

Doug Lawson

to add just Let other me one it. thing

of commented about so discussion market, automotive on Mary lot and forth. the shortage power So, the a chip there's

less future. caught for Purion the and activity with at That's of planning a And up of going shortage. targeted little vehicle in electric silicon things the that's the for more interesting our a the that's really lot of One the products silicon-carbide that's is power on.

to beyond. drive device that another XXX us power key that the think towards is and I allows market So

Craig Ellis

Chinese less we for it question within is positive Is for what certainly licenses to last two And if could weeks were some you serve the with extent XXX%? that I of fully to just technology, market show? what good export comments queue. Doug. so what you. to point, to The some with to in see customer. to to applied before clarification further biggest for? there grants some relative I that potential was shipment Nice this, that up the to chip the the back that hope Then manufacturers in granted Thank based extent, move Yes, would than those granted held a and Europe that ask

Mary Puma

out multiple you legacy systems all of a point Yes, this at we have in our line, product have the time. number our licenses of that are across for cover to actually there more that know significantly, orders even Purion we and

So did we licenses. just start, we receiving some

in are on were shipping those associated that we the parts with them As licenses. the quarter, second we and tools approved said those

ensure We outside semi are of to trade and licenses the that continuing work with and council U.S. rest the to with the government are granted. our

begun. ensure of basis. fact think time, the them the continuing point timely So, are rest that on at this granted to we're in those of work that flow in a we And to licenses has

Craig Ellis

Thanks, everybody. helpful. Very

Operator

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

Tom Diffely

of are Yes, question, really good morning, strong and portion To the quarter, export there the require in thanks last for a taking also meaningful look to on the those licenses at bookings my is forward? going that follow-up going you if bookings question.

Mary Puma

domestic China. stress have we So that customers that those customer both very I is of out SMIC customer did base requires customers customers, of multi-national have many of we and a to bookings But process that's And technology comprised licenses many continue most and thing is very China. markets. to only that a those have. we export want that The that mature the in strong quarter broad focused the said on are customers of those although one of we've

we we expect point with the systems associated this more at that significant to we we in already situation. beyond So the really to what time, we're there's going SMIC any know, risk don't that license of any shift

Tom Diffely

people business, causes quarterly all, look at biggest how, strong And the in very of by if then, And service the around? was inability you variability? when of COVID, a at and the certain move I'm variability impacted obviously to basis? Okay, quarter. it CSI on the what the also, What's driver great. curious

Kevin Brewer

Kevin. it's Tom, Hi,

So, actually used variability, are tools its start spotty. the tools a We let of had me very used quarter. in the lot with that,

that'll it So around. move

strong We are off quarters. coming of couple a

a amount thought everybody QX did think we I China, kind frame quarter always a particularly some this remembers in business, a if around what by this QX to So, going strong business? but about of and strong, say CS&I of we pre-buying $XX $XX start. is on revenue think million of We we've of our off very was million. was there and with we're level good customers a

around of back the be think half I $XX million. year the could

So it's for a little bit us. up

tools, today just to really strong, and a think this variability of trying the because out general, at everybody's systems pre-buying So has some get probably I in sense been, point. driven a used surge

tools models where I at think want So, our with a in that be certainly exactly low we based and goes spare to of million, but tools numbers, I $XX the to we brought XXs. those number my That's entitlement leave parts is what service. that, worried there into we back expected wouldn't be out on to

Tom Diffely

great. yourself? having in any quarters? Okay, look finally, And you few are at supply they Have times changed for your lead issues the meaningful then you last when Kevin, tools. And

Kevin Brewer

know out. about times late some I our is so of Yes, talked pushing group peer way

lead of of manufacturing but long schedule, keeping process. -- a in pull point, I point, longer standard have too, lead are or this a ahead what are we driving but are good material kind job, easy looked off time, keeping think really at been materials lead certainly if of at what's I this time, -- that customers what where I tools side wanting. think bottleneck not far terms to to the Most short of lead the our that's because in we've It's are, up to I the lot and us. called we're done as of we're in times not of very mentioned ahead that earlier it's we but stuff a we've

that the this I'm say going the not was want. deliver can't and what at to flag We So, answer. customers raise point,

lead our they're be. they -- would again not too normally to are So, where times far off

Tom Diffely

Okay. Thank you.

Operator

question comes next Charles Your Company. Shi Needham with & from

Charles Shi

Hi, taking at Bolton Needham. This on question. my is Shi behalf of thanks for Charles Quinn

want around licenses. I maybe follow-up on to So, question the

rounds I SMIC, targeting, first September that products but mean two licensing of the round put think mean, in the requirement. at probably I around I includes to under around understand the shipments the of the second SMIC. the that requirement least licensing timeframe, around came some actually I your all your restriction system side under

initial applications? So, September approval of few come you the the this around approval I of year is that for a that or licenses, that mean, last from guys that first that December licenses applied actually is timeframe some

Mary Puma

So, you're right.

the You explained correctly. situation

First, to fact coming I guess first and time SMIC review in say not what thing put I user the then clear based around. order. they licenses exactly of December. on entity that covered we be not our again for putting only in It's end military seem on list remainder and applied are and other versus things. on the applied for is in We September, they're products list then December the doing But the priority licenses out September, weren't can for in do the was they the in how chronological

being some in issued as not time, And timely rest are all the said, a issued, this as a are clean continue would think, anticipated. not them that would we I point them is we drive again but the ensure fashion. of and we answer in to as are maybe issued that happy have at in timely were as as fashion licenses of have So, I hoped, the to we

Charles Shi

this question for I around is on Mary. Thanks the really Kevin. a follow-up question lot, CS&I, another a maybe May

driving I target, is I probably So, last -- million $XX to but fourth your this the through did geopolitical some $XXX million your that pointed I revenue several is it's out of about ahead to tension. $XXX the actually inventory that understand there the CS&I million quarter for quarter year I Chinese think CS&I few a out model. strengths, is your CS&I, which of are a per and some quarter I that your -- factors tools by that geopolitical hoarding mean reasons. first wonder In factors running purchases unusually of due model Kevin, maybe still one about quarter, point understand you high, -- year driven customers last your the you some and even closer of to the probably behavior mean of advance industry customers QX by is from I due use with whether utilization stockpiling of of also higher some Chinese

Kevin Brewer

Yes.

there's -- So, would almost QX say Charles, still different would from for strength I sure. too. I come would did say a also all some that of I is what far say in that pre-buying we But in that our see regions was applied

in actually Europe, in lot did saw saw see We a throughout and Korea. strength it We picking back U.S. and up. China-centric, the QX it of in certainly was QX pre-buying. So, we

utilization we're level this you side would coming So, whether I'd they a ramp of -- some seeing probably because then warning And of huge word this is little about pre-buying, going level, say, think Korea, at of I pre-buying now, the a those bit, But right. think normal, not the because have and they're areas, them on. are certainly Europe I right point at was not and activity trades they're U.S. ramp

China going I a reasons. there's And for just on obvious think still So, yes, MIT. it's not probably little pre-buying

surprised backend definitely a back million to to everybody be I drop that right? range sell it's want going be, we'll then $XX bit to But nervous we to think where think it'd it's that be may into $XX off, nice So I in over there. million be it's little higher. QX and

point, kind settled of this think down. it's at think I Charles, So, you

Charles Shi

Got Kevin. it. Thanks,

question maybe the So around my evaluation is tools. next

and one your know into closed of with pulling but you recently haven't ship because while I And point DRAM you're Dragon be in especially Yes, of sort customer that June timeframe the tools that about the one for second is tools expect and DRAM year application? CapEx are around DRAM. think will to tool, going of majority expecting last the I'm the in why probably closed the likely not become stronger XXXX. cycle, I evaluation of some half, you one you top we get they it. sort are of DRAM of asking year, QX, it's faced will reason typically that announced the that

ahead wonder volume the whether further that whether the closure on of memory I eval drive upside can will second-half be and revenue. So ramp, for the

Mary Puma

would We year. mean you're hipped which it close this last year, mid right. So Charles, should mid

mid quite yet. So it's year this not

seen. on to remains it we will plan. as It's that soon be close. per moving as And along it's So report

to Sometimes months, close with typically don't And these work to as the periods, during as date. evaluations for that we recipes is work as exactly qualify the we reason many exact evaluation possible. actually also XX customers

we for get more planned that time. sometimes to recipes evaluations, opportunities work weren't on these actually which takes And originally then

necessarily clear for evaluation So there close on specifically many that, go I'm this if to it the it are to more, successful. But that evaluation. on and reasons months not XX wanted make I commenting just will as doesn't be to exactly

has at that In the actually this is this timing, we already terms for of customer the customer; Dragon the Dragon NAND qualified applications. have the second

and as have up, feel we with in about, current. good believe very this picks will they purchase as Dragon this is the feel our position for about fact given needs very the additional capacity customer we So second that customer that high cycle this Dragons good

are market. in worried we about not the at this any missing point, So upswings

Charles Shi

Thanks. Thank the results best and on luck. Thanks, guys. Congrats of you, Mary.

Mary Puma

you. Thank

Operator

Steelhead. the Your of comes next from line Duley question with Dave

David Duley

say year, for wondering million thanks market implant that question. the what you into that you hit taking market? the in XXXX my Yes, $XXX this translates for share revenue target calendar if I'm would

Kevin Brewer

hard it's to really isn't the accurately. for as TAM an for reported actually, know, David, market the year, share tell implant denominator very you this

kind And where so to of guess as that years, segmented this share. with We're difficult trying and the TAM said But extensions, estimate. in exact to especially we're hard it's what having far make the We increasing to consider we know the do and billion market at increasing the couple exactly we a have markets share. especially above how TAM not believe share. high We at a we're above, be. as this $X right it's now, Purion great success gauge exactly will it's with is the of very to last that Purion point would we've that point

David Duley

than to you do accomplish things initially the having Japan still kind million that I get there and the your you market? it's areas past, is in or faster by just to been segments some the that can need are the you targeted think of think What in get expected? to other $XXX Okay. foundry key wins grow in logic, of high-end wins

Mary Puma

our point we year. putting get think this at run planted I Dave, rate know and evaluations year mean, first XXXX. very you market, and field any neon. obviously device need the next that that XXXX we progress to significant already hit That as fact, sensors Japan we we feel that to is we if are XE volume means power device seeds strong image $XXX is to going power So really to made Purion the Japan in very perhaps shipped good in isn't Japan, a I and last and million. in even additional Advanced Logic above into drive in that in that market the some there we've segments, important

to we we've And, can out timing go mentioned there there. continuing think to in some drive to we're after Purion on got from Logic, turn that of complete we where I've the a significant customer So, the into evaluation sort Advanced that. already have revenue, that evaluation is, and that

and are are, Advanced going really time, point the tools that be with, given customers seeded And is are record. at at Logic in So, million Japan major this where going of be running they're the we're and processed to tool we've driving the timing where the segments, in we like already to giving segments what not but the the $XXX are the it know the tools production. market customers tools, important

and of and applications example, evaluation. the can for growing for bring us. lot have have base already will still and we customer footprint It's our perhaps readily, Purion remain whole of to for an continue where something will expand base, tool that So, number new a be done again example we're and again, a strong a it installed market will do, existing our for more that to very China types in

is So, feel those $XXX already think And which we into why are that we have all that pretty $XXX have as to the sight of confident the will we're seeds contribute things million, doing million. good a that line those said, I been already planted.

David Duley

to? gobble questions, the you and And you environment the the expenses market competitive operating from with now the your Mary, And far then also, doing as on what COGS increase as implant continuing to is the that capacity in seeing in share? P&L two referred core what either Kevin competitor or you are market other impact

Kevin Brewer

year Dave the thing any would Yes, setting I on, be impact provide is, we're And this is details the manufacturing about the think as in we're that, positive. the early so of capacity potential this goes should long-term we'll point, stages and I say the what doing additional up. it some only on I guess impact. at

the as there opportunities I out which getting and point the think we're helps up positive at think helps something overall moving improve margins margin I takeaways to, but this, P&L. company's you framing longer-term, to is things of should set always gross point view, and that there's things on be gross this near-term

Mary Puma

that facing bundle process Okay, competitive every specific mature account and a devices, technology, to, power offerings try the sensor, it's in competitor, the it example, standpoint, in those always that, likes segments, it have other record participate, terms because But at for again in there been them more given strength processed areas. that have But those tool in throw we our for a we really I go ward We're again, of where largest of just logic, competition the is is pricing right to at where than the we places customers. have -- not we other general, that of the image just we've now, some we Purion of our probably quite although and areas probably tried remains makes off. they and at going the we've Well, in say difficult from Japan throw position, the is to like really all that the they typical are There the will to where clarify able to I'm some conditioning, them spending. do. strong in not to in customers. competitor in some There's things pressures, but advanced obviously product bundle strong. significant in there's most there's leadership to of that

David Duley

you. Thank

Kevin Brewer

Yes.

Operator

Benchmark. Mark comes question with out next of Your Miller

Mark Miller

you on next your three for at for fabs? these fabs, least projection are Congratulations thank from are and these the terms question. quarter existing coming XXX U.S. are just the There your four the of or are rate, primary more components planning, run year. starting I'm the major up wondering of XXX in coming

Mary Puma

going U.S. all for the jobs. we're In No, about excited the right industry, $XXX of fabs the be constructed. revenues. to the for new that now, U.S. million it's our for are any are for great not but Great It's the great those in accounted model

for we've already seeds model. planted previously, As the the got XXX said, I

are with figure opportunities right implant those that only that XXX evaluate we that the as So beyond on into model working an that we something goes focused. now would be would

Mark Miller

to contributing fabs these see year orders next for you? you Do

Mary Puma

these on of don't have all I the handle a things. timing for Again, full

resources in upside are we all right the sure that we -- I But that model. would continuing said, are to as have So we're currently our on right opportunities. from I really place, ensuring that on those next million if year right doing on infrastructure the now of things then and to right to what in $XXX there we And make in some orders working work be there, we're capitalize planned. the can place, have those we fabs

Mark Miller

the should thinking tax kind for last is remainder jumping about been we rates your rate two around Okay. of what of year? -- the be tax My quarters of for last the question the

Kevin Brewer

going give using think you're was I'm Mark, It standard model the I always moving I this around, Yes, lower. absolutely a standard been so right. has to quarter my corporate line. do tax,

would lower Some would XX%, of XX%, we probably through be of we a if you a club or but it you that because to standard have I R&D that to wanted to couple through. far just continue too use do sales, to came we back if down away, won't want stock go bring points

it is sure. the but all So, place. for That's over

Mark Miller

Thank you.

Kevin Brewer

Yes.

Operator

next of question B. from Ellis Craig comes line with Riley Your Securities. the

Craig Ellis

initial questions. And Kevin, taking didn't I for round. the the in you mean Thanks Yes. follow-up to ignore

So back I'm with you. coming

as be on So higher in dollar. of flat that's sales percent mentioned the first sales, quarter you would a question OpEx that the second but higher

projects would performance are that increase that or sequential drive queuing that based accruals R&D just increases is up said, sales just commissions, there it bonus are things? the So or other in

Kevin Brewer

yes. answer, The

models, that. little It you good better it. they'll where the is look a compensation than is, basis. the number board. the probably for You revenues it's model on of XX% the got instead maybe $XX help across million if years. It revenue is the full a you XXX It's And our is out bit the pieces, and at of variable with year approximately

bad a not remainder $XX I place year. million think be the certainly to using of for the

Craig Ellis

million are some on is inventory customer shipments of to keep in The persecuting China, in follow-up but granted obviously the for see the the into to quarter? hand, pressure what takes second the and great quarter. with then insured with question And $XX the right to the Great. amount gives the buyback the respect some share license of there's buyback

Kevin Brewer

buying to the we're plans, So Craig. attend

So I to we're don't and place, execute that. is that grid in going

for adding put So have sizable about capital very It's program we back grow balance know, we doing and it the do business repurchase Axcelis. of when this that's as the and in things impact plenty especially mean, cash with inventory business or we share talked this execute program, whether return strong the we've you needed we going something that to for to in please. put think investments want what place, very capacity, I sheet, we a really I shareholders, to not be the to both place have in year, we're program

a So And committed we're again, that. continuing have we're grid very to that we executing.

Craig Ellis

to Nice Kevin. so hear, thanks much,

Kevin Brewer

take Yes, care.

Operator

Instructions] next Christian from line Schwab Craig-Hallum. question [Operator of Your comes the with

Tyler Burmeister

on letting ask Hey, for Christian. Thanks for a this is question. me Tyler

out your is said mix XX:XX. tools you field. wondering for guys bit little to picture, a was you the I mature have This bigger of be and eval foundry in expected both maybe year, just So memory

to future, a or and a of back that there time, color the to these we continue should move to So, move would over mix? great. XX:XX expect maybe to maybe expect would kind grow? XXX levels those mix, next we as to And both in model, you mix, Any year segments towards be similar they closer

Mary Puma

we we we to really expect we which be a said, going a to customer. again is the year, mature But as as that to multi-year spending. total our customers function technology segments which customers revenues, the of process the we are on percentage is more think a spending, throughout recover Tyler, spending increase spend, and memory a of expect see cycle, may based memory continue to mix in this specific

the similar. at back it's around maybe mix pretty shift a where saying possible if to we we towards towards were, could this memory. be So, expect year, process really XX%. mean, we that continue bit look more last XX% we're I We mature had take strong. a and last it But was year, year, to memory

to exactly it what have and see move same XXXX. into the out think be happens we could wait but I it we as So, just

Tyler Burmeister

All great. questions were my All other Thanks guys. right, answered. that's

Kevin Brewer

Thank you.

Mary Puma

you. Thank

Operator

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

Mary Puma

Thank Chelsea. you,

you XXth & the like well. Annual and Cross continued the hope like Sector to investor we'll Annual Conference, CEO In virtually for Conference to in XXXX be talk June participating events. for thank and Technology with Institutional Media support joining thank XXth Investor I'd stay upcoming Cowen us your The we Telecom at the Summit. to Stifel you today, Craig-Hallum everyone I'd So Annual Conference, XXth Insight

Operator

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

now may You Good disconnect. day.

Axcelis (ACLS) 5 May 212021 Q1 Earnings call transcript