ACLS - Earnings call transcript Q3 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 third quarter 2021. My name is Daniel, and I will be your coordinator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today's call, Mary Puma, President and CEO of Axcelis Technologies. Please proceed, ma'am.

Mary Puma

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

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

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

with systems to XXXX. actual statements. to due of Quarterly and with We business, any share of implant quarter, in aftermarket mature than of Due a these memory very for DRAM market, Axcelis third top per growing XX% of XX.X%. process shipments even the quarter shipments quarter earnings geographic $X.XX, we do provide in record. strength increased a Revenue segment. now China continue year logic update revenue be our and growing In largest obligation foundry revenue customers, margin million $XXX.X with segment of CS&I, Europe, In was and the strong to line thank to of the quarter the our major will rest for world, customers may semiconductor to between not The gross regional forward-looking by system current our $XXX.X and expectations. full to of the posted technology contribution account greater gross overall X% of $XX.X NAND. line for our systems to differ significantly estimate particularly although expect XX%; to XX%. went we of in the continued the Our the that balanced. mix Korea, million China, morning, mature the margins for QX the will joining percent was QX, an Purion third systems industry, XX% assume driven our and strong million. to for you third mix sales us. X%; split strength materially momentum the more product and to Good from results XX%; of the systems mature process technology revenue, account

quarter fourth to guidance. Turning

profit gross last $XXX year approximately We expect market the believe and margins revenue $XXX million, $XX of a early full We The approximately XXXX the to contribute XX.X%, driven of of approximately revenue approximately for $X.XX. strong per in memory industry earnings been million we process expect We Axcelis. stages growth build. has million the segment and of be now operating revenue the increase quarter mature of for in share since XXXX. the will segments for by what a the expect exceed both continued and capacity technology to will of

has significant fundamental is plans by growth We the new our underlying for and by and serving being factors, in very drivers to increase customers, support device silicon driven next as finally, ion systems good driven started an increased overall carbide fab growth of bottleneck visibility expansion is more markets markets, both that investment, by lastly, starts booking the mature market, significantly. sensor which This by are segments, And the the TAM of semiconductor creating of mix implant a implant for the chip across is foundries large shortages, the are industry where in fab due capital wafer half power sustainable require growth currently designed products. programs, geographical implant case Overall across QX to serve medium device XXXX. first year high high product industry growth current Our image several high types, AI. extensions. and product opportunities and the extensions all equipment the is are and we into all cycle, markets silicon the The analytics advanced including more Purion of intensive XG, to incentive data energy. for that with fab the the market. is our implant and believe power automotive mature specialty into government current, demand and rapid the utilization Purion electrification. sensor this This power generating image And causing

in in to margin segment. expansion. comprise segments accounting systems of XX% to We customer, have contribute products a XX% Sensors our Purion the years, QX, for we continued Image over our enjoy. a these our Power closed believe evaluation invested the significantly an highlighting maintain to we these the and continue invest revenue several for We of to strength with segment XXXX HXXX XX% for power our products will silicon successfully in for the markets significantly to leadership XX%. Power the Purion segment In Strength last

these importantly, growth trends Our shortages. increases segments by driven in and any it sustainable beyond clear tied is semiconductor long-term is most to and

Last announced see QX a DRAM new NAND memory multiple we customer the systems the DRAM of stronger successfully This qualified a fourth the and capacity with H Purion shipped XXXX. week, growing the of later a be to both to will for be a customer. the Since NAND We current and shipments XXXX continued first QX, and Revenue we pickup increase production. We in for end memory, to seen memory early Turning we the have half the closed NAND into an expect now the in of that and memory Purion both high we has in evaluation market. believe position applications. year for XE customer maintain subsequent that strong for in H Purion recognized in and quarter. additions. system and in will

continue a degree a XXXX We the underway logic, of H we door successfully in activity close open is for evaluation advanced high have to QX. expected qualification that to Purion the production in where buys will see and XXXX. in This

image in our devices. the We also for general seeing related Purion market an tools. mature Japanese in are devices, Interest and power is increase both to strong legacy especially sensors and activity

week, of this launch announced In Ovation, high-energy high-current the fact, GSD and earlier batch we implanters.

silicon existing to received and to opportunities customers base. increasing Purion Purion to to include H, XE CS&I and are products large evaluation upgrade in penetrating by customers field key segments, XXX-millimeter developing provide well on Purion a currently are sensor segments. a advanced potential image and We power legacy enhanced these footprint X logic, expect tools target XEmax', the We Purion devices. and our installed new DRAM, customers, have a including Dragon, growth. key positioned which future valuations be Purion X focused These new at carbide The supporting across

million semiconductor XXXX, success market. model, evaluations the plan we fourth multiple close in $XXX Purion revenue the to to and In and thanks on evaluations additional our expect XXXX. throughout are quarter and to very ship closing strong of in QX in We a

a $XXX that million we Investor revenue planned model we implant-driven at Day result, beyond X. for developing are a virtual introduce As will an currently December

Kevin? I'll site. Kevin and third well our financial as manufacturing several discuss with Korean including over supply quarter the management call Now operational turn to progress details to topics, as chain

Kevin Brewer

continued Mary, you, by we now good performance strength and and Thank delivered in driven morning. with bookings QX a solid our revenue financial CS&I Axcelis growth. strong expect mature and a and technology growing backlog revenue, for for systems revenue results With expected gross to position coupled to growth process exceed us margin million strong finish strong up have Growing $XXX XXXX. in in well XXXX and XXXX. set market,

We of leverage continued Full timing Based gross chain-related mix our impact to in the margins of gross and business. XX%. capacity. and our in of business manufacturing investment for and developing model improvement products, current of around financial pandemic margin operating targets higher margin XX% and assumptions revenue model. be costs beyond are above market $XXX gross the full year seeing our driven are cost-out million with expect Ongoing us and expenses supply significant demand CS&I year Purion include our additional initiatives, strength we in by will the new the well that growth take be on customer product our will

Investor on these Day our X. December We will Virtual models introduce at

on details of our and an provide South performance, discussing new in facility update our supply the QX to I'd like manufacturing Before chain Korea. financial

challenges. assessment to provide guidance continue reflects will supply and have of chain our We current that

carry and buffer disruption. level a with of continue closely to inventory we working sources our to Beyond supply new supply qualify suppliers, of established chain help higher-than-normal

with which working Our to sales also much past, earlier for manufacturing team. improves customers visibility orders our provide than team purchase in is the

rapid near-term demand sufficient play future want exciting requirements. we especially support important We adding currently Construction opportunity quarter. operations began Manufacturing the manufacturing increasing week a capacity to facility growth an first supporting our and I for Korea customers This with the closer to that in our is an and shipments scheduled with capacity. goal is of role complete. the but place to our satisfaction South of for have in recent us, in reiterate, to factory manufacturing this customer Korea are new with first expect

in our implant customers sales finished at Purion QX. Now utilization, system million system high revenue turning upgrades CS&I QX base, compared QX finished remained safety to financial QX. stock. purchasing the strong, QX. $XX.X in QX third $XXX.X quarter $XXX.X million revenue million by $XXX.X were million and systems to record million to million revenue compared installed CS&I $XXX.X to $XX.X results. in compared at driven and growing fab

CS&I sales. revenue $XX approximately QX expect of million. QX We

in top million QX. total XX.X% QX. compared of ratio X.XX One in to QX QX for Our to QX. X.XX in book-to-bill a customer X customers system versus above bookings accounted compared $XXX.X in in to of were With sales QX. XX% XX QX XX.X% compared million our $XXX.X was

quarter a $XX.X of prior QX revenue, currently Backlog to million. record QX. in new million with We SG&A R&D or $XX including for XX.X% $XXX.X of compared are booking was QX, deferred $XX.X to year. at the million record of million, and $XX.X at million our SG&A was in finished Axcelis XX.X% or into third in next compared quarter in the revenue spending combined million QX. R&D $XXX.X

strength approximately of guiding systems. revenue. QX gross power was approximately combined to and SG&A spending We're continued driven expect XX% by Purion shipments mix the activity. be expected gross We QX closure margin and XX.X%, margin evaluation to R&D be multiple by product cost-out XX.X%, higher and driven in CS&I, QX of series

or million margins year be $XX.X gross QX. to tools. Operating above XX.X% in in including revenues evaluation XX%, full compared these of million finished expect QX of We to $XX closure profit at

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

of EPS million to QX in from cash million guiding compared million inventory generated were compared million to compared turns, X.X QX million excluding approximately of million $X.XX. the operations million $XX.X are $XX.X tools, in in ended QX. QX QX. at meaningful received quarter, payable Also $XX.X settled $XX.X repurchases finished QX $XXX.X accounts compared of We prepayments $XX.X the were QX. QX. QX. X.X% $XX.X In and at we to in in share $XXX.X ship on million. to system at $XXX.X QX cash evaluation QX inventory million we to in finished compared quarter, $XXX.X sales. million receivables

unprecedented employees an I is It efforts always, thank the and to exciting our for time execution in and want industry As our with and business growth steep continued for their suppliers solid supporting demand customer for Axcelis, ramp. our outstanding products.

sheet have and strength is our products, strong, the in balance we and to invest financial employees. Our infrastructure

under you. of the returned Mary authorization shareholders turn back capital the share XXXX. And her since program comments. at Under repurchase closing a to now the have $XX.X of current of million program, We million QX. I'll also $XX over for had our Thank remaining call we end to

Mary Puma

and positioned currently semiconductor in but implant is VXE significant nature the rapidly Purion Thank mature combined the Axcelis power segment of the uniquely benefit with and market is growth. increasing, technology segment. overall The you, the device Axcelis position process the sensor image implant-intensive to expanding strength thanks from to like extensions, product due to series sustainable the electrification capabilities Purion market. for power Purion Kevin. The automotive a of also industry, of

opportunities to our We discussed of continue in customers means capitalize will support with this closely Axcelis has all the invest on to in and growth capacity across geographies all partner infrastructure the segment. today's R&D, in global to financial call.

required of in that We up With industry the in are history are the middle elements and most it that, the on to leadership questions. times of in the all of focused like I'd we confident are open one implantation. exciting the ion for for

Operator

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

Patrick Ho

really you Congrats at quarter maybe least on and business nice NAND. in Mary, about off, you talked and terms environment, the picking first Can DRAM a up in outlook. of XQ of is of memory with customer it customer bit kind give Is it [indiscernible]? color you're little primarily in Or a mix a one broader with customers? multiple terms of seeing mix?

Mary Puma

of and on At expand this and that but said multiple already that booking in quarter. bookings half customers. actually doing customer it's it's that then have, the this third particular into one we point, is year. us based aggressively seeing with the Remember, actually quotations placing into orders, we'll in DRAM gives has Patrick, a start NAND mix what say we're There's started with second we're to and that broader the that the we we're confidence the broader, the

So we've got into pretty year. first the good half of visibility the

Patrick Ho

how Great. maybe little variables for bit mitigate as given to, supply the managing in chain those you you specifically follow-up question guess, of you in color you issues, are of persistent the maybe issues? guys QX? that issues were that a manage of appear guess, secondly, QX Kudos to That's off more, environment. these you And a to mitigate through seeing lot challenging of reacting And for more I one, how still to kind And some for gave QX I did my against be Kevin. this of situations how -- competitive that you do there coming arose, helpful. are

Kevin Brewer

trying moving now start Yes, question, with and just it's businesses. some early our offsets and volume Patrick. that's into of because was pandemic lead through very supply some to think part good part got the that's pandemic, move bottleneck suppliers got with very our online. to it is a mostly because of issue, course, logistics by I suppliers, we on, aggressive But really doubt there's closures looking new MRP since pandemic time is the chain putting and inventory of getting of that the mean the tight we put from the at a industry. And right I of of the buffer driven capacity no and then of of that

some think are early I certainly of So now. helping those actions

beat stay we're team bottlenecks doing arise, as to Now we see continuing suppliers to the look reacting, well. of We're where be the doing doing of new to adding on been at mean what in trying are since all looking now. as top we're we've may still as and I trying working hard, if problems start. at past, -- be We're We're trying potential companies proactive is it there the off we're can. to it. we right

hard mean, work. say a of lot a as it's of I before, there's supply heard luck, a me And you've chain. So too. lot there's big I think

we're all is working to do continue things to that for been So us. have those going do

to point intention So to been we've as forward. far and you move that's manage through as we our as out, continue this, able

view. I feel our guidance from a So chain execute need to have point to this of with handle we on supply comfortable what good a do quarter we that QX

Operator

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

Craig Ellis

mid-decade, as on million foundry to the want currently $XX activity, market I be Purion secular so the near-term of million in out start. look Congratulations such tough the drivers mature really as operating positioned for side, that and diversify by years at not Mary, single-digit power you but just really of we $XX in by the to remarkable really and at so execution, look fronts, maybe decade. should production. units EV we where mentioned, can environment, a ago well the you we're low we had that on the you the product X that's which line end be million, vision the is But

capacity So for diverse place And of ramp? coming. in your we the seeing do here in getting How customers is, that there's where sense are a ramp that question tremendous you half now are as business? the in you how have to much in second in expect we order visibility your strength that the fill And with go through and you book? XXXX would in much

Mary Puma

and power Well, extensively those devices driven the about we've market. actually by automotive how the of talked are being electrification

what terms to make the trends it time. to -- this Our stay again, talked at way. what them customers and in power are the about right point it forecast that we to full who adding we've because serve speed stay leader, now terms we close I the would on really significant understanding call in them, is we trying and very of series a discussions in our want Purion that capacity. -- are And also understand based remains not that products our ahead market only sure in pretty is, market but of how that that with

them that it's say future. we into So not with right longer that be trend manufacture again, foreseeable trend -- a over to these now, we is the strong This quite term. I And time. to that's even a we evolve as customers, chips that's right continue short term. strong it's believe they there to our would This to enabling and is remain going expect

in we years this trend, many a So to going for to believe is come. remain long-term it's Craig, place and

Craig Ellis

ahead, that's -- Doug. Yes, helpful. go And then

Doug Lawson

I the and the on to at to markets do in Investor are Day a on market add that just the December. specialty planning deep wanted we power dive Yes. that market

a be information. there'll lot more So

Craig Ellis

an flipping refer market. as part but just I see color seeing and you and on very very we're And to CIS smartphone Great. some foundry the Certainly, demand continue to And you and of well-positioned to increase ADAS there? We're got been potentially there. in the mature may gain smartphones then was market could increase to I wanted And we've a bit also on into question session, also image of if per me over seeing second that in customer the potential is strong mature further December demand in have foundry looking the EV of strong in hoping a the for get Doug, a you've the one things Axcelis optics color into bit -- sensors any the I'm opportunity large, for can market. little and whether customer share there phone. Japanese growing tapping provide

Mary Puma

on. a the last that in something And we'll year, device a we So address power using also something reference continuing our image and to market the And website, power and in the those of across a with production, with a Purion right Craig, in have put Japan, of the we market. particularly focus site, We Doug technical interest. business. really heavily, now, working to can XE but not are we're team website, quite more with has image any that which lot that bit only Japanese sensors is of that ones. issues, continue you're about that's we're both in talking that's We actually into but the a of very manufacturers, interest, very heavily should Axcelis. Obviously, the become as help really our with also generated but Axcelis actually Japan all and customers target sensors comfortable Japanese just work large that in familiar and launched

something that's that will and be -- future event that it way. activities, definitely for a ongoing of win a put future for let's lots us us, So

Doug Lawson

are the exhibiting year other think couple with I we that things, And Yes. this booth. of Japan semi a

X products of which that expect key is to. competitors in to the of referring have customer We relative Purion field leading systems a there sensor bit And evaluation the you're we that the image quite the XEmax, market, activity.

sensors. So to we think going be that's the image is drive the that, -- product really generation that of next

Craig Ellis

just of question with place That's a see third million, the really in calendar we Kevin, should Or unique prepayments over dynamics to 'XX? The that more something helpful. were there Kevin interesting on prepayments is, $XX And that that cash, I'll strong very, in took helped flip expect to question. calendar very it performance. are the quarter? point for

Kevin Brewer

that it what will would that PO with tell customers. there terms, smaller Well, say, I and, some -- in specific. is is our customer are it's order. And are I There the prepays of particular you, a associated geography one newer with

could where that is on the Craig, more less. depending or mix quarter-to-quarter, from So occur

So a it's mention want I generation to it cash significant, I did pretty -- quarter wanted because to significant more from operations. was had -- this we and

I So flag that. wanted just to

Operator

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

Christian Schwab

right this your million Kevin, last this hear backlog went quarter on did fabulous execution. guys I really $XXX that from million you $XXX Congratulations quarter? to

Kevin Brewer

last yes. and did. Yes, And new record, a obviously this quarter record, was was a you

Christian Schwab

Okay. Fantastic.

not So And carbide your not really on the you the sure kind come industry may change if an guys kind not to just can I especially silicon future, But $XXX that particular, does about, you guys the may million. we marketplace product for you're that talk maybe can growth? aware, now. of alone? you of in I'm the competitor go wafer X, thunder there's think right you where quantify some wafer too in opportunity cars material or in many for That have market per that where looking implant of might December and is but not

Doug Lawson

power more we will silicon XX% as we're Well, I do can dive Q&A. on combined said, to revenue. in on the I Investor systems be of we -- this this and the our going expect XX% Day, think, to silicon But a a Christian, carbide our quick have deeper both than year,

which I that's I front a it year, think around So but was up have don't me, XX%. from chart of in last

power that silicon on of of the is key silicon And lot There's in car, a and switching goes so a addition in to the continuing it to is grow, automotive driver. probably lot carbide.

earnings strong it all There's or really The market past active. several week Chinese a in Europe, aggressively very, the lot seeing it. X. of was in So power. customers' really -- activity Recently, activity starting across of And has to lot there geographies. U.S. a by been market reports started very as always pretty we're seen Japanese in is go the the after market has

a a There's worldwide phenomena. it's worldwide -- EVs. on So big push

to And continue grow, expect continue series family. power develop so it the we to to Purion we and

Operator

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

Tom Diffely

could in systems, if a I be going are an you impactful So where to are valuation you which wonder Kevin, which by year, into are, or margins the us the bit? first, looks give end this what a on where it you might XXXX, update expect the just close summary like impact ones And we of there?

Kevin Brewer

Yes.

So in I think Mary mentioned there's in ecosystems. to multiple And X evaluation the systems convert currently field. expect we out QX,

Tom, didn't we the put or So there, it's this exact put let's in it's it number but way, -- more. X

So But in I are X. in few to continuing tools put expect going field the have still evaluation quarter also a forward, out. evals we we'll

a large inventory of for in is in inventory beyond evaluation our supply current systems fact, fairly As some number process buffer portion factory. a shipped chain matter issues the or of having both work

put out to off tools in don't near meaningful we way. and the And I future we're going continue them we evaluation the In to convert the to to term, drop evals have growth. have more know, any there. expect there, opportunity out revenue to more the So you as

more are product a it's a but of they So are impact higher the and -- base the than are have because as some little the we've which before, certainly accretive extensions, a a talked new of about lot margins the these bit of disappointment as evals is disappointment, products. well margin short-term always ASP

Tom Diffely

high-class one Yes, problems. those of Okay.

be you I for But time, Mary but mature dwarfed memory or than into were how at it looking guess over Doug. year A was look we so to year market out this to just ago? strong. I'm we either does curious, the It being when year shifting year XXXX, business 'XX, a didn't the going a this nice memory into thought different it's Maybe materialize, it recovery Okay. look did for memory. ago,

Doug Lawson

you any Well, at IC demand, terms this The the an show and of you coming reports capacity. pricing trends support Gartner demand at memory I growth look increase to beginning if over think look of so X we for -- years. they're or overall in forth, if next Insights additional in

expect begun capacity mentioned So additions, we have to script there of Mary see that this year. we was as be that will the in some

to We expect that year. next continue

expect this very to terms year in year, terms And for [indiscernible] in and is your be the implant and our mature big the -- I business, than think year us mature so memory. is than better for a overall of last we of intensive business memory. it more But business comment actually

So mature I memory year, growing. mix see that continue towards though stronger expect to we'll will next even would memory be percentage-wise a

Tom Diffely

you at guess, restrictions on quarter fast get capacity you helpful. the quarter constrained ramping now it going of are into mean need And That's then next for very how question, is sense? the customers I tools? Kevin, in final you here, and can out door? when business Or Okay. again, strong is backlog going look the any third I it up is kind year, the these booking the into and the third tools because that's when the

Kevin Brewer

Yes.

required for job very a good done ship have we've meeting dates. think I what customers

requirements say, really are. majority So the I that what of customers' meeting Tom, would it is the

manufacturing we the at accomplished. because mentioned, online brought timing what facility the I the start how now, which start as actually we'll of quite up team this that I look extremely QX. we if As if Korea And excited about shipping and I and did quickly remarkable week, have in we mentioned, we running, do it's --

current in Beverly requirements, that's got covered going certainly next now. our near-term manufacturing the we've right with into help The out to shipments. year So

with people pedaling really the the up -- I'll right we're the keeping there's there. again, we're bike hard any say So business, teams, not supply constraints it but now, both across manufacturing chain and it.

So Yes.

question deliveries that. more that become, year, deliveries in like I we the from peer So taking group out XXXX, they in might or things throughout quit the have think I our your pushing heard maybe others know,

that an made really I because point to needing meet think, are issue haven't up again, requirements. at kept We this their we've what for customers with

Operator

Company. next Needam with Charles Shi from question Our & comes

Charles Shi

from Quinn I'm asking here Bolton of on Needham behalf & Company.

question. a with want to I start So

guys this be think a year on only you logic, basis, even dollar mentioned I up basis, a stronger shaping next than not percentage on but is mature to foundry year.

to Or a So and the underlying through that given the is ask shift I a much strong visibility behavior way case purchasing given how seeing any of because the just purchasing purchasing just there those like your from maybe in market is all so today like demand bookings is are want in to customers, stretched of like demand? you lead the quarter time, question next are year, time the how third out? like

Mary Puma

And at and does this point, get in people trying are where customers equipment who orders a that very job are a that work have requirements fab some to sales placing of lot right the where to always so But really they've the our basically in are, are comfortable time that in equipment shake Where just there line versus we the going going? that readiness. to that of the to of actually on building built? movement. What's are are to terms we're would do is status the we good now I exactly Obviously, the with the, going we're believe bookings that. say team fact the out remain trying indicated. And is the is place. fab? take the frame that example, will in they bookings be background fab There for

almost we reviews at on things a there's team. look -- do manufacturing that daily a a team take to week, sales It's There's minimum review a basis inventory and the it. the and forecast. internal watch in changes every the with at levels we So

extremely it closely. manage we So

certain. And we're we So it's feel at this on any things it. top pretty time, of if happen, those do in point of again,

that think so don't at buying of there's a out there And speculative this lot point. we

Charles Shi

want I maybe some demand the there. are silicon type there IGBT, specifically power I high, say seeing. question, Obviously, devices, silicon major with devices, probably various maybe so about carbide difference next would ask to BCD, more there be intensity, all but are implant they're power least the Mary, you X of at may

there Is in devices carbide power more of more So shift device silicon these to the bias 'XX or you book, kind seeing terms of power based are a X types? order mix from with on sophisticated XXXX 'XX? types between IGBT does of

Doug Lawson

game still power have this we're around EV a game split, for of But the -- of -- applications. eternity. kind new use we're in It's in It's been of in mean, I relatively terms in early Charles. early the devices

across split on It it's strategy. customer's the think board. primary depends that really I So

IGBT, Some on carbide. on silicon GaN. are some on customers other are silicon focused that and are focused focused There's

think seeing driver. I industries. demand across across device There's probably of just is biggest power automotive of we're a bunch a lot the board. the But So

Charles Shi

there Dragon sensor Purion little eval. while. and Got question, X, Purionb for in the DRAM important eval last your sensor image it. update DRAM those eval been to image your that my obviously, expansion noticed a Maybe progress I you has XEmax for can and back for the bit whether for and the I wonder a very market.

So I X. see would to if provide you color can like any those on

Mary Puma

Yes.

we evals X As the and high have energies. high in earlier, Kevin field, mentioned X currents X

qualified being is that Dragon currents high mentioned the that the you of is application. for DRAM One Purion

qualified Purion production. the Now has already and in application, it's Dragon NAND that for customer

So we're paces through going the here.

as think -- know, can close valuations I some early. you

bit longer. working they they when the that we're longer, to want. takes Typically, have that a take little it ensure can performance the of with all Some customers

from originally steps and those we we change -- actually sometimes mutually to agreed to agreed expand. what And

on having tool Purion working production that forward having Dragon that So and We're shortly. closed that and looking it, to go eval, it's through very into track. we're

just also. well terms out opportunity eval a logic. It's future. very for me the we -- to logic is advanced believe further the In H great market advanced of other that, let in mention And us going Purion penetrate there. That's the that's for that

actually are field, for terms the of We both and Purion in both high image X sensor XEmax' Purion energy, the development have mentioned In those going XEmax. you well. of the very

would So line delay both in close. terms there's again, no But at really we on they're give this And evaluations a time on would when that of that. say those out didn't I point, track.

system, carbide So and then eval XE silicon a with last the is a power that's which that's out very proceeding And is very well. also Purion device manufacturer, positive.

And the on word each point track. again, think we're at more less I experience I'll in time. So or specific on say this based customer

Operator

with comes David [Operator Instructions] from next question Steelhead. Our Duley

David Duley

couple a Just clarifications. of

power of repeat a Could systems us both and those you for revenue gave CIS. percentage again? percentages You

Mary Puma

Yes.

Let me find this.

what we So said, was the had, we process of shipments quarter, in mature for terms XX% technology.

give remember I we give I don't but out We saying -- -- by actually, specific script. don't that Doug, it do we actually segment? that segment, have out have I did it, -- in the

So Dave, don't actually think we I gave out. it

I think when we get to...

David Duley

I but... I'm down, almost it wrote positive.

Mary Puma

I said that...

David Duley

said QX. power, [indiscernible] for what XX% CIS think is and is XX%, revenue is you I

Mary Puma

that's we breakdown. you're the what give would on X, information to yes, get but that we specific do out didn't Doug number. a basically that segment. said, didn't give when we into as And deep it going dive I detailed a Yes, be, December estimated specific more I actually said,

exact But Dave, I'm So didn't are sorry, we the right. give numbers. you

David Duley

then And Okey wafers intensive, power characterize CMOS No. you implant mean me you understand to implant? talk that image you with or being implants does more however intensive applications when for means, sensor can those for how help many it XX,XXX about and is what exactly it dokey. what more particular can be

Doug Lawson

Yes.

they're performance that adjust more want They where and deeper forth. and fairly devices adjustment voltages to enhance them. the so the plants of -- require order to require to device forth. tend get and applications so in significant get and the to characteristics them so the for be, require performance adjust in building high leakages within lot they presale the So a They have transistor to They implants. to the implants, energy they are

So they're devices. types very of optimized

and very down to recipe intensity. implant And XX,XXX higher wafer because per or creates break that specifically customer so mix It's XXX,XXX to hard dependent. a start start it's wafer it per

are than type other but advanced and more intensive and And most than than FinFET so so transistors devices definitely -- and more implant logic. so memory forth in more they

David Duley

Okay. And in half the backlog, what slots next orders for first expect have what of that Given for first the we your year? manufacturing first should does imputations for the with of that record this year? revenue half half, are full and next

Mary Puma

implant That or going guidance on we that specific, information. when be talked forecast any into XXXX. Investor call models full out that we'll more will when and And obviously, some to not that coming general about the Day. some provide new XXXX. something get We you our year information we'll We're in February, to give at we -- are you are give we'll give then

Operator

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

Craig Ellis

revenues, you that And question wanted potential on And direct to third something the CS&I's million in CS&I I GSD Mary, it should material the the mentioned And would the the revenues investors topic press is to released expect in be is, towards calendar business. quarter. product recently. 'XX. $XX that of had that

I fourth think the company the said $XX million in quarter.

is for So business? of million that the kind $XX rate new run

Mary Puma

-- available provides is upgrades current Kevin going So a see of it namely let these I'll first and for turn The our we're the GSD tools. our have. tools already tools, configuration, answer upgrades the that have. the of be the it. energy improved and to through high part me the over basically terms as path performance part legacy on customers to think but that It separate can a as with I is of -- they that financial benefits forward to we then It to main ordered address installed Ovation, high it's of the in base Ovation

we have such innovation important, that that but segment process Axcelis to in customers. ongoing for it's making drive aftermarket area really our that investment So able part very is to there, it's business. really because be mature of the continue good in installed a is a investment strong, so technology and we're the base that large growth with this something And in to is

Kevin Brewer

of Yes. on this right growing, buying quite more kind doubt what a been number XXs has that's now XXs. Certainly, an kind right? And keeping a new We've going that few our with there's low business now, and I the base the the $XX tools elevated. there's to tool shipped quarters no that last think a installed beginning and think million it's where over consumable And that level of I seems hold we've of too, entitlement the number lot been at for because into goes of our is Craig, shipment. high like all importantly, years, now several with take

the than higher a when mean, we models running. was So mid-XXs was on were certainly our Investor our I assumptions share Craig. models put I'll out it's in the what for CS&I to be those number lot we're happy it more on Xth at the in based the than saying December right of where Day, forward, always is? we When where it new going

think a stay that. color when more to you $XX and about me we're if an models, little this month, can area But this I can more provide discuss it's put I And we point million I again, continues certainly, going hopefully, out grow. on give is new at that. bit think probably I So a to

Operator

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

Mary Puma

Daniel. Conference. Laser with Davidson Conference. in Summit events. virtually and in we upcoming the participating CEO Investor Benchmark And joining Semicap, you in you, everyone Thank hope In person to Company San us Technology Virtual the in I want D.A. and at December, Francisco be Optical in and talk we you for see today. the Virtual at will will to person thank participate at investor We November,

X. to there, virtual hope hosting also on your thank will to you December We a and Investor we for support. want be We you Day continued see

Operator

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

You day. may disconnect. Good now

Axcelis (ACLS) 4 Nov 212021 Q3 Earnings call transcript