ACLS - Earnings call transcript Q4 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 Fourth Quarter and Full Year 2021. My name is Latif. And I will be your coordinator for today. At this time, all participants are in a listen-only mode.

a towards facilitating this end be conference. will question-and-answer the session of We Instructions]. [Operator like presentation CEO I host turn would to now the call, Puma, Technologies. for Mary over President Axcelis and of today's your to proceed, Please ma'am.

Mary Puma

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

We are all participating remotely. in this call

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

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

may our We not these fourth good good for quarter current very year any call. was materially actual earnings do XXXX you update differ the afternoon. a a forward-looking year obligation us expectations. to And for Good for and our Our assume statements. semiconductor thank results joining from Axcelis. for and industry year-end

ahead million revenue an Our surpassed $XXX And public two XXXX. full all years company we profit were record since year gross independent of we became operating revenue, margin and our plan. model in

of the with especially resulted full base. this unprecedented us implant Purion levels broad the family solid across technology mature implant billion. to essentially We up have doubling strong in TAM of markets. customer demand. has to To high operations Adoption intensive team allowed $X in to been customer and approximately This gain from CapEx our product the process a of keep spending, has has by date, continues ion momentum level execution benefited

results, As difficult would years on once logistical two nearly to has and for equipment I our protocols. again chain. thank our remains into through brought many These to managed these by them while and continuing delivering them and been the employees the supply to case like semiconductors XXXX, adhering build the have serve have customers pandemic demand to challenges for for extremely challenges safety but strong. now, continued

revenue expect our revenue are year. for year a achieve we quarterly rate result, to and a planning run $XXX another supporting we As significant million of growth, this model

Our was fourth was per cash fourth of Revenue margin above of quarter share quarter $X.XX, $XXX.X the company million, a million $XXX.X a record. well financial for of balance gross guidance. our XX.X% and with earnings year-end performance

our we gross the company $XXX.X For of record, revenue million revenue and $XXX of with a two $X.XX model earnings year XXXX, million, record. company share full of more early per also than surpassed XX.X%, margin years a

XX%. to area process advanced of customers and for higher for XX% level to technology shipments be continues customers, a gross and refer X% the logic foundry This what X% installed significantly performance and and million mature revenue was strong strength growing was million NAND result $XXX.X fourth Our in quarter maintaining Axcelis, with consumables. $XX.X to mature spares aftermarket memory full and to as the of customers, continued and with going to to CS&I a XXXX, margin. or high contribute XX% logic base we an Purion CS&I our accounting fab customers record. company year revenue utilization, of a to business The of DRAM market QX for rapidly growing

XX% represented NAND current evaluation comprised XX% year, logic High recognition For mature and full H DRAM. accounted Purion to market accounting for system. X% technology market continues revenue resulting for of X%, to for the XX%. of of shipments, mix our mature from X% memory XX%; China process XX%; the X%; be The of for process Advanced rest customers strong Europe, of with the number a the domestic Axcelis in China, due and technology fourth market. investments, large serving by XX%; X%; Korea, the system robust the was particularly geographic shipments the Taiwan, quarter U.S., world, a

X%; and year, X%. Visibility split rest our throughout in was the of already geographic the the the Europe, XXXX the the significant XX%; Taiwan, number into is full X%; XX%; China, Korea, orders good, of For place year. with XX%; world, U.S., very

planning we XXXX, multiple projects. initial because these seeing already to into are Additionally, customers are fabs orders and support expansions

revenue approximately cycle of industry XX%, million the approximately of driven factors. being expect strongest profit $XX of million, per quarter, by seen. is share we earnings operating ever gross approximately of The and is the several margin $XXX For first in It $X.XX. approximately

and artificial of augmented and electrification early intelligence XG, virtual automotive and reality, the the metaverse. industry supporting the the investments including analytics, First, data megatrends,

equipment geopolitical manufacturing design factors control investments and and The like industry supply second know increased And tariffs driver valuable driven order by work like tools, national desire can't nationalistic forget we lastly, inventory chain and and devices, and challenges. over work-from-home early environment how. to the export shortages, levels for and the in hybrid controls accelerants near-term more includes semiconductor placements chip compensate for

to a by foundry the starts, large is implant the the and which are overall ion image mature bottleneck in the to strong more implant-intensive market, advanced an by where markets fab due more require $X to is of a extensions investment markets, addition the mix This implant our by sensor TAM in of increase driven products. power has and In serving product Purion growth approximately billion. significant wafer increased and significantly

the closer Let's look market take a segment. at individual

Purion Purion mature our of success products the significant strength growth system market. expect XX% supporting due rate closed comprise in high it segment to contributor although evaluation an this silicon market, and in of other see energy strength markets total will this the we power system carbide segment. In total revenue be smaller of to we approximately continued will percentage as a We customer, to XXXX in of for silicon will to carbide our account this XE a successfully for China XX% our shipments QX, highlighting that the the growth a of in continue regions. a

and sensors XX% For of evaluations XXXX. power XX% X comprise to are in segment overall our XXXX, we XX% XX% the of focused our on systems XXXX, to again revenue most a XEmax image high-energy accounted segment the of similar it revenue, of systems mix Two to for for outstanding advanced XXXX. image segment XX% represent believe sensors. systems will Purion revenue. In And in XX% accounted manufacturing expect this the of we systems

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

in at continue XX% saw of in to beyond. levels Purion increase current for XXXX for and between a the We closed XXXX accounted strong and approach medium current high memory for bookings. we We production revenue XXXX, buys seen in memory M a in Dragon peak. expect improve and a to growing customer maintain QX memory evaluation a will the quarter, will a DRAM way evaluation last a systems quarterly different and at XX% to Memory XX% and a position increase to and revenue it Purion in memory. the memory market application supplier, we Last XXXX. DRAM in shipped and both paving shipments expect

a ramps This see general evaluation. there an a activity to advanced our has qualification strong continue Purion and GSD mature related current door devices. production and in activity Interest standpoint, increase capacity logic also the of is From for XXXX. Japanese are both recently and successfully We we degree especially H a geographic buys for and High experiencing this finished market, in power sensors image XXXX high customer Purion in to legacy in where systems. as the we opened

I'd like to financials it operational Now an our discuss over and to Kevin to Kevin? turn update. provide

Kevin Brewer

Axcelis significant drove we almost XXXX the the began across Strong Thank South business of and an quarter Korea. operations year in financial fourth Axcelis quarter, in board revenue production full our model XX%. at delivered center and you, operating Asia afternoon. good profit XXX% of new year In Mary. increase leverage and growth in performance. exceptional full execution fourth the And

a our $XXX support happy are our shipped XE, models. say billion million adds to to that system in first Purion and revenue January. We capacity $X This manufacturing factory

good. for the But into are As like said, we and year very in Mary we early experienced expect to challenges. another Axcelis. be XXXX great strong, others End are headwinds is to XXXX in continuing provide XXXX that the industry, and XXXX markets visibility

are constraints and have into our QX anticipated almost costs We guidance, changing chain daily. built but things supply

customer activities in engaged remain systems teams engineering and and to requirements our for operations support. meet Our

enters sales our in $XX.X million quarter by a in finished year and be upgrades utilization high-fab rates, parts fourth to $XXX.X QX installed CS&I $XXX.X our Strength at base, well $XXX.X $XX.X growing compared guidance forecast customers million a driven QX. our at million higher million to QX. QX tool to inventory. and compared and million to Now turning above continues compared QX spare CS&I results. to million in maintaining level Purion were of financial above XXXX system in revenue full $XXX.X QX.

XXXX, was an the $XXX compared at revenue increase in QX million to customers QX, $XXX.X CS&I compared million revenue was above $XX to to as expect and QX. $XXX.X $XXX.X XX.X% our $XXX.X at XX%. sales, total to XXXX per million in in million the CS&I of for compared customers an XX.X% quarter. year $XX of XX%. XXXX million accounted in sales record We million QX Systems QX. in was of compared modeling our XXXX. million $XXX.X recommend XX% approximately million to top or XXXX, remainder of revenue be XX Full increase same revenue a Three were

$XX.X R&D million to margin our mix SG&A by are million than $XX.X or XXXX CS&I gross In QX, forecast with spending we QX. year, Both margin combined million bookings. gross record, base. and revenue strong R&D For of new or XX% SG&A QX. XX% deferred the XX.X% compared revenue, product QX, breadth QX. to from revenue, revenue. SG&A cost-out of with of million. came the activity. at of versus of fabs Multiple customer $XXX.X or customer with our top system QX in the Backlog customers bookings QX and expansions compared including for compared above. $XXX of $XXX.X to XX.X% new in million, finished are of to at were the approximately indicators in above beginning some driven and one million be drive was QX was higher ratio and full to QX XX.X% QX in XX QX our million X.XX $XX.X planning revenue expect was customers guidance. $XXX.X book-to-bill spending $XX.X are quarter was in million R&D and X.XX a in XX.X% already that

We compared Full the record XX.X%, X basis up evaluation was to a in margin also XXXX. closed systems quarter. year points gross XXX

fluctuate revenue gross based approximately business. CS&I and the percent evaluation QX from Gross guiding number quarter-to-quarter XX%. margin are We margins accretive customer tools of on mix, closed a and will of our product of

on have made growth product We extensions business, across cost-out. progress CS&I our in improvement board Purion solid fueled gross margin the by and

profit driven in logistics more QX. models new reflect assumptions: continued QX expansion, being increase a and compared to finished value million product chain almost pandemic supply return million $XX.X related from following by disruptions the a ease. XXX% revenue Full Operating profit business supply million million, operating improvements, to higher margin in environment compared and to at labor planned chain Our gross engineering, and record and extensions, Purion $XX $XXX.X quality XXXX. year in an of as incremental $XX.X which was and CS&I volume typical a is

profit of income million approximately $XX.X or per in was are almost We million year approximately operating $XX per or per $X.XX net to We're guiding Full share share income or million $X.XX of or QX. QX share, per at $X.XX per $X.XX. QX $XX.X compared share. double XXXX guiding net earnings $X.XX million $XX.X million. $XX share was QX

of receivables remains $XX.X an QX. reflects from compared to QX $XXX.X chain in were guidance a million X.X finished pandemic we on to In impacts situation. to related and our quarter, QX. QX $XX.X to cash $XX $XXX.X $XXX.X shareholders to million issues It repurchases customer As at in for accounts prospects excited an compared have QX through QX the noted exciting inventory are record, generated million compared products. with were $XX.X million evolving the industry with operations million, we $XX.X over ended million the payable in returned company compared inventory and million cash demand stock repurchases. QX. We growth strong is of million million. to evaluation XXXX, QX but and momentum business our QX QX. million earlier, XXXX. at of X.X known in compared finished in turns, the end our subtle Axcelis from $XXX unprecedented the our million time cash at and And $XX QX. in through excluding $XXX.X tools, XXXX of for of about supply solid share finished

We have customers expectations ability minimize who to will disruption our our continue to work on to commitments. for to hard execute our high

before and closing, execution their I want for to Lastly, our support employees throughout thank XXXX. outstanding

turn closing not call for great strong I our we them, support. Without in thank customers Thank to suppliers comments. now to to team. the Axcelis such results been for want and deliver We their Mary also have a back would XXXX. and I'll continuing you, have able

Mary Puma

Kevin. you, Thank

as are looking another a We forward in growth a base, And we overall broad sheet exceptional Axcelis as strong performance a dedicated fourth employees. well results year with line, product to of in has and and strong balance our competitive quarter are Purion pleased customer team a XXXX. diverse XXXX. of our

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

the confident living of are times to during the most all achieve are in one industry. ion right we of semiconductor are in And that the history exciting we making implantation. leadership the We investments

I'd and headwinds, best chain We are times. are need open keeping satisfy track providing and challenging these on for With doing customers it they our supply we our during to support working questions. current like the that, pandemic-related projects and through up by Latif? to

Operator

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

open. is Your line

Patrick Ho

the you prevalent particularly And that's question. involved? issues -- quarter. of chain Maybe, Thank year. very One, and Congrats primarily parts is terms in Or Kevin, the it much. on are business' maybe keep component as their quarter sure between how variables supply this industry, and you first off, as do the nice Hey. trying there you terms spare possible. parts? shortages the balance a issue? guess the guess, X-part that dynamic? been in do Because I'm build secondly, I I of full customers priority say, potential your in running other CS&I system are How to allocate parts versus fab

Kevin Brewer

Patrick. thank Good Yeah, you, question.

example say would are driven. What seeing experiencing component in our issues supplies, current I things for of more like So suppliers shortages electronic is we're end. supply chain are power chip the right now

working in engineering some with So we where our proprietary cases, been up designs, has parts. team to alternative have come

parts for supply We chain look also for and our search use our team to brokers suppliers.

more think, shortages. a say, at chip related But it is thing some and specifically, those that So point, I this component are we've the doing. more been then, of things as I

first of mean, allocate? do and the things terms always we how foremost, running. and In keep we up customer that'll I

field, if So in part the machine I down tool tool. only coming the got sitting they're example, down is in need on manufacturing, part. a rushes, off it's a for the If

sending So customer we based prioritize how on out needs. we're parts basically

then And third building we may for we're ship basically So want tools the need we priority systems is that the the -- they keep machine up. quarter. Inventory, down to to rushes. the that

I tight on of It it's it's picked certainly Omicron very impact, I think, our most So little right a been now. you as is people have suppliers. some think -- too, up, had tight. saying

trying we now the in just haul. can, is first we up continue But I'll month sure. sure those has the back tightened through do of dealing to We're work. but big And can Some been make pretty long keep buffer day-to-day extent of what to got going inventory, we've been just with labor experienced to we're and to two going been bit, things. really It's little doing. to say shortages we're in them year for a the that issues. years some continue things It's a work to the a to

Patrick Ho

follow-up for And Maybe helpful. you, maybe as That's Great. my question. Mary.

visibility, obviously In the comments see plans expansion and nodes terms out you demand some qualitative that the there about for mature fab of talked the XXXX. mentioned some of of new are being the many today We by of these types about players.

capacity? your towards existing customers Or expanding As XXXX, customer you look of mature the of you into lot a are simply seeing further nodes just that base it broadening a XXXX? on is

Mary Puma

high. strong. the fab we've said, process is very technology The markets mature So Patrick, utilization as remain

some a image across and devices. both the for have all created We and so demand, foundry, see -- mature supply And consumables. tools mature in parts image process, of chain power the general in segments for sensors, and sensors constraints spares high it

There of predominance In it new from there both expanding would expansion them customer existing seeing of in are capacity Asia, additional a who of come I many these demand say fabs. as well. base up significant are But facilities terms either of come that are we is customers the are seeing a in actually new or existing customers, out we're there. the putting are number customers China. customers -- the in

watch very good of nicely. And But things is to In closely. those very very so really continue have we XXXX visibility actually all early filling we XXXX, up already. very,

Patrick Ho

And guys. much. very you Thank Great. congrats

Mary Puma

Thanks, Patrick.

Operator

you. Thank

question from of Craig B. next comes Securities. Ellis Our Riley

open. is Your line

Craig Ellis

by very the Mary, question wanted comment. and start strong for foundry execution in outlook. just Thanks in on the to to taking mature the Yeah. quarter I and back the going congratulations the

customers degree of things 'XX, looking of next Can for we but the for area analog visibility? you a what visibility an mature And mature levels any are capital names can capital comments just very dynamic put recently more early over message out about a U.S. heard little on strength. the spend the here, really the talking spending customers traffics to us? to your they the company the that leading saw extent high plan foundry not that spend multiyear into of three where years. bit one about So flesh I which are companies very project that just very investment of talk on but much you is that foundry out one

Mary Puma

not made any -- about I'm I are and now right on sure chain. very customers. line parts to Yeah. it's comments they stay -- additional for comment are on up, customers to as that because Well, very customers Kevin eager and close Craig. brought that lot Customers in we And But are of And that our just to the going get think got make of I he you a specific also supply they've potentially did also hand. buying equipment. mentioned to inventory aftermarket that

visibility with up. just improved They [ph], their I And of So really not new are XXXX, fab into and us terms sharing know fab tremendously. visibility we -- this has in it's again, just is about when coming that expansions there's both that fabs. gee plans talk new

We getting orders are fabs. actually for equipment those for

actually fabs. So that they're that equipment they those are plans. new orders sharing into go to place And for starting will

Craig Ellis

Yeah. it. ahead, And Got -- helpful. That's Doug. go

Doug Lawson

that's talked other get drive industry, about, We're that Mary to it, thing Let industry markets mature to that. full a X-XX-XX electrification. is -- me some in especially year the just the the of the automotive add power going long-term I trends think the driving on thing one to is the

And these ramping for so the next initial customers those few and years. of over course of the are those builds, a are lot

ordinary lot activity just a the planned there's of there that's beyond So stuff.

Craig Ellis

so year. Thanks of in run-rate the color revenue the And some Would there component standpoint just Doug. memory on million takes? loaded half a just that this attainment ramping for -- be puts of conversely, issue second Or the is the linearity target some the from on and mature a you in might half? are happening attaining that. follow-up that's things comments Can preclude helpful, around and that basis the provide more Or supply on or quickly? That's either argue Yeah. is year? chain foundry for that the first the $XXX possible back-end that revenues a are that would one

Mary Puma

Well, additional point, again, year that to going our I back nothing Kevin really of how don't front is terms on year. end. and from goes. that the any or good. are year out that. and half think how see color we're the so has our of laid shaping we're those. what has an no in challenges the first give And the end up we'll really at team facing. additional some our to thrown just again, are We're to operations in managing half really an he now, think any right thinks impact of see I of have around the differentiating far, second that excellent And to wait continue that job done have the perspective, just are going from mix -- to here there's But challenges there on wait into have But if could there's so this

Craig Ellis

with Yeah. the helpful, there's help just the us color develop. quarter? that environment, operating market the we strong Clearly, for to expenses, can any then beyond you think, hungry demand products you're seems lastly, And Mary. custom first able Kevin, and on a That's

year? potentially we think go through would as how we with OpEx the do So about happen what

Kevin Brewer

our $XXX XX%. to have in we XX% million Well, model,

we did that year. rate would QX some at said, be Mary I to that as expect So run point to XX%. get say this

and we're to somewhere we'd to it So but to continue at level, revenue be XX% as be range, would up run-rate likely that Craig. XX% in -- come picks the the down

start modeling, that's to think for then bit couple closer a and quarters it down I for of little XX% little a -- bit. a if franking So maybe stay

Craig Ellis

it. Got everybody. Thanks,

Operator

Thank you.

go Please question ahead. Our of next D.A. Tom from comes Davidson. Diffely

Tom Diffely

questions. for Thanks afternoon. Good Yes.

percentages year, So that for systems? this was segments different of us that total just of gave first, the revenue? is Mary, you the Or

Mary Puma

revenue, for was systems That Tom. No.

Tom Diffely

expecting this Okay. And business logic advanced are you any then year?

Mary Puma

fourth system. next planning. And both year expect orders current closely year customer We Purion H advanced based in on and to the quarter we're It have with capacity for their and are. follow-on very that evaluation. a this we Yes, was the closed an working logic. closed We

Tom Diffely

on you question, Great. Thank maybe earlier. then up that. a for And following longer-term Patrick's

mature a customers like China of with power side? obviously to new very a back move at move activity some Europe, or Asian all strong outside seen the U.S. market, So ramping Have especially well. the is to as today. sounds capacity on you It

Mary Puma

seen Doug, we've do to believe have anything that? date. additional don't you any on I information

Doug Lawson

Well, than Tom, U.S. been little the in There's question I'd power even active in say, bit it's is there globally. lot more a if activity ramping Europe the point. power, has around a And a of in more little and Asia. is maybe Asia at this up

power push. So a is global much very

Tom Diffely

Okay. picking in you look which memory it meet new is you then the Thanks, market, see products over momentum? last do it quarters those new should it I coming the gaining the look old at versus wafer at at just levels? the Doug. And of the business back when in finally, terms peak where peak. levels Is Or you get market as the said products, most think to the back old from of it When starts memory growth you the up XXXX few we hit products again? -- next the

Mary Puma

actually think it's I both.

number out We products customers. have at a of

memory. we've strong good a position you got As in know,

definitely existing So and we that additional we we're are the -- customers the making have applications progress. have

We obviously is capacity capacity there's all also seeing wafer drive expansions. know obviously, capacity-driven. I implant And start think being that we're added.

Dragon customer and qualified things talked DRAM on. a we how additional going going We as Purion for both do at flash. have about the for that's So on was We some had well.

at we a at a drive to So something and Purion new -- just customer. for there us M is customer are placed that's application. a evaluation that's that that DRAM talked for market expansion tool, going about how I

grow a to products. mix is it as add just continuing well have of what continuing on we to some as new to the with So both, of that

Tom Diffely

thank today. you your for Well, time Great.

Operator

you. Thank

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

Your please. question

Christian Schwab

on for a Congratulations here the good Hey. start year.

on nodes the mature parse the node for adding think difference mature carbide? silicon So visibility customers, mature help between when versus the maybe can new technologies capacity materials you we new and the and about like

Doug Lawson

lot silicon Well, shortages, combination, are It's for it's chip for then strong. power, the image lot implant power even type But markets by activity microcontroller all than mature term, completely silicon longer which higher than products standard advanced sensors the sensors I'm very understand and a question. a sure is mature memory. the is logic and like for nodes. are high, carbide, The not driven devices a Christian. the whole. being image of and materials is including as those things, intensity mature And driving as products I mature well in which very largely as a communication the of higher a process, even

that those power, so our And see you power, a -- areas example. look do coming sensors have mature. nearly when multiplayer from in of bit a have that's of revenue we the And and at image in for business XX% last year's

Christian Schwab

What how in you your can of TAM from clearer. now me make are quantify could $X to to potentially a customer or TAM billion electric little of X guess that. people silicon movement the that any guess that. the have the for question adoption when Thanks uptake bit is product that? implant idea and lot impact let to positive I a in the be it it the what Well, to you Yeah. ion push is advancement carbide years vehicles where Do from adoption I materially adoption and making higher? today

Doug Lawson

really to -- publicly haven't It discussed Christian. detail is material. that level that detail, of We

have for there's wafer look, and you as starts of whole carbide. that X estimates in probably terms silicon firms for power research a X or If

we terms given And intensity so I specific probably grab but be state. would and recommendation numbers the of good a information metric, of guess the implants. those, published we've our And in a couple of to that's haven't

Christian Schwab

other No guys. great. Okay, Thanks, questions.

Doug Lawson

Thank you.

Operator

Our from of Quinn Bolton next Needham. question comes

open. Your line is

Quinn Bolton

successful on the completion all. couple Hi, the of model million and $XXX Dragon. Congratulations years eval a early hitting for

on start continue supply the First, some like you near-term just wanted constraints. sounds to It I face to challenges. component

capture not actually I due absenteeism to any think that causing you quarters Is would push revenue the and are component necessarily have the certainly the future But and quarters? for outlook a then to systems out faced you that shortages couple components Or of expect changing industry March wondering absenteeism to the that others potentially now. quarter? in QX the issues of in for Omicron.

Kevin Brewer

Yeah.

So you we're we to a bit But quarter. of things guidance. into well. first fairly in keeping going overall, up I we little think hasn't I'm it with have stress on factored caused the QX that Quinn, the not tell know, still what

If will to bit, QX at CS&I little look you're be a a trying down QX said to we about million. take being $XX

CS&I lower of the coming about So on million you've that. side got $X

that's what's down. bringing So a of us piece

lots -- ease would There progresses, think it's as before. business I models. in the positive, but are is, was year extra employees layer good because everybody's I little up So it is not Certainly, bit. severe, real that the to the complication should you that of as is was news And illness an to put And workforces. very but challenges to disruptive I guess a issue start people's tight. things Omnicron have quarantine of the expect

So they is back a lot to variants quicker other got able of when were people get -- good work news but to the than Omicron.

into will not which And QX. of that would revenue can we've into there's different orders. a that -- say indicate got I that So fall be pressure some quarter. certainly that really is of that, will factored little there, any bit all We're losing a

customer this and point -- up requests. with are we with -- keeping So at

our news. think us an So close schedules yet where be good I that's able there's it's to in don't anything order. not the think caused to I

Quinn Bolton

Got it.

a you question and then for Okay. Mary. for then And second one

$XX that's the balance the revenue deferred sheet $XX closed. evaluation several the units from QX about million has on to fourth in million in and up gone balance plus with quarter, Just

have said in X evaluations field. you think only you I the currently

So of XXXX. revenue the sheet tripling over balance wondering that on course what's in the behind just deferred

Kevin Brewer

Yeah.

is the are So an the the installation. deferred more of revenue convert, is certain installed. that because -- where actually, associated until that's inventory, inventory. after out tools that's The being evals, Quinn, -- sits when revenue with a that carve in because they There's revenue tool shipped our it there's deferred basically sits

piece for completed, W&I that's recognize that And a it. So there also can't carve until revenue. you is the out of

increase in the the probably is volume seeing you're business thing in going biggest the think that's I on. So

The there is where a long-term will on number up and other POs, that revenue, customers be with are of more long-term deferred revenue. a also it's getting will see, and in the we thing a that deferred prepayment are we're hung -- you

are So the if that you're back two year-over-year. looking pieces those go especially making up, probably that are

Quinn Bolton

just share Got you both successful positions DRAM mentioned it. customer. the to for And gain NAND Perfect. then of at for that now eval, the and Mary, that Dragon you'd and completion

Do can Just plans? year? you Dragon to follow-on production share you orders expect for get wondering, your this

Mary Puma

do. Yes, we

think at expect business follow-on going to year. this orders We And look point the we we later to is that or begin this next forward either on, that NAND DRAM rollout. to then get year orders some

Quinn Bolton

you. Thank Great.

Operator

you. Thank

David comes Duley Steelhead. question next from of Our

open. Your line is

David Duley

for Doug, Thanks you. taking my questions. for one's probably this

regular part? how in more than intensive you've the give power sensors range? that a much think CMOS you XX% mentioned what's they guess or more past, implant Could us as I -- a Or us about intensive are devices are. just are the and to remind

Doug Lawson

implants close depends XX it Dave. sensors implants a energy devices. payment both. There's the on lot power in or Well, of high There's on comparison, to

the that need drives HXXX. for products Purion like so the And or VXE

also, those our And applications. of a type to so create in for. for higher energy good it's the are that in same are looking multiple parametrics for implants oftentimes people done the transistor that good particular There's region devices, business. It's

a definitely a is intensity better it and mix Axcelis. of higher for So product much

David Duley

how just let's Or how -- in that helps comparison and many intensive other memory -- for to new the are, these markets of get per answer device? So to say, obviously. questions are some implants implant trying more three there plants the sector, much sort

Doug Lawson

the Yes. on very process forth. the memory, customers' and and flows -- type so dependent on the It's it's

comparison specific So in number a can't an They are to you terms of the exact there than give a power devices. device. less power

David Duley

cash you're do what cash we a $XX like Okay. And to given you've such your job expected a with Can whole than cash this basis. understand great balance is on calendar this us going almost the last the company managing here the kind help or year then, revenue be has Kevin, expect million can done business generation year-over-year going And to you with of a higher growth? just year forward? up XXXX

Kevin Brewer

I flow new cash Yeah. mean in model. the is Well, free the so

$X is So on then model XX%. than the $XXX billion greater the is XX%, and million greater than

one said quarters to at So the point we XXXX. run some we of rate in expect that in to get

strong if then some a going review I'm start beyond say expect that. few of about what's we're of that how we'll billion now that we've beyond we we'll be continue the capital any we'll $X and it's other of out to we boost And part this mean year follow in that program looking take we return year what in program or implant, to what of outside business is go to grow at it's I what something So thinking that. of said board that but -- be to to amount be that means model. M&A past really meeting, the to and a another generation. just the do cash about to thinking terms had continue thinking And We've have either can't after years, start going now could may our the going I on of details get implants. implant shareholders. beyond in time we it not we do we're that right for terms about we're upcoming in thing of even in place could

answer have the we're but it of to to yeah, guess some business. then shareholders, to So to that continue rest and something, short in we're we the going so the to cash And to a would I year. be a decided of going obviously capital use going strong level to of -- if we're return do invest is

using up The been and would out, we've NOLs deferred other credits. of a thing tax lot I point too,

So to we've end. cash have about but been not a that's fortunate taxpayer, been that

So -- had little a taxes. we of cash But not out. bit impact generated our but to people just But we've that's payer remind cash all a have it's greater in contemplated want to and than XX%. cash P&L models in these earnings. been a haven't that Obviously, of I because we

So year-end. it's at balance helped cash the

David Duley

then one in XXXX? Or the that that talked final Is are projects? XXXX. is Okay. fab early of timing is you slots me having your full visibility suggesting that about And from question manufacturing just into

Mary Puma

timing It's Go -- of ahead, Kevin. No.

Kevin Brewer

a Yes. full, lot of XXXX we we book of not It's mean I'm A visibility. in -- that as going say that -- -- are projects. starting there. -- but to of orders got we lot is the can't I said to in are And we It's think XXXX. I timing put getting Mary said, is we've additional slots

David Duley

thanks. Okay,

Operator

comes Instructions] Miller next question [Operator you. from Mark of Benchmark. Thank Our

Your line open. is

Mark Miller

Yeah.

great me Let add looks to -- my congratulations great bright year. future very and a a quarter looks And it here.

quarter. evaluations You been qualifications evaluation or out And are M think Purion at it least evals to an has the DRAM. mentioned was in in currently X that tool closed last tool, What was field? tool you one a I the other for sent there eval

Mary Puma

out I out one The -- other have there, last that Purion of -- two field in into them we evals two And the three field went we in actually, the we are that out we -- have think the put are currently XEmaxes have XXXX. year.

are So advanced sensor out development. the those there, that for both are they're two out image and

Mark Miller

orders major that? fabs Okay. already. getting of I up any a there like and surprised ask you're I year. companies, it when orders they later other the seems because, number next coming Is your in expecting semi of this was But certainly, were there's year, for reason

Mary Puma

comment I customers talking any don't on about. I you're don't which to And exactly specific know customers. want

how exactly not I'm Mark, answer sure that. to So

more about talking the is going units, loaded. rephrase if will you're to the year. to evaluation not front-end question Everything out it. know or into I that putting field evaluation answers don't But the throughout want units be we again, be you if If

Mark Miller

you already companies you and in fabs curious. seemed coming orders, of earlier were new these No. that other Like XXXX, getting had I'm just indicated. I than terms said, said up in

So ---

Mary Puma

has traditionally fab. tools implant into a Well, that one the first of been goes

one So very that and are I we if And be could closely that confident going very is feel know don't fabs work what's we That customers. impacting necessarily it. happen. with But to factor. comfortable these our

So sure seeing. comparing I'm but that is to, what what it quite not you're we're

Mark Miller

More metrology tools.

you. Okay. Thank

Mary Puma

Thanks.

Operator

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

Mary Puma

thanks healthy. Okay. for please you with Thank for Latif. stay your participating today. Group’s virtually thank us Susquehanna Conference And Financial you. and in you hope at to events, will Annual We be continued Thank March. XXth support, you, to we Technology talk everyone investor in joining upcoming We and

Operator

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

day. Good disconnect. You may now

Axcelis (ACLS) 8 Feb 222021 Q4 Earnings call transcript