ACLS - Earnings call transcript Q2 2022 | 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 Second Quarter of 2022. My name is Chamberlin, and I will be your coordinator for today. [Operator Instructions] I would 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

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

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

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

are power with results in exciting morning segment. metric. on strong implant Our market full Axcelis on system installation, presentation quarter new to strength Good focused website do to shipments the employees statements. our team applications would shipment forward-looking in with may and Automotive as of XX% to bookings despite on-time expectations. segment. these growing call. environment, intensive by XX% installation conditions. evidenced under for thank opportunity. satisfaction satisfaction. strength challenging second the execution of our us came To the these chain for us delivering continues robust date, meet mature quarter, shipment I update customer keep remain extremely We technology second power key supply In and and highly again Industrial to especially and earnings of process like solid demand, by Axcelis, these for for a maintain any the once We and this of system -- Business our on a from devices. customer this this posted not joining our recently assume logistics current thank be obligation actual you results We and materially from and has dedicated up challenging level customer high our dates levels allowed differ

quarter quarter of result of was of a well and $XXX.X of margin As for demand balance our million. with share per the gross second strong financial million guidance. above second cash our quarter was our $X.XX, execution, end this the $XXX.X Revenue earnings and XX.X% performance

refer to was Our margin. aftermarket QX revenue revenue or business, in $XX.X gross our significantly contribute what to we million. CS&I as continue and CS&I, to

an shipments and second before, shipments mature be for orders X% levels the the XXXX As of XX% accounting technology the to shipments and for DRAM XX% of to went of strength with going mature mentioned Axcelis, market XX% The for second of system area our process in quarter geographic customers mix customers, foundry/logic memory X%. to continues NAND X%. Visibility XXXX already demand perspective. record continues with XX%, and the System and quarter China continue U.S. Korea booked. XXXX was be rest to hit XX%, a of Taiwan for Europe the significant from world to shipments good XX%, with bookings X%,

gross greater margin $XXX of Axcelis than As approximately to XX.X%. million XXXX revenue now a in of result, achieve expects with

between earnings per of revenue operating gross share quarter, we million, expect between XX%, million million $X.XX. to $XX.X of and $XXX million third and $XXX and approximately between the $X.XX $XX.X For profit margin

minutes, a actions reflects more In is in concern these guidance increased strong Memory industry to the challenges. color logistics costs in due margin. taking of has and and supply few memory the are provide implant mature in currently There Kevin Memory limited spending exposure but on the we segment, our CapEx the size that around presence Our IC chain the mitigate impacting the have currently gross markets. to we XXXX. in Axcelis are to will consumer-related opportunity for relative manufacturing a

we revenues from about system the XXXX, XX% only memory expect of For segment.

progress advanced exposure has We in logic have penetrating made which spending. IT the consumer market, to significant

limited with We XXXX Advanced XXXX. we continue segment customers, exposure to Logic work have closely no in material but to the in and exposure

system the is growth growth to being and in highly in XXXX. product Growth part Applications last has segment, more greater Technology to require X the TAM XX% segment, more implant devices which Our of ion by $X.XX Industrial is Power for extensions. Automotive a than especially advanced a doubled expected years. intensive billion key Mature the Process are implant our continued revenue approximately this account and than driven in the of Purion

expect benefit come. We and years Axcelis long-term is many growth a to in for should vehicles segment XX% between by for system to power of transition the our the electric to account This XXXX. and XX% shipments driven trend

with our will to expect of strong, we use Purion but adoption and result, to applications an a any segments we systems evaluation penetrate the more advanced work business to market on specific additional customers in new slowdown As opportunity remain product as extensions. with

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

Kevin Brewer

execution these work quarter, chip was disruption with consensus purchasing results, exceptional shutdowns, and capacity. nagging tactical engineering in across higher to company board. Favorable the financial Mary, and delivered and pandemic-related margin these teams QX implement estimates our and to both results. Throughout good strategic beating with significant Thank suppliers shortages by mix closely you, caused address and guidance issues. measures and second Supply drove chain solid gross positive morning. quarter Axcelis the

teams by plans challenges with ramp while were sit support material to created fab Our addressed customers sales high manufacturing rates. and availability, utilization team and service

supply We we $XXX to XXXX remains are mentioned, great than year into now industry, full year chain and the We constrained. higher be greater supply Mary industry similar As guidance, include and Axcelis. remains anticipated to costs. challenges Visibility situation expect the is QX only content demand chain but on The Like full is strong. others dealing that these almost another daily. is in disruption revenue with and changes our customer now year be million. for good the track to right try

support continued significantly in quarter, to billion Beverly. We improvements In the production in Korea second than at projects enable in the in efforts in our ramped to and will we Korea. revenue. Beverly to Axcelis capability capacity operation South manufacturing make South $X These began us both and additional have center increase greater manufacturing new Asia

million results. million CS&I in in margins our in mix was to due million the to million at $XX.X revenue our financial $XX.X to QX. to above QX Moving some million revenue strong in compared second QX. compared to finished $XXX.X at CS&I QX and posted guidance very $XXX.X systems million revenue quarter $XXX.X lower costs. and quarter $XXX.X QX. finished compared QX

million, are remainder R&D XXXX, million and for XX.X% was new We R&D expect QX. modeling with at at $XX QX QX. sales Multiple SG&A is sales was compared of QX, book-to-bill deferred $XX.X versus to our to $XXX compared QX. in beyond around and QX, customers were be Two $XXX.X XX% X.X XX.X% out new QX. in the record, quarter. X in above and of QX approximately including to or of the million SG&A year. driving or compared and in $XX were QX or XX.X% $XXX.X XX.X% Backlog in XXXX QX, XXXX in to to planning revenue SG&A XX the X.XX $XX spending million in million QX, a same million compared recommend combined in of revenue, million customers and $XX.X in for to to bookings finished at fabs total XX% QX of with CS&I expect QX. a revenue. QX our top expansions quarter $XXX.X million. per revenue be bookings customers system of ratio accounted which spending In $XX.X million R&D million, we as

favorable expected and full and increased XXXX supply gross to was Full recommend well a of Gross mix Gross was of mix the at chain margin margins. spending impact headwind. SG&A our supply XX.X% quarter costs. the the and shipment of expected margin less XX%, recovering logistics to year driven be QX in trough QX margin systems of impact We're systems favorable during R&D we year, is believe above of XX% and the XX.X%, For higher-than-normal guiding higher and revenue. than approximately includes approximately I more at the margin by modeling CS&I guidance. compared gross to guidance chain-related due the of approximately We XXXX. and should a which are begin

margin initiatives. mentioned, remains make continuously we customer are our to evaluating to but costs, help continue costs the core top offset increased on gross progress higher We I satisfaction priority. Outside of ways

and Our continued incremental improvements margin higher a from environment. supply return $X in revenue chain Purion and billion extensions, more quality engineering, to model net share $XX.X or driven and value supply QX. profit volume $X.XX reflects logistics We're per or at and $XX.X profit QX $XX.X finished We're typical and operating QX $X.XX. chain guiding expansion between in product a $X.XX million planned between million gross Operating million and guiding QX $XX.X by labor million. QX. was $XX.X $X.XX to per compared $XX.X million income to in share and per QX million earnings share compared CS&I

driven QX settled and million shipments. QX. compared business pandemic-related QX. increase to repurchases to anticipated excluding X.X% million finished the accounts $XXX.X to were evaluation Future of in in capital. $XX.X remains at ended were QX, issues As million we driven guidance X.X% to $X.X million share $XXX $XX.X million of generated receivables reflects million $XXX to million $XXX.X approximately turns, evolving In impact from inventory tools, finished noted compared but working cash $XXX an million. the earlier, quarter, in compared QX an inventory at timing our in million the situation. million of from $XX.X and by QX QX, operations QX at QX. in cash in compared our QX $XXX.X supplier by compared payable on

is returned cash for the of for products device significant growth Axcelis programs. shareholders to our long-term in since our market. beginning with We exciting over customer time the implant million power have demand repurchase TAM, ion $XXX prospects stock our solid in This growth an and

perform level, for want this supporting at times. I high environment. these very a to their to hard at to partners chain executing entire level. I the also want our thank supply and team thank continuing once Axcelis despite during are challenging customers again, for a We unusual our work And

both have manufacturing chain underway, supply on stabilizing We projects capacity. our focused and adding

As will with this back emerge I'll you. more a period stronger to the Thank a closing turn we now from and comments. business. that call much result, resilient for believe Axcelis Mary

Mary Puma

in slowdown very XXXX. is a the consumer industry. time interesting It memory a signaling Kevin. in in semiconductor over reduction you, industry and Thank descending Concerns

the The on power Axcelis, impact for U.S. end will Government rapidly questions. any industry. several of for I'd from spending investments expanding benefit and to to ion up Purion Shandralyn? trends create likely challenges like to programs demand. business. smooth implant automotive Axcelis important the this. helping like With to for logistics it capabilities and long-term TAM Supply And growth fabs. user moderated are position open chips driving our build the that, required by in the supply-limited the However, chain is series significant uniquely slowdown continue to electrification customers, Axcelis a this globally over be The of semiconductor lastly, are incentivizing and companies very environment factors. in our any

Operator

Stifel. will question Patrick? with come Our Ho [Operator Mr. first Ho? [Technical Mr. Instructions] Difficulty] Patrick

Mary Puma

got people on. raised, can't spoken are and hear Shandralyn, their them. confirms they a they've is that apparently, when that hand have called we repeated But we been getting just message

that. sure not troubleshooting I'm might how So work you on

Operator

on in. working I'm

Ho [Technical you with Mr. Mr. moment. XX your are and dial please? -- to Patrick a able Just pose Difficulty] Stifel, question, star Ho

Patrick Ho

Hello?

Operator

Ho? Mr. Yes.

Patrick Ho

themselves. on actually environment, systems, off I CS&I as quarter a your first it's know managing for and business. always Yes. results nice outlook challenge Yes. in for well Congrats you. deliveries the maybe speak supply-constrained and the the Kevin, as

their keep the ensure they're are sides on the customer and to on are to the obviously, time, both running want highest expand of you because, Given how both satisfaction those outlook, your managing How same you businesses? that of fabs results they at fronts utilization, fab prioritizing your yet capacity. trying at to strong shipments

Kevin Brewer

Yes.

and Patrick. So But to there's satisfaction. juggling customer good a to first it's attention have doubt a we question, act. no of bit pay a foremost, There's

of that a that they've So kind up of and first some our then news chain. situation our talking do improving second, came supply field it's that probably always the think about that other of the quarter after system shortages announced were goes hitting running priority they in couple most the a some to But difficult this I think of have the continuing I been deliveries OEMs. keeping OEMs, out and good companies, chip of was --

the get to I a things. to track, think back these get going on that's of OEMs So we charges, if improving can beyond long chip go some way

terms We have right now plenty of place of manufacturing. in capacity in

So make the recover to escalating. then to some it work deliveries, supply costs back is going yes. to all have rolling start And now be the prices so to about cost start but starts -- We're of as this chain. paying have because situation there's do we'd right dropping, but some to commodity the and been

top act, to original juggling So your level is a but of the thing satisfaction. bit customer question, a

something part means in our down going to of they the we a it got dock have what's out shipping field, to that's and a there's that running. So to on come get up if And as happen. tool

Patrick Ho

helpful. some that the as your and be we're need at to what's But the this trends at That's orders I there. situation? be. trends who that for head demand talk orders XXXX customers continue demand when looking gives go for if a concerns of question confidence robust And just be? real point? you follow-up out very and bake you the your What that at whole my What Obviously, maybe cancel on of concerns you would these take booking gives lot the the that guess [indiscernible] Mary. are obviously, solid confidence Great. market there's to

Mary Puma

to we're talking and our them close customers, to we very stay constantly. Well,

Automotive areas Just very, about, some Their of some talked Process their over we've are the are little. our two customers Mature weeks, we in that who couple basically, with are softening are certain business And of businesses last the of discussions Industrial, while they strong. so the and area. in a yes, very had of perhaps specifically Technology segments there that say,

now those And they that everything so cover what that they're able to need. do specifically -- is customers,

our have where think I maybe in We PC softening. XXXX. segment the but watching perhaps slowdown there factors in a push in impacting even calling driven everybody strong really waiting, not that we a understand normal that. there's perhaps delay us pretty steady by And some the to are has had any sales. that like and is that we So phone been And customer believe Mature overshadowing out, but be, We staff, it's be into segment Process remains is offs to to all investment Memory related or delay business and their in other have it, been just there is things that. telling very of their some demand softening potentially But and that any will Technology XXXX, a going had demand. in being date like that in construction, again, the

very changed, confident So that are feel and trends this very lines. not we long-term we're our have Purion product again, Patrick, all The positioned place. well in trends at point, the with

team done fantastic really a Kevin Our the job. execution is and has excellent.

very future this we're so at about the And point. bullish

Operator

from with Craig-Hallum. Our will be Schwab next Mr. question Christian

Christian Schwab

you calendar then would silicon have you continued Congrats outlook. as nodes that you'll ion quarter carbide? fabulous strong as to kind guys implant are the Can out very 'XX, think manufacturers be far by on And My the carbide a is of obviously selling and mature the mix you have of and between a future question different going that many end to? talk bookings visibility. us follow-up to silicon be to how do

Mary Puma

for we out in bookings place. the given a have Well, full haven't we forecast that

from overshadow at XX%. quarter, X%, to were is point bookings obviously, of And know But I Process Mature about Memory. how, Process what our about talked Technology; XX% continues were a backlog, this the the for from Process we've time. XX% as other is of bookings have from TAM TAM about Mature Memory our Advanced Memory, in segment Mature Logic talked standpoint, the the from We clearly, the the about about Technology, XX.X% Technology

is I revenue we're Technology. come major be to give And Mature XX%. will about ion the XX% you systems was of will the our going implant Process business feel from So for that for talking year, that, Mature that the that approximately fact Process last a think fact it year, Technology. This

into without think have you'll I but Christian, numbers, -- specific So the any to will that any read continue. having trend

Doug Lawson

XX% power be Christian, this see The to expect Doug. grid. we from do did I'd that of to is only for it add that XX% the bookings year from other said to thing segment. the we our to is systems coming revenue strong very continue We

is right of So business now. that's like reflective the what

Operator

Craig? Mr. from Ellis next is question Our Riley. Craig B. with

Craig Ellis

Can you hear me?

Kevin Brewer

Yes.

Craig Ellis

Congratulations on picture clarifications I before execution. a couple of a had question. stellar truly bigger

Is first revenues, at play understand on by? internal with million what $XXX for it the can to the can to that that really what so, if in you be could clarification just respect if color you The magnitude would caused supply Axcelis any provide broader the calendar plus on us issues? guidance plus help chain dynamics? And variables just versus helpful. extent And would 'XX be be

Kevin Brewer

Mary, that. Yes. me take let

of there's as doubt, probably things not that demand. chain really probably that the early we've said, how customers quickly no versus, there's now up. we got supply X is ramp the would challenge more The I pushouts. Craig, So seeing right strong much we're number think Mary take deliveries more in And terms can

that very have done our us. our we've we've certainly supply been Although partners with year-over-year. I fair had great think shape growth significant working are chain hard getting from job, a And we all

I'd then to any than million if other it So said point, this than think I upside an be additional disingenuous. $XXX chain, at I greater supply was

So challenge right that now. is the

Craig Ellis

then is on helpful, second question That's it. Kevin. backlog. And the the Got

backlog above company a the XX is well include that in much the beyond numbers My this, would extent be the And Mary, some can Or great. months, versus to does characterize of provided? backlog backlog XX orders dramatic had that million. be XX-month $XXX the multiyear very that is that you described? would question So how you months

Mary Puma

that? to you do Kevin, want take

Kevin Brewer

does backlog Yes. include Well, the everything. number

bit goes mean way it. So specifics But I'm XX that's don't all what's out XX you to the further. for the XXXX. of, there is say, in how tell months stuff sure. is not that some some a that there's going to months, I backlog next is going majority in of beyond versus much little I into the over have I'm not out

Craig Ellis

then in last seen view company We've semiconductor And carbide, it. billion. week. the by X-year shipments finally, silicon to billion Got one $X its for increase up $X.X

upward And SEMICON so development a summary question in recent we is, light $X.XX the look as back in silicon you pressure [indiscernible] West, coming on at captures to see silicon will that some the that do go and of that really up moving provided carbide? of the company $X.XX that we from billion you of billion? think carbide, strength starting that the put magnitude are to Sam do Or trends

Kevin Brewer

Yes.

the the get view. their and view. in to evaluating So show continue the are it. put that customers presentation Craig, charts are it in I think current talk that of the update to We're input we our and in we'll up are that demand numbers But what current their we our presentation that as is, constantly terms

Craig Ellis

good All execution. A right. Got it. very

Operator

question come Tom And will D.A. our Tom is Mr. with from next Diffely. Davidson.

Tom Diffely

me time? can you Hope this hear

Kevin Brewer

we Yes, can.

Tom Diffely

a just Obviously, Industrial power in couple for about really last we up following side. what is segment now maybe just the either cars. right of about EVs. this little traditional silicon power questions the and of or on you just terms strong bit else talk on driving But carbide think So

Kevin Brewer

split that from smart investor one other the round really Well, posted in EVs. is decision a and volume. its their silicon other look very driver. automakers' applications of Automotive the of is But carbide the for first industrial many that applications the they And and at terms driving want as SEMICON, can in bulk Automotive on grid between There's of the IGBT-type of on applications. you silicon presentation biggest devices also then carbide. there's what much And silicon depends we

Tom Diffely

consumer? the good job the advanced then LED, obviously, Okay. But driven did consumer. minimal logic most today exposure out and is business mature you of is mature But your of Mary, your what image And to market side a sensors. laying exposure Great. by the the and your on to power curious,

Mary Puma

see There's general -- other in while some are to consumer-related softness as are of the some strength of devices. some said, exposure some There again, from area. most But in the mature the in I potential seeing talking customers, they areas. of them

able our there. point at time, this any offset seeing been actually in So customers that weakness are that's to

as So said, major seen result haven't of that. Axcelis I a on any we impact as

into book and very now right Our is strong. Projects booking order XXXX. XXXX are out into

general said, just power customers Technology pushing. -- Kevin as are like remain have us are to telling As Mature they really shipments the and in. customers the areas, -- still to tied we said, that Process take that pull We've Doug had specifically order devices,

things again, remain good. they So intact remain and quite they

Tom Diffely

the Great. margin look or third supply mix between guidance, you finally, chain, when second at the delta And then on between margin? quarter impact the can and split the the the quantify Kevin, the and you

Kevin Brewer

Yes.

So what going back-end year do look of I'm you why going to this -- I don't kind of give to it's at time. full loaded. a And a is more I'm

of is terms in we the the little terms higher a -- getting of and We're logistics in the bit got on margins. things. versus where -- also it's we've to higher look in, when we're costs we're QX, it's It's want But more our the But is We're and -- it's things augmented and about the still purchasing heavier continuing, impact. material I is invested we've how I one the before, which there little and in points it's in QX QX, although we're but make think point. shipping price value a the doing based the costs, of AI. by engineering -- bought at tools. more coming it things much manufacturing, in -- I is variances is still investing terms of we've cost, when It timing basis favorability stuff, lean in all year of favorable the in reality on some in full offset all approximately this hitting margins is take XXX too. the QX, higher heavy being we've are So just talked negative we're a if

of taking volumes. advantage are We

feel with So it. haven't extensions good the business. we adding initiatives. slowed in down core that our about of that I we've lot CS&I, We've product got to talked are growth that we've a

-- still some we near-term I pressure, think in margin we've got gross even our set we're these higher So though growth model. up talked very for about well we've that

I this. So -- -- I now, and and trough. said, as at start say point we would I through right low expect should we're that, the what the We're working is

You're see full the I would quarters, time things we obviously, get you got not the more start quarter, year, going guidance by expect improve. through because but and to a couple already got this should you've the we seeing

that call, I indicated other the XX%. last the on would basis is make we I up at We've around year gross believe too, those had today points XX.X%. XX think that I full be brought about point margins

can the or down don't to margin it. pay we've and So it, to we're if material But everything we're side. to we gross it continuing get comes also do get in it got paying on

of where we're kind that's So at.

Operator

will Our Needham. Bolton next Quinn? be with question from Quinn

Quinn Bolton

me? hear you Can

Kevin Brewer

excellent. Yes,

Quinn Bolton

the quarter year. fourth XX% the just get the on be maybe math, below a gross could that the margin that in XX.X% you for it question I got. do Kevin, If to follow-up looks like margin just to gross Perfect.

quarter, that those XX% make to is just of timing kind gross in when want the material range those So costs fourth income you're to the sure a the what given and statement. the of margin hit for thinking I XX% higher

Kevin Brewer

Yes.

a will you're to see I you you, front I'm X going in of sure tell So pretty won't not it.

could X low something You those. of with a see

slightly So think back to everything -- we the we're was last we're I take this [indiscernible] that's hard focus could don't that you low thing things, think bring a math the is on able as to say continue is points you and but evolving shipments. future because your about down from working going still going is have have other But as to quarter would we I basis XX I QX. on to to go for call, XX-point-something, were that since and

So what Quinn, think a -- low with if but now, right go it you don't to modeling, it, I have in does yes, but as suggest. X suggests front the you're of math

Quinn Bolton

questions and was Was Got Mary, strength was fantastic the it. driven quarter. most strength Obviously, it's one mature. to booking it you, one that on And X power by for then area bookings very mature dominate? I a going likely guess, Or broad-based? if

Mary Puma

would say in from also was the was there segment, strongest clearly but that mature. I there Yes. power CIS strength general

So it wasn't totally segment. out of the Power

Quinn Bolton

said Great. And exposure Advanced then you might XXXX, about having have comments in you in you mentioned any or exposure lot to not but consumer a in your some really Logic 'XX.

certainly you XXXX a of some offset Logic look the maybe not that And in could so Advanced for area as industry. could into pressures sounds I'm -- but growth interpreting maybe this general a the it like meaningful, wrong, but other be you

or to year sense from do generate I get a from Logic. just so meaningful I'm might able next guess think you you how trying And much how to revenue Advanced be you

Mary Puma

-- XXXX. about expected an we to Well, talked repeat we've excuse as get closed evaluation Logic customer, successfully we've me, and how Advanced orders an in

And as orders so move that we into from terms of we again, expect customer. expansion in XXXX, further

TAM, We're Logic continuing implant well. of Logic, So is and just the to it only XX% overall into we manufacturers Advanced really about now. with are the other the as work market Advanced breaking

for more that us. at point point, -- in this meaningful as some we're But really at will so become And just we're we said, time, starting out.

Operator

Mark? Our next with Miller question be Mark will Mr. Benchmark. from

Mark Miller

another on strong quarter. again Congratulations

and margins a the I'm going year looks to there's driving for guidance be quarter, what's like in margin just the reduction quarter. the incorporating third Your fourth it in that? significant

Kevin Brewer

Yes.

factory labor. on for with a side, and better. Mark. quality with well continuing making actually cost done we're really you're absorption, cost supply it's obviously, have chain our increases been So We've We've well from the done seeing even really warranty comes

cost. the towards coming being a is with broke it's And costs side. chain from there, higher higher would probably I one And higher say, and cost. [indiscernible] is remainder it's freight of now X/X the supply the from skewed the prices time more I So freight on parts down right it if mix just -- headwind higher

So are We're see these can existing again, all what working areas we to we're our working on. suppliers do. with

these higher high some shortages. of chips extremely of prices chip Some has We've some the costs some to been had product. because pay of to into get just

those more events. go So away. Those discrete are will

Some costs for because of the of come costs. labor higher commodity pricing have higher

to flush It's to are come about presentation, I high highest we think in relative we've down, it, it's aware then got that inventory. time starting are back so QX. a related. have definitely for have chain supply to commodities through and talk just -- of IR did we medium-current mix we what everybody's And know energy yes, margins it's And and I margins and we But now on continuation now. you're the high-current lines a take to material of product but favorable the our our less. are in mix is less going obviously

that towards away a our mix swings bit little So from the other can it. impact products energy, those more when high

same QX supply chain. QX. and So markets the that mix is the is pretty similar rest the And story. a it's a It much the thing in piece is of

Mark Miller

XXX quarter? fair the to by it supply Would margins impacting was to basis June points the estimate be chain XXX that in

Kevin Brewer

In the June quarter?

Mark Miller

In the quarter, June yes.

Kevin Brewer

got is quarter-to-quarter QX are of consumed, cost is terms that, not cost the of brought hitting level. and material that I actually of But In quarter, and sitting? material Unfortunately, more good it to It's in for loaded on gotten that much as than the points it current how of than a full our in is And year year some higher terms full mentioned worse but loaded how it's we've on QX. and back-end XXX basis. that's front-end Yes. the in again, a was less. a earlier, sure, in more being basis,

Mark Miller

Tax rate for again half we was should the because for What year of it's quarter. we can the XX%? second down estimate this

Kevin Brewer

start foreign-derived I Yes, tax did getting I'd talked income Mark. the the we about. use we XX%, intangible mean deduction of benefit

we've because tax the all we're corporate tax offshore, tools it's be that to up actually NOLs, And in this to that material other used systems we the able So city use a those versus the now rate this shipping qualified deduction. our standard XX% rate.

really that's if XX% if X. pickups been XX%, some There's expense I'd you that. in pickup in the be to you comp So way stock and us going are giving are you're things But some favorable the high. other -- what's from use quarter like too

Mark Miller

for finally, CapEx And June. was CapEx? What

Kevin Brewer

over $X CapEx $X.X last our in from bit QX. rate within anywhere of run which run or from million $X little go million up back years, still couple QX normal June was $X.X a $X.X from million. QX million, if million anywhere if was -- and But the we was to a you was quarter.

to -- year. So we're on guess, you I end argue still we're compared the year last this lower could

Operator

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

Mary Puma

will future also be Well, Sky Needham and to the I'd like for thank to I'd terms of you thank Summit Big us Technology participating you see investor we both Davidson But today. in We difficulties in Montana your we at joining events, Annual experienced. these you Third one support. for continued of events, for August. in to the apologize in hope Conference in like technical Virtual the D.A. that

Operator

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

And during a now would may your Please disconnect our You thank we technical have difficulties. for to patience wonderful the call. like day. again, you

Axcelis (ACLS) 5 Aug 222022 Q2 Earnings call transcript