Axcelis Technologies Q4 2024: Contradictions in Memory Revenue, China Market Impact, and Gross Margin Outlook

These are the key contradictions discussed in Axcelis Technologies' latest 2024Q4 earnings call, specifically including: Memory Revenue Expectations, China Market Impact, and Gross Margin Expectations:



Revenue and Earnings Performance:
- Axcelis Technologies reported revenue of $252 million for Q4 2024, with earnings per diluted share of $1.54.
- Revenue exceeded expectations, primarily due to better-than-expected CS&I sales, which carry higher margins.

Segment Performance and Regional Shifts:
- Sales in mature node applications remained a significant portion of Axcelis' business, particularly in Power and General Mature nodes.
- There was a sequential decline in Power and Image Sensors, but an improvement in Memory sales, with revenue from Silicon Carbide growing approximately 6% year-over-year.
- The company saw a decline in backlog and stabilized bookings, with a focus on working with customers to stabilize plans for the year.

Strategic Initiatives and Sector Growth:
- Axcelis emphasized its focus on long-term secular growth, particularly in Power, Silicon Carbide, and Advanced Logic markets.
- The strategy includes technology engagement with customers, innovations in CS&I sales, and expansion into Japan.
- Despite a decline in 2025 revenue expectations, the company anticipates modest growth in 2026.

Impact of Export Controls and Geopolitical Influences:
- Axcelis acknowledged an estimated impact of $20 million to $50 million on 2025 revenue due to new U.S. government restrictions.
- The company maintains that its Silicon Carbide business is not expected to be impacted by these export compliance issues.