Axcelis Technologies Inc (NASDAQ:ACLS) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 02, 2018 • 05:00 pm ET


Axcelis Technologies Inc (NASDAQ:ACLS) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to the Axcelis Technologies call to discuss the company's results for the First Quarter of 2018. My name is Takiya, and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will be facilitating question-and-answer session towards the end of this conference. (Operator Instructions) As a reminder this conference maybe recorded.

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

Thank you, Takiya. With me today is Kevin Brewer, Executive Vice President and CFO; and Doug Lawson, Executive Vice President of Corporate Marketing and Strategy. If you have not seen a copy of our press release, issued earlier today, it is available on our website. Playback service will also be available on our website, as described in our press release. Please note that comments made today about our expectations for future revenues, profits and other results are forward-looking statements under the SEC's Safe Harbor provision.

These forward-looking statements are based on management's current expectations and are subject to the risks inherent in our business. These risks are described in detail in our Form 10-K annual report and other SEC filings, which we urge you to review. Our actual results may differ materially from our current expectations. We do not assume any obligation to update these forward-looking statements.

During Q1 Axcelis made significant progress toward our goal of regaining market share leadership in ion implantation with the Purion platform. We announced the first shipment of Purion H High Current Implanter to a new foundry logic customer for development of their most advanced logic nodes.

We also entered into a distribution and support agreement with the SCREEN Semiconductor Solutions to bring the complete Purion product family to the Japanese market.

These two opportunities have opened nearly one-third of the ion implant market to Axcelis. This represents more than $300 million in potential systems revenue previously unavailable to the company.

Purion has tool of record status as seven of the top 10 CapEx spenders in the industry. Our advanced logic shipment and SCREEN agreement have opened opportunities at the remaining three customers. This facilitates a continuing momentum shift in the ion implant market to Purion.

Revenue for the first quarter was our highest in over 10 years at $122.2 million. These results were above guidance and current consensus estimate. Our systems mix in the quarter was 37% matured foundry logic, while memory comprised the remaining 63% of the systems shipment, with 36% of total shipments for DRAM and 27% for FLASH.

Memory remains strong and is expected to represent more than 50% of the systems mix in the second quarter.

The geographic mix of our systems shipments, where Korea 52%, China 20%, the U.S. and Europe 7%, and the Rest of World 21%, China continues to be an active geography. During the quarter we announced our first orders for Purion from a