Exhibit 99.1

 

News Release

 

Axcelis Announces Financial Results for Second Quarter 2026

 

Q2 2026 Highlights:

 

   · Revenue of $215.2 million
   · GAAP Gross Margin of 42.4%, and Non-GAAP Gross Margin of 42.7%
   · GAAP Operating Margin of 9.4% and Non-GAAP Operating Margin of 14.7%
   · GAAP Diluted Earnings Per Share of $0.75, and Non-GAAP Diluted Earnings Per Share of $1.06

 

BEVERLY, Mass., Aug. 6, 2026—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2026.

 

President and CEO Russell Low commented, “We executed well in the second quarter, delivering results that exceeded our forecasts driven by stronger system shipments and higher CS&I volume.” Low continued, “Demand in the Memory market remains robust, and we are also benefitting from positive momentum in our Power market. In General Mature, we are encouraged by improving engagement and utilization trends as customers respond to growing end-demand in data center, industrial and automotive segments. As a result, we now expect to deliver year-over-year revenue growth in 2026, with momentum carrying through to 2027. We are focused on satisfying the remaining conditions to complete our pending merger with Veeco and look forward to closing the transaction in the second half of 2026.”

 

Senior Vice President and Interim CFO David Ryzhik stated, “Axcelis delivered better than expected revenue and operating income in our second quarter, reflecting the attractive operating leverage in our business.” Ryzhik concluded, “With improving systems demand in our markets and continued strength in our CS&I aftermarket business, we anticipate that Axcelis’ financial performance will continue to improve over the balance of 2026.”

 

Results Summary
(In thousands, except per share amounts and percentages)

 

   Three months ended June 30, 
   2026   2025 
Revenue  $215,175   $194,544 
Gross margin   42.4%   44.9%
Operating margin   9.4%   14.9%
Net income  $23,291   $31,376 
Diluted earnings per share  $0.75   $0.98 

 

Non-GAAP Results    
  Three months ended June 30, 
   2026   2025 
Non-GAAP gross margin   42.7%   45.2%
Non-GAAP operating margin   14.7%   17.7%
Adjusted EBITDA  $35,972   $38,872 
Non-GAAP net income  $32,968   $36,013 
Non-GAAP diluted earnings per share  $1.06   $1.13 

 

 

 

 

Business Outlook

 

For the third quarter ending September 30, 2026, Axcelis expects revenues of approximately $230 million, GAAP earnings per diluted share of approximately $0.76, and non-GAAP earnings per share of approximately $1.11.

 

Please refer to Third Quarter 2026 Outlook under the “Notes on our Non-GAAP Financial Information” section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

 

Second Quarter 2026 Conference Call

 

The Company will host a call to discuss the results for the second quarter 2026 today at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:

 

https://register-conf.media-server.com/register/BIf61211144e3b4baeb4c13ba3b1f529fa

 

Webcast replays will be available for 30 days following the call.

 

Use of Non-GAAP Financial Results

 

This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

 

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

 

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

 

 

 

 

News Release

 

Safe Harbor Statement

 

This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

 

About Axcelis

 

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

 

CONTACTS:

 

Investor Relations Contact:

 

David Ryzhik 

Senior Vice President and Interim CFO 

Telephone: (978) 787-2352 

Email: David.Ryzhik@axcelis.com

 

Press/Media Relations Contact:

 

Maureen Hart 

Senior Director, Corporate & Marketing Communications 

Telephone: (978) 787-4266 

Email: Maureen.Hart@axcelis.com

 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Consolidated Statements of Operations 

(In thousands, except per share amounts) 

(Unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Revenue:                
Product  $200,488   $183,402   $388,497   $366,226 
Services   14,687    11,142    25,634    20,881 
Total revenue   215,175    194,544    414,131    387,107 
Cost of revenue:                    
Product   106,998    95,462    212,734    189,962 
Services   16,988    11,739    29,627    21,034 
Total cost of revenue   123,986    107,201    242,361    210,996 
Gross profit   91,189    87,343    171,770    176,111 
Operating expenses:                    
Research and development   28,977    27,064    57,493    54,192 
Sales and marketing   19,554    15,003    36,908    30,127 
General and administrative   22,377    16,311    49,138    33,668 
Total operating expenses   70,908    58,378    143,539    117,987 
Income from operations   20,281    28,965    28,231    58,124 
Other income (expense):                    
Interest income   4,575    5,481    9,037    11,082 
Interest expense   (1,263)   (1,355)   (2,554)   (2,722)
Other, net   1,755    1,906    1,259    1,597 
Total other income   5,067    6,032    7,742    9,957 
Income before income taxes   25,348    34,997    35,973    68,081 
Income tax provision   2,057    3,621    3,468    8,126 
Net income  $23,291   $31,376   $32,505   $59,955 
Net income per share:                    
Basic  $0.76   $0.99   $1.06   $1.87 
Diluted  $0.75   $0.98   $1.05   $1.87 
Shares used in computing net income per share:                    
Basic weighted average shares of common stock   30,805    31,847    30,764    32,051 
Diluted weighted average shares of common stock   31,134    31,882    31,084    32,103 

 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Consolidated Balance Sheets 

(In thousands, except per share amounts) 

(Unaudited)

 

    June 30,   December 31,  
    2026   2025  
ASSETS  
Current assets:              
Cash and cash equivalents   $ 154,996   $ 145,451  
Short-term investments     247,220     228,802  
Accounts receivable, net     154,149     168,479  
Inventories, net     338,174     329,010  
Prepaid income taxes     4,863     4,658  
Prepaid expenses and other current assets     80,369     66,802  
Total current assets     979,771     943,202  
Property, plant and equipment, net     58,022     56,146  
Operating lease assets     27,568     28,927  
Finance lease assets, net     13,516     14,154  
Long-term restricted cash     10,633     10,627  
Deferred income taxes     78,815     79,895  
Long-term investments     174,829     182,396  
Other assets     43,684     46,004  
Total assets   $ 1,386,838   $ 1,361,351  
   
Current liabilities:              
Accounts payable   $ 58,807   $ 42,309  
Accrued compensation     20,010     34,233  
Warranty     9,634     9,516  
Income Taxes     2,833     11,383  
Deferred revenue     81,679     65,494  
Current portion of finance lease obligation     1,722     1,575  
Other current liabilities     25,416     33,150  
Total current liabilities     200,101     197,660  
Long-term finance lease obligation     39,845     40,754  
Long-term deferred revenue     36,863     43,445  
Other long-term liabilities     44,208     44,815  
Total liabilities     321,017     326,674  
               
Stockholders’ equity:              
Common stock, $0.001 par value, 75,000 shares authorized; 30,881 shares issued and outstanding at June 30, 2026; 30,717 shares issued and outstanding at December 31, 2025     31     31  
Additional paid-in capital     536,152     533,309  
Retained earnings     536,044     503,539  
Accumulated other comprehensive loss     (6,406)     (2,202)  
Total stockholders’ equity     1,065,821     1,034,677  
Total liabilities and stockholders’ equity   $ 1,386,838   $ 1,361,351  

 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Condensed Consolidated Statements of Cash Flows 

(In thousands) 

(Unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Cash flows from operating activities                    
Net income  $23,291   $31,376   $32,505   $59,955 
Adjustments to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization   4,439    4,515    8,875    8,824 
Stock-based compensation expense   6,425    5,421    11,324    10,324 
Other   (645)   (9,335)   3,160    (11,017)
Change in other assets and liabilities, net   (15,137)   7,750    (19,352)   11,436 
Net cash provided by operating activities   18,373    39,727    36,512    79,522 
                     
Cash flows from investing activities                    
Expenditures for property, plant and equipment and capitalized software   (3,554)   (1,985)   (5,393)   (6,945)
Other changes in investing activities, net   (2,543)   (2,628)   (11,343)   42,801 
Net cash (used in) provided by investing activities   (6,097)   (4,613)   (16,736)   35,856 
                     
Cash flows from financing activities                    
Repurchase of common stock   (244)   (45,337)   (244)   (63,515)
Other changes from financing activities, net   (7,608)   (1,650)   (9,005)   (3,582)
Net cash used in financing activities   (7,852)   (46,987)   (9,249)   (67,097)
                     
Effect of exchange rate changes on cash and cash equivalents   (252)   1,643    (976)   1,935 
Net increase (decrease) in cash, cash equivalents and restricted cash   4,172    (10,230)   9,551    50,216 
                     
Cash, cash equivalents and restricted cash at beginning of period   161,457    191,510    156,078    131,064 
Cash, cash equivalents and restricted cash at end of period  $165,629   $181,280   $165,629   $181,280 

 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Schedule Reconciling Selected Non-GAAP Financial Measures 

(In thousands, except per share amounts)

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
GAAP gross Profit  $91,189   $87,343   $171,770   $176,111 
Restructuring1   —    —    —    226 
Stock-based compensation   755    569    1,197    922 
Non-GAAP gross profit  $91,944   $87,912   $172,967   $177,259 
Non-GAAP gross margin   42.7%   45.2%   41.8%   45.8%
                     
GAAP operating expense  $70,908   $58,378   $143,539   $117,987 
Transaction and integration2   (4,827)   —    (15,225)   (481)
Bad debt expense   —    —    (65)   — 
Restructuring1   —    29    —    (894)
Stock-based compensation   (5,670)   (4,852)   (10,127)   (9,402)
Non-GAAP operating expense  $60,411   $53,555   $118,122   $107,210 
                     
GAAP operating income  $20,281   $28,965   $28,231   $58,124 
Transaction and integration2   4,827    —    15,225    481 
Bad debt expense   —    —    65    — 
Restructuring1   —    (29)   —    1,120 
Stock-based compensation   6,425    5,421    11,324    10,324 
Non-GAAP operating income  $31,533   $34,357   $54,845   $70,049 
Non-GAAP operating margin   14.7%   17.7%   13.2%   18.1%
                     
GAAP income tax provision  $2,057   $3,621   $3,468   $8,126 
Income tax effect of non-GAAP adjustments3   1,575    755    3,726    1,670 
Non-GAAP income tax provision  $3,632   $4,376   $7,194   $9,796 
                     
GAAP net income  $23,291   $31,376   $32,505   $59,955 
Transaction and integration2   4,827    —    15,225    481 
Bad debt expense   —    —    65    — 
Restructuring1   —    (29)   —    1,120 
Stock-based compensation   6,425    5,421    11,324    10,324 
Income tax effect of non-GAAP adjustments3   (1,575)   (755)   (3,726)   (1,670)
Non-GAAP net income  $32,968   $36,013   $55,393   $70,210 
                     
GAAP diluted EPS  $0.75   $0.98   $1.05   $1.87 
Transaction and integration2   0.16    —    0.49    .01 
Bad debt expense   —    —    —    — 
Restructuring1   —    —    —    0.03 
Stock-based compensation   0.21    0.17    0.36    0.32 
Income tax effect of non-GAAP adjustments3   (0.05)   (0.02)   (0.12)   (0.05)
Non-GAAP diluted EPS  $1.06   $1.13   $1.78   $2.19 

 

 

 

 

News Release

 

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.
Note 2: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025. Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.
Note 3: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

 

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)  

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Net Income  $23,291   $31,376   $32,505   $59,955 
Other (income)/expense   (5,067)   (6,032)   (7,742)   (9,957)
Income tax provision   2,057    3,621    3,468    8,126 
Depreciation & amortization   4,439    4,515    8,875    8,824 
Subtotal   24,720    33,480    37,106    66,948 
Transaction and integration1   4,827    —    15,225    481 
Bad debt expense   —    —    65    — 
Restructuring2   —    (29)   —    1,120 
Stock-based compensation   6,425    5,421    11,324    10,324 
Adjusted EBITDA  $35,972   $38,872   $63,720   $78,873 
Adjusted EBITDA margin   16.7%   20.0%   15.4%   20.4%

 

Note 1: Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.

Note 2: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

Axcelis Technologies, Inc.

Third Quarter 2026 Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

 

   Three months ended
September 30, 2026		 
GAAP diluted EPS  $0.76 
Transaction and Integration1   0.19 
Stock-based compensation   0.21 
Income tax effect of non-GAAP adjustments2   (0.06)
Non-GAAP diluted EPS  $1.11 

 

Note 1: Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.
Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.