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BEVERLY, Mass. – Axcelis Technologies, Inc. (NASDAQ: ACLS), a prominent provider of ion implantation solutions for the semiconductor industry, has announced an increase in its share repurchase authorization by $100 million. This decision raises the total available repurchase authorization to $215 million. The announcement comes as the company’s stock, currently trading at $57.60, has experienced a significant decline of over 42% in the past six months, according to InvestingPro data.
The company’s President and Chief Executive Officer, Russell Low, stated that the expansion of the repurchase program is a testament to the company’s strong cash position and consistent performance. Low emphasized the company’s commitment to enhancing shareholder value through increased quarterly share repurchases while maintaining a robust balance sheet. InvestingPro analysis confirms this strong financial position, showing the company holds more cash than debt and maintains a healthy current ratio of 5.41, indicating excellent liquidity.
Axcelis’ repurchase strategy will be guided by market conditions and other considerations, including legal and regulatory requirements. The repurchases may occur in the open market or through private transactions, in compliance with SEC Rule 10b-18. Additionally, the company may set up Rule 10b5-1 trading plans to systematically execute repurchases.
While the board has authorized the repurchase program, the company is not obligated to buy back shares and may suspend or discontinue the program at its discretion.
The press release also included forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, cautioning that actual results could differ from current expectations due to various risks and uncertainties.
Axcelis, with a history spanning over 45 years, is renowned for its contributions to the semiconductor industry through the development and support of ion implantation systems, a crucial step in integrated circuit manufacturing. Despite recent market volatility, the company maintains strong fundamentals with a P/E ratio of 9.38 and generated revenue of $1.02 billion in the last twelve months. For deeper insights into Axcelis’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports and additional ProTips for informed decision-making.
This news is based on a press release statement from Axcelis Technologies, Inc.
In other recent news, Axcelis Technologies reported its fourth-quarter results, surpassing analyst expectations with adjusted earnings per share of $1.54 and revenue of $252.4 million. Despite this positive performance, the company’s guidance for the first quarter of 2025 fell short, projecting earnings per share of approximately $0.38 on revenue of $185 million, significantly below analyst projections. For the full year 2024, Axcelis recorded revenue of $1.02 billion and a net income of $201 million, with a gross margin improvement to 44.7%.
DA Davidson adjusted its price target for Axcelis Technologies, lowering it to $100 from $125 but maintained a Buy rating, indicating a positive long-term outlook despite short-term challenges. The revision was prompted by Axcelis’ first-quarter outlook, which did not meet Wall Street expectations, and anticipated industry slowdowns in key markets. Benchmark also maintained a Hold rating on Axcelis Technologies following an earnings report that exceeded expectations but projected weaker performance for the March quarter.
The company’s book-to-bill ratio dropped to 0.33, with a significant year-over-year backlog reduction of 46%, leading analysts to expect lower sales in 2025. However, there is anticipation of a slight sales increase in the latter half of 2025, with a potential rebound not expected until 2026. Axcelis Technologies is navigating these challenges amid the cyclical nature of the semiconductor industry, with future growth opportunities in Advanced Logic and expansion into Japan.
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