The shares of Axcelis Technologies Inc(NASDAQ: ACLS) stock almost doubled in this year, delivering100% returns (as of 12:35PM EST on December 26th, 2017; Source: Google finance). But the stock sentiment weakened since the last four weeks, which fell over 20.6%. However, the stock has 20.3% upside as per the three analysts’ consensus target price of $35.
The group got multiple follow-on orders as well as two new fab penetrations for the Purion XE™ high energy implanter from major chip manufacturers in China and the Asia Pacific region. These orders include both 200 and 300mm systems which would back high volume production of 3D NAND, mature logic and image sensor devices. They also got multiple orders for the Purion H™ high current system from major chip manufacturers in the Asia Pacific and North America regions. The orders comprise one new tool evaluation in 3D NAND, one successful tool evaluation closed in mature foundry and several follow on orders from the Non Volatile Memory, mature logic and DRAM segments. The group forecasts revenue to be recognized in the fourth quarter, except for the new tool evaluation.
For the third quarter ended September 30, 2017, Axcelis Technologies revenue rose to $104.5 million, against $102.8 million in the second quarter of 2017, driven by the demand for Purion platform products. Operating profit enhanced to $13.8 million, from $12.5 million in earlier quarter. Net income declined to $11.8 million, or $0.35 per diluted share, from net income of $13.9 million, or $0.42 per diluted share. Purion H high current system is currently in production at eight customers in 11 different fabs, and new Purion H penetrations in the fourth quarter would drive adoption beyond this level. Moreover, the group’s customers in the mature foundry and logic segment made major investments in Axcelis’ high energy implant systems, a testament to the success of the Purion VXE’s significant advantages in emerging image sensor applications.
The group expects an overall 2017 revenues of above $400 million. For the fourth quarter, the group forecasts a revenues of over $107-112 million with gross margins is expected to be over 37-38%. Operating profit is expected to be over $14.0-15.5 million with earnings per diluted share being $0.37-41. Overall cash is forecasted to be over $130 million.