Axcelis Technologies, Inc. (NASDAQ:ACLS) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET

Company Participants

Mary Puma - President and Chief Executive Officer

Kevin Brewer - Executive Vice President and Chief Financial Officer

Douglas Lawson - Executive Vice President, Corporate Marketing and Strategy

Conference Call Participants

Craig Ellis - B.Riley

Christian Schwab - Craig-Hallum

Linda Bolton Weiser - D.A. Davidson

David Duley - Steelhead Securities

Operator

Good day, ladies and gentlemen, and welcome to the Axcelis Technologies Call to discuss the company's results for the Third Quarter of 2022. My name is Ali Blotter, and I will be your coordinator for today. [Operator Instructions]

I would 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, Ali. With me today is Kevin Brewer, Executive Vice President and CFO; and Doug Lawson, Executive Vice President of Corporate Marketing and Strategy. We are all participating in this call remotely, so I would like to apologize in advance for any technical difficulties.

If you have not seen a copy of our press release issued yesterday, 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.

Good morning, and thank you for joining us for our third quarter earnings call. As a result of robust demand for the Purion product family and continued strong execution by the Axcelis team, we are pleased that our third quarter financial performance was above our guidance.

Revenue for the quarter was $229.2 million, with earnings per share of $1.21 and gross margin of 45.1%. Cash, cash equivalents and short-term investments were $342.1 million. Revenue from our aftermarket business, CS&I, was $58.1 million and contributed significantly to our high gross margin.

The mature process technology market continues to be an area of strength for Axcelis, with 88% of third quarter system shipments going to mature foundry logic customers and 12% to memory customers comprised of 5% NAND and 7% DRAM. The geographic mix of our system shipments in the third quarter with China, 44%; Korea, 18%; the U.S., 15%; Europe, 10%; Taiwan, 5% and the rest of the world, 8%.