AXCELIS TECHNOLOGIES INC

We are primarily a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades and maintenance services to the semiconductor industry. Our product development and manufacturing activities currently occur primarily in the United States and South Korea. Our equipment and service products are highly technical and are sold through a direct sales force in the United States, Europe, and Asia. Consolidation and partnering within the semiconductor manufacturing industry has resulted in a small number of customers representing a substantial portion of our business. Our ten largest customers accounted for 66.3% of total revenue for the nine months ended September 30, 2026.

Beginning in the third quarter of 2026, we no longer separately present revenue and gross profit attributable to Services. Services represents a small percentage of our broader aftermarket business and, when presented separately, is not representative of the performance of the overall aftermarket business. In addition, management does not make business operational decisions based on the disaggregation of revenue and gross profit. Accordingly, we believe presenting Services within our consolidated results provides a more meaningful presentation of our results of operations to investors. Prior periods have been recast to conform to current period presentation.

Total revenue for the first nine months of 2026 increased 8.5% in comparison to the same period in the prior year, driven by strong Aftermarket sales. Sales of our systems in the first nine months of 2026 were down slightly compared to the same period in the prior year. During the nine months ended September 30, 2026, the overall mature process segment represented 77% of our shipped systems revenue, with the remainder represented by 20% of shipments to dynamic random-access memory (“DRAM”) applications, 1% of shipments to NAND memory applications, and 1% of shipments to advanced logic. Of the mature process segment, power device shipments comprised 40% of total systems revenue with the general mature segment representing 37%, which includes image sensor applications.

On September 30, 2025, the Company, Victory Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), and Veeco Instruments Inc., a Delaware corporation (“Veeco”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, and subject to the satisfaction or waiver of the conditions specified therein, Merger Sub shall be merged with and into Veeco (the “Merger”), with Veeco surviving as a wholly-owned subsidiary of the Company. For further information regarding the Merger, see Note 19 to the consolidated financial statements included in this report. On February 6, 2026, Axcelis held a special meeting of stockholders at which the issuance of Company common stock to the Veeco stockholders in the Merger was approved. The antitrust clearance from SAMR is currently the only regulatory approval that remains outstanding, and the parties continue to work constructively with SAMR. Axcelis and Veeco now expect the transaction to close by the first quarter of 2027, subject to the satisfaction or waiver of all closing conditions. There can be no assurances that the closing will occur on this timeline. If the transaction is not completed within the period during which clearance under the HSR Act, as amended, remains effective, the parties may need to refile their notifications under the HSR Act.