NEW YORK (TheStreet) -- Shares of Axcelis Technologies (ACLS) are gaining 2.3% to $3.06 on heavy trading volume after the semiconductors solutions provider announced it won a multi system follow on order for its Purion XE high energy implanter.
Axcelis said the follow on order came from a "major chipmaker in the Asia Pacific Region" though it would not name the company. The Purion XE high implanter will be used to support a capacity expansion for the unnamed chipmaker's 3D NAND flash devices.
The company said the systems are scheduled to ship in the third quarter.
"The advanced NAND segment, with its high level of capital intensity for high energy implanters, represents a significant opportunity for the Purion XE," Bill Bintz, Axcelis executive VP, marketing and engineering said. "The Purion XE is ideally suited for this segment, since next generation 3D NAND processes demand more precise doping and angle control to ensure high levels of performance and yield, and the Purion XE excels at both of these challenges."
About 2.5 million shares of Axcelis were traded by 3:36 p.m. Tuesday, above the company's average trading volume of about 494,000 shares a day.
TheStreet Ratings team rates AXCELIS TECHNOLOGIES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AXCELIS TECHNOLOGIES INC (ACLS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."