Why Shares of Axcelis Technologies Inc. Surged on Tuesday

What: Shares of Axcelis Technologies , a supplier of ion implantation equipment used for semiconductor fabrication, jumped on Tuesday after the company announced multiple orders for its Purion M implanter. At 1 p.m. Tuesday, the stock was up about 12%.

So what: Three specialty device chipmakers have placed orders for Axcelis' Purion M medium current implanter, which will be used for high volume production of image sensors, power devices, and specialty logic chips, according to the company. The first of these systems has already shipped, and Axcelis expects to recognize revenue for the order during the fourth quarter. The remaining equipment will ship during the second half of 2016.

Along with announcing these orders, Axcelis reiterated its third-quarter guidance; The company expects revenue between $75 million and $80 million and EPS of $0.03-$0.05. Axcelis also expects to exit 2015 with a 17%-20% share of the implant market, with continued market share growth expected in 2016 as the Purion product family enters volume production.

Now what: Executive Vice President of Customer Operations John Aldeborgh had this to say: "We're excited about the adoption of the Purion M in the very active specialty device market. Our customers in this space have seen a strong resurgence in business, and they are actively upgrading for technology and productivity reasons.This market has accounted for nearly half of our sales in 2015, and we look forward to expanding our footprint with the full Purion Platform, including the Purion M, Purion H, and Purion XE."

With Axcelis' revenue stagnant for the past three years, 2015 is shaping up to be a good year for the company. The semiconductor equipment market can be volatile, but it seems that this year and the next will be kind to Axcelis as its Purion products win market share.

The article Why Shares of Axcelis Technologies Inc. Surged on Tuesday originally appeared on Fool.com.

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.