AXCELIS TECHNOLOGIES INC 10-K

Item 7A. Quantitative and Qualitative Disclosures about Market Risk. ​ Interest Rate Sensitivity ​ Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio, which consists of cash equivalents and short-term investments at December 31, 2023. The primary objective of our investment activities is to preserve principal. This is accomplished by investing in marketable investment grade securities. We do not use derivative financial instruments in managing our investment portfolio. Due to the nature of our investments, we do not expect our operating results or cash flows to be affected to any significant degree by any change in market interest rates. ​ Foreign Currency Exchange Risk ​ Substantially all of our sales are billed in U.S. dollars, thereby reducing the impact of fluctuations in foreign exchange rates on our results. Operating margins of certain foreign operations can fluctuate with changes in foreign exchange rates to the extent revenue is billed in U.S. dollars and operating expenses are incurred in the local currency. During the years ended December 31, 2023 and 2022, approximately 5.8% and 9.1% of our revenue, respectively, were derived in local currencies from foreign operations with this inherent risk. In addition, at December 31, 2023 and 2022, our operations outside the United States accounted for approximately 9.4% and 10.2% of our total assets, respectively, the majority of which was denominated in currencies other than the U.S. dollar. We currently do not use derivative financial instruments in managing our foreign currency exchange risk. ​ Item 8. Financial Statements and Supplementary Data. ​ Response to this Item is submitted as a separate section of this report immediately following Item 15. ​ 32 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. ​ None. ​