B. Riley FBR analyst Craig Ellis says that while Axcelis Technologies (ACLS) made no change to its targeted revenue levels at a conference today, management announced unfavorable gross margin changes, which more than offset lower operating expenses at the bottom line. The company seems to be attributing this to increased competition from Applied Materials (AMAT), Ellis tells investors in a research note. He views today's presentation as an "incremental negative," but adds that Applied Materials is likely a "rational competitor." Ellis has a Buy rating on Axcelis with a $39 price target.