AXT designs, develops, manufactures and distributes high-performance
compound and single element semiconductor substrates comprising indium
phosphide (InP), gallium arsenide (GaAs) and germanium (Ge) through its
manufacturing facilities in Beijing, China. In addition, AXT
maintains its sales, administration and customer service functions at
its headquarters in Fremont, California. The company’s substrate
products can be used primarily in fiber optic communications, 3-D
sensing, solar cell, lighting display applications and wireless
communications. Its vertical gradient freeze (VGF) technique for
manufacturing semiconductor substrates provides significant benefits
over other methods and enabled AXT to become a leading manufacturer of
such substrates. AXT has manufacturing facilities in China and, as part
of it’s supply chain strategy, has partial ownership in ten companies
in China producing raw materials. For more information, see AXT’s
website at http://www.axt.com.
Inc. conçoit, développe, fabrique et distribue les substrats
à rendement élevé de semi-conducteur composé,
comme des dispositifs de semi-conducteur optoélectronique, tels
que les diodes électroluminescentes d'haut-éclat (HBLEDs),
et les diodes de laser, y compris les lasers d'émission extérieurs
de cavité verticale (VCSELs), aussi bien que les diodes d'bord-émission
Inc. Announces Fourth Quarter and Fiscal Year 2016 Financial Results
FREMONT, Calif, Feb. 22, 2017 (GLOBE NEWSWIRE) -- AXT, Inc.
(NASDAQ:AXTI), a leading manufacturer of compound semiconductor
substrates, today reported financial results for the fourth quarter and
fiscal year, ended December 31, 2016.
Fourth Quarter 2016 Results
Revenue for the fourth quarter of 2016 was $20.3 million, compared with
$21.9 million in the third quarter of 2016.
Gross margin was 37.1 percent of revenue for the fourth quarter of
2016, compared with 34.6 percent of revenue in the third quarter of
Operating expenses were $5.2 million in the fourth quarter of 2016,
compared with $4.9 million in the third quarter of 2016.
Operating profit for the fourth quarter of 2016 was $2.3 million
compared with operating profit of $2.7 million in the third quarter of
Net interest and other income for the fourth quarter of 2016 was a loss
of $0.3 million, compared with a loss of $0.3 million in the third
quarter of 2016.
Net profit in the fourth quarter of 2016 was $2.2 million, or $0.06 per
diluted share, compared with a net profit of $2.2 million or $0.07 per
diluted share in the third quarter of 2016.
Fiscal Year 2016 Results (January 1 to December 31)
Revenue for fiscal year 2016 was $81.3 million, compared with $77.5
million in fiscal year 2015.
Gross margin for fiscal year 2016 was 32.4%, compared with 21.7% in
fiscal year 2015.
Operating expenses for fiscal year 2016 were $20.0 million, compared
with $21.7 million in fiscal year 2015.
Net interest and other income for fiscal year 2016 was a charge of
($0.7), compared with a gain of $2.9 million in fiscal year 2015.
Net profit in fiscal year 2016 was $5.6 million, or $0.17 per diluted
share, compared with a net loss of ($2.2) million, or ($0.07) per basic
share, in fiscal year 2015.
Management Qualitative Comments
“Our positive Q4 results capped off a year of growth and
diversification for AXT,” said Morris Young, chief executive officer.
“We saw healthy demand across our substrate product portfolio, driven
by a growing number of exciting technology applications. In addition,
we continued to demonstrate improvement in our business model,
achieving meaningful gross margin expansion and delivering solid
profitability and positive cash flow. As we look ahead in 2017, we
believe sales of indium phosphide substrates will continue to be a key
driver for our business, and we hope to see traction in the 3-D sensing
market later this year.”
The company will host a conference call to discuss these results today
at 1:30 p.m. PT. The conference call can be accessed at (844) 892-6598
(passcode 70205575). The call will also be simulcast on the Internet at
www.axt.com. Replays will be available at (855) 859-2056 (passcode
70205575) until February 28, 2017. Financial and statistical
information to be discussed in the call will be available on the
company's website immediately prior to commencement of the call.
Additional investor information can be accessed at http://www.axt.com
or by calling the company's Investor Relations Department at (510)
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the
meaning of the Federal securities laws, including, for example,
statements regarding the market demand for our products, our market
opportunity, and our expectations with respect to our business
prospects. These forward-looking statements are based upon assumptions
that are subject to uncertainties and factors relating to the company’s
operations and business environment, which could cause actual results
to differ materially from those expressed or implied in the
forward-looking statements contained in the foregoing discussion. These
uncertainties and factors include but are not limited to: overall
conditions in the markets in which the company competes; global
financial conditions and uncertainties; policies and regulations in
China; market acceptance and demand for the company’s products; the
impact of factory closures or other events causing delays by our
customers on the timing of sales of our products; our ability to
control costs, our ability to utilize our manufacturing capacity;
product yields and their impact on gross margins; and other factors as
set forth in the company’s annual report on Form 10-K, quarterly
reports on Form 10-Q and other filings made with the Securities and
Exchange Commission. Each of these factors is difficult to
predict and many are beyond the company’s control. The company does not
undertake any obligation to update any forward-looking statement, as a
result of new information, future events or otherwise.