Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Do you think AXT will pay dividends in the future?
Small-cap semiconductor play AXT (NASDAQ: AXTI - News) is the top performer in the solar space after posting third-quarter net income of $5.6 million, or 17 cents per diluted share, compared to $5.5 million, or 17 cents per share in the same period last year. Revenue grew by 15% to $26.8 million. Excluding certain items, the company's adjusted EPS came to 13 cents, matching Wall Street's consensus
Nice move today, lock in profits-reconranger
Nice move today, lock in profits-reconranger
2nd week of Nov.(10Q) this will take off again.
Love this stock. Bought at .83 ps.
AXTI ~ Added to my stash on the $5 break today. Avg up to 4.15. I'll buy any dip under $5 as this one looks to have double written on it in the next 12-24 months.
AXTI ~ This stock is beast ladened monster.
The industry average P/E is 27.9 w/ some semiconductor companies having P/Es as high as 53. We'll be conservative and use 20. The company issued guidance of .04-.07 for Q1'10, historically their slowest quarter, and attributed the positive demand environment for substrates as the reason they expect to offset normal seasonality. The current consensus estimate is .035. The company has already given us guidance higher than that figure, so it should be an easy beat. Let's be conservative again and use .04 and then let's assume they (again, being conservative IMO) earn .05 in Q2, .06 in Q3, and .07 in Q4. That's .22 for the year. Using our P/E of 20, that puts us at $4.40, an easy 33% increase from today's levels, and with conservative figures to boot. If the company can crank out .07 in earnings this quarter (remember, their slowest) and then let's just say they earn that amount in each of the three remaining quarters, that would put us at $5.60 - again using somewhat conservative estimates. Let's say our dream comes true and the company reports EPS for the year of .30 and we are awarded the industry average P/E of 27.9 - that would come out to $8.37.
As you can see, whether you value the company liberally or even with extreme conservatism, AXTI is an easy winner.
http://finance.yahoo.com/news/AXT-Inc-Announces-Fourth-iw-1648647646.html?x=0&.v=1
"We design, develop, manufacture and distribute high-performance semiconductor substrates. We make semi-insulating GaAs substrates used in applications such as amplifiers and switches for wireless devices, and semi-conducting GaAs substrates used to create opto-electronic products including HBLEDs, which are often used to backlight wireless handsets and LCD TVs and for automotive and general illumination applications. InP is a high performance semiconductor substrate used in broadband and fiber optic applications. Ge substrates are used in emerging applications such as triple junction solar cells for space and terrestrial photovoltaic applications and for optical applications."
I really like any company in China whose products are geared in part towards automobiles as the automobile industry in China is absolutely booming! I think AXTI will see this specific aspect of their business grow rapidly.
Flexible manufacturing infrastructure. Our total manufacturing space in China is approximately 190,000 square feet, 160,000 square feet of which we currently use. We believe that our competitors typically purchase crystal growing furnaces from original equipment manufacturers. In contrast, we design and build our own VGF crystal growing furnaces, which we believe should allow us to increase our production capacity more quickly and cost effectively.
"As we move into 2010, there continue to be areas of opportunity for our business. One of the most interesting is the projected growth of smart phones and other sophisticated Internet-connected devices, such as netbooks, that support more advanced features and access to new web-based applications and services. In addition to improving sales of these products, the benefit to AXT from the sales of more feature-rich, sophisticated devices is that they require a greater content of gallium arsenide in order to meet the speed and functionality requirements that consumers have come to expect. Even with the steep decline in spending associated with 2G legacy networks, carriers continue to invest in 3G, 3G+ and 4G in order to remain competitive and attract new subscribers. This network upgrade enables full performance capability of the video, gaming and Internet browsing capabilities of these next generation handsets and wireless devices and is driving increases in wireless subscribers in key geographic areas around the world as well as a compelling upgrade cycle for new devices. Since 2006, we have more than tripled our 6-inch gallium arsenide capacity in order to meet this increasing demand for our products and we plan to continue to expand as new qualifications and growing demand require greater production volume."
So for every end-product phone that includes our technology, we will be making more than what we made in prior years.
Our business and operating results depend in significant part upon capital expenditures of semiconductor designers and manufacturers, which in turn depend upon the current and anticipated market demand for products incorporating semiconductors from these designers and manufacturers. Our business also depends in part on worldwide economic conditions. Following the severe recession in the United States and in other key international economies that began during the fourth quarter of 2008, we began to see improvement in the demand environment for our products worldwide in the second half of 2009 that contributed to our strengthening revenue results.
Board, I'll be reading 10-K on and off tonight and will be posting snippets that I find valuable.
Haha, I've graduated from a college drunk to a law school drunk pisa. You know that!
AXTI ~ Nice board over here.
Took a tip from some college drunk on this one, let's hope it works out
AXTI slides from Jefferies' 4th Annual Global Technology Conference:
http://www.wsw.com/webcast/jeff42/axti/
You have to sign up. It takes 1 second.
Earnings expected April 28. Estimate: .04. I think .04 will be beat.
AXTI is trying to break out today. Link back for some DD. See its board for annotated chart.
Agree about the overall markets, but the MACD appears to be putting in a bottom. The histogram is upticking now (which, as you probably know, rarely gives off whipsaws) and the signal line has completely flattened out. AXTI could potentially retest the lower trend line one more time before making a break out, but with the fundamentals vastly improving, I think this one has plenty more upside room.
No, but sure wish I had bought back into AXTI in July 2009 when 50d ma crossed over 200d ma. Current macd not looking to good, and overall markets overbought. JMHO GLTU
The case for AXTI:
Balance Sheet on this thing is incredible. Here's a summary of some quick DD I did:
Cash/Cash Equivalents have increased in each of the past 4 quarters.
Inventory has decreased in each of the past 5 quarters, so the product is still selling even amidst tough economic times. In fact, this is one of the main things I look for for companies right now. If they can not only survive now, but either continue selling their product at a normal pace or even a quicker pace, then they will flourish as the economy recovers (if and when it does), assuming the market still finds its product valuable. The explanation point on good inventory reduction is that consumer confidence is strengthening.
Total Long-Term Debt is only 420k and Total Debt is only 496k. These debt figures have been paid down in each of the past 5 quarters (and remember that the company is still increasing its cash position). Notable is that last quarter the company reduced its Total Debt from 3.5M to the above-stated figure. With nearly 17M in cash on hand and virtually no dilution over the past 5 quarters, the company's capital structure is very strong.
*** These figures have all been taken as of the company's last reporting quarter (12/31/09). Recent filings and/or PRs should be looked to to ensure that these figures are still accurate.
Here is the link to the 10-K:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=7139751
Yes, they reported a loss due to a huge decrease in revenues when compared to 2008. Profit margins, however, have increased.
But the real story is in the quarterly results:
Revenues increased in every quarter last year, which causes the huge dip in year-over-year revenues to be a bit misleading. The cost of these revenues has just about leveled off, which accounts for the increasing margins.
Selling, general, and administrative expenses decreased in all four quarters, as did total operating expenses.
As revenues continue to grow and the company continues to trim down on expenses, I believe they will again be profitable in 2010. In fact, E*Trade's consensus estimate for FY'10 (which I know doesn't carry much weight, but is still worth a mention) is .22/share.
The company suffered a huge loss in the first quarter of 2009 (-.18), but was able to reduce that loss to (-.04) in the second quarter and then saw gains of .07 and .09 in the third and fourth quarters, respectively. The loss for the year is in large part due to this huge loss in the first quarter and the yearly results, without looking into the positive quarterly trends, would mistake investors into putting too much weight on that figure. In actuality, this loss is due to a higher-than-normal loss in the first quarter which has sense been not only diminished, but actually turned into a very nice gain in the fourth quarter.
So what caused the huge loss in the first quarter of 2009? Aside from general poor market conditions, the semiconductor industry as a whole suffered a huge down turn in 2008 before finally correcting after the first quarter of 2009. Thus, AXTI's Q1'09 loss (which, remember, causes the yearly results to come off as quite lopsided) is likely attributable in the most part to that fact (see chart below and notice the semiconductor and equipment industry $GSPSE) double bottomed in late '08/early '09 but has been on a tear ever since).
The fact that the company was able to trim down during a red year coupled with the fact that the market for their product has vastly improved make a great case for investing in AXTI now. The stellar balance sheet, the tremendous down payment in debt to virtually nothing, and the fact that the company has still been able to hoard vast amounts of cash are the icing on top of the icing on top of the icing on the cake.
IMO
Still in this one? Balance sheet is outstanding!
Balance Sheet on this thing is incredible. Here's a summary of some quick DD I did:
Cash/Cash Equivalents have increased in each of the past 4 quarters.
Inventory has decreased in each of the past 5 quarters, so the product is still selling even amidst tough economic times. In fact, this is one of the main things I look for for companies right now. If they can not only survive now, but either continue selling their product at a normal pace or even a quicker pace, then they will flourish as the economy recovers (if and when it does), assuming the market still finds its product valuable. The explanation point on good inventory reduction is that consumer confidence is strengthening.
Total Long-Term Debt is only 420k and Total Debt is only 496k. These debt figures have been paid down in each of the past 5 quarters (and remember that the company is still increasing its cash position). Notable is that last quarter the company reduced its Total Debt from 3.5M to the above-stated figure. With nearly 17M in cash on hand and virtually no dilution over the past 5 quarters, the company's capital structure is very strong.
*** These figures have all been taken as of the company's last reporting quarter (12/31/09). Recent filings and/or PRs should be looked to to ensure that these figures are still accurate.
Here is the link to the 10-K:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=7139751
i luv this stock. just needs a kick in the cumdingie
time time time is on my side, yes it is now
this company will double ...just when....is the question. soon
Form 8-K for AXT INC
--------------------------------------------------------------------------------
8-Jul-2008
Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On July 2, 2008, AXT, Inc., ("AXT" or the "Company") entered into a new lease agreement (the "New Lease") with T. Drive Partners, L.P., a California partnership (the "Lessor") of the facility located at 4281 Technology Drive, Fremont, California (the "Facility") with approximately 27,760 square feet. The New Lease shall commence on December 1, 2008 for a term of seven years, with an option by the Company to cancel the New Lease after five years, upon forfeiture of the security deposit and payment of one-half of the fifth year's rent. The base rent for the New Lease shall be $0.72 per square foot per month triple net, with annual rental increases of 4.5% per annum, payment of $50,000 security deposit, and tenant improvements of $575,000 to be amortized over seven years at 4% per annum.
The New Lease will replace the Company's existing lease at this facility in its entirety. The New Lease is filed as Exhibit 10.28to this Form 8-K and is incorporated herein in its entirety.
Item 1.02 Termination of a Material Definitive Agreement
The Company financed the original purchase of its Fremont, California manufacturing facility at 4311 Solar Way, Fremont, California (the "Solar Way Property"), by long-term borrowings, which were refinanced by taxable variable rate revenue bonds in 1998 pursuant to the Variable Rate Taxable Demand Revenue Bonds Series 1998 (the "Bonds") under that certain Indenture by and between the Company and Harris Trust Company of California, dated December 1, 1998 (the "Indenture"). The Bonds, which trade in the public market, mature in 2023. Repayment of principal and interest under the bonds is supported by a letter of credit from Wells Fargo Bank, National Association dated March 14, 2003 (the "Reimbursement Agreement") and has been paid on a quarterly basis. We have also pledged and placed certain investment securities with an affiliate of the bank as additional collateral for this facility. We have the option to redeem the bonds in whole or in part during their term.
The Company completed the sale of the Solar Way Property on March 28, 2008.
On July 1, 2008, the Company exercised its right to redeem the Bonds and to terminate the Agreement and related obligations (the "Redemption"). In connection with the Redemption, the Company repaid all outstanding indebtedness and accrued interest under the Bonds, of approximately $6.45 million. Accordingly, all remaining obligations of the Company under the Bonds, the Indenture and the Reimbursement Agreement have terminated and the $6.6 million recorded as restricted deposits on the consolidated balance sheets as of March 31, 2008 as a result of the outstanding principal amount on the Bonds has been released.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
10.28 Lease Agreement dated July 2, 2008 by and between AXT, Inc. and T. Drive
Partners, L.P., a California partnership.
Dr.Phil Yin did a great interview at marketheadquarters.net
Yes. Great post JT, thanks.
Revenues Increase 31 Percent From Fiscal 2006
AXT, Inc. Announces Fourth Quarter and Fiscal 2007 Results
Tuesday February 26, 4:16 pm ET
Revenues Increase 31 Percent From Fiscal 2006
FREMONT, CA--(MARKET WIRE)--Feb 26, 2008 -- AXT, Inc. (NasdaqGM:AXTI - News), a leading manufacturer of compound semiconductor substrates, today reported financial results for the fourth quarter and fiscal year ended December 31, 2007.
Fourth Quarter 2007 Results
Revenue for the fourth quarter of 2007 was $17.6 million, compared with $14.5 million in the third quarter of 2007, and $13.1 million in the fourth quarter of 2006. Total gallium arsenide (GaAs) substrate revenue was $12.2 million for the fourth quarter of 2007, compared with $9.9 million in the third quarter of 2007, and $11.1 million in the fourth quarter of 2006.
Indium phosphide (InP) substrate revenue was $330,000 for the fourth quarter of 2007, compared with $408,000 in the third quarter of 2007, and compared with $456,000 in the fourth quarter of 2006. Germanium (Ge) substrate revenue was $747,000, compared with $536,000 in the third quarter of 2007, and $318,000 in the fourth quarter of 2006. Raw materials sales were $4.3 million for the fourth quarter of 2007, compared with $3.6 million in the third quarter of 2007, and $1.2 million in the fourth quarter of 2006.
Gross margin was 30.1 percent of revenue for the fourth quarter of 2007. This included a benefit from the sale of approximately $466,000 in fully reserved wafers, which positively affected the quarterly gross margin by 2.7 percentage points. By comparison, gross margin in the third quarter of 2007 was 31.3 percent. This included a benefit from the sales of approximately $556,000 in fully reserved wafers, which positively affected third quarter gross margin by 3.8 percentage points. Gross margin in the fourth quarter of 2006 was 38.2 percent, including a benefit from the sale of approximately $730,000 in fully reserved wafers, which positively affected the quarterly gross margins by 5.6 percentage points.
Operating expenses were $3.7 million in the fourth quarter of 2007, compared with $3.5 million in the third quarter of 2007, and $3.8 million in the fourth quarter of 2006.
Income from operations for the fourth quarter of 2007 was $1.6 million compared with income from operations of $1.1 million in the third quarter of 2007, and income from operations of $1.2 million in the fourth quarter of 2006.
Net interest and other income for the fourth quarter of 2007 was $608,000, which included a gain on sale of investment of $1.1 million, compared with net interest and other expense of $54,000 for the third quarter of 2007, and net interest and other income of $1.1 million in the fourth quarter of 2006, which included a gain on sale of Finisar stock of $1.3 million.
Net income in the fourth quarter of 2007 was $1.9 million or $0.06 per diluted share, compared with a net income of $858,000 or $0.03 per diluted share in the third quarter of 2007, and a net income of $3.4 million, or $0.13 per diluted share in the fourth quarter of 2006, which included approximately $0.05 per diluted share from the gain on sale of Finisar stock, and $0.04 per diluted share from our net income tax benefit.
Fiscal Year 2007 Results
Revenue for fiscal year 2007 was $58.2 million, compared with $44.4 million in fiscal year 2006. Gross margin for fiscal year 2007 was 34.8 percent of revenue compared with 28.7 percent of revenue for fiscal year 2006.
Net income for fiscal year 2007 was $5.3 million or $0.16 per diluted share compared with net income of $944,000 or $0.03 per diluted share for fiscal year 2006.
Management Qualitative Comments
"Our strong fourth quarter results concluded what was another solid year for AXT," said Phil Yin, chairman and CEO. "In addition to posting very meaningful gains in revenue, gross profit, operating income, net income and positive cash flow from operations, we have continued to grow our customer base, significantly increase our market share and make strategic investments into the technologies and products that will expand our addressable market. We are excited by the long-term trends in all of the markets that we serve, including the growth of the handset market, the increasing prevalence of LED's in a wide variety of lighting applications and the worldwide adoption of solar energy. We believe that our unique business model is allowing us to convert these exciting opportunities into tangible results."
Outlook for First Quarter, Ending March 31, 2008
AXT estimates revenue for the first quarter will increase to between $17.6 million and $18.0 million. The company estimates that net income per diluted share will be between $0.03 and $0.05, which takes into account our diluted weighted average share count of approximately 31.6 million shares.
Conference Call
The company will also host a conference call today to discuss these results at 1:30 p.m. PT. The conference call can be accessed at (416) 641-6106 (conference ID 3248721). The call will also be simulcast on the Internet at www.axt.com. Replays will be available at (416) 695-5800 until March 4, 2008. 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) 683-5900.
About AXT, Inc.
AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising gallium arsenide (GaAs), indium phosphide (InP) 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 are used primarily in lighting display applications, wireless communications, and fiber optic 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, particularly in optoelectronics applications. AXT has manufacturing facilities in China and invests in five joint ventures producing raw materials. For more information, see AXT's website at http://www.axt.com.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws, including statements regarding our outlook for the first quarter of 2008, growth in our customer base and expansion of our addressable markets, increasing market share, industry trends that are driving increasing demand for our products, the growth in the handset market, increasing prevalence of LED's in a wide variety of lighting applications, the worldwide adoption of solar energy, and opportunities for growth in the coming years. These forward-looking statements are based upon specific assumptions that are subject to uncertainties and factors relating to the company's operations and business environment, which could cause actual results of the company 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; market acceptance and demand for the company's products; and other factors as set forth in the company's annual report on Form 10-K 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 publicly any forward-looking statement, as a result of new information, future events or otherwise.
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ------------------
2007 2006 2007 2006
--------- -------- -------- --------
Revenue $ 17,564 $ 13,072 $ 58,203 $ 44,445
Cost of revenue 12,270 8,084 37,942 31,709
--------- -------- -------- --------
Gross profit 5,294 4,988 20,261 12,736
--------- -------- -------- --------
Operating expenses:
Selling, general and
administrative 3,217 2,926 13,746 12,650
Research and development 509 854 1,699 2,351
Impairment (recovery) on assets
held for sale - - (481) 1,417
Restructuring benefit - - - (2)
--------- -------- -------- --------
Total operating expenses 3,726 3,780 14,964 16,416
--------- -------- -------- --------
Income (loss) from continuing
operations 1,568 1,208 5,297 (3,680)
Interest income, net 153 101 704 443
Other income, net 455 1,016 16 2,709
--------- -------- -------- --------
Income (loss) from continuing
operations before provision
for income taxes 2,176 2,325 6,017 (528)
Provision (benefit) for income
taxes 302 (1,048) 728 (1,454)
--------- -------- -------- --------
Income from continuing operations 1,874 3,373 5,289 926
Discontinued operations:
Gain from discontinued
operations, net of tax - 11 - 18
--------- -------- -------- --------
Net income $ 1,874 $ 3,384 $ 5,289 $ 944
========= ======== ======== ========
Basic income per share:
Income from continuing operations $ 0.06 $ 0.14 $ 0.17 $ 0.03
Gain from discontinued
operations, net of tax - - - -
--------- -------- -------- --------
Net income per share - basic $ 0.06 $ 0.14 $ 0.17 $ 0.03
========= ======== ======== ========
Shares used in computing basic
income per share 30,337 24,009 30,035 23,303
========= ======== ======== ========
Diluted income per share:
Income from continuing operations $ 0.06 $ 0.13 $ 0.16 $ 0.03
Gain from discontinued
operations, net of tax - - - -
--------- -------- -------- --------
Net income per share - diluted $ 0.06 $ 0.13 $ 0.16 $ 0.03
========= ======== ======== ========
Shares used in computing diluted
income per share 31,550 25,543 31,348 24,600
========= ======== ======== ========
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
December 31, December 31,
2007 2006
------------ ------------
Assets:
Current assets
Cash and cash equivalents $ 18,380 $ 16,116
Short-term investments 20,825 19,428
Accounts receivable, net 12,149 9,658
Inventories, net 24,781 20,263
Prepaid expenses and other current assets 3,569 3,985
Assets held for sale 5,140 4,659
------------ ------------
Total current assets 84,844 74,109
Property, plant and equipment, net 15,986 12,775
Other assets 5,242 4,298
Restricted deposits 6,700 7,150
------------ ------------
Total assets $ 112,772 $ 98,332
============ ============
Liabilities and stockholders' equity:
Current liabilities
Accounts payable $ 4,328 $ 3,764
Accrued liabilities 4,716 3,536
Current portion of long-term debt 450 450
------------ ------------
Total current liabilities 9,494 7,750
Long-term debt, net of current portion 6,273 6,839
Other long-term liabilities 3,755 2,543
------------ ------------
Total liabilities 19,522 17,132
------------ ------------
Stockholders' equity:
Preferred stock 3,532 3,532
Common stock 185,979 180,965
Accumulated deficit (98,543) (103,832)
Other comprehensive income 2,282 535
------------ ------------
Total stockholders' equity 93,250 81,200
------------ ------------
Total liabilities and stockholders'
equity $ 112,772 $ 98,332
============ ============
Contact:
Contacts:
Wilson W. Cheung
Chief Financial Officer
(510) 683-5900
Leslie Green
Green Communications Consulting, LLC
(650) 312-9060
--------------------------------------------------------------------------------
Source: AXT, Inc.
Can anyone explain the class action law suite for $2,575,000 for shareholders that owned the between Feb 6 2001 and April 27th 2004. I don't even remember owning this at that time but they want me to fill out paperwork to get my share of the settlement. Was this under another ticker symbol then? Any info would be appreciated.
AXT third quarter 2007 results. Rev: $14.5M; EPS: $0.03. Estimate was $0.05, -0.02.
Short-term, interesting bump in the road.
Long-term, the 64 thousand dollar question is can AXTI execute it's business plan?
From what I know about this company all of the pieces are in place for good, sustainable growth, but it did not happen in Q3-2007 and Q4-2007 EPS estimates are down to between $0.03 and $0.05, when previous estimate was $0.06. Wish I knew what the answer was here.
Stock price got hammered this week and closed today (10/30/07) at $4.64.
talk about an effective "Golden Cross" wow... nice investment Bow!
Cheers,
JT
Check out the interview with Dr.Yin at Wall Street Reporter
www.wallstreetreporter.com
AXTI Golden cross bound
Yes! Thanks JT!!
**AXTI Charts**
about to "golden cross"?!!!
and look at the volume on this 2nd chart, investors know what is about to happen
AXT Semiconductor Today article- 8/2/07
2 August 2007
AXT's second-quarter growth fuelled by strong demand for GaAs substrates and raw gallium
For second-quarter 2007, substrate and raw materials supplier AXT Inc of Fremont, CA, USA has reported revenue of $13.6m, up by around 9% on the $12.5m in Q1/2007 and around 20% on the $10.4m a year ago.
Revenue from gallium arsenide (GaAs) substrate sales increased to $9.3m, from Q1’s $8.8m. But 6-inch diameter wafer sales were down at $2.8m, from $3.3m in Q1 and $3.0m a year ago. AXT said that the decrease was mainly due to a delay in BiFET qualifications, of which 70-80% had now been completed. The company added that in late June it received some large orders for 6-inch wafers for delivery in Q3/2007.
Second-quarter indium phosphide (InP) revenue was $660,000, up on the $518,000 in Q1/2007 and the $613,000 in Q2/2006.
Germanium (Ge) substrate revenue was $402,000, down on the $541,000 recorded in Q1/2007 due to slightly lower demand from a major Chinese customer, but a substantial increase on the $169,000 achieved in Q2/2006.
Q2/2007 sales of raw materials, primarily 99.99% pure gallium, were $3.3m, compared with $2.6m in Q1/2007, and more than double the $1.4m for the same period in 2006. According to AXT, this increase in revenue was the result of sales in the quarter to two new European customers. AXT added that at least one of the new European customers for raw materials was also a competitor to its substrates business, but declined to disclose further details. As well as the new customers, an increase in raw materials pricing (particularly the average sales price for raw gallium) contributed to the results.
The Asia/Pacific region generated 61% of revenue, followed by 20% from North America and 19% from Europe. AXT said that the percentages represent an upward trend in the Asia/Pacific region in the last few quarters, but adds that it expects to see the percentage for North America to increase relative to other regions due to increasing revenue from photovoltaics manufacturers.
Gross margin for Q2/2007 was 36.9%, compared with a Q1/2007 gross margin of 43.2%, and a Q2/2006 gross margin of 26.6%.
Operating expenses were $3.6m in Q2/2007, compared with operating expenses of $4.2m in Q1/2007, and $4.4m in Q2/2006. The latest figures included a bad debt expense of $574,000, due to slow paying customers, mainly in Asia. Also, during Q2, AXT entered into an agreement to sell its manufacturing facility in Fremont, USA for $5.35m, and accordingly the company recognized a recovery of an impairment on assets held for sale of $481,000.
Q2/2007 income from operations was $1.4m, compared with $1.2m in Q1/2007, and a loss of $1.7m in Q2/2006. Net income in Q2/2007 was $1.2m ($0.04 per diluted share), compared with $1.3m in Q1/2007. Net loss in the Q2/2006 was $(876,000).
Commenting on the results, AXT’s CEO Phil Yin said: "Shortages in gallium raw material and increasing interest in emerging applications such as photovoltaics are illuminating the unique competitive positioning that AXT is likely to benefit from over the next several years. After an industry wide pause to complete BiFET qualifications and digest some excess inventory, we are poised for renewed growth in our 6-inch products. Demand is returning across all areas of our core GaAs business and we are completing several strategically important qualifications that will begin to generate revenue in the second half of the fiscal year. Further, we are very pleased to report that our strategy to vertically integrate our raw material needs has not only proven to be very effective in regards to raw materials pricing and volume, it has clearly become a major differentiator in our industry . . .”.
Moving forward, AXT says it is looking to increase its ownership in joint ventures with suppliers of raw materials, particularly those that produce arsenic and germanium. AXT adds that it is also investigating silicon carbide (SiC), gallium nitride (GaN), and diamond materials, for possible future production.
AXT estimates an increase in Q3/2007 revenue to between $14.0m and $14.6m.
See related items:
AXT’s sales dip due to 6” GaAs, but rebound expected in Q2
AXT’s fourth quarter drove return to profitability in 2006
See company profile
Visit: http://www.axt.com
Followers
|
18
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
129
|
Created
|
07/04/07
|
Type
|
Free
|
Moderators |
AXTI: American Xtal Technology
AXT, Inc.
4281 Technology Drive
Fremont, CA 94538
www.axt.com.
Share Structure:
Outstanding: 30.29 Mil
Public Float: 29.2 Mil
Company Officers
Philip C.S. Yin, Ph.D., Chief Executive Officer and Chairman of AXT's B of D.
Wilson W. Cheung, CFO
Phone: (510) 683-5900
Contact Information
Ted Young
Tel. 510-683-5900 x103
Fax. 510-683-5901
Email: sales@axt-vgf.com
AXT, Inc., together with its subsidiaries, engages in the development and production of compounds and single element semiconductor substrates for electronic and opto-electronic applications.
Its substrate products are used primiarily in wireless communications, lighting display applications and fiber optic communications. The Company uses a vertical gradient freeze (VGF) technique for manufacturing semiconductor substrates.
It also manufactures and sells raw materials related to the substrate business through five joint ventures located in China.
AXT was the first company to commercialize vertical gradient freeze (VGF) technology in 1986. During this time AXT was the market leader in this technology.
In early 2004, the company moved certain critical manufacturing processes to China and began to encounter some quality issues. Due to this, AXT lost credibility.
In March, 2005, Philip C.S. Yin, became CEO of AXT and recruited an entirely new senior management staff and revamped the sales organization. AXT has manufacturing facilities in Beijing, China, but is headquartered in Fremont, CA.
Since June 2005, AXT has had six quarters of sequential revenue increases and achieved profitability for the first time since the year 2000. Right now AXT is a great turnaround story.
AXT has five joint ventures in China. These joint ventures produce products, including 99.99% pure gallium (4N Ga), high-purity gallium, arsenic, and germanium, germanium dioxide, paralytic boron nitride (pBN) crucibles and boron oxide. This arrangement reduces the Company's dependency on other suppliers of raw materials and affords price and volume stability unavailable on the open market. AXT is a majority owner in three of the key ventures, which affords it board-level control.
AXT's goal is to be recognized as one of the world's leading suppliers of compound semiconductor materials.
periods | 2008 | 2009 | 2010 |
---|---|---|---|
March | 19.634 | 7.654 | 18.641 |
June | 19.932 | 13.055 | 23.177 |
September | 17.863 | 16.819 | 26.809 |
December | 15.646 | 17.836 |
Periods | 2008 | 2009 | 2010 |
---|---|---|---|
March | 0.06202 | -0.18269 | 0.07977 |
June | 0.02196 | -0.0435 | 0.17068 |
September | -0.03474 | 0.06719 | 0.17346 |
December | -0.07959 | 0.08913 |
% Shares Owned: | 58.59% |
# of Holders: | 105 |
Total Shares Held: | 18,176,483 |
3 Mo. Net Change: | -807,688 |
# New Positions: | 8 |
# Closed Positions: | 2 |
# Increased Positions: | 12 |
# Reduced Positions: | 10 |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |