AXT, Inc. Announces First Quarter 2017 Financial Results
April 26 2017 - 4:10PM
AXT, Inc. (Nasdaq:AXTI), a leading manufacturer of compound
semiconductor substrates, today reported financial results for the
first quarter, ended March 31, 2017.
First Quarter 2017 Results
Revenue for the first quarter of 2017 was $20.6
million, compared with $20.3 million in the fourth quarter of
2016.
Gross margin was 30.5 percent of revenue for the
first quarter of 2017, compared with 37.1 percent of revenue in the
fourth quarter of 2016. This decline was largely the result
of product mix, foreign exchange and recovery efforts from the
short circuit electrical fire in March of 2017.
Operating expenses were $4.9 million in the
first quarter of 2017, compared with $5.2 million in the fourth
quarter of 2016.
Operating profit for the first quarter of 2017
was $1.4 million compared with operating profit of $2.3 million in
the fourth quarter of 2016.
Interest and other, net for the first quarter of
2017 was a loss of $0.8 million, compared with a loss of $0.3
million in the fourth quarter of 2016.
Net profit in the first quarter of 2017 was $0.7
million, or $0.02 per diluted share, compared with a net profit of
$2.2 million or $0.06 per diluted share in the fourth quarter of
2016.
Management Qualitative
Comments
“Q1 was a busy and productive quarter,” said
Morris Young, chief executive officer. “We are seeing encouraging
progress in the adoption of several emerging technologies and are
continuing to invest in our product development, production
capacity, and customer engagement and support capabilities in order
to position ourselves for coming business opportunities. In
addition, we recently completed a successful secondary offering,
helping to ensure that AXT is well capitalized for both business
expansion and the future relocation of our gallium arsenide
production line. And finally, we experienced, and then quickly and
effectively recovered from, a short-circuit electrical fire at our
Beijing facility. I am proud of the way our team pulled together
with a shared sense of purpose to support all of our key
stakeholders, including our customers, investors, and fellow
employees. 2017 will likely be an important year for AXT, and I
believe we are taking the correct steps to ready our business for
our next phase of growth.”
Conference Call
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 95615587). The call will also be simulcast on
the Internet at www.axt.com. Replays will be available at (855)
859-2056 (passcode 95615587) until May 2, 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) 438-4700.
About AXT, Inc.
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 are
used primarily in lighting display applications, wireless
communications, fiber optic communications and solar cell
applications. 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 invests in joint ventures in China 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, 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.
FINANCIAL TABLES TO FOLLOW
|
AXT, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
20,616 |
|
|
$ |
18,713 |
|
|
Cost of revenue |
|
|
14,328 |
|
|
|
13,460 |
|
|
Gross profit |
|
|
6,288 |
|
|
|
5,253 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling,
general, and administrative |
|
|
3,793 |
|
|
|
3,374 |
|
|
Research
and development |
|
|
1,124 |
|
|
|
1,381 |
|
|
Total
operating expenses |
|
|
4,917 |
|
|
|
4,755 |
|
|
Income from
operations |
|
|
1,371 |
|
|
|
498 |
|
|
Interest income,
net |
|
|
98 |
|
|
|
98 |
|
|
Equity in loss of
unconsolidated joint ventures |
|
|
(933 |
) |
|
|
(456 |
) |
|
Other income, net |
|
|
48 |
|
|
|
190 |
|
|
Income before provision
for income taxes |
|
|
584 |
|
|
|
330 |
|
|
Provision for income
taxes |
|
|
159 |
|
|
|
397 |
|
|
Net income (loss) |
|
|
425 |
|
|
|
(67 |
) |
|
Less: Net
loss attributable to noncontrolling interests |
|
|
240 |
|
|
|
109 |
|
|
Net income attributable
to AXT, Inc. |
|
$ |
665 |
|
|
$ |
42 |
|
|
Net income (loss)
attributable to AXT, Inc. per common share: |
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
(0.00 |
) |
* |
Diluted |
|
$ |
0.02 |
|
|
$ |
(0.00 |
) |
* |
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
34,210 |
|
|
|
32,002 |
|
|
Diluted |
|
|
35,624 |
|
|
|
32,002 |
|
|
|
|
|
|
|
|
|
|
|
|
__________________________
* Net loss to AXT, Inc. per common share resulted due to the
accrual of preferred dividend liquidation preference during the
three months ended March 31, 2016
|
AXT, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
56,512 |
|
|
$ |
36,152 |
|
Short-term investments |
|
|
20,483 |
|
|
|
11,415 |
|
Accounts
receivable, net |
|
|
17,649 |
|
|
|
14,453 |
|
Inventories |
|
|
39,195 |
|
|
|
40,152 |
|
Related
party notes receivable – current |
|
|
159 |
|
|
|
— |
|
Prepaid
expenses and other current assets |
|
|
4,663 |
|
|
|
5,114 |
|
Total
current assets |
|
|
138,661 |
|
|
|
107,286 |
|
Long-term
investments |
|
|
9,762 |
|
|
|
6,156 |
|
Property, plant and
equipment, net |
|
|
27,141 |
|
|
|
27,805 |
|
Related party notes
receivable – long-term |
|
|
— |
|
|
|
157 |
|
Other assets |
|
|
11,853 |
|
|
|
12,842 |
|
Total
assets |
|
$ |
187,417 |
|
|
$ |
154,246 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
8,159 |
|
|
$ |
6,691 |
|
Accrued
liabilities |
|
|
7,906 |
|
|
|
9,260 |
|
Total
current liabilities |
|
|
16,065 |
|
|
|
15,951 |
|
Long-term portion of
royalty payments |
|
|
431 |
|
|
|
575 |
|
Other long-term
liabilities |
|
|
232 |
|
|
|
330 |
|
Total
liabilities |
|
|
16,728 |
|
|
|
16,856 |
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred
stock |
|
|
3,532 |
|
|
|
3,532 |
|
Common
stock |
|
|
38 |
|
|
|
33 |
|
Additional paid-in-capital |
|
|
227,159 |
|
|
|
194,177 |
|
Accumulated deficit |
|
|
(64,320 |
) |
|
|
(64,985 |
) |
Accumulated other comprehensive income |
|
|
550 |
|
|
|
253 |
|
Total
AXT, Inc. stockholders’ equity |
|
|
166,959 |
|
|
|
133,010 |
|
Noncontrolling interests |
|
|
3,730 |
|
|
|
4,380 |
|
Total
stockholders’ equity |
|
|
170,689 |
|
|
|
137,390 |
|
Total
liabilities and stockholders’ equity |
|
$ |
187,417 |
|
|
$ |
154,246 |
|
|
|
|
|
|
|
|
|
|
Contact:
Gary Fischer
Chief Financial Officer
(510) 438-4700
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Aug 2024 to Sep 2024
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Sep 2023 to Sep 2024