News

5 January 2009

 

AXT expects Q4/2008 revenue down 27% on guidance

Based on preliminary results (subject to the completion of year-end closing processes), for fourth-quarter 2008 AXT Inc of Fremont, CA, USA, which manufactures gallium arsenide, indium phosphide and germanium substrates as well as raw materials, expects to report revenue of $15.5-15.9m. This is down about 27% on early November’s guidance of $21.4-21.9m. It is also down 12% on Q3/2008’s revenue of $17.9m (rather than the previously expected rise of 21%), as well as being down on $17.6m a year ago.

The expected shortfall on guidance is attributed mainly to lower-than-expected demand as a result of the weak economic conditions. As a result, AXT also expects to report net income (loss) per diluted share for fourth-quarter 2008 below the guidance range of between $(0.01) and $0.02.

The expected shortfall on guidance is attributed mainly to lower-than-expected demand as a result of the weak economic conditions. As a result, AXT also expects to report net income (loss) per diluted share for fourth-quarter 2008 below the guidance range of between $(0.01) and $0.02.

“Customer demand for our products deteriorated more than anticipated in November and December as a result of a weakened demand environment,” says chairman & CEO Phil Yin. “Further, we experienced some customer requests for push-outs of orders that had been scheduled for fourth-quarter deliveries. We accepted these requests in order to accelerate our customers' efforts to reduce their inventory levels going into 2009,” he adds.

“Although we are disappointed with our fourth-quarter revenue expectation in this difficult economic environment, we remain confident in our market position and the continued need for our products to serve the advancing technology requirements in the wireless and photovoltaic markets,” states Yin.

AXT will announce its full financial results for fourth-quarter 2008 on 25 February.

See related items:

AXT renews GaAs substrate deal with IQE for up to $14.3m

AXT’s revenues fall due to requalifications and post-Olympics restrictions

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