News

28 October 2010

 

AXT’s revenue rises 16% in Q3 to $26.8m

For third-quarter 2010, AXT Inc of Fremont, CA, USA, which manufactures gallium arsenide, indium phosphide and germanium substrate and raw materials, has reported revenue of $26.8m, up 16% on $23.2m last quarter and 60% on $16.8m a year ago.

Fiscal	Q4/2009	Q1/2010	Q2/2010	Q3/2010
Revenue	$17.8m	$18.6m	$23.2m	$26.8m

“Solid demand in all of our key end markets coupled with great execution across our organization allowed us to deliver outstanding financial results and continued increases in our market share and customer penetration,” says CEO Morris Young.

Total gallium arsenide (GaAs) substrate revenue was $19.2m, up 19% on $16.2m last quarter and 44% on $13.3m a year ago. Although up 39% on $688,000 a year ago, indium phosphide (InP) substrate revenue has fallen 13% from $1.1m last quarter to $955,000. Germanium (Ge) substrate revenue was $2.3m, up 44% on $1.6m last quarter and 28% on $1.8m a year ago. Raw materials sales were $4.4m, up 5% on $4.2m last quarter and more than quadrupling from $1m a year ago.

“Not only did we exceed our revenue expectations, our gross margin performance was the highest it has been in many years,” says Young. Gross margin has risen from 32.9% a year ago and 36.8% last quarter to 39.3%.

Compared with $3.7m a year ago and $3.6m last quarter, operating expenses have risen slightly to $3.8m. Nevertheless, income from operations has continued to rise, from $1.9m a year ago and $5m last quarter to $6.7m. Net income was $5.6m, up slightly from $5.5m last quarter and $2.1m a year ago (although, excluding a $1.2m net sales tax refund, net income last quarter was just $4.3m).

“We continue to see growing momentum in the long-term secular trends that are fueling our growth, including the adoption of smartphones and other intelligent wireless devices, the proliferation of LED applications and the expansion of photovoltaic technology,” Young says. “These trends are opening up exciting opportunities for our business that we believe will extend for years to come.”

For fourth-quarter 2010, AXT expects revenue to rise to $28–29m.

See related items:

AXT’s profit doubles as revenue rises 25% in Q2 to $23.2m

AXT’s GaAs sales drive growth of 4.5% in Q1

AXT’s Q4/2009 sales up year-on-year

Search: AXT GaAs GaAs substrate InP Germanium

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