23 February 2011

AXT’s Q4/2010 revenue of $26.9m up 51% year-on-year

For fourth-quarter 2010, AXT Inc of Fremont, CA, USA, which manufactures gallium arsenide, indium phosphide and germanium substrate and raw materials, has reported revenue of $26.9m. This is below the expected $28–29m and flat on $26.8m in Q3 but up 51% on $17.8m a year ago.

Total gallium arsenide (GaAs) substrate revenue was $18.7m, down 2.6% on $19.2m in Q3 but up 48% on $12.6m a year ago. Indium phosphide (InP) substrate revenue was $1.1m, up 1.5% on $955,000 in Q3 and more than doubling from $513,000 a year ago. Germanium (Ge) substrate revenue was $3.4m, up 48% on $2.3m in Q3 and up 79% on $1.9m a year ago. Raw materials sales were $3.5m, down 20% on $4.4m in Q3 but up 25% on $2.8m a year ago.

Gross margin has risen from 33.9% a year ago and 39.3% in Q3 to 39.8%. Net income was $4.9m, down from $5.6m in Q3 but up from $2.8m a year ago.

“Revenue for the year increased by more than 72% from 2009 [from $55.4m to $95.5m]; our gross margins performance improved by more than 1300 basis points and our net income grew by $20.5m [from a loss of $1.9m to a profit of $18.6m],” says CEO Morris Young. “These results reflect healthy growth in our markets as well as continued gains, outstanding product quality and tremendous operational execution across our entire organization,” he adds.

“While we are experiencing some near-term softness in the Taiwanese LED market and expect seasonality in our first-quarter semi-insulating gallium arsenide revenues, we believe that we will see sequential growth in our business beginning again in the second quarter, driven by positive secular trends in the demand for wireless devices, LEDs and photovoltaics, as well as gains in our positioning within various customers in our market,” says Young.

For first-quarter 2011, AXT expects revenue of $24–25m (down 9% sequentially, but up 28% year-on-year).

See related items:

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

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

Tags: AXT GaAs GaAs substrate InP Germanium

Visit: www.axt.com

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