29 July 2011

AXT Q2 revenue rebounds by 22% sequentially to $30m

For second-quarter 2011, AXT Inc of Fremont, CA, USA, which makes gallium arsenide, indium phosphide and germanium substrate and raw materials, has reported revenue of $30m, up 29.6% on $23.2m a year ago and up 22% on $24.6m last quarter (which had been down 8.6% on the prior quarter).

Total gallium arsenide (GaAs) substrate revenue was $18m, up 13% on $15.9m last quarter and 11% on $16.2m a year ago. Indium phosphide (InP) substrate revenue was $1.6m, up 23% on $1.3m last quarter and 45% on $1.1m a year ago. Germanium (Ge) substrate revenue was $2.7m, down 10% on $3m last quarter but up 69% on $1.6m a year ago. Raw materials sales were $7.7m, up 75% on $4.4m last quarter and 83% on $4.2m a year ago.

“Revenues exceeded our expectations, driven by double-digit growth in our substrate business and record revenues from third-party raw material sales,” says CEO Morris Young. “We are experiencing healthy demand across all of our product categories and are pleased to see our competitive positioning continue to strengthen,” he adds.

Gross margin has grown from 36.8% a year ago and 43.4% last quarter to 46.7%. Compared with $3.6m a year ago, operating expenses have risen from $4.2m last quarter to $4.4m. Nevertheless, income from operations has risen further, from $5m a year ago and $6.5m last quarter to $9.5m. Net income was $7.1m, up from $4.2m last quarter and $5.5m a year ago.

“Our strong business model and solid operational execution are resulting in healthy growth to our bottom line,” notes Young. “The trends fueling our growth are substantial, and we are well positioned to benefit with the capacity, raw material access and attractive cost-structure that are unique in our industry,” he believes.

For third-quarter 2011, AXT expects revenue to rise to $30.5–31.5m.

See related items:

AXT’s Q1 revenue falls 8.6% to $24.6m

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

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

Tags: AXT GaAs GaAs substrate InP Germanium

Visit: www.axt.com