4 May 2011

AXT’s Q1 revenue falls 8.6% to $24.6m

For first-quarter 2011, AXT Inc of Fremont, CA, USA, which makes gallium arsenide, indium phosphide and germanium substrate and raw materials, has reported revenue of $24.6m, down 8.6% on $26.9m last quarter but up 31.8% on $18.6m a year ago. “Our first quarter revenue results reflected the seasonality that we had guided for,” notes CEO Morris Young.

Total gallium arsenide (GaAs) substrate revenue was $15.9m, up 19% on $13.4m a year ago but down 15% on $18.7m last quarter. However, indium phosphide (InP) substrate revenue was $1.3m, up on $1.1m last quarter and $875,000 a year ago. Germanium (Ge) substrate revenue was $3m, down on $3.4m last quarter but almost double $1.6m a year ago. Raw materials have risen from $2.7m a year ago and $3.5m last quarter to $4.4m.

“Optimal revenue mix and our successful raw material purchasing strategy allowed us to achieve our highest gross margin performance in many years,” says Young. Gross margin has grown from 36.1% a year ago and 39.8% last quarter to 43.4%.

Compared with $3.9m a year ago, operating expenses have been cut back from $5.1m last quarter to $4.2m. Income from operations has risen further, from $2.9m a year ago and $5.6m last quarter to $6.5m. Net income of $4.2m is down from $4.9m last quarter but up from $2.6m a year ago.

“As we move into Q2, we are very pleased to see solid demand for our semi-insulating and semi-conducting gallium arsenide substrates from our traditional markets, and we are making good progress on our plans to further penetrate strategically important markets for our products,” says Young. For second-quarter 2011, AXT expects revenue to rise to $26.5–27.5m. “Our unique business model continues to provide us with exciting growth opportunities, positioning us well for continued expansion in 2011,” reckons Young.

See related items:

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