5 February 2015

AXT's Q4 revenue falls short after customers work down year-end substrate inventory

AXT Inc of Fremont, CA, USA, which makes gallium arsenide, indium phosphide and germanium substrate and raw materials, says that for fourth-quarter 2014, on a preliminary basis, it expects revenue of about $19.5m, up 4.8% on $18.6m a year ago but down 15.6% on last quarter's $23.1m and below its previous guidance of $20.5-21.5m.

The revenue shortfall is attributed primarily to reduced sales as customers worked down their substrate inventory levels at year end.

"While we are disappointed in these preliminary revenue results, we remain confident in our strategy and business opportunity across our key markets in 2015," says CEO Morris Young.

The preliminary, unaudited results are based on the management's initial review of operations for fourth-quarter 2014, and remain subject to completion of the firm's customary quarterly closing and review procedures.

AXT will announce its full fourth-quarter results on 23 February.

See related items:

AXT's revenue grows a more-than-expected 8% in Q3 as new applications emerge

AXT announces $5m stock repurchase program

AXT appoints chief financial officer

AXT returns to quarterly profitability ahead of plan

AXT reports higher-than-expected GaAs and InP revenue in Q1

AXT's revenue falls 9% in Q4 to $18.6m, but decline in GaAs levels out

Tags: AXT GaAs GaAs substrate InP Germanium

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