For first-quarter 2014, AXT Inc of Fremont, CA, USA has reported revenue of $19.3m, up 3.8% on $18.6m last quarter although still down 13.8% on $22.4m a year ago.
Fiscal Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Revenue $22.4m $23.8m $20.5m $18.6m $19.3m
By product sector, gallium arsenide (GaAs) substrate revenue was $8.5m, down 27% on $11.7m a year ago but only 4.5% on $8.9m last quarter. Indium phosphide (InP) substrate revenue was $2.2m, up 22% on $1.8m both last quarter and a year ago. Germanium (Ge) substrate revenue was $3.2m, down 11% on $3.6m last quarter but up 23% on $2.6m a year ago. Raw materials sales were $5.4m, up 26% on $4.3m last quarter (although still down 14% on $6.3m a year ago).
"Despite normal seasonality, our results exceeded our expectations in the first quarter, led by higher-than-anticipated revenues in semiconducting gallium arsenide and indium phosphide substrates, as well as strength in raw material sales," says CEO Morris Young.
After rebounding to 15.1% last quarter, gross margin fell back slightly to 14.1% (compared with 15.6% a year ago). Operating expenses were $5.1m, up from $4.7m a year ago and $4.4m last quarter. However, excluding a one-time restructuring charge of $0.9m related to cost-reduction initiatives, underlying operating expenses have been cut to $4.2m (with selling, general & administrative expenses falling from $3.9m a year ago to $3.4m, and R&D expenses down slightly from $0.82m to $0.78m).
After being halved to $1.2m last quarter, net loss has risen slightly to $2m, although this is still less than the $2.4m a year ago. Correspondingly, during Q4/2013, cash and cash equivalents fell further, from $25m to $22.8m.
"In addition to revenue growth, we began to see the benefit of cost-saving measures implemented during the quarter, which contributed to improvement in our earnings per share [compared with a year ago]," says Young. "Our goal is to improve in both our gross margins and our operating margins in the coming quarters as the full benefit of these measures take effect," he adds. "We are highly committed to returning the company to profitability."
