For third-quarter 2013, AXT Inc of Fremont, CA, USA has reported revenue of $20.5m, down 1.4% on $20.8m a year ago and 14% on $23.8m last quarter.
Fiscal Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Revenue $20.8m $18.9m $22.4m $23.8m $20.5m
In particular, gallium arsenide (GaAs) substrate revenue was $9m, down 16% on $10.7m last quarter and 30% on $12.9m a year ago. "The market for wireless devices has undergone significant transition with consolidation and new technologies," notes CEO Morris Young.
Indium phosphide (InP) substrate revenue was $1.4, down on $2m last quarter and $1.6m a year ago. Raw materials sales were $4.6m, down on $5.8m last quarter but up on $4.3m a year ago. Also, germanium (Ge) substrate revenue has continued to recover, from just $2m a year ago and $5.3m last quarter to $5.5m.
Gross margin has fallen further, from 26.3% a year ago and 12.9% last quarter to 11.9%. Compared with a net profit of $0.9m a year ago, net loss has worsened from $2m last quarter to $2.3m. Nevertheless, during the quarter, cash and cash equivalents rose from $22m to $27.7m.
"As we near the end of the year we are getting more clarity on the landscape and opportunity and are executing on a strategy for growth," says Young. "The semiconducting gallium arsenide market is poised for a turnaround. In addition, we are seeing exciting opportunities in both the indium phosphide and germanium substrate markets," he adds.
"We continue to take a conservative approach to the planning and management of our business, working diligently to control expenses and maximize our cash," Young continues. "But we remain cautiously optimistic about our prospects for the coming year, and believe that we are doing the right things to take advantage of business opportunities in our key markets."