For third-quarter 2014, AXT Inc of Fremont, CA, USA, which makes gallium arsenide, indium phosphide and germanium substrate and raw materials, has reported revenue of $23.1m, up 8% on $21.4m last quarter and up 13% on $20.5m a year ago.
Fiscal Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014
Revenue $20.5m $18.6m $19.3m $21.4m $23.1m
After a dip to 14.1% in Q1/2014, gross margin has rebounded further, from 19.4% last quarter to 23%. After cost-saving initiatives cut operating expenses from $5.1m in Q1, operating expenses in Q3 were roughly unchanged from Q2’s $4.7m.
Compared with a net loss of $2m ($0.06 per diluted share) in Q1, net income has rebounded further, from $319,000 ($0.01 per diluted share) in Q2 to $644,000 ($0.02 per diluted share).
“Revenue came in ahead of our expectations, and we achieved another quarter of profitability through improved gross margins and tight expense control,” says CEO Morris Young. “Further, we are diversifying our customer base throughout our product portfolio and are pleased to be gaining traction in several areas that have been a strong focus of our sales efforts,” he adds.
“The changes in the gallium arsenide landscape over the past two years have had an adverse impact on our business. However, these changes are finally beginning to settle and new applications for our products are emerging across our substrate portfolio,” Young continues. “I am very pleased to have a strong team in place with the expertise to maximize our potential as we evolve our business to meet new opportunities.”
