AXT, Inc. Form 8-K

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EWPHG+KY6PgasRLG3tkuZA1NC+Xx9aIKZW5d0F+kNnr99ZVhf0whvJk6kGAke2wt c/Pr1CJEudcu12CrA39gRQ== 0000891618-03-002004.txt : 20030423 0000891618-03-002004.hdr.sgml : 20030423 20030423154147 ACCESSION NUMBER: 0000891618-03-002004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030423 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXT INC CENTRAL INDEX KEY: 0001051627 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 943031310 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24085 FILM NUMBER: 03660064 BUSINESS ADDRESS: STREET 1: 4821 TECHNOLOGY DRIVE CITY: FREMONT STATE: CA ZIP: 94538 BUSINESS PHONE: 5106835900 MAIL ADDRESS: STREET 1: 4311 SOLAR WAY CITY: FREMONT STATE: CA ZIP: 94538 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN XTAL TECHNOLOGY DATE OF NAME CHANGE: 19971217 8-K 1 f89412e8vk.htm FORM 8-K AXT, Inc. Form 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

April 23, 2003

(Date of Report; Date of Earliest Event Reported)

AXT, Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)


000-24085 (Commission File Number)		94-3031310 (IRS Employer Identification No.)


4281 Technology Drive, Fremont, California				94538

(address of principal executive offices)				(Zip Code)

(510) 683-5900

(Registrant’s telephone number, including area code)

TABLE OF CONTENTS


	Item 9. REGULATION FD DISCLOSURE
	Item 7. FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1


Item 9.		REGULATION FD DISCLOSURE (Information provided under Item 12 - Disclosure of Results of Operations and Financial Condition)

		In accordance with Release 33-8216, the information contained herein and in the accompanying exhibit is being furnished under both Item 9 and Item 12. This information shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

		Attached hereto as exhibit 99.1 and incorporated by reference herein is financial information for AXT, Inc. for the quarter ended March 31, 2003 and forward-looking statements relating to 2003 and the second quarter of 2003 as presented in a press release of April 23, 2003.


Item 7.		FINANCIAL STATEMENTS AND EXHIBITS

( c )		Exhibits

99.1		Financial information for AXT, Inc. for the quarter and year ended March 31, 2003 and forward-looking statements relating to 2003 and the second quarter of 2003 as presented in a press release of April 23, 2003.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	AXT, INC.

Date: April 23, 2003	By:	/s/ Morris S. Young Morris S. Young President and Chief Executive Officer

EXHIBIT INDEX


Exhibit		Description


99.1		Press Release, dated April 23, 2003.

EX-99.1 3 f89412exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 Contact: Don Tatzin Chief Financial Officer (510) 683-5900 AXT, INC. REPORTS FIRST QUARTER 2003 RESULTS Net Loss Lower Than Expected Due to Cost Management FREMONT, Calif.- April 23, 2003 - AXT, Inc. (Nasdaq: AXTI), a leading manufacturer of compound semiconductor substrates and opto-electronic devices, today reported financial results for the first quarter ended March 31, 2003. Revenue for the first quarter of 2003 was $12.7 million compared with $12.3 million in the fourth quarter of 2002 and with $16.8 million in the first quarter of 2002. Revenue for the substrate division, which represented 67 percent of total revenue for the first quarter of 2003, was $8.5 million, compared with $8.5 million in the fourth quarter of 2002. Substrate revenue in the first quarter of 2002 was $11.7 million. Revenue from the opto-electronics division, which represented 33 percent of total revenue for the first quarter of 2003, was $4.1 million, compared with $3.8 million in the fourth quarter of 2002. Opto-electronics revenue in the first quarter of 2002 was $5.0 million. The company reported a net loss for the first quarter of 2003 of $4.3 million, or $0.19 per diluted share, compared with a net loss of $17.5 million, or $0.78 per diluted share, for the fourth quarter of 2002, and with a net loss of $3.6 million, or $0.16 per diluted share, for the first quarter of 2002. The net loss in the fourth quarter of 2002 included a non-cash charge to write-down excess inventory of $9.7 million, $3.1 million to write-down real estate held for sale and $1.7 million to write-down investments to market value. "Our performance improved during the first quarter in three critical areas: cash balances increased, sales of our two leading products, GaAs substrates and high brightness LEDs, rose and gross and operating margins were above expectations," said Morris Young, president and CEO. "Cash and equivalents, short- and long-term investments, and restricted cash balances increased by $5.9 million from the end of the third quarter as we executed the key elements of our cash management plan. During the first quarter we sold one of our buildings and netted $5.2 million from the sale. "Driven by increased demand for 2-inch diameter substrates used for red and yellow light emitting diodes, our substrate division reported the highest sales of gallium arsenide products since the third quarter of 2002. We continue to see aggressive competition from other manufacturers offering VGF-like substrates. To offset these developments, we -More- AXT Inc. Reports First Quarter 2003 Results April 23, 2003 Page 2 of 4 committed most of our substrate R&D during the past two quarters to improving our customers' yields. Several customers report that our defect rate has declined during the past two quarters. "In our opto-electronics division, costs per LED declined as the process improvements launched during the fourth quarter continued to pay dividends", Dr. Young explained. "We experienced a significant price reduction for LEDs that began in late February, particularly for low end chips. The price decline is responsible for the decline in gross margins recorded by our opto-electronics division in the first quarter and may delay achievement of profitability in this division. "Looking forward, we see opportunities to improve performance in both of our businesses, although we think the upcoming quarter will be challenging. Our recent declines in defect densities in our substrates are attracting more orders and manufacturing costs are declining. While our opto-electronic business faces significant price pressure, we have been making steady progress in reducing costs. As we move more of our production effort to China and bring more efficient equipment on-line, our costs should decline further." OUTLOOK FOR SECOND QUARTER ENDING JUNE 30, 2003 At this time, no cases of SARS have been reported in our facilities. The following outlook is predicated on an assumption that neither we nor our major customers and suppliers will be affected by SARS-related plant closures or other activity. We will update our guidance if necessary during the quarter. - The company anticipates that consolidated total revenue will be between $12.4 and $13.2 million. - Consolidated gross margin is expected to be between negative 2 percent and negative 6 percent. - Consolidated Sales, General and Administrative expense is expected to be approximately $3.4 million. - Consolidated Research and Development expense is expected to be approximately $800,000. - Consolidated net loss, utilizing our effective tax rate of 0 percent, is expected to be between $4.5 and $5.0 million, or between $0.20 and $0.23 per diluted share. -More- AXT Inc. Reports First Quarter 2003 Results April 23, 2003 Page 3 of 4 CONFERENCE CALL A conference call will be held today at 1:30 p.m. PDT to discuss these announcements and to provide further discussion of the quarter and outlook for the next quarter. To participate in the call, please dial (785) 832 2041. The passcode is AXT. A live webcast of the conference call will be offered on AXT's website at www.axt.com and on www.prnewswire.com. Financial and statistical information to be discussed on the call will be available on the company's website immediately prior to commencement of the call. A replay of the webcast will be available through May 23, 2003 on our website. ABOUT AXT, INC. AXT designs, develops, manufactures and markets high-performance compound semiconductor substrates for the fiber optics and communications industries. AXT also is a leading producer of light-emitting diodes (LEDs), such as green, cyan and blue LEDs, for the display and lighting industries, and vertical-cavity surface-emitting lasers (VCSELs) for the fiber optics industry. The Company's proprietary Vertical Gradient Freeze (VGF) crystal growth technology produces low-defect, semi-insulating and semi-conducting gallium arsenide, indium phosphide and germanium substrates. For more information, see AXT's website at http://www.axt.com. The Company can also be reached at 4281 Technology Drive, Fremont, California 94538 or by calling 510-683-5900. AXT is traded on the Nasdaq National Market under the symbol AXTI. SAFE HARBOR This press release contains forward-looking statements regarding AXT's financial performance and preliminary results for the first quarter of 2003, our outlook for the second quarter, and improvements in our product performance and quality and manufacturing processes. Forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. Changes in the business might not match management's forecasts. In addition to the general risks associated with the slowdown in our industry and development of complex technology, our future results will depend on a variety of factors, including an economic climate that includes a high degree of uncertainty; the continued expansion of our China operations which may be costlier or take more time than expected; the failure to obtain qualification of our China operations by our customers; the effect that SARS may have on our production facilities, customers, and suppliers including possible plant closures; the performance of our products and our ability to manufacture products at high volume in accordance with strict quality control standards; our ability to manufacture products without infringing on the intellectual property of others; the timing, volume, and pricing of orders from customers; declines in our cash balances; increases in our cash burn rate and our ability to decrease our cash burn rate or raise additional cash; our ability to make successful product improvements on a timely basis; and war or terrorist activity that disrupt our manufacturing capabilities or interrupt the sale of our products. Reference is made to AXT's filings with the Securities and Exchange Commission, including the company's 8-K, 10-K for the year ended December 31, 2002, and 10-Q for the period ending March 31, 2003 filings made with the Securities and Exchange Commission and available online by link from our website for further discussion of risks and uncertainties -More- AXT Inc. Reports First Quarter 2003 Results April 23, 2003 Page 4 of 4 regarding AXT's business. The Company assumes no obligation to update the information in this press release. ### AXT, INC. CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS)

AXT, INC. CONSOLIDATED INCOME STATEMENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

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