0001140361-13-029680.txt : 20130731 0001140361-13-029680.hdr.sgml : 20130731 20130731161035 ACCESSION NUMBER: 0001140361-13-029680 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20130731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130731 DATE AS OF CHANGE: 20130731 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: 13999120 BUSINESS ADDRESS: STREET 1: 4281 TECHNOLOGY DR. CITY: FREMONT STATE: CA ZIP: 94538 BUSINESS PHONE: 510.438.4734 MAIL ADDRESS: STREET 1: 4281 TECHNOLOGY DR. CITY: FREMONT STATE: CA ZIP: 94538 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN XTAL TECHNOLOGY DATE OF NAME CHANGE: 19971217 8-K 1 form8k.htm AXT INC 8-K 7-31-2013
 
UNITED STATES
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

Date of Report (Date of earliest event reported): July 31, 2013
 
AXT, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware
 
000-24085
 
94-3031310
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
4281 Technology Drive
Fremont, California  94538
(Address of principal executive offices) (Zip Code)
 

Registrant’s telephone number, including area code:  (510) 683-5900

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Item 2.02
Results of Operations and Financial Condition

On July 31, 2013, AXT, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2013.  A copy of the Company’s press release, announcing the results, is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information in Exhibit 99.1 hereto discussing the Company’s results of operations and financial condition for the quarter ended June 30, 2013, is being “furnished” in accordance with General Instruction B.2 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.  The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing.

Item 9.01
Financial Statements and Exhibits

(d) Exhibits

99.1 Press release dated July 31, 2013, regarding the financial results of AXT, Inc. for the quarter ended June 30, 2013.

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:  July 31, 2013
By:
/s/ Raymond A. Low
 
 
Raymond A. Low
 
 
Chief Financial Officer

EXHIBIT INDEX

Exhibit
Number
 
Description
 
 
 
 
Press release dated July 31, 2013, regarding the financial results of AXT, Inc. for the quarter ended June 30, 2013.
 
 
 EX-99.1 2 ex99_1.htm EXHIBIT 99.1
EXHIBIT 99.1
 
 
 
 
 
FOR IMMEDIATE RELEASE

Contacts:
Raymond A. Low
Chief Financial Officer
(510) 683-5900

Leslie Green
Green Communications Consulting, LLC
(650) 312-9060
 
 
 
 
AXT, Inc. Announces Second Quarter 2013 Financial Results

 
•
Q2 FY 2013 Net Revenues: $23.8 million

 
•
Q2 FY 2013 GAAP Net Loss: $(2.0) million; $(0.06) per share

FREMONT, Calif., July 31, 2013 – AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today reported financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Results
Revenue for the second quarter of 2013 was $23.8 million compared with $22.4 million in the first quarter of 2013. Total gallium arsenide (GaAs) substrate revenue was $10.6 million for the second quarter of 2013, compared with $11.7 million in the first quarter of 2013. Indium phosphide (InP) substrate revenue was $2.0 million for the second quarter of 2013, compared with $1.8 million in the first quarter of 2013.  Germanium (Ge) substrate revenue was $5.3 million for the second quarter of 2013, up 110% compared with $2.6 million in the first quarter of 2013.   Raw materials sales were $5.8 million for the second quarter of 2013, compared with $6.3 million in the first quarter of 2013.

Gross margin was 12.9 percent of revenue for the second quarter of 2013. By comparison, gross margin in the first quarter of 2013 was 15.6 percent of revenue.

Operating expenses were $5.2 million in the second quarter of 2013, compared with $4.7 million in the first quarter of 2013.

Loss from operations for the second quarter of 2013 was $2.2 million compared with loss from operations of $1.3 million in the first quarter of 2013.

There was a positive swing of approximately $1.4 million from last quarter’s net interest and other expense of $512,000 to this quarter’s net interest and other income of $902,000, which was mainly attributable to an $811,000 gain on a minority investment in a privately-held company, $289,000 less foreign exchange loss, $189,000 more equity earnings of unconsolidated joint ventures, and $86,000 less withholding tax in China on dividends declared by our consolidated joint ventures.
 
 
 
AXT, Inc. Announces Second Quarter 2013 Results
July 31, 2013
Page 2 of 5

Net loss in the second quarter of 2013 was $2.0 million or $0.06 per diluted share compared with net loss of $2.4 million or $0.08 per diluted share in the first quarter of 2013.

Management Qualitative Comments
“Our results for the second quarter came in within our guidance range, with revenue improving modestly from the prior quarter,” said Morris Young, chief executive officer. “We continued to see an evolution of our business as our revenues further diversified across our substrate product portfolio.  While the wireless market remains soft, germanium substrates showed strong growth in the second quarter.  Germanium substrates are gaining momentum with increasing demand from CPV terrestrial solar applications.  As we continue to work through challenges in the gallium arsenide substrate side of our business, it is encouraging to see growth in other areas in which we have invested over the past two years.  We continue to manage our expenses carefully and plan our business conservatively in order to weather the near-term environment and position ourselves for success as the market improves.”

Conference Call
The company will also host a conference call to discuss these results on July 31, 2013 at 1:30 p.m. PDT. The conference call can be accessed at (719) 325-2308 (passcode 8763822). The call will also be simulcast on the Internet at www.axt.com. Replays will be available at (719) 457-0820 (passcode 8763822) until Aug 7, 2013. Financial and statistical information to be discussed in the call will be available on the company’s website immediately prior to commencement of the call. Additional investor information can be accessed at http://www.axt.com or by calling the company’s Investor Relations Department at (510) 683-5900.

About AXT, Inc.
AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) through its manufacturing facilities in Beijing, China.  In addition, AXT maintains its sales, administration and customer service functions at its headquarters in Fremont, California.  The company’s substrate products are used primarily in lighting display applications, wireless communications, fiber optic communications and solar cell. Its vertical gradient freeze (VGF) technique for manufacturing semiconductor substrates provides significant benefits over other methods and enabled AXT to become a leading manufacturer of such substrates. AXT has manufacturing facilities in China and invests in joint ventures in China producing raw materials. For more information, see AXT’s website at http://www.axt.com.
AXT, Inc. Announces Second Quarter 2013 Results
July 31, 2013
Page 3 of 5
 
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws, including statements regarding momentum in the demand for germanium substrates.  These forward-looking statements are based upon specific assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to: overall conditions in the markets in which the company competes; global financial conditions and uncertainties; market acceptance and demand for the company’s products; the impact of factory closures or other events causing delays by our customers on the timing of sales of our products; and other factors as set forth in the company’s annual report on Form 10-K and other filings made with the Securities and Exchange Commission.  Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.

###

FINANCIAL TABLES TO FOLLOW
AXT, Inc. Announces Second Quarter 2013 Results
July 31, 2013
Page 4 of 5
 
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

 
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
 
Revenue
  
$
23,831
    
$
25,153
    
$
46,211
    
$
48,639
  
Cost of revenue
    
20,746
      
17,645
      
39,642
      
32,937
  
Gross profit
    
3,085
      
7,508
      
6,569
      
15,702
  
 
                                
Operating expenses:
                                
Selling, general and administrative
    
4,207
      
3,974
      
8,132
      
7,759
  
Research and development
    
1,039
      
914
      
1,861
      
1,749
  
Total operating expenses
    
5,246
      
4,888
      
9,993
      
9,508
  
Income (loss) from operations
    
(2,161
)
    
2,620
      
(3,424
)
    
6,194
  
Interest income, net
    
50
      
62
      
81
      
150
  
Equity in earnings of unconsolidated joint ventures
    
471
      
284
      
753
      
438
  
Other income (expense), net
    
381
      
(127
)
    
(444
)
    
(616
)
 
                                
Income (loss) before provision for income taxes
    
(1,259
)
    
2,839
      
(3,034
)
    
6,166
  
Provision for income taxes
    
(342
)
    
(412
)
    
(526
)
    
(787
)
Net income (loss)
    
(1,601
)
    
2,427
      
(3,560
)
    
5,379
  
 
                                
Less: Net income attributable to noncontrolling interest
    
(434
)
    
(1,128
)
    
(875
)
    
(2,445
)
Net income (loss) attributable to AXT, Inc.
  
$
(2,035
)
  
$
1,299
    
$
(4,435
)
  
$
2,934
  
 
                                
Net income (loss) attributable to AXT, Inc. per common share:
                                
Basic
  
$
(0.06
)
  
$
0.04
    
$
(0.14
)
  
$
0.09
  
Diluted
  
$
(0.06
)
  
$
0.04
    
$
(0.14
)
  
$
0.09
  
 
                                
Weighted average number of common shares outstanding:
                                
Basic
    
32,382
      
32,138
      
32,340
      
32,086
  
Diluted
    
32,382
      
32,944
      
32,340
      
32,981
  
 
- more -
AXT, Inc. Announces Second Quarter 2013 Results
July 31, 2013
Page 5 of 5
 
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

 
  
June 30,
2013
    
December 31,2012
  
Assets:
  
   
 
Current assets
  
   
 
Cash and cash equivalents
  
$
21,959
    
$
30,634
  
Short-term investments
    
6,581
      
10,270
  
Accounts receivable, net
    
20,091
      
17,912
  
Inventories
    
36,836
      
40,352
  
Related party notes receivable - current
    
2,502
      
2,036
  
Prepaid expenses and other current assets
    
7,022
      
5,268
  
Total current assets
    
94,991
      
106,472
  
 
                
Long-term investments
    
16,886
      
9,191
  
Property, plant and equipment, net
    
37,301
      
37,235
  
Related party notes receivable - long-term
    
-
      
416
  
Other assets
    
14,352
      
14,275
  
 
                
Total assets
  
$
163,530
    
$
167,589
  
 
                
Liabilities and stockholders' equity:
                
Current liabilities
                
Accounts payable
  
$
5,375
    
$
5,894
  
Accrued liabilities
    
9,136
      
7,202
  
Total current liabilities
    
14,511
      
13,096
  
 
                
Long-term portion of royalty payments
    
2,925
      
3,325
  
Other long-term liabilities
    
157
      
254
  
Total liabilities
    
17,593
      
16,675
  
 
                
Stockholders' equity:
                
Preferred stock
    
3,532
      
3,532
  
Common stock
    
32
      
32
  
Additional paid-in capital
    
193,720
      
193,063
  
Accumulated deficit
    
(63,482
)
    
(59,047
)
Accumulated other comprehensive income
    
6,650
      
6,033
  
Total AXT, Inc. stockholders' equity
    
140,452
      
143,613
  
 
                
Noncontrolling interest
    
5,485
      
7,301
  
Total stockholders' equity
    
145,937
      
150,914
  
 
                
Total liabilities and stockholders' equity
  
$
163,530
    
$
167,589
  
 
 
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