EX-99.1 2 axti-20160502ex99164a74c.htm EX-99.1 axti_Ex99_1

Exhibit 99.1

AXT, Inc. Announces first Quarter 2016 Results

May 2, 2016

Page 1 of 5

 

 

FOR IMMEDIATE RELEASE

Picture 4

 

 

Contacts:

Gary Fischer

Chief Financial Officer

(510) 438-4700

 

Leslie Green

Green Communications Consulting, LLC

(650) 312-9060

 

 

AXT, Inc. Announces First Quarter 2016 Financial Results

FREMONT, Calif., May 2, 2016 – AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today reported financial results for the first quarter ended March 31, 2016.

 

 

 

Picture 1

AXT, Inc.

4281 Technology Drive

Fremont, CA 94538

Tel: 510.683.5900

Fax: 510.353.0668

www.axt.com.

 

 

Exhibit 99.1

AXT, Inc. Announces first Quarter 2016 Results

May 2, 2016

Page 2 of 5

 

First Quarter 2016 Results

 

Revenue for the first quarter of 2016 was $18.7 million, compared with $18.1 million in the fourth quarter of 2015.

   

Gross margin was 28.1 percent of revenue for the first quarter of 2016, compared with 17.1 percent of revenue in the fourth quarter of 2015.

 

Operating expenses were $4.8 million in the first quarter of 2016, compared with $4.8 million in the fourth quarter of 2015. 

 

Operating profit for the first quarter of 2016 was $0.5 million compared with an operating loss of $1.7 million in the fourth quarter of 2015. 

 

Net interest and other income for the first quarter of 2016 was a loss of $0.2 million, compared with a gain of $0.1 million in the fourth quarter of 2015.

 

Net profit in the first quarter of 2016 was $42,000, or $0.00 per share, compared with a net loss of $1.2 million or a loss of $0.04 per diluted share in the fourth quarter of 2015.

 

Management Qualitative Comments

"Q1 was a strong quarter for AXT in which we exceeded our revenue and profitability guidance, and posted a strong increase in both our gross and operating margins from the prior quarter,” said Morris Young, chief executive officer. “Our indium phosphide revenue was our strongest in recent years. In addition, our manufacturing team continues to work on efficiency and yield improvement, and these efforts along with our product mix helped improve our gross margin in the quarter."

 

Conference Call

The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (719) 325-2469 (passcode 4866670). The call will also be simulcast on the Internet at www.axt.com. Replays will be available at (719) 457-0820 (passcode 4866670) until May 8, 2016. 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) 438-4700.

 

 

Exhibit 99.1

AXT, Inc. Announces first Quarter 2016 Results

May 2, 2016

Page 3 of 5

 

About AXT, Inc.

AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising indium phosphide (InP), gallium arsenide (GaAs) 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 applications. 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.

 

Safe Harbor Statement

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding the market demand for our products, our market opportunity, and our expectations with respect to our business prospects. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results 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; policies and regulations in China; 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; our ability to control costs, our ability to utilize our manufacturing capacity; product yields and their impact on gross margins; and other factors as set forth in the company’s annual report on Form 10-K, quarterly reports on Form 10-Q 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.

 

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FINANCIAL TABLES TO FOLLOW

 

Exhibit 99.1

AXT, Inc. Announces first Quarter 2016 Results

May 2, 2016

Page 4 of 5

 

AXT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2016

    

2015

    

 

 

 

 

 

 

 

 

Revenue

 

$
18,713

 

$
20,064

 

Cost of revenue

 

 
13,460

 

 
15,315

 

Gross profit

 

 
5,253

 

 
4,749

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

 
3,374

 

 
5,251

 

Research and development

 

 
1,381

 

 
1,241

 

Total operating expenses

 

 
4,755

 

 
6,492

 

Income (loss) from operations

 

 
498

 

 
(1,743)

 

Interest income, net

 

 
98

 

 
97

 

Equity in earnings of unconsolidated joint ventures

 

 
(456)

 

 
200

 

Other income (expense), net

 

 
190

 

 
633

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

 
330

 

 
(813)

 

Provision for (benefit from) income taxes

 

 
397

 

 
86

 

Net income (loss)

 

 
(67)

 

 
(899)

 

 

 

 

 

 

 

 

 

Less: Net (income) loss attributable to noncontrolling interest

 

 
109

 

 
(125)

 

Net income (loss) attributable to AXT, Inc.

 

$
42

 

$
(1,024)

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AXT, Inc. per common share:

 

 

 

 

 

 

 

Basic

 

$
(0.00)

 

$
(0.03)

 

Diluted

 

$
(0.00)

 

$
(0.03)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

 
32,002

 

 
32,553

 

Diluted

 

 
32,002

 

 
32,553

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

AXT, Inc. Announces first Quarter 2016 Results

May 2, 2016

Page 5 of 5

 

AXT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

    

2016

    

2015

 

Assets:

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$
25,067

 

$
24,875

 

Short-term investments

 

 
9,053

 

 
11,437

 

Accounts receivable, net

 

 
19,711

 

 
18,468

 

Inventories

 

 
38,822

 

 
38,012

 

Related party notes receivable - current

 

 

 —

 

 

 —

 

Prepaid expenses and other current assets

 

 
4,386

 

 
4,096

 

Total current assets

 

 
97,039

 

 
96,888

 

 

 

 

 

 

 

 

 

Long-term investments

 

 
9,211

 

 
7,691

 

Property, plant and equipment, net

 

 
31,141

 

 
31,422

 

Related party notes receivable - long-term

 

 
1,792

 

 
1,781

 

Other assets

 

 
13,544

 

 
14,114

 

 

 

 

 

 

 

 

 

Total assets

 

$
152,727

 

$
151,896

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

$
8,034

 

$
6,460

 

Accrued liabilities

 

 
5,357

 

 
6,381

 

Total current liabilities

 

 
13,391

 

 
12,841

 

 

 

 

 

 

 

 

 

Long-term portion of royalty payments

 

 
1,006

 

 
1,150

 

Other long-term liabilities

 

 
308

 

 
344

 

Total liabilities

 

 
14,705

 

 
14,335

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Preferred stock

 

 
3,532

 

 
3,532

 

Common stock

 

 
32

 

 
32

 

Additional paid-in capital

 

 
194,899

 

 
194,646

 

Accumulated deficit

 

 
(70,579)

 

 
(70,621)

 

Accumulated other comprehensive income

 

 
4,665

 

 
4,382

 

Total AXT, Inc. stockholders' equity

 

 
132,549

 

 
131,971

 

 

 

 

 

 

 

 

 

Noncontrolling interest

 

 
5,473

 

 
5,590

 

Total stockholders' equity

 

 
138,022

 

 
137,561

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$
152,727

 

$
151,896