AXT, Inc. Announces Fourth Quarter and Fiscal Year 2016 Financial Results
February 22 2017 - 04:10PM
AXT, Inc. (NASDAQ:AXTI), a leading manufacturer of compound
semiconductor substrates, today reported financial results for the
fourth quarter and fiscal year, ended December 31, 2016.
Fourth Quarter 2016 Results
Revenue for the fourth quarter of 2016 was $20.3
million, compared with $21.9 million in the third quarter of
2016.
Gross margin was 37.1 percent of revenue for the
fourth quarter of 2016, compared with 34.6 percent of revenue in
the third quarter of 2016.
Operating expenses were $5.2 million in the
fourth quarter of 2016, compared with $4.9 million in the third
quarter of 2016.
Operating profit for the fourth quarter of 2016
was $2.3 million compared with operating profit of $2.7 million in
the third quarter of 2016.
Net interest and other income for the fourth quarter of 2016 was
a loss of $0.3 million, compared with a loss of $0.3 million in the
third quarter of 2016.
Net profit in the fourth quarter of 2016 was
$2.2 million, or $0.06 per diluted share, compared with a net
profit of $2.2 million or $0.07 per diluted share in the third
quarter of 2016.
Fiscal Year 2016 Results (January 1 to
December 31)
Revenue for fiscal year 2016 was $81.3 million,
compared with $77.5 million in fiscal year 2015.
Gross margin for fiscal year 2016 was 32.4%,
compared with 21.7% in fiscal year 2015.
Operating expenses for fiscal year 2016 were
$20.0 million, compared with $21.7 million in fiscal year 2015.
Net interest and other income for fiscal year
2016 was a charge of ($0.7), compared with a gain of $2.9 million
in fiscal year 2015.
Net profit in fiscal year 2016 was $5.6 million,
or $0.17 per diluted share, compared with a net loss of ($2.2)
million, or ($0.07) per basic share, in fiscal year 2015.
Management Qualitative Comments
“Our positive Q4 results capped off a year of
growth and diversification for AXT,” said Morris Young, chief
executive officer. “We saw healthy demand across our substrate
product portfolio, driven by a growing number of exciting
technology applications. In addition, we continued to demonstrate
improvement in our business model, achieving meaningful gross
margin expansion and delivering solid profitability and positive
cash flow. As we look ahead in 2017, we believe sales of indium
phosphide substrates will continue to be a key driver for our
business, and we hope to see traction in the 3-D sensing market
later this year.”
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 (844)
892-6598 (passcode 70205575). The call will also be simulcast on
the Internet at www.axt.com. Replays will be available at (855)
859-2056 (passcode 70205575) until February 28, 2017. 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.
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 can
be used primarily in fiber optic communications, 3-D sensing, solar
cell, lighting display applications and wireless communications.
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, as part
of it’s supply chain strategy, has partial ownership in ten
companies 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.
FINANCIAL TABLES TO FOLLOW
|
|
AXT, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Ended |
|
|
|
|
|
|
|
|
|
December 31, |
|
Year Ended
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
20,269 |
|
|
$ |
18,057 |
|
|
$ |
81,349 |
|
|
$ |
77,502 |
|
|
Cost of revenue |
|
|
12,746 |
|
|
|
14,967 |
|
|
|
54,968 |
|
|
|
60,673 |
|
|
Gross profit |
|
|
7,523 |
|
|
|
3,090 |
|
|
|
26,381 |
|
|
|
16,829 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general, and administrative |
|
|
3,774 |
|
|
|
3,379 |
|
|
|
13,880 |
|
|
|
16,064 |
|
|
Research
and development |
|
|
1,431 |
|
|
|
1,377 |
|
|
|
5,850 |
|
|
|
5,664 |
|
|
Restructuring charge |
|
|
— |
|
|
|
— |
|
|
|
226 |
|
|
|
— |
|
|
Total
operating expenses |
|
|
5,205 |
|
|
|
4,756 |
|
|
|
19,956 |
|
|
|
21,728 |
|
|
Income (loss) from
operations |
|
|
2,318 |
|
|
|
(1,666 |
) |
|
|
6,425 |
|
|
|
(4,899 |
) |
|
Interest income,
net |
|
|
106 |
|
|
|
105 |
|
|
|
409 |
|
|
|
412 |
|
|
Equity in earnings
(loss) of unconsolidated joint ventures |
|
|
(558 |
) |
|
|
(315 |
) |
|
|
(1,995 |
) |
|
|
462 |
|
|
Other income, net |
|
|
178 |
|
|
|
268 |
|
|
|
860 |
|
|
|
2,023 |
|
|
Income (loss) before
provision for income taxes |
|
|
2,044 |
|
|
|
(1,608 |
) |
|
|
5,699 |
|
|
|
(2,002 |
) |
|
Provision for income
taxes |
|
|
20 |
|
|
|
197 |
|
|
|
733 |
|
|
|
531 |
|
|
Net income (loss) |
|
|
2,024 |
|
|
|
(1,805 |
) |
|
|
4,966 |
|
|
|
(2,533 |
) |
|
Less: Net
(income) loss attributable to noncontrolling interests |
|
|
190 |
|
|
|
562 |
|
|
|
670 |
|
|
|
305 |
|
|
Net income (loss)
attributable to AXT, Inc. |
|
$ |
2,214 |
|
|
$ |
(1,243 |
) |
|
$ |
5,636 |
|
|
$ |
(2,228 |
) |
|
Net income (loss)
attributable to AXT, Inc. per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
|
$ |
(0.04 |
) |
|
$ |
0.17 |
|
|
$ |
(0.07 |
) |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
(0.04 |
) |
|
$ |
0.17 |
|
|
$ |
(0.07 |
) |
|
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
32,431 |
|
|
|
31,951 |
|
|
|
32,139 |
|
|
|
32,183 |
|
|
Diluted |
|
|
33,734 |
|
|
|
31,951 |
|
|
|
32,894 |
|
|
|
32,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXT, INC. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
36,152 |
|
|
$ |
24,875 |
|
|
Short-term investments |
|
|
11,415 |
|
|
|
11,437 |
|
|
Accounts
receivable, net |
|
|
14,453 |
|
|
|
18,468 |
|
|
Inventories |
|
|
40,152 |
|
|
|
38,012 |
|
|
Prepaid
expenses and other current assets |
|
|
5,114 |
|
|
|
4,096 |
|
|
Total
current assets |
|
|
107,286 |
|
|
|
96,888 |
|
|
Long-term
investments |
|
|
6,156 |
|
|
|
7,691 |
|
|
Property, plant and
equipment, net |
|
|
27,805 |
|
|
|
31,422 |
|
|
Related party notes
receivable – long-term |
|
|
157 |
|
|
|
166 |
|
|
Other assets |
|
|
12,842 |
|
|
|
15,729 |
|
|
Total
assets |
|
$ |
154,246 |
|
|
$ |
151,896 |
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
6,691 |
|
|
$ |
6,460 |
|
|
Accrued
liabilities |
|
|
6,359 |
|
|
|
6,381 |
|
|
Total
current liabilities |
|
|
13,050 |
|
|
|
12,841 |
|
|
Long-term portion of
royalty payments |
|
|
575 |
|
|
|
1,150 |
|
|
Other long-term
liabilities |
|
|
330 |
|
|
|
344 |
|
|
Total
liabilities |
|
|
13,955 |
|
|
|
14,335 |
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
Preferred
stock |
|
|
3,532 |
|
|
|
3,532 |
|
|
Common
stock |
|
|
32 |
|
|
|
32 |
|
|
Additional paid-in-capital |
|
|
197,079 |
|
|
|
194,646 |
|
|
Accumulated deficit |
|
|
(64,985 |
) |
|
|
(70,621 |
) |
|
Accumulated other comprehensive income |
|
|
253 |
|
|
|
4,382 |
|
|
Total
AXT, Inc. stockholders’ equity |
|
|
135,911 |
|
|
|
131,971 |
|
|
Noncontrolling interests |
|
|
4,380 |
|
|
|
5,590 |
|
|
Total
stockholders’ equity |
|
|
140,291 |
|
|
|
137,561 |
|
|
Total
liabilities and stockholders’ equity |
|
$ |
154,246 |
|
|
$ |
151,896 |
|
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Gary Fischer
Chief Financial Officer
(510) 438-4700
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Feb 2024 to Mar 2024
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Mar 2023 to Mar 2024