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 30, 2015
AXT, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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000-24085
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94-3031310
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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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):
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02
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Results of Operations and Financial Condition
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On July 30, 2015, AXT, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2015. 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, 2015, 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.
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Item 9.01
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Financial Statements and Exhibits
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99.1
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Press release dated July 30, 2015, regarding the financial results of AXT, Inc. for the quarter ended June 30, 2015.
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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.
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AXT, INC.
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Date: July 30, 2015
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By:
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/s/ Gary L. Fischer
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Gary L. Fischer
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Chief Financial Officer and Corporate Secretary
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EXHIBIT INDEX
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Exhibit
Number
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Description
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Press release dated July 30, 2015, regarding the financial results of AXT, Inc. for the quarter ended June 30, 2015.
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AXT, Inc. Announces Second Quarter 2015 Financial Results
FREMONT, Calif., July 30, 2015 – AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today reported financial results for the second quarter ended June 30, 2015.
Second Quarter 2015 Results
Revenue for the second quarter of 2015 was $21.0 million compared with $20.1 million in the first quarter of 2015.
Gross margin was 20.9 percent of revenue for the second quarter of 2015, compared with 23.7 percent of revenue in the first quarter of 2015.
Operating expenses were $5.2 million in the second quarter of 2015, compared with $6.5 million in the first quarter of 2015. The decrease was largely the result of professional fees in the first quarter totaling $1.2 million.
Operating loss for the second quarter of 2015 was $0.8 million compared with $1.7 million in the first quarter of 2015.
Net interest and other income for the second quarter of 2015 was $1.1 million, compared with $0.9 million in the first quarter of 2015.
Net loss in the second quarter of 2015 was $3,000 or a loss of $0.00 per diluted share compared with a net loss of $1.0 million or $0.03 per diluted share in the first quarter of 2015.
Management Qualitative Comments
“Our financial results in the second quarter were in line with our expectations and we continue to invest and build for the future,” said Morris Young, chief executive officer. “We were delighted to welcome Dr. Hong Hou to our executive team as chief operating officer and view our acquisition of Crystacomm’s indium phosphide technology and equipment as a strategic building block for our indium phosphide substrate product line.”
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AXT, Inc.
4281 Technology Drive
Fremont, CA 94538
Tel: 510.683.5900
Fax: 510.353.0668
www.axt.com.
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AXT, Inc. Announces Second Quarter 2015 Results
July 30, 2015
Page 2 of 4
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) 325-2458 (passcode 8519289). The call will also be simulcast on the Internet at www.axt.com. Replays will be available at (719) 457-0820 (passcode 8519289) until August 6, 2015. 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 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.
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
AXT, Inc. Announces Second Quarter 2015 Results
July 30, 2015
Page 3 of 4
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2015
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2014
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2015
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2014
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Revenue
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$
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21,010
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$
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21,449
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$
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41,074
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$
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40,794
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Cost of revenue
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16,625
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17,289
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31,940
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33,916
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Gross profit
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4,385
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4,160
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9,134
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6,878
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Operating expenses:
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Selling, general and administrative
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3,775
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3,688
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9,026
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7,124
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Research and development
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1,389
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987
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2,630
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1,762
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Restructuring charge
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-
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-
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-
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907
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Total operating expenses
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5,164
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4,675
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11,656
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9,793
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Income (loss) from operations
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(779
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)
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(515
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)
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(2,522
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)
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(2,915
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)
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Interest income, net
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108
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127
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205
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254
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Equity in earnings of unconsolidated joint ventures
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410
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625
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610
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1,112
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Other income (expense), net
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626
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476
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1,259
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486
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Income (loss) before provision for income taxes
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365
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713
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(448
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)
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(1,063
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)
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Provision (benefit) for income taxes
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241
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152
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327
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211
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Net income (loss)
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124
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561
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(775
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)
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(1,274
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)
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Less: Net income (loss) attributable to noncontrolling interest
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(127
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)
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(242
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(252
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(447
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)
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Net income (loss) attributable to AXT, Inc.
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$
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(3
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$
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319
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$
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(1,027
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)
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$
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(1,721
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Net income (loss) attributable to AXT, Inc. per common share:
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Basic
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$
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(0.00
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$
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0.01
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$
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(0.03
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$
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(0.06
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)
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Diluted
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$
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(0.00
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$
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0.01
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$
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(0.03
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$
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(0.06
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Weighted average number of common shares outstanding:
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Basic
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32,242
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32,381
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32,399
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32,407
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Diluted
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32,242
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32,597
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32,399
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32,407
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AXT, Inc. Announces Second Quarter 2015 Results
July 30, 2015
Page 4 of 4
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
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June 30,
2015
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December 31,
2014
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Assets:
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Current assets
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Cash and cash equivalents
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$
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28,640
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$
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28,814
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Short-term investments
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3,932
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12,340
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Accounts receivable, net
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19,312
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17,864
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Inventories
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38,901
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38,574
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Related party notes receivable - current
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174
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171
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Prepaid expenses and other current assets
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3,481
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5,430
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Total current assets
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94,440
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103,193
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Long-term investments
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13,699
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7,783
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Property, plant and equipment, net
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33,366
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33,862
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Related party notes receivable - long-term
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1,711
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1,704
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Other assets
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15,000
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14,975
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Total assets
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$
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158,216
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$
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161,517
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Liabilities and stockholders' equity:
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Current liabilities
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Accounts payable
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$
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7,323
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$
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7,137
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Accrued liabilities
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6,043
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7,634
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Total current liabilities
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13,366
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14,771
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Long-term portion of royalty payments
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1,438
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1,725
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Other long-term liabilities
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332
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333
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Total liabilities
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15,136
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16,829
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Stockholders' equity:
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Preferred stock
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3,532
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3,532
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Common stock
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32
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32
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Additional paid-in capital
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194,714
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195,419
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Accumulated deficit
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(69,420
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)
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(68,393
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)
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Accumulated other comprehensive income
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7,586
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7,673
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Total AXT, Inc. stockholders' equity
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136,444
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138,263
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Noncontrolling interest
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6,636
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6,425
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Total stockholders' equity
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143,080
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144,688
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Total liabilities and stockholders' equity
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$
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158,216
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$
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161,517
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