AXT, Inc. Announces a Preliminary Revenue Range for Third Quarter 2022
October 03 2022 - 4:05PM
AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound
semiconductor substrates, today announced a preliminary revenue
range for its third quarter, ended September 30, 2022. AXT’s full
financial results for the third quarter of 2022 are not yet
available.
AXT expects preliminary revenue for the third
quarter of 2022 to be in the range of $34 to $35 million, below the
company’s previously stated guidance of $39 million to $41 million
provided on July 28, 2022. The preliminary revenue range for the
third quarter of 2022 is primarily attributable to weakening
macroeconomic conditions, particularly in the demand environment in
China.
“Though we continue to feel confident about our
participation in a number of exciting technology trends and Tier-1
opportunities, our business is not immune to the effects throughout
the supply chain of a deteriorating macroeconomic environment. We
are disappointed by the impact to our near-term growth, but we
remain confident in our strategy and business opportunity across
our key markets,” said Morris Young, chief executive officer.
The company’s actual results for the third quarter
of 2022 are not yet available, have not been audited and may differ
materially from the preliminary estimates above, which are not a
comprehensive statement of the company’s financial results and are
not necessarily indicative of the results to be expected for fiscal
2022 or any future period.
The company will host a conference call to discuss
these results on October 27, 2022 at 1:30 p.m. PT. To access the
call by phone, please go to this link to register and you will be
provided with dial in details:
https://register.vevent.com/register/BIdbf7aee0a4da485ab0623751b90236cf.
A webcast link for the call will also be available on the investor
relations page at http://www.axt.com.
To avoid delays, all participants are encouraged
to join the conference call fifteen minutes ahead of the scheduled
start time. A replay will be available on the investor relations
page at axt.com. 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 is a material
science company that develops and manufactures high-performance
compound and single element semiconductor substrate wafers
comprising indium phosphide (InP), gallium arsenide (GaAs) and
germanium (Ge). The company’s substrate wafers are used when a
typical silicon substrate wafer cannot meet the performance
requirements of a semiconductor or optoelectronic device. End
markets include 5G infrastructure, data center connectivity
(silicon photonics), passive optical networks, LED lighting,
lasers, sensors, power amplifiers for wireless devices and
satellite solar cells. AXT’s worldwide headquarters are
in Fremont, California and includes sales, administration
and customer service functions. AXT has
its Asia headquarters in Beijing, China and
manufacturing facilities in three separate locations
in China. In addition, as part of its supply chain strategy,
the company has partial ownership in ten companies
in China producing raw materials for its manufacturing
process. For more information, see AXT’s website
at http://www.axt.com.
Forward-Looking
Statements
The foregoing paragraphs contain forward-looking
statements within the meaning of the Federal securities laws,
including, for example, statements regarding certain preliminary
financial results for the third quarter, ended September 30, 2022,
including a preliminary revenue range during the quarter, the
market demand for our products, our growth prospects and
opportunities for continued business expansion, including
technology trends, new applications and Tier-1 opportunities, our
market opportunity, our ability to lead our industry, our
relocation and our expectations with respect to our business
prospects and financial results. 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: the requests for
redemptions by private equity funds in China of
investments in our subsidiary in China, Beijing Tongmei Xtal
Technology Co., Ltd. (“Tongmei”), the administrative challenges in
satisfying the requirements of various government agencies
in China in connection with the listing of shares of
Tongmei on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd
(the “STAR Market”), continued open access to companies to list
shares on the STAR Market, investor enthusiasm for new listings of
shares on the STAR Market and geopolitical tensions
between China and the United States. Additional
uncertainties and factors include, but are not limited to: the
timing and receipt of significant orders; the cancellation of
orders and return of product; emerging applications using chips or
devices fabricated on our substrates; end-user acceptance of
products containing chips or devices fabricated on our substrates;
our ability to bring new products to market; product announcements
by our competitors; the ability to control costs and improve
efficiency; the ability to utilize our manufacturing capacity;
product yields and their impact on gross margins; the relocation of
manufacturing lines and ramping of production; possible factory
shutdowns as a result of air pollution or power shortages
in China or COVID-19; COVID-19 or other outbreaks of a
contagious disease; tariffs and other trade war issues; the
financial performance of our partially owned supply chain
companies; policies and regulations in China; 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.
Contacts:
Gary L. Fischer
Chief Financial Officer
(510) 683-5900
Leslie Green
Green Communications Consulting, LLC
(650) 312-9060
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