AXT Q3 results exceed guidance
AXT, a manufacturer of compound semiconductor substrates, has reported another quarter of improved financial results.
For Q3 2016, ended September 30, 2016, revenue was $21.9 million, compared with $20.5 million in Q2 2016. Gross margin was 34.6 percent of revenue, compared with 29.4 percent of revenue in in Q2 2016.
Operating expenses were $4.9 million, compared with $5.1 million in Q2 2016. Operating profit was $2.7 million compared with operating profit of $0.9 million in Q2 2016.
Net interest and other income for the third quarter of 2016 was a loss of $0.3 million, compared with $0.0 million in the second quarter of 2016.
Net profit in Q3 2016 was $2.2 million, or $0.07 per diluted share, compared with a net profit of $1.2 million or $0.03 per diluted share in Q2 2016.
Management commented: "We are pleased to again show meaningful progress in our business, achieving revenue and profits that exceeded our guidance range. In addition, our gross margin was 34.6 percent as a result of yield improvements, manufacturing efficiencies, and higher production volume. We also generated positive cash flow. Cash, cash equivalents and investments increased by $2.4 million. We continue to seek out interesting market opportunities where our substrates can provide value to our customers."
