AXT announces increased revenues and profits
Company reports record revenue in InP substrates and solid improvement in GaAs and germanium substrates
AXT, a manufacturer of compound semiconductor substrates, has reported its financial results for Q2, ended June 30, 2017, with increased revenue of $23.6 million, compared to $20.6 million in Q1.
Net profit was $1.9 million, or $0.05 per diluted share in Q2 2017 compared with a net profit of $0.7 million, or $0.02 per diluted share, in Q1 2017.
Gross margin was 30.8 percent of revenue for Q2 2017, compared with 30.5 percent of revenue in Q1. Second quarter substrate gross margin was higher than the total company gross margin and was offset by lower gross margin on raw materials.
"2017 is shaping up to be a solid year of growth for AXT," said Morris Young, CEO. "Across our portfolio, we are seeing emerging technologies and strengthening demand from established applications that are driving growth in each of our substrate product categories.
"As a result, we achieved record revenue in InP substrates in Q2, and posted solid improvement in semi-insulating GaAs, semi-conducting GaAs, and germanium substrates. Our customer and revenue base continues to diversify, giving us a broad-based opportunity for continued business expansion."
Operating expenses were $5.0 million in Q2 2017, compared with $4.9 million in Q1 2017. Operating profit was $2.3 million for Q2 2017, compared with $1.4 million in Q1 2017.
Interest and other, net was a loss of $0.2 million for Q2 2017, compared with a loss of $0.8 million in Q1 2017. Tax expense in Q2 2017 was $0.3 million compared to $0.2 million in Q1 2017.
