AXT increases annual revenue and income
Company reports record InP revenue and resurgence of demand for compound semiconductor substrates
AXT, a manufacturer of compound semiconductor substrates, has reported financial results for Q4 and 2017, ended December 31, 2017.
Revenue for Q4 2017 was $26.3 million, compared with $28.2 million in Q3 2017 and $20.3 million for Q4 2016. This is a 30 percent increase in quarterly revenue as compared to Q4 2016.
Gross margin was 37.2 percent of revenue for Q4 2017, compared with 39.5 percent of revenue in Q3 2017 and 37.1 percent for Q4 2016. Operating expenses were $6.1 million in Q4 2017, compared with $5.9 million in Q3 2017 and $5.2 million for Q4 2016. Operating profit for Q4 2017 was $3.7 million compared with operating profit of $5.2 million in Q3 2017 and $2.3 million for Q4 2016.
Net income in Q4 2017 was $3.1 million, or $0.08 per diluted share, compared with a net income of $4.4 million or $0.11 per diluted share in Q3 2017 and $2.2 million or $0.06 per diluted share for Q4 2016.
2017 annual results
Revenue for 2017 was $98.7 million, compared with $81.3 million in 2016. This is a 21 percent increase in annual revenue as compared to 2016. Gross margin for 2017 was 34.9 percent of revenue, compared with 32.4 percent of revenue in 2016. Operating expenses for 2017 were $21.8 million, compared with $20.0 million in 2016.
Net income in 2017 was $10.1 million, or $0.26 per diluted share, compared with a net income of $5.6 million, or $0.17 per diluted share, in 2016. This is an 80 percent increase in net income as compared to 2016.
"Our Q4 results capped off a strong year of execution for AXT," said Morris Young, chief executive officer.
"We delivered 21 percent growth in 2017, including record InP revenue and solid performance across our product portfolio. In addition, we achieved meaningful improvement in key financial metrics, including an 80 percent increase in net profits from the prior year.
"We are excited to see a resurgence of demand for compound semiconductor substrates in new applications that have the power to reshape the technology landscape over the coming decades.
"As such, we continue to invest in the advancement of our products and customer support capabilities, and believe that we are positioning the company well for continued growth and new opportunities in 2018 and beyond."
