AXT reports higher revenue, profits and margins
Q3 revenue was $25.5 million, compared with $22.1 million Q2 2020 and $19.8 million in Q3 2019.
AXT, a US manufacturer of compound semiconductor substrates, has reported financial results for the third quarter, ended September 30, 2020.
"We are pleased to report 28 percent year-over-year revenue growth in Q3 and earnings above our guidance range,"ˇ said Morris Young, chief executive officer. "These results were driven by meaningful contribution from strategic applications such as 5G telecommunications, passive optical networks, and data center connectivity, where our InP substrates play an important role in enabling ongoing technological advancement.
"We are excited to see so many of the applications and customer opportunities for which we have been preparing over the last two years beginning to take shape. With our GaAs manufacturing relocation largely complete and the success of our efforts visible in customer acceptance, our new facilities are poised to be a cornerstone of our growth and market differentiation."
Third Quarter 2020 Results
Revenue for the third quarter of 2020 was $25.5 million, compared with $22.1 million in the second quarter of 2020 and $19.8 million for the third quarter of 2019.
Gross margin was 34.6 percent of revenue for the third quarter of 2020, compared with 30.6 percent of revenue in the second quarter of 2020 and 29.0 percent for the third quarter of 2019.
Operating expenses were $6.6 million in the third quarter of 2020, compared with $6.3 million in the second quarter of 2020, and $6.2 million for the third quarter of 2019.
Operating profit for the third quarter of 2020 was $2.2 million, compared with an operating profit of $0.5 million in the second quarter of 2020, and an operating loss of $0.5 million for the third quarter of 2019.
Other expense, provision for income taxes and income attributable to noncontrolling interests, net for the third quarter of 2020 was a charge of $1.2 million. This includes a gain from our unconsolidated joint ventures and other income, together totaling $0.1 million, a foreign exchange charge of $0.1 million, $0.7 million for taxes and $0.5 million attributable to noncontrolling interests.
Net income in the third quarter of 2020 was $1.0 million, or $0.02 per diluted share, compared with net income of $0.4 million or $0.01 per diluted share in the second quarter of 2020, and a net loss of $0.9 million or $0.02 per basic share for the third quarter of 2019.
