AXT and Alcatel Optronics report mixed results
"We are happy to announce that our substrate division recorded a 10% revenue increase [to $12.9 million] over the prior quarter and has posted sequential revenue growth for the past two quarters," said AXT s CEO Morris Young.
"We believe that we saw the bottom of the current economic cycle for our GaAs substrate products in the fourth quarter of last year, and growth for the substrate division is primarily coming from wireless and LED device segments," he added.
AXT s LED division saw double digit growth at 25% to $6.3 million, compared with $5.0 million in the first quarter of 2002. Revenues in the second quarter of 2001 came in at $3.2 million.
But despite the significant increases, this year s second quarter sales are still less than half of the $41.3 million reported for the same period last year.
And AXT has not managed to shake its growing debts, ending on a net operating loss of $21.8 million and a $31.4 million total net loss. Total net losses for the first quarter of this year were $3.6 million while the second quarter of 2001 finished on a net income of $5.2 million.
"We continue to believe that customers are working through their excess inventory and we expect orders to increase at a moderate but steady pace into the future," added Young. The company predicts third year revenues to increase by up to 7% compared to the second quarter of 2002, including LED and substrate revenue increases of up to 7% and 8% respectively.
Alcatel suffers more losses
French optoelectronic device manufacturer Alcatel Optronics has reported a second quarter net operating loss of Euro 42.5 million ($42.5 million) and a total net loss of Euro 186.5 million ($186.6 million). Sales have dropped by 27.6% to Euro 25.4 million ($25.4 million) compared to this year s first quarter and are down 83.0% year-on-year.
"Inventories continue to pollute current demand and we feel that turmoil at the carrier level is now likely to push out the acceptance and deployment of new-generation systems and components," said Jean-Christophe Giroux, CEO of Alcatel Optronics. "Our worldwide Industrial Redeployment Plan will yield a 40% reduction in quarterly fixed costs, with up to 30% achieved by the end of the year. We are expecting third quarter sales to be down sequentially between 20 to 30%."
Giroux adds that operating losses will be "contained" because of benefits from the company s cost-cutting measures.
