AXT anticipates growth in the second half of 2003
Revenue for the substrate division, which represented 69% of total revenue for the fourth quarter of 2002, was $8.5 million, compared with $11.7 million in the third quarter of 2002. The optoelectronics division’s revenue, which represented 31% of total revenue for the fourth quarter of 2002, was $3.8 million, compared with $3.2 million in the third quarter of 2002. Opto-electronics revenue in the fourth quarter of 2001 was $3.9 million.
The company experienced a net loss of $17.5 million for the fourth quarter, compared with a net loss of $28.7 million for the third quarter. The net loss in the fourth quarter of 2002 included a non-cash charge to write-down excess inventory of $9.7 million and a non-cash income tax valuation allowance of $2.5 million.
Revenue for the year ended December 31, 2002 was $63.2 million, compared with $119.5 million in 2001. Revenue for the substrate division, which represented 71% of total revenue for 2002, was $44.9 million, compared with $108.8 million in 2001. Revenue from the opto-electronics division, which represented 29 percent of total revenue for 2002, was $18.3 million, compared with $10.7 million in 2001.
The company experienced a net loss for the year ended December 31, 2002 of $81.2 million, compared with a net loss of $5.0 million for 2001. The net loss for 2002 includes non-recurring non-cash charges of $71.9 million.
AXT anticipates revenues of $11.8-$12.7 million and losses of $5.7-$6.7 million for the quarter ending March 31, 2003.
"While market conditions continue to be challenging, AXT has made important progress in several key areas," said Morris Young, AXT’s president and CEO. "As we reported early in the fourth quarter, one of our key areas of focus is cash management. Our performance during the fourth quarter in that area was substantially better than forecast through expense reductions, inventory management and a significant improvement in reducing our receivables.
"Looking forward, we expect to see a strengthening of our markets, particularly in the second half of 2003. Our manufacturing and process improvements in both substrates and LEDs are producing tangible benefits in terms of the competitive positioning of our products. We expect these improvements, as well as our capacity and cost advantages to position us well for growth as the industry recovers."
