AXT 'resolves' substrate surface morphology issues
AXT says that it has made significant progress in identifying the surface morphology issue that has plagued its substrates for the last two years.
The US-based company claims that its latest substrates are now being tested by its major customers, and that initial results have been very positive.
"Our customers will continue to test larger quantities over the next several months to ensure that we can deliver high quality products on a consistent basis," said company CEO Phil Yin during AXT's earnings release for the third fiscal quarter 2005.
The company posted sales of $6.2 million for the recent quarter, up $0.2 million sequentially, but down 28% year-on-year.
GaAs substrates contributed $5.4 million in revenue for the third quarter, while InP wafers and raw materials added $0.2 million and $0.6 million, respectively.
An improvement in gross profit reduced the sequential quarterly loss by $1 million to $2.3 million.
Yin revealed that AXT will reduce its headcount at its Fremont facility, which currently stands at 58, by at least 20. The facility is being decommissioned, and may be sold during 2006, with the remaining employees moving to a nearby location.
The company predicts that fourth fiscal quarter sales will be between $6.2 million and $6.6 million, and that losses will be in the range $3.1 million to $3.5 million.
