News Article
AXT moves on and up with Q1 2010 results
Total revenue up from $7.7 in Q1 2009 to $18.6m in Q1 2010
Beijing based AXT, a global manufacturer of compound semiconductor substrates, today reports financial results for the first quarter ended March 31, 2010.
The table below summarizes some of the latest results
The gross margin was 36.1% of revenue for Q1 2010 compared to 33.9% Q4 2009 and a huge increase over the 3.1% of revenue for Q1 2009.
Operating expenses in Q1 2010 increased to $3.9 million from $3.0 million in Q4 2009. This included approximately $500,000 in one-time favorable year-end adjustments for professional fees, China pension funds and China union fees.
Operating expenses in the first quarter of 2009 were $5.0 million, including approximately $629,000 severance and stock compensation accrual for the company's former CEO and a $507,000 restructuring charge as a result of downsizing.
On the brighter side, income from operations for the first quarter of 2010 were $2.9 million (up on Q1 2009 where there was a loss of $5.2 million). Income from operations were $3.1 million in the fourth quarter of 2009.
Net interest and other income for Q1 2010 was $94,000, and included $120,000 gain on investment notes that matured and an unrealized foreign exchange loss of $68,000.
Again this is an improvement on Q4 2009 where net interest and other expenses of $92,000 which included an unrealized foreign exchange loss of $140,000, and net interest and other expense of $378,000 and included an unrealized foreign exchange loss of $409,000.
Net income in the first quarter of 2010 was $2.6 million or $0.08 per diluted share, compared with net income of $2.8 million or $0.09 per diluted share in the fourth quarter of 2009, and with a net loss of $5.5 million, or loss of $0.18 per diluted share in the first quarter of 2009.
"This was another very good quarter for AXT," said Morris Young, CEO, who remains ever optimistic. "We have continued to experience solid demand for our products across all of our primary markets, driven by significant and extended market trends, such as the rapid expansion of wireless devices and subscribers, the increasing momentum in the adoption of LED technology and the growing interest in solar energy.
Further, our own execution has been strong throughout our engineering, manufacturing, sales and administrative functions. We have had tremendous success in continuing to develop our valuable, long-term customer relationships as well as penetrating new customers and new opportunities to drive our growth and diversify our base. In addition, our efforts to restructure and refocus our organization over the past nine months are resulting in tangible benefits in our efficiency, productivity and profitability -- creating a solid foundation for our success in quarters to come."
AXT’s Outlook for Q2 2010
It is estimated that revenue for the second quarter will increase to between $20.7 million and $21.5 million and that the net income per share will be between $0.08 and $0.09 (taking into account the weighted average share count of approximately 31.9 million shares.)
A replay of the company conference call discussing the results is available until 5th May 2010 on the following number:
(719) 457-0820 (passcode 8474153)
