News Article
AXT revenues shoot up 32% from last year
Like MOCVD and MBE equipment manufacturers, the compound semiconductor substrate provider has done well in the last quarter with revenues of $24.6 million.
AXT, a global provider of compound semiconductor substrates, has reported financial results for the first quarter ended March 31, 2011.
Revenue for the first quarter of 2011 was $24.6 million, down 8.6 % from $26.9 million in the fourth quarter of 2010, and up 31.8% from $18.6 million in the first quarter of 2010.
Total GaAs substrate revenue was $15.9 million for the first quarter of 2011, compared with $18.7 million in the fourth quarter of 2010, and $13.4 million in the first quarter of 2010. InP substrate revenue was $1.3 million for the first quarter of 2011, compared with $1.1 million in the fourth quarter of 2010, and $875,000 in the first quarter of 2010.
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Germanium substrate revenue was $3.0 million for the first quarter of 2011 compared with $3.4 million in the fourth quarter of 2010 and $1.6 million in the first quarter of 2010. Raw materials sales were $4.4 million for the first quarter of 2011, compared with $3.5 million in the fourth quarter of 2010 and $2.7 million in the first quarter of 2010.
Gross margin was 43.4 % of revenue for the first quarter of 2011. By comparison, gross margin in the fourth quarter of 2010 was 39.8 % of revenue. Gross margin was 36.1 % of revenue for the first quarter of 2010.
Operating expenses were $4.2 million in the first quarter of 2011, compared with $5.1 million in the fourth quarter of 2010. Operating expenses in the first quarter of 2010 were $3.9 million.
Income from operations for the first quarter of 2011 was $6.5 million compared with income from operations of $5.6 million in the fourth quarter of 2010, and income from operations of $2.9 million in the first quarter of 2010.
Net interest and other expense for the first quarter of 2011 was $276,000, which included an unrealised foreign exchange loss of $196,000. This compares with net interest and other income of $422,000 in the fourth quarter of 2010, which included an unrealised foreign exchange gain of $242,000, and net interest and other income of $94,000 in the first quarter of 2010, which included an unrealised foreign exchange loss of $80,000.
Net income in the first quarter of 2011 was $4.2 million or $0.13 per diluted share compared with net income of $4.9 million or $0.15 per diluted share in the fourth quarter of 2010, and with a net income of $2.6 million or $0.08 per diluted share in the first quarter of 2010.
"Our first quarter revenue results reflected the seasonality that we had guided for. However, optimal revenue mix and our successful raw material purchasing strategy allowed us to achieve our highest gross margin performance in many years," said Morris Young, chief executive officer.
"As we move into Q2, we are very pleased to see solid demand for our semi-insulating and semi-conducting gallium arsenide substrates from our traditional markets and we are making good progress on our plans to further penetrate strategically important markets for our products. Our unique business model continues to provide us with exciting growth opportunities, positioning us well for continued expansion in 2011," he continued.
AXT estimates revenue for the second quarter for 2011 will be between $26.5 million and $27.5 million. The company estimates that net income per share will be between $0.13 and $0.16, which takes into account our weighted average share count of approximately 33.2 million shares.
The company hosted a conference call to discuss these results. Replays will be available by dialling (719) 457-0820 using passcode 5695812 until May 10, 2011.
