News Article
AXT quarterly revenues boosted by raw materials market
A weak GaAs substrate market has affected the manufacturer of gallium arsenide, indium phosphide and germanium substrates although yearly results are up 9% over last year
AXT, has reported financial results for the fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter 2011 results revenue for the fourth quarter of 2011 was $21.2 million compared with $28.3 million in the third quarter of 2011.
The graphs below show how each sector contributed to the company's quarterly results for the same quarter last year and the previous quarter of 2011.
Gross margin was 36.9 percent of revenue for the fourth quarter of 2011. By comparison, gross margin in the third quarter of 2011 was 43.2 percent of revenue.
Operating expenses were $4.5 million in the fourth quarter of 2011, compared with $4.2 million in the third quarter of 2011.
Income from operations for the fourth quarter of 2011 was $3.3 million compared with income from operations of $8.1 million in the third quarter of 2011.
Net interest and other income for the fourth quarter of 2011 was $443,000, which included a foreign exchange loss of $150,000. This compares with net interest and other income of $459,000 in the third quarter of 2011, which included a foreign exchange gain of $180,000.
Net income in the fourth quarter of 2011 was $2.6 million or $0.08 per diluted share compared with net income of $6.5 million or $0.19 per diluted share in the third quarter of 2011.
Revenue for the fiscal year 2011 was $104.1 million, a 9 percent increase from $95.5 million in fiscal year 2010. Gross margin for fiscal year 2011 was 43.0 percent of revenue compared with 38.2 percent of revenue for fiscal year 2010.
Net income for fiscal year 2011 was $20.3 million or $0.61 per diluted share compared with net income of $18.7 million or $0.57 per diluted share for fiscal year 2010.
"Our fourth quarter results came in sequentially lower and within the guidance range we provided in October," said Morris Young, chief executive officer. "However, despite near-term challenges, for 2011 as a whole, we posted the strongest fiscal year results in more than 10 years. Revenue for the year was up 9 percent from the prior year, gross margin increased by nearly four hundred basis points and net income rose by approximately 9 percent."
"In addition, we laid important groundwork to prepare our company for growth as we enter the next semiconductor cycle as well as increasing demand relating to a number of key secular trends that we play into. Across our business, we placed great emphasis on diversification of our customer base with notable success in every product category. We strengthened our sales presence and product specifications to enhance our participation in key geographic areas, such as China, Japan and Taiwan," he added.
"Further, we took a critical, measured step to ensure that we have the appropriate level of capacity at the right time to meet market demand as it increases over the next several years. Throughout 2011, we carefully managed our expense levels and further improved our manufacturing and operating efficiency to keep pace with the pricing requirements of our customers and the sizeable fluctuations in raw materials costs. I am pleased by the way our team executed on its mission in 2011 and believe that we are well positioned for continued growth in 2012," concluded Young.
AXT estimates revenue for the first quarter for 2012 will be between $21 million and $24 million and that net income per share will be between $0.07 and $0.11. This takes into account the weighted average share count of approximately 33.2 million shares.
