AXT Announces positive Q2 Results
GaAs and InP substrate revenues up, Ge substrates down on Q1
The Californian manufacturer of compound semiconductor substrates AXT, has reported financial results for the second quarter ended June 30, 2014. Revenue for the second quarter of 2014 was up at $21.4 million compared with $19.3 million in the first quarter of 2014. Gross margin was 19.4 percent of revenue for the second quarter of 2014, compared with 14.1 percent of revenue in the first quarter of 2014.
"Q2 was a positive quarter for AXT," said Morris Young, chief executive officer. "Through a combination of higher revenues, positive sales mix, other income and the first full quarter of benefit from our cost-savings measures, we achieved profitability ahead of our plan. In addition, with continued focus on cash management, we drove improvement in our balance sheet, growing our cash position and reducing inventory. While the business environment remains challenging, during the second quarter we experienced stronger demand in both our semi-insulating and semi-conducting gallium arsenide substrates as well as continued strength in indium phosphide. Looking forward, we remain cautiously optimistic about our opportunities to drive further growth in our business."
In more detail, total gallium arsenide (GaAs) substrate revenue was $11.3 million for the second quarter of 2014, compared with $8.5 million in the first quarter of 2014. Indium phosphide (InP) substrate revenue was $3.0 million for the second quarter of 2014, compared with $2.2 million in the first quarter of 2014. Germanium (Ge) substrate revenue was $1.7 million for the second quarter of 2014, compared with $3.2 million in the first quarter of 2014. Raw materials sales were $5.4 million for the second quarter of 2014, consistent with $5.4 million in the first quarter of 2014.
Operating expenses were $4.7 million in the second quarter of 2014, compared with $5.1 million in the first quarter of 2014. The decrease in operating expenses was primarily the result of cost-savings initiatives that were implemented during the first quarter of 2014. Loss from operations for the second quarter of 2014 was $515,000 compared with a loss from operations of $2.4 million in the first quarter of 2014.
