News Article

AXT Q2 Results Exceed Profitability Expectations

Operating profit increased by $0.4 million, revenue up $1.8 million

AXT, a manufacturer of compound semiconductor substrates, has reported financial results for the second quarter, ended June 30, 2016.

Revenue for Q2 2016 was $20.5 million, compared with $18.7 million in Q12016. Gross margin was 29.4 percent of revenue for Q2 2016, compared with 28.1 percent of revenue in Q1 2016.

Operating expenses were $5.1 million in Q2 2016, compared with $4.8 million in Q1 2016.  The increase in operating expenses was primarily the result of a onetime restructuring charge of $226,000 related to a reduction in force at one of the company's consolidated subsidiaries.

Operating profit for Q2 2016 was $0.9 million compared with operating profit of $0.5 million in Q1 2016.

Net interest and other income for Q2 2016 was $0.0 million, compared with a loss of $0.2 million in Q1 2016. Net profit in Q2 2016 was $1.2 million, or $0.03 per diluted share, compared with a net profit of $42,000 or a gain of $0.00 per diluted share in Q1 2016.

Management commented: "We continued to show meaningful progress in our business, achieving revenue at the high end of our guidance range, and exceeding our profitability expectations. In addition, we further expanded the gross margin to 29.4 percent through yield improvements, manufacturing efficiency, and higher production volume. We also generated positive cash flow. 

"Cash, cash equivalents and investments increased by $1.6 million. AXT remains focused on maximising opportunities in strategic emerging areas, such as InP substrates, where we are solidly positioned with the expertise, technology and manufacturing capability to support further growth."

AngelTech Live III: Join us on 12 April 2021!

AngelTech Live III will be broadcast on 12 April 2021, 10am BST, rebroadcast on 14 April (10am CTT) and 16 April (10am PST) and will feature online versions of the market-leading physical events: CS International and PIC International PLUS a brand new Silicon Semiconductor International Track!

Thanks to the great diversity of the semiconductor industry, we are always chasing new markets and developing a range of exciting technologies.

2021 is no different. Over the last few months interest in deep-UV LEDs has rocketed, due to its capability to disinfect and sanitise areas and combat Covid-19. We shall consider a roadmap for this device, along with technologies for boosting its output.

We shall also look at microLEDs, a display with many wonderful attributes, identifying processes for handling the mass transfer of tiny emitters that hold the key to commercialisation of this technology.

We shall also discuss electrification of transportation, underpinned by wide bandgap power electronics and supported by blue lasers that are ideal for processing copper.

Additional areas we will cover include the development of GaN ICs, to improve the reach of power electronics; the great strides that have been made with gallium oxide; and a look at new materials, such as cubic GaN and AlScN.

Having attracted 1500 delegates over the last 2 online summits, the 3rd event promises to be even bigger and better – with 3 interactive sessions over 1 day and will once again prove to be a key event across the semiconductor and photonic integrated circuits calendar.

So make sure you sign up today and discover the latest cutting edge developments across the compound semiconductor and integrated photonics value chain.



Search the news archive

To close this popup you can press escape or click the close icon.
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.

Please subscribe me to:


You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
Live Event