Revenue Performance - Revenue for the fourth quarter of 2024 was $25.1 million, a 31% increase year-on-year from $20.4 million in Q4 2023[3] - Fiscal year 2024 revenue reached $99.4 million, up from $75.8 million in fiscal year 2023, representing a 31% increase[7] Gross Margin - GAAP gross margin for fiscal year 2024 improved to 24.0% of revenue, compared to 17.6% in fiscal year 2023[7] - Non-GAAP gross margin for fiscal year 2024 was 24.3%, up from 18.1% in fiscal year 2023[7] Net Loss - GAAP net loss for fiscal year 2024 was $11.6 million, or $0.27 per share, an improvement from a net loss of $17.9 million, or $0.42 per share in fiscal year 2023[7] - Non-GAAP net loss for fiscal year 2024 was $8.5 million, or $0.20 per share, compared to a net income of $14.3 million, or $0.34 per share in fiscal year 2023[7] - AXT, Inc. reported a GAAP net loss of $5,088,000 for Q4 2024, compared to a net loss of $3,621,000 in Q4 2023, representing an increase in loss of approximately 40.5% year-over-year[16] - Non-GAAP net loss for the year ended December 31, 2024, was $8,527,000, compared to $14,341,000 in 2023, showing an improvement of about 40.3%[16] Operational Performance - AXT, Inc. reported a GAAP loss from operations of $6,165,000 for Q4 2024, compared to a loss of $3,560,000 in Q4 2023, indicating a year-over-year increase of 73.1%[16] - The company’s operating expenses for the year ended December 31, 2024, were $38,639,000, an increase from $34,887,000 in 2023, representing an increase of about 10.1%[16] Assets and Liabilities - Total current assets decreased to $158,272,000 as of December 31, 2024, down from $170,656,000 in 2023, reflecting a decline of approximately 7.3%[15] - Cash and cash equivalents decreased to $22,833,000 in 2024 from $37,752,000 in 2023, a decline of about 39.5%[15] - Total liabilities decreased to $84,406,000 in 2024 from $89,555,000 in 2023, a reduction of approximately 5.5%[15] - The company’s accumulated deficit increased to $43,664,000 in 2024 from $32,040,000 in 2023, reflecting a rise of approximately 36.4%[15] - AXT, Inc. reported total stockholders' equity of $216,331,000 as of December 31, 2024, down from $227,483,000 in 2023, a decrease of approximately 4.9%[15] Market and Technical Advancements - AXT has successfully penetrated the cell phone market, which is estimated to be close to a $100 million addressable market[2] - The company is advancing technical specifications of its materials to address next-generation connectivity challenges, particularly in cloud and data center infrastructure[2] - AXT's subsidiary, Tongmei, is in the process of an IPO on the STAR Market, which is subject to review and approval by regulatory authorities[6] - The company aims to develop larger diameter substrates to enable next-generation technology innovations across various end-markets[12]

Revenue and Sales Performance - AXT's substrate product group generated 63% of consolidated revenue in 2023, while the raw materials product group accounted for 37%[157]. - AXT's consolidated revenue percentages for substrate and raw materials were 79% and 21% in 2022, and 75% and 25% in 2021, respectively[157]. - Revenue increased by $6.3 million, or 36.2%, to $23.6 million for the three months ended September 30, 2024, compared to $17.4 million for the same period in 2023[212]. - Revenue increased by $18.9 million, or 34.1%, to $74.3 million for the nine months ended September 30, 2024, compared to $55.4 million for the same period in 2023[213]. - Substrate revenue for the nine months ended September 30, 2024, increased by $16.8 million, or 48.0%, to $51.7 million from $34.9 million in the same period in 2023[214]. - Revenue in China increased by $13.6 million, or 47.3%, for the nine months ended September 30, 2024, primarily due to higher demand for GaAs, InP, and Ge wafer substrates[218]. - Revenue in Taiwan increased by $3.8 million, or 59.2%, for the nine months ended September 30, 2024, driven by higher demand for GaAs and InP wafer substrates[219]. - Revenue in North America increased by $1.8 million, or 260.8%, for the three months ended September 30, 2024, primarily due to higher demand for InP wafer substrates[217]. - Revenue in Europe increased by $2.1 million, or 23.8%, for the nine months ended September 30, 2024, primarily due to higher demand for GaAs and InP wafer substrates[220]. Product and Market Strategy - The demand for InP substrates is expected to increase due to growth in AI applications and high-speed data transfer needs in data centers[156]. - AXT's supply chain strategy includes partial ownership of raw material companies in China, providing pricing advantages and reliable supply[162]. - The company is focused on expanding its market presence and increasing sales through new product development and applications[150]. - AXT's substrates are used in various applications, including 5G infrastructure, fiber optics, and consumer electronics[156]. Manufacturing and Operations - AXT's manufacturing operations are primarily located in China, benefiting from lower costs compared to the US, Europe, or Japan[162]. - The relocation of gallium arsenide production lines was completed, with 100% of ingot production transferred to new facilities, enhancing capacity and technological sophistication[164]. - The company has invested in additional buildings and advanced equipment to support future capacity needs[164]. Financial Performance and Expenses - Gross profit for the nine months ended September 30, 2024, increased by $10.7 million, or 123.5%, to $19.4 million from $8.7 million for the same period in 2023[222]. - Gross margin as a percentage of revenue increased to 26.2% for the nine months ended September 30, 2024, compared to 15.7% for the same period in 2023[222]. - Selling, general and administrative expenses increased by $217,000, or 1.2%, to $17.7 million for the nine months ended September 30, 2024, compared to $17.4 million for the same period in 2023[225]. - Research and development expenses increased by $1.1 million, or 12.4%, to $10.4 million for the nine months ended September 30, 2024, primarily due to higher development expenses for crystal ingot processing[227]. Cash Flow and Liquidity - Cash and short-term investments decreased by $11.3 million in the nine months ended September 30, 2024, primarily due to net cash used in operating activities of $13.4 million[237]. - As of September 30, 2024, the principal source of liquidity was $38.8 million, consisting of cash of $24.9 million and restricted cash of $13.9 million[237]. - Net cash used in operating activities was $13.4 million for the nine months ended September 30, 2024, primarily due to a net loss before income attributable to noncontrolling interests of $6.1 million[239]. - The company has adequate cash and investments to meet operating needs and capital expenditures over the next 12 months[259]. Investments and Financing - The company has a total investment target of approximately $90 million in value, assets, and capital for its new manufacturing facility in Dingxing, China[262]. - The company expects to use net proceeds from a $60 million Shelf Registration Statement for working capital, capital expenditures, and potential acquisitions[258]. - The company secured a new line of credit amounting to $9.7 million, structured as a five-year bank loan with an interest rate of 6.5% per annum[255]. - The company recorded a foreign exchange gain of $0.2 million in 2023, down from $1.6 million in 2022, and a net foreign exchange loss of $0.4 million in 2021[266]. Regulatory and Geopolitical Risks - The company anticipates potential challenges related to geopolitical tensions and regulatory changes affecting its operations in China[150]. - Effective August 1, 2023, the PRC government requires export licenses for gallium and germanium-related materials, impacting shipment timelines[176]. - The company is subject to unique legal and operational risks associated with its corporate structure, which could materially affect operations and stock value[179]. Corporate Structure and Governance - AXT's PRC subsidiary, Tongmei, received a total investment of approximately $49 million from private equity firms, granting them a 7.28% redeemable noncontrolling interest[168]. - The company has no current intentions to distribute earnings to investors under its corporate structure[251]. - Approximately 7.28% of Tongmei was sold to private equity investors for approximately $49 million as part of the IPO process[252]. - Tongmei's IPO application was accepted for review by the Shanghai Stock Exchange on January 10, 2022, and approved on July 12, 2022[253].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $23.6 million, down from $27.9 million in Q2 2024 and up from $17.4 million in Q3 2023 [4] - Non-GAAP gross margin in Q3 was 24.3%, compared to 27.6% in Q2 2024 and 11.3% in Q3 2023 [5] - Non-GAAP net loss for Q3 was $2.1 million or $0.05 per share, compared to a loss of $800,000 or $0.02 per share in Q2 2024 and a loss of $4.9 million or $0.12 per share in Q3 2023 [7] Business Line Data and Key Metrics Changes - Indium phosphide revenue was $6.8 million, driven by demand in data center applications and AI [4] - Gallium arsenide revenue was $6.6 million, reflecting a pullback after strong growth in Q2 [4] - Revenue from germanium substrates was $1.6 million, down from the prior quarter due to a strategic decision to avoid low-margin opportunities [4] Market Data and Key Metrics Changes - Revenue from Asia Pacific was 77%, Europe 12%, and North America 11% [5] - The top five customers accounted for approximately 29.4% of total revenue, with no single customer exceeding 10% [5] Company Strategy and Development Direction - The company is focusing on expanding its indium phosphide business, particularly in data center applications and high-speed optical connectivity [12] - Plans to list its subsidiary, Tongmei, on the STAR Market in Shanghai are ongoing, with optimism about the IPO due to recent economic stimulus in China [10][11] - The company aims to improve its cost structure and competitiveness in the gallium arsenide market by leveraging advancements from its 8-inch development to its 6-inch wafer production [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in the indium phosphide sector, particularly related to data centers and AI [18] - The company anticipates a slight revenue increase in Q4 2024, driven by indium phosphide and raw material revenues, despite a decrease in germanium revenues [19] - Management noted that the market for low orbit satellites presents future opportunities, and they are strategically selective in their participation in the germanium substrate market [16] Other Important Information - Cash, cash equivalents, and investments decreased by $4.5 million to $38.8 million as of September 30, 2024 [7] - The company is fully licensed for gallium arsenide recycling, contributing positively to revenue and gross margin [15] Q&A Session Summary Question: Dynamics of the germanium business and pricing environment - Management noted that germanium raw material prices more than doubled, leading to a strategic decision to decline low-margin business opportunities [22] Question: Growth drivers for indium phosphide - Management highlighted strong demand for high-speed photo detectors in data centers and silicon photonics as key growth drivers [25][26] Question: Visibility and engagement in the silicon photonics market - Management confirmed active participation with key customers and a design win for a new product targeting silicon photonics and EML applications [28] Question: Opportunities in the HPT market - Management indicated a market size of $80 million to $100 million for HPT applications, with expectations of increasing market share due to competitive advantages [30][31] Question: Impact of China's stimulus on product lines - Management expects the stimulus to positively impact demand across various applications, including industrial lasers and LEDs [35] Question: Progress on the STAR listing - Management expressed cautious optimism about the IPO process, noting improvements in the Shanghai Stock Exchange environment due to economic stimulus [41][42]

Company Performance - AXT reported a quarterly loss of $0.05 per share, which was better than the Zacks Consensus Estimate of a loss of $0.06, and an improvement from a loss of $0.12 per share a year ago, representing an earnings surprise of 16.67% [1] - The company posted revenues of $23.65 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.97%, but showing an increase from year-ago revenues of $17.37 million [2] - AXT has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Outlook - AXT shares have increased by approximately 15% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.02 on $27.8 million in revenues for the coming quarter and -$0.13 on $104.34 million in revenues for the current fiscal year [4][7] - The current estimate revisions trend for AXT is mixed, resulting in a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Electronics - Semiconductors industry, to which AXT belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5]

Revenue and Profitability - Revenue for Q3 2024 was $23.6 million, a 36% increase compared to $17.4 million in Q3 2023[3] - GAAP gross margin improved to 24.0% in Q3 2024 from 10.7% in Q3 2023[4] - GAAP gross profit for Q3 2024 was $5,682 thousand, up from $1,866 thousand in Q3 2023, representing a 204% increase[17] - Non-GAAP gross margin for Q3 2024 was 24.3%, up from 11.3% in Q3 2023[4] - Non-GAAP gross profit for Q3 2024 was $5,755 thousand, compared to $1,968 thousand in Q3 2023, indicating a 192% increase[17] Net Loss and Expenses - GAAP net loss decreased to ($2.9) million, or ($0.07) per share, compared to a net loss of ($5.8) million, or ($0.14) per share in Q3 2023[5] - Non-GAAP net loss for Q3 2024 was ($2.1) million, or ($0.05) per share, compared to ($4.9) million, or ($0.12) per share in Q3 2023[6] - Total operating expenses for Q3 2024 were $9.1 million, compared to $8.6 million in Q3 2023[14] - GAAP loss from operations for Q3 2024 was $(3,406) thousand, improved from $(6,727) thousand in Q3 2023, a 49% improvement[17] - Non-GAAP loss from operations for Q3 2024 was $(2,586) thousand, compared to $(5,836) thousand in Q3 2023, indicating a 56% improvement[17] Cash and Liabilities - Cash and cash equivalents decreased to $24.9 million from $37.8 million in the previous year[15] - Total current liabilities decreased to $78,773 thousand from $81,557 thousand year-over-year, a reduction of 3.5%[16] - Total liabilities remained relatively stable at $89,361 thousand compared to $89,555 thousand in the previous year[16] - Stockholders' equity decreased to $224,982 thousand from $227,483 thousand, a decline of 1.1%[16] Future Outlook and Developments - The company anticipates new order momentum in indium phosphide substrates for AI applications[2] - The company is optimistic about growth and expansion as signs of recovery are tangible across its product portfolio[2] - AXT's subsidiary, Tongmei, is in the process of an IPO on the STAR Market, pending regulatory approval[7] Share Information - Shares used to compute diluted net income per share increased to 43,157 thousand from 42,638 thousand year-over-year[17]

AXT, Inc. (NASDAQ: AXTI ), a supplier of single element and compound wafer substrates and materials to the semiconductor industry, has been up and down all year. AXTI has rebounded in recent weeks, and it is up by a modest amount in Welcome to my author's site. As an avid follower of SeekingAlpha, I take great interest in articles posted as the subject matter is often something that appeals to me. However, I will sometimes encounter an article that I might not agree with. My purpose is to present an alterna ...

NEW YORK, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against AXT, Inc. (NASDAQ: AXTI) on behalf of long-term stockholders following a class action complaint that was filed against AXT on May 6, 2024 with a Class Period from March 24, 2021 to April 3, 2024. Our investigation concerns whether the board of directors of AXT have breached their fiduciary duties to the company. According to the lawsuit, defe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2024 Or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number 000-24085 AXT, INC. (Exact name of registrant as specified in its charter) DELAWARE 94-3031310 (State or other jurisdiction of Incorp ...

Investors might want to bet on AXT (AXTI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earnings pi ...

Just_Super/iStock via Getty Images Note: I have covered AXT, Inc. or "AXT" (NASDAQ:AXTI) previously, so investors should view this as an update to my earlier articles on the company. Last week, semiconductor substrate provider AXT, Inc. reported better-than-expected Q2/2024 results, with both revenues and profitability coming in ahead of consensus estimates: Company Press Releases While the press release did not include a cash flow statement, based on sequential changes in the company's key balance sh ...