AXT, Inc. Announces Preliminary Results for Q4 2008
"Customer demand for our products deteriorated more than anticipated in November and December as a result of a weakened demand environment," said Phil Yin, chairman and CEO. "Further, we experienced some customer requests for push-outs of orders that had been scheduled for fourth quarter deliveries. We accepted these requests in order to accelerate our customers' efforts to reduce their inventory levels going into 2009. Although we are disappointed with our fourth quarter revenue expectation in this difficult economic environment, we remain confident in our market position and the continued need for our products to serve the advancing technology requirements in the wireless and photovoltaic markets."
The company will announce its full financial results for the fourth quarter 2008 in a press release immediately following the close of market on February 25, 2009. It will also host a conference call to discuss these results on February 25, 2009 at 1:30 p.m. PST. The conference call can be accessed at (719) 325-4806 (passcode 3616784). The call will also be simulcast on the Internet at www.axt.com. Replays will be available at (719) 457-0820 (passcode 3616784) until March 4, 2009. Financial and statistical information to be discussed in the call will be available on the company's website immediately prior to commencement of the call. Additional investor information can be accessed at http://www.axt.com or by calling the company's Investor Relations Department at (510) 683-5900.
About AXT, Inc.
AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) through its manufacturing facilities in Beijing, China. In addition, AXT maintains its sales, administration and customer service functions at its headquarters in Fremont, California. The company's substrate products are used primarily in lighting display applications, wireless communications, and fiber optic communications. Its vertical gradient freeze (VGF) technique for manufacturing semiconductor substrates provides significant benefits over other methods and enabled AXT to become a leading manufacturer of such substrates, particularly in optoelectronics applications. AXT has manufacturing facilities in China and invests in five joint ventures producing raw materials. For more information, see AXT's website at http://www.axt.com.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws, including statements regarding our outlook for the fourth quarter of 2008 concerning its preliminary fourth quarter 2008 financial results. These forward-looking statements are based upon specific assumptions that are subject to the company's final completion of its customary review processes for the quarter, which could cause actual results of the company to differ materially from the preliminary results set forth above. Risks to the company's business, including, overall conditions in the markets in which the company competes; market acceptance and demand for the company's products; the impact of the factory closures or other delays by our customers on the timing of sales of products; and other factors are set forth in the company's annual report on Form 10-K and other filings made with the Securities and Exchange Commission.Contacts:
Wilson W. Cheung
Chief Financial Officer
Green Communications Consulting, LLC
SOURCE: AXT, Inc.