AXT, Inc. Announces First Quarter 2021 Financial Results
Management Qualitative Comments
“Q1 was an important milestone quarter for AXT,” said
First Quarter 2021 Results
- Revenue for the first quarter of 2021 was
$31.4 million, compared with $27.0 millionin the fourth quarter of 2020 and $20.7 millionfor the first quarter of 2020. This is sequential growth of 16 percent over the fourth quarter of 2020 and more than 51 percent growth over Q1 of 2020.
- Gross margin was 36.8 percent of revenue for the first quarter of 2021, up from 33.9 percent of revenue in the fourth quarter of 2020 and 26.6 percent for the first quarter of 2020.
- Operating expenses were
$8.0 millionin the first quarter of 2021, compared with $7.2 millionin the fourth quarter of 2020, and $6.2 millionfor the first quarter of 2020.
- Operating profit for the first quarter of 2021 was
$3.6 million, compared with an operating profit of $1.9 millionin the fourth quarter of 2020, and an operating loss of $0.6 millionfor the first quarter of 2020.
- Other income, net for the first quarter of 2021 was
$1.0 million, compared with $0.6 millionin the fourth quarter of 2020 and $1.2 millionfor the first quarter of 2020.
- Net income in the first quarter of 2021 was
$3.4 million, or $0.08per share, compared with net income of $2.1 millionor $0.05per share in the fourth quarter of 2020, and a net loss of $0.2 millionor $0.01per share for the first quarter of 2020.
STAR Market Listing Update
AXT previously announced on
The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Tongmei expects to accomplish this goal in mid-2022. AXT has posted a brief summary of the plan and the process on its website at www.axt.com.
The company will host a conference call to discuss these results today at
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding completing other preliminary steps in connection with the proposed listing of shares of Tongmei on the STAR Market, being accepted to list shares of Tongmei on the STAR Market and the timing and completion of such listing of shares of Tongmei on the STAR Market. Additional examples of forward-looking statements include statements regarding the market demand for our products, our growth prospects and opportunities for continued business expansion, including technology trends and new applications, our market opportunity, our ability to lead our industry, our relocation and our expectations with respect to our business prospects and financial results. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to: the withdrawal, cancellations or requests for redemptions by private equity funds in
|Chief Financial Officer|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
|Three Months Ended|
|Cost of revenue||19,814||15,201|
|Selling, general and administrative||5,570||4,749|
|Research and development||2,405||1,407|
|Total operating expenses||7,975||6,156|
|Income (loss) from operations||3,561||(634||)|
|Interest expense, net||(50||)||(29||)|
|Equity in income (loss) of unconsolidated joint ventures||1,111||(120||)|
|Other income (expense), net||(111||)||1,366|
|Income before provision for income taxes||4,511||583|
|Provision for income taxes||746||366|
|Less: Net income attributable to noncontrolling interests||(340||)||(395||)|
|Net income (loss) attributable to
|Net income (loss) attributable to AXT, Inc. per common share:|
|Weighted-average number of common shares outstanding:|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
|Cash and cash equivalents||$||61,206||$||72,602|
|Accounts receivable, net||28,423||24,558|
|Prepaid expenses and other current assets||18,400||15,603|
|Total current assets||162,950||164,518|
|Property, plant and equipment, net||119,878||115,825|
|Operating lease right-of-use assets||2,576||2,683|
|LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY|
|Total current liabilities||39,473||39,075|
|Noncurrent operating lease liabilities||2,249||2,374|
|Other long-term liabilities||1,510||1,881|
|Redeemable noncontrolling interests||48,212||47,563|
|Additional paid-in capital||229,617||230,381|
|Accumulated other comprehensive income||3,078||3,209|
|Total AXT, Inc. stockholders’ equity||195,149||192,619|
|Total stockholders’ equity||210,462||207,969|
|Total liabilities, redeemable noncontrolling interests and stockholders’ equity||$||301,906||$||298,862|
Source: AXT, Inc.