AXT, Inc. Announces Fourth Quarter and Fiscal Year 2020 Financial Results
Management Qualitative Comments
“2020 was a year of solid improvement for AXT, capped off by strong indium phosphide growth, particularly in 5G, in Q4, which is typically a seasonally down quarter,” said
Fourth Quarter 2020 Results
- Revenue for the fourth quarter of 2020 was
$27.0 million, compared with $25.5 millionin the third quarter of 2020 and $18.4 millionfor the fourth quarter of 2019.
- Gross margin was 34 percent of revenue for the fourth quarter of 2020, compared with 35 percent of revenue in the third quarter of 2020 and 21 percent for the fourth quarter of 2019.
- Operating expenses were
$7.2 millionin the fourth quarter of 2020, primarily due to substantial investment in R&D and year-end employee bonuses. This compares with $6.6 millionin the third quarter of 2020 and $6.7 millionfor the fourth quarter of 2019.
- Operating income for the fourth quarter of 2020 was
$1.9 million, compared with operating income of $2.2 millionin the third quarter of 2020 and an operating loss $2.8 millionfor the fourth quarter of 2019.
- Net income in the fourth quarter of 2020 was
$2.1 million, or $0.05per share, compared with net income of $1.0 millionor $0.02per share in the third quarter of 2020, and a net loss of $2.0 millionor $0.05per share for the fourth quarter of 2019.
Fiscal Year 2020 Results (
- Revenue for fiscal year 2020 was
$95.4 million, an increase of 15 percent from $83.3 millionin fiscal year 2019.
- Gross margin for fiscal year 2020 was 32 percent of revenue, up from 30 percent of revenue in fiscal year 2019.
- Operating expenses for fiscal year 2020 were
$26.3 million, compared with $25.1 millionin fiscal year 2019.
- Operating income for fiscal year 2020 was
$3.9 millioncompared with an operating loss in fiscal 2019 of $0.3 million.
- Net income for fiscal 2020 was
$3.2 million, or $0.07per share, compared with a net loss of $2.6 million, or $0.07per share for fiscal 2019.
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
Safe Harbor Statement
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
FINANCIAL TABLES TO FOLLOW
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
|Three Months Ended||Twelve Months Ended|
|Cost of revenue||17,873||14,545||65,086||58,431|
|Selling, general and administrative||5,081||5,058||19,200||19,305|
|Research and development||2,162||1,607||7,135||5,834|
|Total operating expenses||7,243||6,665||26,335||25,139|
|Income (loss) from operations||1,919||(2,800||)||3,940||(314||)|
|Interest income (expense), net||(41||)||2||(179||)||217|
|Equity in income (loss) of unconsolidated joint ventures||354||(226||)||111||(1,876||)|
|Other income, net||260||1,002||3,200||947|
|Income (loss) before provision for (benefit from) income taxes||2,492||(2,022||)||7,072||(1,026||)|
|Provision for (benefit from) income taxes||108||(214||)||2,031||562|
|Net income (loss)||2,384||(1,808||)||5,041||(1,588||)|
|Less: Net income attributable to noncontrolling interests||(320||)||(241||)||(1,803||)||(1,012||)|
|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||$||72,602||$||26,892|
|Accounts receivable, net||24,558||19,031|
|Prepaid expenses and other current assets||15,603||8,703|
|Total current assets||164,518||113,205|
|Property, plant and equipment, net||115,825||97,403|
|Operating lease right-of-use assets||2,683||2,938|
|LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY|
|Total current liabilities||39,075||27,526|
|Long-term portion of royalty payments||1,209||—|
|Noncurrent operating lease liabilities||2,374||2,695|
|Other long-term liabilities||672||366|
|Redeemable noncontrolling interests||47,563||—|
|Additional paid-in capital||230,381||236,957|
|Accumulated other comprehensive income (loss)||3,209||(4,862||)|
|Total AXT, Inc. stockholders’ equity||192,619||187,885|
|Total stockholders’ equity||207,969||192,762|
|Total liabilities, redeemable noncontrolling interests and stockholders’ equity||$||298,862||$||223,349|
Chief Financial Officer
Green Communications Consulting, LLC
Source: AXT, Inc.