AXT, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Year on Year Revenue Increases 31 Percent
Management Qualitative Comments
“Our growth in 2024 showed a year of improvement for AXT in several key areas,” said Morris Young, chief executive officer. “We delivered a 31 percent increase in revenue, a 21 percent improvement in non-GAAP gross profit, and a 40 percent improvement in non-GAAP net loss. Over the last twelve months we have aggressively advanced the technical specifications of our materials to help our global customer base solve complex, next-generation connectivity challenges. As such, 2024 marked a meaningful year of our revenue growth into the cloud and data center infrastructure market, as well as our successful penetration of the cell phone market, which is close to a
Fourth Quarter 2024 Results
-
Revenue for the fourth quarter of 2024 was
, compared with$25.1 million for the third quarter of 2024 and$23.6 million for the fourth quarter of 2023.$20.4 million - GAAP gross margin was 17.6 percent of revenue for the fourth quarter of 2024, compared with 24.0 percent of revenue for the third quarter of 2024 and 22.6 percent for the fourth quarter of 2023.
- Non-GAAP gross margin, after excluding charges for stock-based compensation, was 17.9 percent of revenue for the fourth quarter of 2024, compared with 24.3 percent of revenue for the third quarter of 2024 and 23.2 percent for the fourth quarter of 2023.
-
GAAP net loss, after minority interests, for the fourth quarter of 2024 was a net loss of
, or$5.1 million per share, compared with a net loss of$0.12 , or$2.9 million per share, for the third quarter of 2024 and a net loss of$0.07 , or$3.6 million per share, for the fourth quarter of 2023.$0.09 -
Non-GAAP net loss for the fourth quarter of 2024 was a net loss of
, or$4.3 million per share, compared with a net loss of$0.10 , or$2.1 million per share, for the third quarter of 2024 and a net loss of$0.05 , or$2.8 million per share, for the fourth quarter of 2023.$0.07
Fiscal Year 2024 Results (January 1 to December 31, 2024)
-
Revenue for fiscal year 2024 was
, compared with$99.4 million in fiscal year 2023.$75.8 million - GAAP gross margin for fiscal year 2024 was 24.0 percent of revenue, compared with 17.6 percent of revenue in fiscal year 2023.
- Non-GAAP gross margin for fiscal year 2024 was 24.3 percent of revenue, compared with 18.1 percent of revenue in fiscal year 2023.
-
GAAP net loss for fiscal 2024 was a net loss of
, or$11.6 million per share, compared with a net loss of$0.27 , or$17.9 million per share for fiscal 2023.$0.42 -
Non-GAAP net loss for fiscal 2024 was a net loss of
, or$8.5 million per share, compared with net income of$0.20 , or$14.3 million per share for fiscal 2023.$0.34
STAR Market Listing Update
On January 10, 2022, AXT announced that Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), its subsidiary in
Conference Call
The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (800) 715-9871 (passcode 4378083). The call will also be simulcast at www.axt.com. Replays will be available at (800) 770-2030 (Playback ID: 4378083 followed by # key) until March 6, 2025. 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) 438-4700.
About AXT, Inc.
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 the timing and completion of the proposed 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 product mix, our growth prospects and opportunities for continued business expansion, including technology trends, new applications and the ramping of Tier-1 customers, our market opportunity, our ability to lead our industry, our relocation, our expectations with respect to our business prospects and financial results, including our gross margin performance, and our development of larger diameter substrates that we believe will enable the next generation of technology innovation across a number of end-markets. 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 requests for redemptions by private equity funds in
AXT, INC.
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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$ |
25,105 |
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$ |
20,429 |
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$ |
99,361 |
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|
$ |
75,795 |
|
Cost of revenue |
|
|
20,697 |
|
|
|
15,802 |
|
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|
75,525 |
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|
62,477 |
|
Gross profit |
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4,408 |
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|
4,627 |
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23,836 |
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|
13,318 |
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Operating expenses: |
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Selling, general and administrative |
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6,440 |
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5,367 |
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24,096 |
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|
22,806 |
|
Research and development |
|
|
4,133 |
|
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|
2,820 |
|
|
|
14,543 |
|
|
|
12,081 |
|
Total operating expenses |
|
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10,573 |
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|
8,187 |
|
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|
38,639 |
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|
34,887 |
|
Loss from operations |
|
|
(6,165 |
) |
|
|
(3,560 |
) |
|
|
(14,803 |
) |
|
|
(21,569 |
) |
Interest expense, net |
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|
(318 |
) |
|
|
(384 |
) |
|
|
(1,340 |
) |
|
|
(1,527 |
) |
Equity in income (loss) of unconsolidated joint ventures |
|
|
944 |
|
|
|
(460 |
) |
|
|
3,439 |
|
|
|
1,884 |
|
Other income (expense), net |
|
|
(5 |
) |
|
|
897 |
|
|
|
2,047 |
|
|
|
2,179 |
|
Loss before provision for income taxes |
|
|
(5,544 |
) |
|
|
(3,507 |
) |
|
|
(10,657 |
) |
|
|
(19,033 |
) |
Provision for income taxes |
|
|
113 |
|
|
|
252 |
|
|
|
1,134 |
|
|
|
160 |
|
Net loss |
|
|
(5,657 |
) |
|
|
(3,759 |
) |
|
|
(11,791 |
) |
|
|
(19,193 |
) |
Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests |
|
|
569 |
|
|
|
138 |
|
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|
167 |
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|
1,312 |
|
Net loss attributable to AXT, Inc. |
|
$ |
(5,088 |
) |
|
$ |
(3,621 |
) |
|
$ |
(11,624 |
) |
|
$ |
(17,881 |
) |
Net loss attributable to AXT, Inc. per common share: |
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Basic |
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$ |
(0.12 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.42 |
) |
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.42 |
) |
Weighted-average number of common shares outstanding: |
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Basic |
|
|
43,381 |
|
|
|
42,851 |
|
|
|
43,154 |
|
|
|
42,643 |
|
Diluted |
|
|
43,381 |
|
|
|
42,851 |
|
|
|
43,154 |
|
|
|
42,643 |
|
AXT, INC.
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December 31, |
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December 31, |
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2024 |
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2023 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
22,833 |
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$ |
37,752 |
|
Restricted cash |
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|
10,978 |
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|
12,362 |
|
Short-term investments |
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— |
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|
2,140 |
|
Accounts receivable, net |
|
|
25,640 |
|
|
|
19,256 |
|
Inventories |
|
|
85,077 |
|
|
|
86,503 |
|
Prepaid expenses and other current assets |
|
|
13,744 |
|
|
|
12,643 |
|
Total current assets |
|
|
158,272 |
|
|
|
170,656 |
|
Property, plant and equipment, net |
|
|
159,721 |
|
|
|
166,348 |
|
Operating lease right-of-use assets |
|
|
2,479 |
|
|
|
2,799 |
|
Other assets |
|
|
18,842 |
|
|
|
18,898 |
|
Total assets |
|
$ |
339,314 |
|
|
$ |
358,701 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
|
$ |
12,356 |
|
|
$ |
9,617 |
|
Accrued liabilities |
|
|
14,556 |
|
|
|
19,019 |
|
Short-term loans |
|
|
47,264 |
|
|
|
52,921 |
|
Total current liabilities |
|
|
74,176 |
|
|
|
81,557 |
|
Noncurrent operating lease liabilities |
|
|
1,977 |
|
|
|
2,351 |
|
Other long-term liabilities |
|
|
8,253 |
|
|
|
5,647 |
|
Total liabilities |
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|
84,406 |
|
|
|
89,555 |
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|
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Redeemable noncontrolling interests |
|
|
38,577 |
|
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|
41,663 |
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Stockholders’ equity: |
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Preferred stock |
|
|
3,532 |
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|
|
3,532 |
|
Common stock |
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|
45 |
|
|
|
44 |
|
Additional paid-in capital |
|
|
241,514 |
|
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|
238,452 |
|
Accumulated deficit |
|
|
(43,664 |
) |
|
|
(32,040 |
) |
Accumulated other comprehensive loss |
|
|
(8,657 |
) |
|
|
(5,999 |
) |
Total AXT, Inc. stockholders’ equity |
|
|
192,770 |
|
|
|
203,989 |
|
Noncontrolling interests |
|
|
23,561 |
|
|
|
23,494 |
|
Total stockholders’ equity |
|
|
216,331 |
|
|
|
227,483 |
|
Total liabilities, redeemable noncontrolling interests and stockholders’ equity |
|
$ |
339,314 |
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|
$ |
358,701 |
|
AXT, INC.
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Three Months Ended |
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Year Ended |
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|
December 31, |
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December 31, |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP gross profit |
|
$ |
4,408 |
|
|
$ |
4,627 |
|
|
$ |
23,836 |
|
|
$ |
13,318 |
|
Stock-based compensation expense |
|
|
76 |
|
|
|
103 |
|
|
|
322 |
|
|
|
414 |
|
Non-GAAP gross profit |
|
$ |
4,484 |
|
|
$ |
4,730 |
|
|
$ |
24,158 |
|
|
$ |
13,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP operating expenses |
|
$ |
10,573 |
|
|
$ |
8,187 |
|
|
$ |
38,639 |
|
|
$ |
34,887 |
|
Stock-based compensation expense |
|
|
677 |
|
|
|
719 |
|
|
|
2,775 |
|
|
|
3,126 |
|
Non-GAAP operating expenses |
|
$ |
9,896 |
|
|
$ |
7,468 |
|
|
$ |
35,864 |
|
|
$ |
31,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP loss from operations |
|
$ |
(6,165 |
) |
|
$ |
(3,560 |
) |
|
$ |
(14,803 |
) |
|
$ |
(21,569 |
) |
Stock-based compensation expense |
|
|
753 |
|
|
|
822 |
|
|
|
3,097 |
|
|
|
3,540 |
|
Non-GAAP loss from operations |
|
$ |
(5,412 |
) |
|
$ |
(2,738 |
) |
|
$ |
(11,706 |
) |
|
$ |
(18,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(5,088 |
) |
|
$ |
(3,621 |
) |
|
$ |
(11,624 |
) |
|
$ |
(17,881 |
) |
Stock-based compensation expense |
|
|
753 |
|
|
|
822 |
|
|
|
3,097 |
|
|
|
3,540 |
|
Non-GAAP net loss |
|
$ |
(4,335 |
) |
|
$ |
(2,799 |
) |
|
$ |
(8,527 |
) |
|
$ |
(14,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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GAAP net loss per diluted share |
|
$ |
(0.12 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.42 |
) |
Stock-based compensation expense per diluted share |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.07 |
|
|
$ |
0.08 |
|
Non-GAAP net loss per diluted share |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used to compute diluted net income per share |
|
|
43,381 |
|
|
|
42,851 |
|
|
|
43,154 |
|
|
|
42,643 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220199958/en/
Gary Fischer
Chief Financial Officer
(510) 438-4700
Leslie Green
Green Communications Consulting, LLC
(650) 312-9060
Source: AXT, Inc.