The following is a summary of the AXT, Inc. (AXTI) Q1 2024 Earnings Call Transcript:
Financial Performance:
AXT reported Q1 2024 revenue of $22.7 million, up from $20.4 million in Q4 2023.
Gross margin on a non-GAAP basis was 27.3%, up from 23.2% in Q4 2023.
Non-GAAP operating loss was $2.5 million, a reduction from the $2.7 million loss in Q4 2023.
Non-GAAP net loss was $1.3 million or $0.03 per share, an improvement over previous quarters.
Cash and cash equivalents and investments were $41.3 million at the end of March.
Business Progress:
Indium phosphide sales increased to $8.1 million driven by growth in AI and passive optical networks.
Germanium substrate sales rose to $1.4 million due to increased demand for satellite solar cells.
AXT Inc. expects to return to breakeven level by the end of 2024 or start of 2025, requiring quarterly revenue between $28m-$30m and gross margins close to 28%.
The company has seen substantial growth in demand for semi-insulating iron doped wafers.
AI applications present a new and promising area of growth for the company.
AXT is working on reducing inventory by $10m and restoring normal inventory levels by early 2025, benefiting both gross margin and their ESG standing.
More details: AXT Inc IR
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