AXT Posts Solid Q2
Revenue ahead of expectations and InP sales at an all-time high
Compound semiconductor substrates company AXT has reported financial results above expectations for its second quarter ended June 30, 2019.
Revenue for Q2 2019 was $24.8 million, compared with $20.2 million in Q1 2019 and $27.1 million for Q2 of 2018. Gross margin was 34.3 percent of revenue for Q2 of 2019, compared with 33.1 percent of revenue in Q1 2019 and 40.6 percent for Q2 2018.
Operating expenses were $6.2 million in Q2 2019, compared with $6.1 million in Q1 2019 and $6.5 million for Q2 2018. Income from operations for Q2 2019 was $2.3 million, compared with an operating profit of $0.6 million in Q1 2019 and an operating profit of $4.5 million for Q2 2018.
Net income in Q2 of 2019 was $1.5 million, or $0.04 per diluted share, compared with a net loss of $1.1 million or $0.03 per share in Q1 2019 and net income of $3.9 million or $0.10 per diluted share for Q2 2018.
"Amidst a backdrop of turbulent geopolitical and global economic conditions, AXT posted a solid quarter," said Morris Young, chief executive officer. "Revenue came in just ahead of our expectations and our InP sales achieved an all-time high. In addition, we reduced our inventory, increased our cash and improved our gross margin. We are continuing to execute on the relocation of our facility and believe that we are laying a solid foundation for the significant technology trends that are likely to drive growth in our business over time."