Absolutely and we know that they have the capacity and RAW MATERIALS to do it. By my estimation AXT can produce 3-5x the volume they did in 2000-2001.
And I don't care what the inventory $$$$ on the BS say, they produced, produced, produced during the downturn because that is what they do. They can create batches for individual customers needs and sit for a long time. And personally IMHO they kitchen sinked it in March 2009. Anecdotal evidence of that is they stopped discussing fully reserved wafer #'s.
Nokia has a new smartphone coming out next week (finally), another new tablet from RIMM coming out in the next few weeks. All of these new models take tons of spoilage to create and test. Then once created tons of wafer to make. This is all on Nokia's and RIMM's dime not AXT. We are going for the long bomb now. And shorts are going to come along for the ride.