AXT Inc (AXTI) Reports Q3 2023 Financial Results
AXT Inc (NASDAQ:AXTI) reported Q3 2023 revenue of $17.4 million, a significant decrease from $35.2 million in Q3 2022.
The company reported a net loss of $5.8 million, compared to a net income of $5.8 million in the same quarter last year.
AXT Inc (NASDAQ:AXTI) continues to focus on cost savings and efficiency, aiming to return to profitability.
The company's subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., is in the process of listing its shares in an initial public offering on the Shanghai Stock Exchange's STAR Market.
AXT Inc (NASDAQ:AXTI), a leading manufacturer of compound semiconductor wafer substrates, announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a significant decrease in revenue and a net loss for the quarter.
Financial Performance
AXT Inc (NASDAQ:AXTI) reported third-quarter revenue of $17.4 million, a significant decrease from $35.2 million in the same quarter of 2022. The company's gross profit for the quarter was $1.9 million, compared to $14.8 million in Q3 2022. The company's operating expenses for the quarter totaled $8.6 million, a decrease from $10.2 million in the same quarter last year.
The company reported a net loss of $5.8 million for the quarter, compared to a net income of $5.8 million in Q3 2022. The net loss per share was $0.14, compared to a net income per share of $0.14 in the same quarter last year.
Management Commentary
The demand environment in the third quarter of 2023 remained stable, and we were pleased to see some encouraging early signs of improvement in the data center market, resulting in modestly higher indium phosphide revenue quarter over quarter, said Morris Young, chief executive officer. While inventory rationalization may persist into the new year, we believe that the trends that have driven our revenue and customer expansion remain very much intact. Further, we have executed well in our development of larger diameter substrates that will pave the way for our opportunities in next-generation devices spanning data center, consumer, and other markets. As we navigate the near-term environment, we will continue to prioritize cost savings and efficiency, and are focused on accelerating our return to profitability.
STAR Market Listing Update
AXT's subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., has submitted its application to list its shares in an initial public offering on the Shanghai Stock Exchange's STAR Market. The application is currently under review and approval by the China Securities Regulatory Commission and other authorities.
Looking Ahead
Despite the challenges faced in Q3 2023, AXT Inc (NASDAQ:AXTI) remains optimistic about its future prospects. The company is focused on cost savings and efficiency, with the aim of returning to profitability. It also continues to develop larger diameter substrates for next-generation devices, which it believes will drive future revenue and customer expansion.
Explore the complete 8-K earnings release (here) from AXT Inc for further details.
This article first appeared on GuruFocus.
