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AXT, Inc. Announces Fourth Quarter and Fiscal Year 2019 Financial Results
FREMONT, Calif., Feb. 19, 2020 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today reported
About this update from Axt Inc
[{"type":"text","content":"FREMONT, Calif., Feb. 19, 2020 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today reported financial results for the fourth quarter and fiscal year, ended December 31, 2019.\n Fourth Quarter 2019 Results Revenue for the fourth quarter of 2019 was $18.4 million, compared with $19.8 million in the third quarter of 2019 and $22.2 million for the fourth quarter of 2018. Gross margin was 21.0 percent of revenue for the fourth quarter of 2019, compared with 29.0 percent of revenue in the third quarter of 2019 and 26.3 percent for the fourth quarter of 2018. The decline in gross margin was driven by a decline in manufacturing efficiencies and yields associated with two new products for AXT: six-inch indium phosphide substrates and a new six-inch germanium product configuration for a large customer. These products address new market opportunities for AXT and the company believes it will drive improvements in manufacturing yields and efficiencies in the coming quarters. Additional items that contributed to the sequential decline were lower gross margins on consolidated raw material revenue and adjustments to inventory. Operating expenses were $6.7 million in the fourth quarter of 2019, compared with $6.2 million in the third quarter of 2019 and $6.5 million for the fourth quarter of 2018. Operating loss for the fourth quarter of 2019 was $2.8 million compared with operating loss of $0.5 million in the third quarter of 2019 and $0.6 million for the fourth quarter of 2018. Interest and other, net was a gain of $0.8 million for the fourth quarter of 2019, compared with a de minimis gain in the third quarter of 2019 and a loss of $0.4 million for the fourth quarter of 2018. Interest and other, net for the fourth quarter of 2019 included de minimis interest earnings, a foreign exchange gain of $0.2 million, a net loss of $0.2 million from the partially owned companies in the company’s supply chain accounted for under the equity method, and other income of $0.8 million. Other income included provincial government agency awards for relocation. Benefit from income taxes in the fourth quarter of 2019 was $0.2 million compared with a de minimis charge in the third quarter of 2019 and a benefit of $0.2 million for the fourth quarter of 2018. Net loss in the fourth quarter of 2019 was $...