Axt Inc · NASDAQ:AXTI
Axt — Investor Presentation (May 2012)
17 slides from Axt's investor presentation, May 2012
Slide 1: AXT Presentation
Morris S. Young AXT Chief Executive Officer Presentation Raymond Low Chief Financial Officer May 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking information about the Company’s business and financial outlook. Forward-looking information addresses matters that are subject to risks and uncertainties. In addition to the risks associated with developing complex technology, the Comp
Slide 3: Brief Synopsis
Brief Synopsis Material provider for the fast-growing smartphone, LED and CPV solar cell industries Low-cost manufacturer based in China Differentiated capability in Vertical Gradient Freeze (VGF) technology Increasing market share with existing customers while adding new customers JVs in
Slide 4: Compound Semiconductor Value Chain
Compound Semiconductor Value Chain Wireless Ga As HB LEDs Ge Photo pBN voltaics (Crucible) Raw Substrates Epi-layer Epi-layer + Devices Systems Materials AXT, INC. 2012 4
Slide 5: Product and Market Applications
Product And Market Applications % of AXT Growth Rate Market Size AXT Share Target Share Product Market Revenue 2011/2015 2011/2015 2011 2015 Handset 30% CAGR 20% $150M / $310M 20% GaAs 35% LED, Lasers 31% CAGR 19% $169M / $340M 19% InP Fiber Optics 5% CAGR 26% $52M / $130M 10% 20% Ge Solar Cell 11%
Slide 6: GaAs Semi-Insulating (S.I.) Substrate
GaAs Semi-Insulating (S.I.) Substrate Smartphones are projected to grow >30% CAGR through 2015 Smartphones will need 4-6 x GaAs content versus voice-only phones 3G, 3G+, 4G phones are heavily promoted by industry giants, such as Apple, Google, Microsoft, Verizon, AT&T AXT, INC. 2012 6
Slide 7: GaAs S.I. Substrate Competitive Landscape
GaAs S.I. Substrate Competitive Landscape GaAs substrate is dominating the wireless PA/switch market 4 suppliers in GaAs SI substrates: AXT, 2 in Japan, 1 in Germany Healthy secular trends may lead to increased opportunity in 2012 AXT has ongoing qualification efforts to expand its customer/
Slide 8: GaAs Semi-Conducting (S.C.) Substrate
GaAs Semi-Conducting (S.C.) Substrate GaAs makes red and yellow LEDs Applications are very diverse and include: traffic lights, automobile instrumentation, automobile tail lights, cell phone backlighting, signage, display, printers/copy machines, remote controls, novelty products, direct lit LED
Slide 9: GaAs S.C. Substrate Competitive Landscape
GaAs S.C. Substrate Competitive Landscape 5 suppliers in GaAs SC substrates: AXT, 3 in Japan, 1 in China Two recent successful qualifications at major LED customers began contributing to revenue in Q1 Strong price pressure may lead to large volume increase AXT, INC. 2012 9
Slide 10: Ge Substrate Business
Ge Substrate Business Majority of requirements are for satellite solar cell market AXT is qualified for space applications in all of the world’s key geographic regions CPV Solar Cell is poised to begin meaningful growth in 2013 2011 – 150 mw 2012 – 515 mw 2013 – 750 mw The 6” Ge substrate is
Slide 11: Total Market Opportunity
Total Market Opportunity 1000.0 834 900.0 130 800.0 745 700.0 104 114 615 600.0 $ Millions 517 83 97 500.0 66 82 340 400.0 70 285 234 300.0 201 200.0 310 259 100.0 180 216 0.0 2012 2013 2014 2015 SI GaAs SC GaAs Ge InP AXT, INC. 2012 Source: Strategy Analytics and Management estimates 11
Slide 12: Joint Ventures Provide Additional Value and Market Advantages
Joint Ventures Provide Additional Value and Market Advantages Five JV operations established between 1999 – 2001 - Supplies critical raw materials Ga, As, Ge, PBN, B2O3 Gives insight into pricing trends and provides volume guarantees Provides gross margin protection during periods of significa
Slide 13: AXT's Compelling Business Model
AXT’s Compelling Business Model Key material supplies to fast growing materials market Low cost in labor, facilities, raw material Expansive capacity to gain market share VGF technology, AXT pioneered with 25 years experience JV’s provide advantages in capacity, pricing visibility, ability
Slide 14: Financial Overview
AXT, Inc. Financial Overview AXT, INC. 2012 14
Slide 15: Statement of Operations
Statement Of Operations (In millions – except margins and EPS) Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Revenue $24.6 $30.0 $28.3 $21.2 $23.5 Gross Profit $10.7 $14.0 $12.2 $7.8 $8.2 Gross Margin 43.4% 46.7% 43.2% 36.9% 34.9% Net Income $4.2 $7.1 $6.5 $2.6 $1.6 Diluted EPS $0.13 $0.21 $0.19 $0.08 $0.05 Note –
Slide 16: Balance Sheet
Balance Sheet (in millions) 2009 2010 2011 Q1 ‘12 Cash and investments $35.4 $41.0 $40.6 $46.5 Net Acct. Receivable $15.4 $23.1 $18.0 $16.6 Net Inventory $27.7 $36.0 $46.0 $42.0 Total Assets $107.9 $140.6 $162.5 $162.3 Total Debt/Credit Line $0.5 $- $- $- NOTE: Reported under US GAAP AXT, INC. 2012
Slide 17: Thank You!
mS = = > a gf gf VGF STRENGTH. PERFORMANCE. INNOVATION. AXT, INC. 2012 ,