Q2 2024 AXT Inc Earnings Call Transcript
Key Points
- AXT Inc (AXTI) reported a 23% sequential increase in revenue for Q2 2024, reaching $27.9 million, and a 50% increase year-over-year.
- The company saw strong growth in indium phosphide substrates, with a 67% increase over the same quarter last year, driven by demand from AI and high-speed optical connectivity.
- Gallium arsenide revenue grew 22% in Q2 and is up 50% from Q4 2023, reflecting broad-based demand across various applications.
- AXT Inc (AXTI) has made significant progress in its recycling efforts, contributing positively to revenue and gross margins.
- The company is optimistic about future growth opportunities, particularly in AI applications, and is well-positioned to support new high-value applications.
- AXT Inc (AXTI) reported a non-GAAP net loss of $800,000 for Q2 2024, although this was an improvement from previous quarters.
- The company expects a moderation in gallium arsenide sales in Q3 due to fluctuations in the industrial market.
- There is some uncertainty regarding the continuation of AI-related orders for indium phosphide substrates in Q3.
- The company faces challenges in reducing inventory levels, particularly for indium phosphide, which has been slower than anticipated.
- AXT Inc (AXTI) provided guidance for Q3 2024 with expected revenue between $25.0 million and $27.0 million, indicating a potential sequential decline.
Good afternoon, everyone, and welcome to AXT's second quarter 2024 financial conference call. Leading the call today is Dr. Morris Young, Chief Executive Officer, and Gary Fisher, Chief Financial Officer. My name is Christina and I'll be your coordinator today. (Operator Instructions) Thank you.
I would now like to turn the call over to Leslie Green, Investor Relations for AXT.
Thank you, Christina, and good afternoon, everyone.
Before we begin, I would like to remind you that during the course of this conference call, including comments made in response to your questions, we will provide projections or make other forward-looking statements regarding, among other things, the future financial performance of the company, market conditions and trends, emerging applications using chips or devices fabricated on our substrates, our product mix, global economic and political conditions including trade tariffs and import and export restrictions, our ability to increase orders in succeeding quarters, to
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