Q3 2024 AXT Inc Earnings Call Transcript
Key Points
- AXT Inc (AXTI) reported a year-over-year revenue increase from $17.4 million in Q3 2023 to $23.6 million in Q3 2024, indicating growth.
- The company is experiencing solid demand for indium phosphide substrates, particularly in data center applications and AI, which are expected to drive future growth.
- AXT Inc (AXTI) has successfully developed a new indium phosphide product targeting silicon photonics and electro-absorption modulated lasers, securing a design win with a leading customer.
- The company's raw material joint ventures continue to contribute positively to results, with increased demand and stable gallium prices.
- AXT Inc (AXTI) is optimistic about the growth and expansion of its business, particularly in data centers and telecom CapEx spending, which are expected to provide tailwinds in 2025.
- Revenue for Q3 2024 decreased from $27.9 million in Q2 2024, indicating a sequential decline.
- The company reported a non-GAAP net loss of $2.1 million in Q3 2024, compared to a smaller loss of $800,000 in Q2 2024.
- Gross margins decreased to 24.3% in Q3 2024 from 27.6% in Q2 2024, reflecting margin pressure.
- AXT Inc (AXTI) faced challenges in the germanium substrate market due to increased raw material costs, leading to a decision to walk away from low-margin opportunities.
- The economic slowdown in China and weak market conditions have impacted the company's performance, particularly in the gallium arsenide market.
Good afternoon, everyone and Welcome to AXT's third quarter, 2024 financial conference call.
Leading the call today from China is Dr. Morris Young Chief Executive Officer and Gary Fisher, Chief Financial Officer. In addition, Tim Bettles AXT's Vice President of Business Development will be participating in the Q&A portion of the call.
(Operator Instructions)
And 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
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