News

2 October 2008

 

AXT cuts Q3/2008 revenue and earnings guidance

AXT Inc of Fremont, CA, USA, which manufactures gallium arsenide, indium phosphide and germanium substrate and raw materials, says that, for third-quarter 2008, it expects to report a loss per share of $0.03-0.01 on revenue of $17.8-18.2m (down 8.5-10.2% on Q2's $19.9m). This is down from its previous guidance at the end of July of earnings per share of $0.03-0.05 on revenue of $20.1-20.5m.

AXT attributes the 11-13% cut in revenue guidance to: (i) an overall market slowdown and lower-than-expected demand from customer orders, which also resulted in lower production levels; (ii) continuing efforts to resolve specific product specification issues with a few select customers from the prior quarter; and (iii) the unexpected temporary transportation restrictions on raw materials in China during the Beijing Paralympics, which ended on 30 September.

The Q3 results are preliminary, subject to the management and independent auditors completing customary review processes. AXT will announce its full Q3/2008 results on 3 November.

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