AXT Inc. reports Q2 EPS (15c), consensus (13c)

Reports Q2 revenue $18.0M, consensus $17.94M. The company said, “Our substrate revenue increased in Q2 from the prior quarter, though the increase was less than we had expected as a result of longer processing times for gallium arsenide export permits, coupled with some sluggishness in the demand environment in China, which also affected our raw material business,” said Morris Young, chief executive officer. “That said, we made good progress in driving recovery in our gross margins, with a strong focus on our manufacturing process and efficiency. We also saw healthy growth in AI-related demand for indium phosphide in China and, as a result of obtaining our first export permits in June, were able to ship initial orders of indium phosphide substrates to customers outside of China. Our competitive positioning continues to be enhanced by superior product performance in key specifications such as low etch pit density, or EPD, and we are working diligently to support the next-generation technology requirements of our global customer base.”