AXT Inc. sees Q4 EPS (3c)-(1c), consensus (10c)

Sees Q4 revenue $27M-$30M, consensus $21.96M. Says revenue guidance takes into consideration approximately flat sequential revenue contribution from germanium substrates and raw materials with incremental growth in Q4 likely coming from Indian phosphide and gallium arsenide substrates. Sees Q4 operating expenses $9M. Says has approximately $20M in revenue that can be realized in Q4 across its substrate product lines and raw materials, for which the company either already have a permit to ship or for which an export permit is not required because it ships within China. Says has high degree of confidence in recognizing this revenue in Q4. Says believes there is an incremental $7M-$10M in Indian phosphide and gallium arsenide backlog, which is currently in its manufacturing process, for which the company believes it may be able to ship in Q4 if was awarded permits. Comments and guidance taken from Q3 earnings conference call.