Cost ManagementThe weak guidance can be attributed to the large raw material price increase in Ge, more than doubling during the quarter, which led the company to walk away from orders that would not be profitable.
Financial PerformanceAXT reported 3Q24 below expectations and guided 4Q24 lower than estimates with midpoint revenue of $24MM compared to consensus of $27.6MM.
Market DemandAXT is not yet fully seeing the benefits from the ramp in InP for AI applications as the customers who ordered in 1H24 went into digestion mode.