AXT   Super   Semiconductor

 

 

“Q1 was a strong quarter for AXT in which we exceeded our revenue and profitability guidance, and posted a strong increase in both our gross and operating margins from the prior quarter,” said Morris Young, chief executive officer. “Our indium phosphide revenue was our strongest in recent years. In addition, our manufacturing team continues to work on efficiency and yield improvement, and these efforts along with our product mix helped improve our gross margin in the quarter.”

AXT Inc. is a great manufacturer of semiconductor substrates made up of gallium arsenide. This substrate is used as an application in light emitting diodes, lasers, and optical couplers. This corporation is involved in the development, design, manufacturing and distribution of compounds and single element substrates. AXT Inc. used to sell out their products in the United States and China directly. They also sell out their manufacturing in Europe and other parts of Asia as well but not directly, there they have some independent sale representatives.

American Xtal Technology Inc., this was the former name of this company but in July 2000, its name was changed to AXT Inc. it was founded in 1986 and has a headquarter in Fremont, California. This marvelous and progressive company is currently trading at $2.44 per share and is publicly trading since the endings of 1990’s. It is up about 37.57% in the past five years with its exceptional techniques and procedures of working.

Financial Situation

 

This company had a revenue for the second quarter of 2014 of $21.4 million. When compared with $19.3 million in the first quarter of 2014 it is pretty progressive and have increased due to some major activities regarding a sale. It had a total gallium arsenide (GaAs) substrate income of $11.3 million for the 2nd quarter of 2014 and when it is compared with $8.5 million in the first quarter of 2014, it also differs in increasing order just like the revenue.

This company never loses hope and has progressed so much with the time. AXT Inc. had indium phosphide substrate revenue about $3.0 million for the second quarter of 2014 which was progressed and increased enough as compared to the $2.2 million in the first quarter of 2014. Germanium substrate revenue of AXT Inc. was recorded as the $1.7 million for the second quarter of 2014 and as compared to $3.2 million in the first quarter of 2014, it was nowhere. With every second of time, this company has proceeded a step ahead with the increasing speed. It had sales regarding raw materials recorded as $5.4 million for the second quarter of 2014 which remained consistent with $5.4 million in the first quarter of 2014.

AXT Inc. Chief Executive, Morris Young said about company that

“Q2 was a positive quarter for AXT,” http://www.axt.com/site/index.php?q=node/1

“Through an amalgamation of higher revenues, positive sales mix, other earnings and the first full quarter of benefit from our cost-savings measures, we achieved profitability ahead of our plan. In addition, with a continued focus on cash management, we drove improvement in our balance sheet, growing our cash position and reducing inventory.”

He also said that…

“While the corporate atmosphere remains stimulating, through the 2nd quarter we experienced stouter request in both our semi-insulating and semiconducting gallium arsenide substrates as well as sustained strength in indium phosphide. Considering forward to remain cautiously optimistic about our prospects to drive further growth in our business.”

 

Analysis

 

AXT Inc. has generated revenue of $79.92 million which has a market value of $79.05 Million and P/M ratio of 1.01. This company had a forward Price to earn ratio in Dec 2015 which was about 122.00 and the price/earnings to growth ratio about 3.02 which is expected for five years. Although, the stock value of this company is good enough but we also have to look for the up gradation and progress of the company in following years. AXT Inc. is beating it earning every year with the surprising average of 53.96% over the last years.

The analyst has analyzed that this company will become a giant in the following years because their revenue is increasing day by day. They are currently on Zacks Rank # 1 as a strong buyer and is almost at the top in 32% of industries.

Bottom Line

Investors should have to be careful in investing the capital amount in this company as the stocks are relatively cheap form a price per share. They can invest in this company if they have a high-risk portion of a portfolio. All of these bonds could be unpredictable but given the current earnings estimate revisions, could be possible outperformers in the weeks ahead for stockholders eager to take the plummet on these high risk, but possibly high reward, stocks trading under $5 per share.

http://wall-street.com/stockquote/?symbol=AXTI

http://wall-street.com/stockquote/?symbol=AXTI