Revenue from the substrate division, which represented approximately
97 percent of total revenue from continuing operations in the first quarter of
2001, was $38.8 million, up 103 percent from $19.1 million in the first
quarter of 2000, and up 7 percent from $36.3 million in the fourth quarter of
2000.
Revenue from the company’s visible emitter division, which represented
3 percent of the total revenue in the first quarter of 2001, was $1.3 million,
compared with no revenue in the first quarter of 2000 and compared with
$1.0 million in the fourth quarter of 2000 for continuing products.
Net income for the first quarter of 2001 was $5.0 million, up 150 percent
from $2 million in the first quarter of 2000, and up 9 percent from
$4.6 million for the fourth quarter of 2000, excluding the Finisar gain of
$16.9 million, net of taxes, the restructuring charge of $5.1 million, net of
taxes, loss from discontinued operations of $721 thousand, net of taxes, and
loss on disposal of $1.3 million, net of taxes.
Earnings per share on a diluted basis for the first quarter of 2001 were
$0.22 per share on approximately 22.8 million shares outstanding. This
compares with earnings per share of $0.10 on approximately 20.1 million shares
outstanding in the first quarter of 2000 and with $0.20 per share on
approximately 23.0 million shares outstanding in the fourth quarter of 2000,
excluding the one-time Finisar gain, restructuring charges resulting from the
discontinuation of the company’s 650 nm laser diode product line, loss from
discontinued operations and loss on disposal.
I am very pleased with our record results, especially given the current
challenging economic climate, said Morris Young, president and chief
executive officer. We believe that our continued growth is primarily the
result of our earlier investments in large diameter gallium arsenide and
indium phosphide substrate technology that have allowed us to become the
market leader in both substrates.
In the first quarter, indium phosphide revenues grew approximately
36 percent sequentially and now represent nearly 20 percent of our total
substrate sales. Indium phosphide has become an essential material in many of
today’s active fiber optic components. We believe that demand will continue
to increase as next generation fiber optic components currently under
development require even higher power and higher frequency capabilities.
Continuing product revenues from our visible emitter division grew 28
percent sequentially. The VCSEL market continues to grow rapidly, fueled by
the ever-increasing demand for higher data transmission rates in fiber optic
communications. AXT’s unique epi growth technology allows us to produce
complicated epi structures with excellent uniformity. Furthermore, our strong
engineering design and development capability allows us to tailor our standard
products to meet specific customer requirements and gives us competitive
advantages.
This is an exciting time for AXT. Our GaAs business is solid and we
continue to make preparations for the next round of growth in the market
including building capacity, enhancing our supply of raw materials and
reducing our costs. Our InP sales are increasing steadily and we are working
to further strengthen our industry-leading position. Finally, we are excited
about the new products being developed by our visible emitter division and
believe that this division is poised for healthy growth in the coming
quarters. We expect to continue our overall revenue and profit expansion
throughout 2001 and believe we are on track for another record year, he said.
