UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC. 20549
FORM 10-Q
(Mark One)
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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for the quarterly period ended September 30, 2004 |
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or |
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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for the transition period from to |
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Commission File Number 000-24085
AXT, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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94-3031310 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
4281 Technology Drive, Fremont, California 94538
(Address of principal executive offices) (Zip code)
(510) 683-5900
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý NO o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). YES o NO ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding at October 20, 2004 |
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Common Stock, $0.001 par value |
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23,118,235 |
AXT, INC.
FORM 10-Q
TABLE OF CONTENTS
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)
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September 30, |
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December 31, |
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Assets: |
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Current assets |
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Cash and cash equivalents |
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$ |
16,220 |
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$ |
24,339 |
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Short-term investments |
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16,670 |
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14,669 |
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Accounts receivable, net of allowance of $4,758 and $4,304 as of September 30, 2004 and December 31, 2003, respectively |
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5,237 |
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6,297 |
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Inventories |
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18,005 |
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24,083 |
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Prepaid expenses and other current assets |
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2,107 |
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1,301 |
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Assets held for sale |
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1,000 |
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1,000 |
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Total current assets |
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59,239 |
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71,689 |
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Property, plant and equipment |
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20,512 |
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21,795 |
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Other assets |
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3,089 |
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4,237 |
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Restricted deposits |
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8,365 |
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9,302 |
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Total Assets |
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$ |
91,205 |
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$ |
107,023 |
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Liabilities: |
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Current liabilities |
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Current portion of long-term debt |
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$ |
2,108 |
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$ |
3,694 |
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Accounts payable |
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2,160 |
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2,638 |
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Accrued liabilities |
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8,587 |
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8,296 |
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Accrued restructuring |
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642 |
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— |
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Total current liabilities |
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13,497 |
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14,628 |
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Long-term debt, net of current portion |
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7,600 |
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8,842 |
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Other long-term liabilities |
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1,313 |
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1,255 |
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Total liabilities |
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22,410 |
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24,725 |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value per share; 2,000 shares authorized; 882 shares issued and outstanding |
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3,532 |
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3,532 |
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Common stock, $0.001 par value per share; 70,000 shares authorized; 23,119 and 22,957 shares issued and outstanding, respectively |
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155,448 |
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155,178 |
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Accumulated deficit |
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(90,299 |
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(78,928 |
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Accumulated other comprehensive income |
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114 |
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2,516 |
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Total stockholders’ equity |
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68,795 |
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82,298 |
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Total Liabilities and Stockholders’ Equity |
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$ |
91,205 |
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$ |
107,023 |
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See accompanying notes to condensed consolidated financial statements.
3
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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$ |
8,531 |
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$ |
8,529 |
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$ |
27,831 |
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$ |
25,583 |
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Cost of revenue |
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10,767 |
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8,029 |
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28,705 |
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24,135 |
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Gross profit (loss) |
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(2,236 |
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500 |
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(874 |
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1,448 |
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Operating expenses: |
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Selling, general and administrative |
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2,468 |
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2,654 |
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8,441 |
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7,973 |
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Research and development |
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397 |
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301 |
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1,088 |
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1,048 |
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Asset impairment charge |
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210 |
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— |
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210 |
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— |
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Restructuring charge |
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158 |
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— |
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1,235 |
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— |
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Total operating expenses |
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3,233 |
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2,955 |
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10,974 |
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9,021 |
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Loss from operations |
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(5,469 |
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(2,455 |
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(11,848 |
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(7,573 |
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Interest expense |
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60 |
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145 |
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227 |
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368 |
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Other expense (income), net |
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(380 |
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(3 |
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(434 |
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1,035 |
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Loss before provision for income taxes |
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(5,149 |
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(2,597 |
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(11,641 |
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(8,976 |
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Provision for incomes taxes |
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40 |
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— |
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177 |
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— |
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Loss from continuing operations |
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(5,189 |
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(2,597 |
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(11,818 |
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(8,976 |
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Discontinued operations: |
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