Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'AXT INC | ' |
Entity Central Index Key | '0001051627 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,604,958 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $22,760 | $24,961 |
Short-term investments | 22,375 | 12,499 |
Accounts receivable, net of allowances of $791 and $1,054 as of March 31, 2014 and December 31, 2013 | 16,364 | 14,943 |
Inventories | 38,040 | 39,127 |
Prepaid expenses and other current assets | 6,401 | 8,010 |
Total current assets | 105,940 | 99,540 |
Long-term investments | 1,678 | 10,145 |
Property, plant and equipment, net | 36,179 | 37,621 |
Related party notes receivable - long-term | 1,701 | 1,715 |
Other assets | 14,752 | 14,801 |
Total assets | 160,250 | 163,822 |
Current liabilities: | ' | ' |
Accounts payable | 7,618 | 8,140 |
Accrued liabilities | 6,646 | 7,286 |
Total current liabilities | 14,264 | 15,426 |
Long-term portion of royalty payments | 2,325 | 2,525 |
Other long-term liabilities | 272 | 325 |
Total liabilities | 16,861 | 18,276 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of March 31, 2014 and December 31, 2013 (Liquidation preference of $6.2 million and $6.1 million as of March 31, 2014 and December 31, 2013, respectively) | 3,532 | 3,532 |
Common stock, $0.001 par value per share; 70,000 shares authorized; 32,605 and 32,605 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 32 | 32 |
Additional paid-in capital | 194,448 | 194,156 |
Accumulated deficit | -69,045 | -67,005 |
Accumulated other comprehensive income | 8,500 | 8,953 |
AXT, Inc. stockholders' equity | 137,467 | 139,668 |
Noncontrolling interests | 5,922 | 5,878 |
Total stockholders' equity | 143,389 | 145,546 |
Total liabilities and stockholders' equity | $160,250 | $163,822 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Share data in Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowances for doubtful accounts | $791,000 | $1,054,000 |
Stockholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 883 | 883 |
Preferred stock, shares outstanding (in shares) | 883 | 883 |
Preferred stock, liquidation preference | $6,200,000 | $6,100,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 32,605 | 32,605 |
Common stock, shares outstanding (in shares) | 32,605 | 32,605 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ' | ' |
Revenue | $19,345 | $22,380 |
Cost of revenue | 16,627 | 18,896 |
Gross profit | 2,718 | 3,484 |
Operating expenses: | ' | ' |
Selling, general, and administrative | 3,436 | 3,925 |
Research and development | 775 | 822 |
Restructuring charge | 907 | 0 |
Total operating expenses | 5,118 | 4,747 |
Loss from operations | -2,400 | -1,263 |
Interest income, net | 127 | 31 |
Equity in earnings of unconsolidated joint ventures | 487 | 282 |
Other income (expense), net | 10 | -825 |
Loss before provision for income taxes | -1,776 | -1,775 |
Provision (benefit) for income taxes | 59 | 184 |
Net loss | -1,835 | -1,959 |
Less: Net loss attributable to noncontrolling interests | -205 | -441 |
Net loss attributable to AXT, Inc. | ($2,040) | ($2,400) |
Net loss attributable to AXT, Inc. per common share: | ' | ' |
Basic (in dollars per share) | ($0.06) | ($0.08) |
Diluted (in dollars per share) | ($0.06) | ($0.08) |
Weighted average number of common shares outstanding: | ' | ' |
Basic (in shares) | 32,364 | 32,297 |
Diluted (in shares) | 32,364 | 32,297 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) | ' | ' |
Net income (loss) | ($1,835) | ($1,959) |
Other comprehensive income (loss), net of tax: | ' | ' |
Change in foreign currency translation gain (loss), net of tax | -521 | 407 |
Change in unrealized gain (loss) on available-for-sale investments, net of tax | -10 | -17 |
Total other comprehensive income , net of tax | -531 | 390 |
Comprehensive income (loss) | -2,366 | -1,569 |
Less: Comprehensive income attributable to the noncontrolling interests | -126 | -498 |
Comprehensive income (loss) attributable to AXT, Inc. | ($2,492) | ($2,067) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash flows from operating activities: | ' | ' | ||
Net Loss | ($1,835) | ($1,959) | ||
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' | ||
Depreciation and amortization | 1,404 | 1,291 | ||
Amortization of marketable securities premium | 122 | 146 | ||
Stock-based compensation | 292 | 332 | ||
Loss (gain) on disposal of property, plant and equipment | -5 | 0 | ||
Provision for doubtful accounts | 1 | 0 | ||
Changes in assets and liabilities: | ' | ' | ||
Accounts receivable, net | -1,459 | 922 | ||
Inventories | 985 | 1,649 | ||
Prepaid expenses and other current assets | 1,584 | -1,740 | ||
Other assets | 18 | 105 | ||
Accounts payable | -489 | 664 | ||
Accrued liabilities | -697 | [1] | -164 | [1] |
Other long-term liabilities | -308 | -270 | ||
Net cash (used in) provided by operating activities | -387 | 976 | ||
Cash flows from investing activities: | ' | ' | ||
Purchases of property, plant and equipment | -163 | -1,349 | ||
Proceeds from sales of property, plant and equipment | 5 | 0 | ||
Purchases of available-for-sale securities | -3,725 | -12,410 | ||
Proceeds from maturities of available-for-sale securities | 2,180 | 8,130 | ||
Net cash used in investing activities | -1,703 | -5,629 | ||
Cash flows from financing activities: | ' | ' | ||
Proceeds from common stock options exercised | 0 | 256 | ||
Dividends paid by joint ventures | 0 | -532 | ||
Net cash used in financing activities | 0 | -276 | ||
Effect of exchange rate changes on cash and cash equivalents | -111 | 87 | ||
Net decrease in cash and cash equivalents | -2,201 | -4,842 | ||
Cash and cash equivalents at the beginning of the period | 24,961 | 30,634 | ||
Cash and cash equivalents at the end of the period | $22,760 | $25,792 | ||
[1] | Dividends accrued but not paid by joint ventures of $729 and $2,365 was included in accrued liabilities as of March 31, 2014 and March 31, 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) [Abstract] | ' | ' | ' |
Dividends accrued but not paid by joint ventures | $729 | $649 | $2,365 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Note 1. Basis of Presentation | |
The accompanying condensed consolidated financial statements of AXT, Inc. ("AXT," the "Company," "we," "us," and "our" refer to AXT, Inc. and all of its consolidated subsidiaries) are unaudited, and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the year-end condensed consolidated balance sheet data was derived from our audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of our management, the unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the financial position, results of operations and cash flows of AXT and our consolidated subsidiaries for all periods presented. | |
Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ materially from those estimates. | |
The results of operations are not necessarily indicative of the results to be expected in the future or for the full fiscal year. It is recommended that these condensed consolidated financial statements be read in conjunction with our consolidated financial statements and the notes thereto included in our 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 14, 2014. | |
The consolidated financial statements include the accounts of AXT, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co, Ltd., and our majorityowned subsidiaries, Beijing JiYa Semiconductor Material Co., Ltd., Nanjing Jin Mei Gallium Co., Ltd. and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies (generally 20-50% ownership), are accounted for by the equity method. For majority-owned subsidiaries, we reflect the noncontrolling interest of the portion we do not own on our condensed consolidated balance sheets in stockholders' equity and in our condensed consolidated statements of operations. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||||
Note 2. Investments and Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
Our cash, cash equivalents and investments are classified as follows (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gain | (Loss) | Value | Cost | Gain | (Loss) | Value | ||||||||||||||||||||||||||||||
Classified as: | |||||||||||||||||||||||||||||||||||||
Cash | $ | 21,638 | $ | — | $ | — | $ | 21,638 | $ | 24,852 | $ | — | $ | — | $ | 24,852 | |||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||
Money market fund | 1,122 | — | — | 1,122 | 109 | — | — | 109 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 22,760 | — | — | 22,760 | 24,961 | — | — | 24,961 | |||||||||||||||||||||||||||||
Investments (available for sale): | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | 7,864 | 1 | (2 | ) | 7,863 | 6,320 | 2 | (4 | ) | 6,318 | |||||||||||||||||||||||||||
Corporate bonds | 14,155 | 12 | (2 | ) | 14,165 | 14,276 | 8 | (6 | ) | 14,278 | |||||||||||||||||||||||||||
Corporate equity security | 125 | 1,900 | — | 2,025 | 125 | 1.923 | — | 2,048 | |||||||||||||||||||||||||||||
Total investments | 22,144 | 1,913 | (4 | ) | 24,053 | 20,721 | 1,933 | (10 | ) | 22,644 | |||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 44,904 | $ | 1,913 | $ | (4 | ) | $ | 46,813 | $ | 45,682 | $ | 1,933 | $ | (10 | ) | $ | 47,605 | |||||||||||||||||||
Contractual maturities on investments: | |||||||||||||||||||||||||||||||||||||
Due within 1 year | $ | 20,464 | $ | 22,375 | $ | 10,569 | $ | 12,499 | |||||||||||||||||||||||||||||
Due after 1 through 5 years | 1,680 | 1,678 | 10,152 | 10,145 | |||||||||||||||||||||||||||||||||
$ | 22,144 | $ | 24,053 | $ | 20,721 | $ | 22,644 | ||||||||||||||||||||||||||||||
We manage our investments as a single portfolio of highly marketable securities that is intended to be available to meet our current cash requirements. We have no investments in auction rate securities. There were no sales of available-for-sales securities and no realized gains and losses for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
Also included in short-term investments at March 31, 2014 is our investment in the common stock of Intelligent Epitaxy Technology, Inc (IntelliEPI), a Taiwan publicly-traded company. We began classifying this asset as an available-for- sale security upon its initial public offering (IPO) in 2013. Prior to the IPO in 2013, we sold some of our stock in IntelliEPI and realized a gain of approximately $800,000. An unrealized gain of $1.6 million net of tax was recorded as of March 31, 2014. These securities are valued at fair market value at March 31, 2014. There is no assurance that the Company will realize this value when the securities are sold in the future. | |||||||||||||||||||||||||||||||||||||
The gross unrealized losses related to our portfolio of available-for-sale securities were primarily due to changes in interest rates and market and credit conditions of the underlying securities. We have determined that the gross unrealized losses on some of our available-for-sale securities as of March 31, 2014 are temporary in nature. We periodically review our investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the market value has been below cost (or adjusted cost), credit quality, and our ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 1,918 | $ | (1 | ) | $ | 1,239 | $ | (1 | ) | $ | 3,157 | $ | (2 | ) | ||||||||||||||||||||||
Corporate bonds | — | — | 2,382 | (2 | ) | 2,382 | (2 | ) | |||||||||||||||||||||||||||||
Total in loss position | $ | 1,918 | $ | (1 | ) | $ | 3,621 | $ | (3 | ) | $ | 5,539 | $ | (4 | ) | ||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 3,425 | $ | (4 | ) | $ | 720 | $ | (0 | ) | $ | 4,145 | $ | (4 | ) | ||||||||||||||||||||||
Corporate bonds | 4,473 | (5 | ) | 3,711 | (1 | ) | 8,184 | (6 | ) | ||||||||||||||||||||||||||||
Total in loss position | $ | 7,898 | $ | (9 | ) | $ | 4,431 | $ | (1 | ) | $ | 12,329 | $ | (10 | ) | ||||||||||||||||||||||
Investments in Privately-held Companies | |||||||||||||||||||||||||||||||||||||
We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business (see Note 6). The investment balances for all these companies, including minority investments indirectly in privately-held companies made by our consolidated joint ventures, accounted for under the equity method are included in "other assets" in the consolidated balance sheets and totaled $11.0 million and $10.9 million as of March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||||||
We also maintain minority investments in one company which is accounted for under the cost method as we do not have the ability to exercise significant influence over their operations. Our investments under the cost method are reviewed for other than temporary declines in value on a quarterly basis. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. As of March 31, 2014 and December 31, 2013, our investments in this unconsolidated company had a carrying value of $200,000 and were also included in "other assets" in the condensed consolidated balance sheets. | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
ASC topic 820, Fair value measurement ("ASC 820") establishes three levels of inputs that may be used to measure fair value. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 instrument valuations are obtained from unobservable inputs in which there is little or no market data, which require us to develop our own assumptions. As of March 31, 2014, we did not have any Level 3 assets or liabilities. On a recurring basis, we measure certain financial assets and liabilities at fair value, primarily consisting of our short-term and long-term investments. | |||||||||||||||||||||||||||||||||||||
The type of instrument valued based on quoted market prices in active markets include our money market funds, which are generally classified within Level 1 of the fair value hierarchy. Other than corporate equity securities which are based on quoted market prices and classified as Level 1, we classify our available-for-sale securities including certificates of deposit, corporate bonds as having Level 2 inputs. The valuation techniques used to measure the fair value of these financial instruments having Level 2 inputs were derived from quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. There were no changes in valuation techniques or related inputs in the three months ended March 31, 2014. There have been no transfers between fair value measurement levels during the three months ended March 31, 2014. | |||||||||||||||||||||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||||||||||||||
31-Mar-14 | Active Markets of | Observable Inputs | |||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||||||||||||||
Money market fund | $ | 1,122 | $ | 1,122 | $ | — | |||||||||||||||||||||||||||||||
Certificates of deposit | 7,863 | — | 7,863 | ||||||||||||||||||||||||||||||||||
Corporate bonds | 14,165 | — | 14,165 | ||||||||||||||||||||||||||||||||||
Corporate equity securities | 2,025 | 2,025 | — | ||||||||||||||||||||||||||||||||||
Total | $ | 25,175 | $ | 3,147 | $ | 22,028 | |||||||||||||||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||||||||||||||
31-Dec-13 | Active Markets of | Observable Inputs | |||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||||||||||||||
Money market fund | $ | 109 | $ | 109 | $ | — | |||||||||||||||||||||||||||||||
Certificates of deposit | 6,318 | — | 6,318 | ||||||||||||||||||||||||||||||||||
Corporate bonds | 14,278 | — | 14,278 | ||||||||||||||||||||||||||||||||||
Corporate equity securities | 2,048 | 2,048 | — | ||||||||||||||||||||||||||||||||||
Total | $ | 22,753 | $ | 2,157 | $ | 20,596 | |||||||||||||||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||||||||
Certain assets that are subject to nonrecurring fair value measurements are not included in the table above. These assets include investments in privately-held companies accounted for by equity and cost method (See Note 6). We did not record other-than-temporary impairment charges for either of these investments during the three months ended March 31, 2014 or 2013. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 3. Inventories | |||||||||
The components of inventories are summarized below (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Inventories: | |||||||||
Raw materials | $ | 19,873 | $ | 21,063 | |||||
Work in process | 14,396 | 14,027 | |||||||
Finished goods | 3,771 | 4,037 | |||||||
$ | 38,040 | $ | 39,127 | ||||||
As of March 31, 2014 and December 31, 2013, carrying values of inventories were net of inventory reserve of $11.5 million and $11.0 million, respectively, for excess and obsolete inventory. |
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Note 4. Accrued Liabilities | |||||||||
The components of accrued liabilities are summarized below (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued product warranty | $ | 1,227 | $ | 1,048 | |||||
Accrued compensation and related charges | 1,210 | 1,762 | |||||||
Current portion of royalty payments | 800 | 800 | |||||||
Dividends payable by consolidated joint ventures | 729 | 649 | |||||||
Accrued professional services | 279 | 543 | |||||||
Accrued income taxes | 100 | 125 | |||||||
Other accrued liabilities | 2,301 | 2,359 | |||||||
$ | 6,646 | $ | 7,286 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 5. Related Party Transactions | |
In August 2011, our consolidated joint venture, Beijing JiYa Semiconductor Material Co., Ltd (JiYa), entered into a non-interest bearing note agreement in the amount of $1.7 million (Rmb 10,485,200) with one of its equity investment entities The original term of the loan was for two years and ten months with 3 periodic principal payments required. After various amendments to the terms of the note, in December 2013 the parties agreed to delay all principal repayment until December 2016. As of March 31, 2014, and December 31, 2013, we included $1.7 million (Rmb 10,485,200) in "Related party notes receivable – long term" in our consolidated balance sheets. | |
Beginning in 2012, JiYa is contractually obligated under an agency sales agreement to sell raw material on behalf of one of its equity investment entities. Jiya bills to the customers and remits the receipts, net of its portions of sales commission, to this equity investment entity. For the three months ended March 31, 2014 and 2013, JiYa has recorded $0 and $10,000 of income from agency sales respectively, which was included in "other expense, net" in our condensed consolidated statements of operations. As of March 31, 2014 and December 31, 2013, there were no amounts payable to this equity investment entity. | |
JiYa also purchases raw materials from one of its equity investment entities for production in the ordinary course of business. As of March 31, 2014 and December 31, 2013, amounts payable of $1.2 million and $1.5 million, respectively, were included in "accounts payable" in our condensed consolidated balance sheets. | |
Beginning in 2012, our consolidated joint venture, Nanjing Jin Mei Gallium Co., Ltd. (Jin Mei) is contractually obligated under an agency sales agreement to sell raw material on behalf of its equity investment entity. Jin Mei bills the customers and remits the receipts, net of its portions of sales commission, to this equity investment entity. For the three months ended March 31, 2014 and 2013, Jin Mei has recorded $5,000 and $65,000 income from agency sales, respectively, which were included in "other income (expense), net" in the consolidated statements of operations. | |
In March 2012, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. (Tongmei), entered into an operating lease for the land it owns with our consolidated joint venture Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. The lease agreement for the land of approximately 22,081 square feet commenced on January 1, 2012 for a term of 10 years with annual lease payments of $24,000 (Rmb 150,000) subject to a 5% increase at each third year anniversary. The annual lease payment is due by January 31 of each year. | |
Tongmei has paid $120,000 (Rmb 740,924) on behalf of Donghai County Dongfang High Purity Electronic Materials Co., Ltd. its equity investment entity, to purchase materials. As of March 31, 2014, this balance was included in "prepaid expenses and other current assets" in our consolidated balance sheets. | |
Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between related parties and us, unless they have been approved by our Board of Directors. This policy applies to all of our employees and directors, our subsidiaries and our joint ventures. Our executive officers retain board seats on the board of directors of the companies in which we have invested in our China joint ventures. See Note 6 for further details. |
Investments_in_Privatelyheld_C
Investments in Privately-held Companies | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Investments in Privately-held Companies [Abstract] | ' | |||||||||||||
Investments in Privately-held Companies | ' | |||||||||||||
Note 6. Investments in Privately-held Companies | ||||||||||||||
We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business. | ||||||||||||||
Our investments are summarized below (in thousands): | ||||||||||||||
Investment Balance as of | ||||||||||||||
March 31, | December 31, | Accounting | Ownership | |||||||||||
Company | 2014 | 2013 | Method | Percentage | ||||||||||
Beijing JiYa Semiconductor Material Co., Ltd. | $ | 3,331 | $ | 3,331 | Consolidated | 46 | % | |||||||
Nanjing Jin Mei Gallium Co., Ltd. | 592 | 592 | Consolidated | 83 | % | |||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. | 1,346 | 1,346 | Consolidated | 70 | % | |||||||||
$ | 5,269 | $ | 5,269 | |||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd. | $ | 1,867 | $ | 1,900 | Equity | 46 | % | |||||||
Xilingol Tongli Germanium Co. Ltd. | 4,849 | 4,692 | Equity | 25 | % | |||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd. | 925 | 945 | Equity | 25 | % | |||||||||
$ | 7,641 | $ | 7,537 | |||||||||||
Our ownership of Beijing JiYa Semiconductor Material Co., Ltd. (JiYa) is 46%. We continue to consolidate JiYa as we have significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the JiYa board, while our president of China operations, our vice president of China administration and our vice president of wafer production are also members of the board. | ||||||||||||||
Our ownership of Nanjing Jin Mei Gallium Co., Ltd. (Jin Mei) is 83%. We continue to consolidate Jin Mei as we have significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the Jin Mei board, while our president of China operations and our vice president of China administration are also members of the board. | ||||||||||||||
Our ownership of Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. (BoYu) is 70%. We continue to consolidate BoYu as we have a significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the BoYu board, while our president of China operations and our vice president of China administration are also members of the board. | ||||||||||||||
Although we have representation on the boards of directors of each of these companies, the daily operations of each of these companies are managed by local management and not by us. Decisions concerning their respective short term strategy and operations, any capacity expansion and annual capital expenditures, and decisions concerning sales of finished product, are made by local management with some inputs from us. | ||||||||||||||
During the three months ended March 31, 2014 and 2013, the three consolidated joint ventures generated $0.8 million and $1.3 million of income, respectively, of which $205,000 and $441,000, respectively, were allocated to minority interests, resulting in $548,000 and $852,000 of income, respectively, to our net income (loss). | ||||||||||||||
For the three minority investment entities that are not consolidated, the investment balances are included in "other assets" in our condensed consolidated balance sheets and totaled $7.6 million and $7.5 million as of March 31, 2014 and December 31, 2013. We own 46% of the ownership interests in one of these companies and 25% in each of the other two companies. These three companies are not considered variable interest entities because: | ||||||||||||||
· | all three companies have sustainable businesses of their own; | |||||||||||||
· | our voting power is proportionate to our ownership interests; | |||||||||||||
· | we only recognize our respective share of the losses and/or residual returns generated by the companies if they occur; and | |||||||||||||
· | we do not have controlling financial interest in, do not maintain operational or management control of, do not control the board of directors of, and are not required to provide additional investment or financial support to any of these companies. | |||||||||||||
We also maintain minority investments in privately-held companies made indirectly through our consolidated joint ventures. These minority investments are accounted for under the equity method in the books of our consolidated joint ventures. As of March 31, 2014 and December 31, 2013, our consolidated joint ventures included these minority investments in "other assets" in the condensed consolidated balance sheets with a carrying value of $3.4 million. | ||||||||||||||
All of the minority investment entities that are not consolidated and accounted for under the equity method had the following summarized income information (in thousands) for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Net Sales | $ | 13,480 | $ | 9,273 | ||||||||||
Gross profit | 3,963 | 3,124 | ||||||||||||
Operating income | 2,664 | 1,614 | ||||||||||||
Net income | 2,119 | 1,295 | ||||||||||||
Our gross entity earnings from all the minority investment entities that are not consolidated and accounted for under the equity method were $487,000 and $282,000 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
We also maintain minority investments directly in one privately-held companies accounted for under the cost method and we do not have the ability to exercise significant influence over their operations. As of March 31, 2014 and December 31, 2013, our investments in this unconsolidated privately-held company had a carrying value of $200,000 and are included in "other assets" in the condensed consolidated balance sheets. |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Repurchase Program | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock Repurchase Program [Abstract] | ' | ||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock Repurchase Program | ' | ||||||||||||||||||||||||||||||||
Note 7. Stockholders' Equity and Stock Repurchase Program | |||||||||||||||||||||||||||||||||
Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||
Preferred | Common | Additional | Accumulated | Other | AXT, Inc. | Noncontrolling | Total | ||||||||||||||||||||||||||
Stock | Stock | Paid In Capital | Deficit | Comprehensive | stockholders' | interests | stockholders' | ||||||||||||||||||||||||||
Income/(loss) | equity | equity | |||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 3,532 | $ | 32 | $ | 194,156 | $ | (67,005 | ) | $ | 8,953 | $ | 139,668 | $ | 5,878 | $ | 145,546 | ||||||||||||||||
Stock-based compensation | 292 | 292 | 292 | ||||||||||||||||||||||||||||||
Net (loss) income | (2,040 | ) | (2,040 | ) | 205 | (1,835 | ) | ||||||||||||||||||||||||||
Dividends declared by joint ventures | (83 | ) | (83 | ) | |||||||||||||||||||||||||||||
Change in unrealized (loss) gain on marketable securities | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||||||||||||
Currency translation adjustment | (442 | ) | (442 | ) | (79 | ) | (521 | ) | |||||||||||||||||||||||||
Balance as of March 31, 2014 | $ | 3,532 | $ | 32 | $ | 194,448 | $ | (69,045 | ) | $ | 8,501 | $ | 137,468 | $ | 5,921 | $ | 143,389 | ||||||||||||||||
There were no reclassification adjustments from accumulated other comprehensive income for the three months ended March 31, 2014 and March 31, 2013. | |||||||||||||||||||||||||||||||||
Stock Repurchase Program | |||||||||||||||||||||||||||||||||
On February 21, 2013, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $6.0 million of our outstanding common stock through February 27, 2014. These purchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. During 2013, we repurchased approximately 285,000 shares at an average price of $2.51 per share for a total purchase price of $716,000 under the stock repurchase program. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, approximately $5.3 million remained available for future repurchases under this program. No shares were repurchased in the three months ended March 31, 2014 under this program. This repurchase plan expired on February 27, 2014. See Item 2, Unregistered Sales of Equity Securities and Use of Proceeds in Part II, Other Information, for additional information. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 8. Stock-Based Compensation | |||||||||||||||||
We account for stock-based compensation in accordance with the provisions of FASB Accounting Standards Codification ("ASC") topic 718, Compensation-Stock Compensation ("ASC 718"), which established accounting for stock-based awards exchanged for employee services. Stock-based compensation cost is measured at each grant date, based on the fair value of the award, and is recognized as expense over the employee's requisite service period of the award. All of our stock compensation is accounted for as an equity instrument. | |||||||||||||||||
The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of revenue | $ | 5 | $ | 6 | |||||||||||||
Selling, general and administrative | 244 | 284 | |||||||||||||||
Research and development | 43 | 42 | |||||||||||||||
Total stock-based compensation | 292 | 332 | |||||||||||||||
Tax effect on stock-based compensation | — | — | |||||||||||||||
Net effect on net income (loss) | $ | 292 | $ | 332 | |||||||||||||
As of March 31, 2014, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plans were approximately $1.4 million, net of estimated forfeitures of $92,000. These costs are amortized on a straight-line basis over a weighted-average period of approximately 2.6 years and will be adjusted for subsequent changes in estimated forfeitures. We elected not to capitalize any stock-based compensation to inventory as of March 31, 2014 due to the immateriality of the amount. | |||||||||||||||||
We estimate the fair value of stock options using a Black-Scholes valuation model, consistent with the provisions of ASC 718. There were no stock options granted in the three months ended March 31, 2014 and 2013. | |||||||||||||||||
The following table summarizes our stock option activities during the three months ended March 31, 2014 (in thousands, except per share data): | |||||||||||||||||
Stock Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
average | average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
(in years) | |||||||||||||||||
Balance as of January 1, 2014 | 2,671 | $ | 3.29 | 6.71 | $ | 893 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled and expired | (74 | ) | 5.18 | ||||||||||||||
Balance as of March 31, 2014 | 2,597 | $ | 3.24 | 6.65 | $ | 438 | |||||||||||
Options vested and expected to vest as of March 31, 2014 | 2,597 | $ | 3.24 | 6.65 | $ | 438 | |||||||||||
Options exercisable as of March 31, 2014 | 1,663 | $ | 3.3 | 5.43 | $ | 438 | |||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $2.20 on March 31, 2014, which would have been received by the option holder had all option holders exercised their options on that date. | |||||||||||||||||
Restricted stock awards | |||||||||||||||||
A summary of activity related to restricted stock awards for the three months ended March 31, 2014 is presented below: | |||||||||||||||||
Stock Awards | Shares | Weighted-Average | |||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Non-vested as of January 1, 2014 | 241,232 | $ | 3.44 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Non-vested as of March 31, 2014 | 241,232 | $ | 3.44 | ||||||||||||||
As of March 31, 2014, the unamortized compensation costs related to unvested restricted stock awards was approximately $581,000, which is to be amortized on a straight-line basis over a weighted average period of approximately 2.3 years. |
Net_Income_loss_Per_Share
Net Income (loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Income (loss) Per Share [Abstract] | ' | ||||||||
Net Income (loss) Per Share | ' | ||||||||
Note 9. Net Income (loss) Per Share | |||||||||
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options. Potentially dilutive common shares are excluded in net loss periods, as their effect would be anti-dilutive. | |||||||||
A reconciliation of the numerators and denominators of the basic and diluted net loss per share calculations is as follows (in thousands, except per share data): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss attributable to AXT, Inc. | $ | (2,040 | ) | $ | (2,400 | ) | |||
Less: Preferred stock dividends | (44 | ) | (44 | ) | |||||
Net loss available to common stockholders | $ | (2,084 | ) | $ | (2,444 | ) | |||
Denominator: | |||||||||
Denominator for basic net loss per share - weighted average common shares | 32,364 | 32,297 | |||||||
Effect of dilutive securities: | |||||||||
Common stock options | — | — | |||||||
Restricted stock awards | — | — | |||||||
Denominator for dilutive net loss per common share | 32,364 | 32,297 | |||||||
Net loss attributable to AXT, Inc. per common share: | |||||||||
Basic | $ | (0.06 | ) | $ | (0.08 | ) | |||
Diluted | $ | (0.06 | ) | $ | (0.08 | ) | |||
Weighted-average shares: | 2,607 | 2,656 | |||||||
Options excluded from diluted net loss per share as the impact is anti-dilutive | |||||||||
Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive | 241 | 239 | |||||||
The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of March 31, 2014 and December 31, 2013, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the board of directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999. |
Segment_Information_and_Foreig
Segment Information and Foreign Operations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Information and Foreign Operations [Abstract] | ' | ||||||||
Segment Information and Foreign Operations | ' | ||||||||
Note 10. Segment Information and Foreign Operations | |||||||||
Segment Information | |||||||||
We operate in one segment for the design, development, manufacture and distribution of high-performance compound semiconductor substrates and sale of materials. In accordance with ASC topic 280, Segment Reporting, our chief operating decision-maker has been identified as our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in our condensed consolidated financial statements. | |||||||||
The following table represents revenue amounts (in thousands) by product type: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Product type: | |||||||||
GaAs substrates | $ | 8,488 | $ | 11,723 | |||||
InP substrates | 2,180 | 1,849 | |||||||
Ge substrates | 3,278 | 2,551 | |||||||
Raw materials and other | 5,399 | 6,257 | |||||||
Total | $ | 19,345 | $ | 22,380 | |||||
The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Geographical information: | |||||||||
Europe (primarily Germany) | $ | 6,583 | $ | 4,689 | |||||
China | 4,165 | 6,029 | |||||||
Asia Pacific (excluding China, Japan and Taiwan) | 2,389 | 2,132 | |||||||
Taiwan | 2,115 | 3,779 | |||||||
Japan | 2,313 | 2,282 | |||||||
North America (primarily the United States) | 1,780 | 3,469 | |||||||
Total | $ | 19,345 | $ | 22,380 | |||||
Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets by geographic region were as follows (in thousands): | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Long-lived assets by geographic region: | |||||||||
North America | $ | 179 | $ | 204 | |||||
China | 36,000 | 37,417 | |||||||
$ | 36,179 | $ | 37,621 | ||||||
Significant Customers | |||||||||
No customer represented more than 10% of our revenue for the three months ended March 31, 2014 and 2013. Our top five customers, although not the same five customers for each period, represented 39% and 34% of our revenue for the three months ended March 31, 2014 and 2013, respectively. | |||||||||
We perform ongoing credit evaluations of our customers' financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. No customer accounted for over 10% of our trade accounts receivable balance as of March 31, 2014 while one customer accounted for 20% of our trade accounts receivable balance as of December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||||||||
Note 11. Commitments and Contingencies | |||||||||||||||||||||||||||||||||
Indemnification Agreements | |||||||||||||||||||||||||||||||||
We enter into standard indemnification arrangements with our customers in the ordinary course of business. Pursuant to these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally their business partners or customers, in connection with any U.S. patent, or any copyright or other intellectual property infringement claim by any third party with respect to our products. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments we could be required to make under these agreements is unlimited. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. | |||||||||||||||||||||||||||||||||
We have entered into indemnification agreements with our directors and officers that require us to (i) indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature, (ii) advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified, and (iii) obtain directors' and officers' insurance if available on reasonable terms, which we currently have in place. | |||||||||||||||||||||||||||||||||
Product Warranty | |||||||||||||||||||||||||||||||||
We provide warranties for our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs are primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update these based on the historical warranty cost trends. The following table reflects the change in our warranty accrual which is included in "accrued liabilities" on the condensed consolidated balance sheets, during the three months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Beginning accrued warranty and related costs | $ | 1048 | $ | 588 | |||||||||||||||||||||||||||||
Accruals for warranties issued | 496 | 264 | |||||||||||||||||||||||||||||||
Adjustments related to pre-existing warranties including expirations and changes in estimates | (103 | ) | 166 | ||||||||||||||||||||||||||||||
Cost of warranty repair | (214 | ) | (269 | ) | |||||||||||||||||||||||||||||
Ending accrued warranty and related costs | $ | 1,227 | $ | 749 | |||||||||||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||||||||||||||
We lease certain office space, manufacturing facilities and equipment under long-term operating leases expiring at various dates through February 2023. The majority of our lease obligations relates to our lease agreement for the facility at Fremont, California with approximately 27,760 square feet, which commenced on December 1, 2008 for a term of seven years, with an option by us to cancel the lease after five years, upon forfeiture of the security deposit and payment of one-half of the fifth year's rent. On June 28, 2013, we sent a notice to terminate the lease effective November 30, 2013 with an early termination penalty of $142,000 which was recorded as an expense in the third quarter of 2013. On August 2, 2013, we signed a new lease agreement for the current facility with reduced footage of 20,767 square feet, which commenced on December 1, 2013 for a term of two years. The reduced square footage, the reduced rate per square foot, and the expected reduced operating costs, would save us approximately total $382,000 during 2014 and 2015. | |||||||||||||||||||||||||||||||||
We entered into a royalty agreement with a vendor effective December 3, 2010 with a term of eight years, terminating December 31, 2018. We and our related companies are granted a worldwide, nonexclusive, royalty bearing, irrevocable license to certain patents for the term of the agreement. We shall pay a total of $7.0 million royalty payment over eight years beginning in 2011 based on future royalty bearing sales. This agreement contains a clause that allows us to make a claim for credit, starting in 2013, in the event that the royalty bearing sales for the year is lower than a pre-determined amount set forth in this agreement. | |||||||||||||||||||||||||||||||||
Outstanding contractual obligations as of March 31, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||||||
Payments due by period | |||||||||||||||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 3-Jan | 5-Apr | More than | ||||||||||||||||||||||||||||
years | years | 5 years | |||||||||||||||||||||||||||||||
Operating leases | $ | 557 | $ | 263 | $ | 208 | $ | 34 | $ | 52 | |||||||||||||||||||||||
Royalty agreement | 3,125 | 3,125 | 1,319 | 800 | — | ||||||||||||||||||||||||||||
Total | $ | 3,682 | $ | 1,063 | $ | 1,527 | $ | 1,040 | $ | 52 | |||||||||||||||||||||||
Purchase Obligations | |||||||||||||||||||||||||||||||||
In the normal course of business, we purchase or place orders for the necessary materials of our products from various suppliers and we commit to purchase products where we may incur a penalty if the agreement was canceled. As of March 31, 2014, we do not have any outstanding material purchase obligations. | |||||||||||||||||||||||||||||||||
Legal Proceedings | |||||||||||||||||||||||||||||||||
From time to time we may be involved in judicial or administrative proceedings concerning matters arising in the ordinary course of business. We do not expect that any of these matters, individually or in the aggregate, will have a material adverse effect on our business, financial condition, cash flows or results of operation. |
Foreign_Exchange_Transaction_L
Foreign Exchange Transaction Losses | 3 Months Ended |
Mar. 31, 2014 | |
Foreign Exchange Transaction Losses [Abstract] | ' |
Foreign Exchange Transaction Losses | ' |
Note 12. Foreign Exchange Transaction Losses | |
We incurred foreign currency transaction exchange gains of $17,000 and losses of $593,000 for the three months ended March 31, 2014 and 2013, respectively. These amounts are included in "Other expense, net" on our condensed consolidated statements of operations. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 13. Income Taxes | |
We account for income taxes in accordance with ASC topic 740, Income Taxes ("ASC 740") which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. | |
In accordance with Section 382 of the Internal Revenue Code, the amounts of and benefits from net operating loss and tax credit carryforwards may be impaired or limited in certain circumstances. Events which cause limitations in the amount of net operating losses or credits that we may utilize in any one year include, but are not limited to, a cumulative ownership change of more that 50% as defined, over a three year period. As a result of the implementation of Interpretation 48, we recognized $16.4 million of liability for unrecognized tax benefits. Of this amount, none was accounted for as a reduction to balance of retained earnings. The amount decreased tax loss carryforwards in the U.S., which are fully offset by a valuation allowance. | |
We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the three month ended March 31, 2014 includes no interest and penalties. As of March 31, 2014, we have no accrued interest and penalties related to uncertain tax positions. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. We have substantially concluded all U.S. federal and state income tax matters through December 31, 2012. | |
Provision for income taxes for three months ended March 31, 2014 and 2013 was mostly related to our China subsidiary and our China joint venture operations. We have made a tax election in China whereby certain minimum foreign withholding taxes are treated as an expense and not a tax credit. Besides the state taxes liabilities, no federal income tax benefit or expense has been provided for the three months ended March 31, 2014 or 2013 due to our net loss, our valuation allowance being utilized and uncertainty of future profits in the U.S. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2014 | |
Restructuring Charges [Abstract] | ' |
Restructuring Charges | ' |
Note 14. Restructuring Charges | |
On February 25, 2014, we announced a restructuring plan with respect to our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co, Ltd. ("Tongmei") in order to better align demand with manufacturing capacity. Under the restructuring plan, Tongmei would implement certain workforce reductions with respect to its manufacturing facility in China. We also announced that the restructuring plan would be completed by March 31, 2014, depending on local legal requirements. | |
In the first quarter of 2014, we reduced the workforce at Tongmei by approximately 93 positions that are no longer required to support production and operations, or approximately 11 percent of the workforce. Accordingly, we recorded a restructuring charge of approximately $907,000 related to the reduction in force for severance-related expenses. As of March 31, 2014 we have completed this restructuring plan and the reduction in force. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note 15. Recent Accounting Pronouncements | |
There have been no new accounting pronouncements during the three months ended March 31, 2014, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2013, that are of material significance, or potential significance, to the Company. |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and investments | ' | ||||||||||||||||||||||||||||||||||||
Our cash, cash equivalents and investments are classified as follows (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gain | (Loss) | Value | Cost | Gain | (Loss) | Value | ||||||||||||||||||||||||||||||
Classified as: | |||||||||||||||||||||||||||||||||||||
Cash | $ | 21,638 | $ | — | $ | — | $ | 21,638 | $ | 24,852 | $ | — | $ | — | $ | 24,852 | |||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||
Money market fund | 1,122 | — | — | 1,122 | 109 | — | — | 109 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 22,760 | — | — | 22,760 | 24,961 | — | — | 24,961 | |||||||||||||||||||||||||||||
Investments (available for sale): | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | 7,864 | 1 | (2 | ) | 7,863 | 6,320 | 2 | (4 | ) | 6,318 | |||||||||||||||||||||||||||
Corporate bonds | 14,155 | 12 | (2 | ) | 14,165 | 14,276 | 8 | (6 | ) | 14,278 | |||||||||||||||||||||||||||
Corporate equity security | 125 | 1,900 | — | 2,025 | 125 | 1.923 | — | 2,048 | |||||||||||||||||||||||||||||
Total investments | 22,144 | 1,913 | (4 | ) | 24,053 | 20,721 | 1,933 | (10 | ) | 22,644 | |||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 44,904 | $ | 1,913 | $ | (4 | ) | $ | 46,813 | $ | 45,682 | $ | 1,933 | $ | (10 | ) | $ | 47,605 | |||||||||||||||||||
Contractual maturities on investments: | |||||||||||||||||||||||||||||||||||||
Due within 1 year | $ | 20,464 | $ | 22,375 | $ | 10,569 | $ | 12,499 | |||||||||||||||||||||||||||||
Due after 1 through 5 years | 1,680 | 1,678 | 10,152 | 10,145 | |||||||||||||||||||||||||||||||||
$ | 22,144 | $ | 24,053 | $ | 20,721 | $ | 22,644 | ||||||||||||||||||||||||||||||
Fair value and gross unrealized losses related to available-for-sale securities | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 1,918 | $ | (1 | ) | $ | 1,239 | $ | (1 | ) | $ | 3,157 | $ | (2 | ) | ||||||||||||||||||||||
Corporate bonds | — | — | 2,382 | (2 | ) | 2,382 | (2 | ) | |||||||||||||||||||||||||||||
Total in loss position | $ | 1,918 | $ | (1 | ) | $ | 3,621 | $ | (3 | ) | $ | 5,539 | $ | (4 | ) | ||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 3,425 | $ | (4 | ) | $ | 720 | $ | (0 | ) | $ | 4,145 | $ | (4 | ) | ||||||||||||||||||||||
Corporate bonds | 4,473 | (5 | ) | 3,711 | (1 | ) | 8,184 | (6 | ) | ||||||||||||||||||||||||||||
Total in loss position | $ | 7,898 | $ | (9 | ) | $ | 4,431 | $ | (1 | ) | $ | 12,329 | $ | (10 | ) | ||||||||||||||||||||||
Summary of financial assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||||||||||||||
31-Mar-14 | Active Markets of | Observable Inputs | |||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||||||||||||||
Money market fund | $ | 1,122 | $ | 1,122 | $ | — | |||||||||||||||||||||||||||||||
Certificates of deposit | 7,863 | — | 7,863 | ||||||||||||||||||||||||||||||||||
Corporate bonds | 14,165 | — | 14,165 | ||||||||||||||||||||||||||||||||||
Corporate equity securities | 2,025 | 2,025 | — | ||||||||||||||||||||||||||||||||||
Total | $ | 25,175 | $ | 3,147 | $ | 22,028 | |||||||||||||||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||||||||||||||
31-Dec-13 | Active Markets of | Observable Inputs | |||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||||||||||||||
Money market fund | $ | 109 | $ | 109 | $ | — | |||||||||||||||||||||||||||||||
Certificates of deposit | 6,318 | — | 6,318 | ||||||||||||||||||||||||||||||||||
Corporate bonds | 14,278 | — | 14,278 | ||||||||||||||||||||||||||||||||||
Corporate equity securities | 2,048 | 2,048 | — | ||||||||||||||||||||||||||||||||||
Total | $ | 22,753 | $ | 2,157 | $ | 20,596 | |||||||||||||||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Components of inventories | ' | ||||||||
The components of inventories are summarized below (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Inventories: | |||||||||
Raw materials | $ | 19,873 | $ | 21,063 | |||||
Work in process | 14,396 | 14,027 | |||||||
Finished goods | 3,771 | 4,037 | |||||||
$ | 38,040 | $ | 39,127 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Components of accrued liabilities | ' | ||||||||
The components of accrued liabilities are summarized below (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued product warranty | $ | 1,227 | $ | 1,048 | |||||
Accrued compensation and related charges | 1,210 | 1,762 | |||||||
Current portion of royalty payments | 800 | 800 | |||||||
Dividends payable by consolidated joint ventures | 729 | 649 | |||||||
Accrued professional services | 279 | 543 | |||||||
Accrued income taxes | 100 | 125 | |||||||
Other accrued liabilities | 2,301 | 2,359 | |||||||
$ | 6,646 | $ | 7,286 |
Investments_in_Privatelyheld_C1
Investments in Privately-held Companies (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Investments in Privately-held Companies [Abstract] | ' | |||||||||||||
Investments | ' | |||||||||||||
Our investments are summarized below (in thousands): | ||||||||||||||
Investment Balance as of | ||||||||||||||
March 31, | December 31, | Accounting | Ownership | |||||||||||
Company | 2014 | 2013 | Method | Percentage | ||||||||||
Beijing JiYa Semiconductor Material Co., Ltd. | $ | 3,331 | $ | 3,331 | Consolidated | 46 | % | |||||||
Nanjing Jin Mei Gallium Co., Ltd. | 592 | 592 | Consolidated | 83 | % | |||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. | 1,346 | 1,346 | Consolidated | 70 | % | |||||||||
$ | 5,269 | $ | 5,269 | |||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd. | $ | 1,867 | $ | 1,900 | Equity | 46 | % | |||||||
Xilingol Tongli Germanium Co. Ltd. | 4,849 | 4,692 | Equity | 25 | % | |||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd. | 925 | 945 | Equity | 25 | % | |||||||||
$ | 7,641 | $ | 7,537 | |||||||||||
Summarized income information | ' | |||||||||||||
All of the minority investment entities that are not consolidated and accounted for under the equity method had the following summarized income information (in thousands) for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Net Sales | $ | 13,480 | $ | 9,273 | ||||||||||
Gross profit | 3,963 | 3,124 | ||||||||||||
Operating income | 2,664 | 1,614 | ||||||||||||
Net income | 2,119 | 1,295 |
Stockholders_Equity_and_Stock_1
Stockholders' Equity and Stock Repurchase Program (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock Repurchase Program [Abstract] | ' | ||||||||||||||||||||||||||||||||
Consolidated statements of changes in equity | ' | ||||||||||||||||||||||||||||||||
Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||
Preferred | Common | Additional | Accumulated | Other | AXT, Inc. | Noncontrolling | Total | ||||||||||||||||||||||||||
Stock | Stock | Paid In Capital | Deficit | Comprehensive | stockholders' | interests | stockholders' | ||||||||||||||||||||||||||
Income/(loss) | equity | equity | |||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 3,532 | $ | 32 | $ | 194,156 | $ | (67,005 | ) | $ | 8,953 | $ | 139,668 | $ | 5,878 | $ | 145,546 | ||||||||||||||||
Stock-based compensation | 292 | 292 | 292 | ||||||||||||||||||||||||||||||
Net (loss) income | (2,040 | ) | (2,040 | ) | 205 | (1,835 | ) | ||||||||||||||||||||||||||
Dividends declared by joint ventures | (83 | ) | (83 | ) | |||||||||||||||||||||||||||||
Change in unrealized (loss) gain on marketable securities | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||||||||||||
Currency translation adjustment | (442 | ) | (442 | ) | (79 | ) | (521 | ) | |||||||||||||||||||||||||
Balance as of March 31, 2014 | $ | 3,532 | $ | 32 | $ | 194,448 | $ | (69,045 | ) | $ | 8,501 | $ | 137,468 | $ | 5,921 | $ | 143,389 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Compensation costs related to stock-based awards | ' | ||||||||||||||||
The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of revenue | $ | 5 | $ | 6 | |||||||||||||
Selling, general and administrative | 244 | 284 | |||||||||||||||
Research and development | 43 | 42 | |||||||||||||||
Total stock-based compensation | 292 | 332 | |||||||||||||||
Tax effect on stock-based compensation | — | — | |||||||||||||||
Net effect on net income (loss) | $ | 292 | $ | 332 | |||||||||||||
Summary of stock option activity | ' | ||||||||||||||||
The following table summarizes our stock option activities during the three months ended March 31, 2014 (in thousands, except per share data): | |||||||||||||||||
Stock Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
average | average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
(in years) | |||||||||||||||||
Balance as of January 1, 2014 | 2,671 | $ | 3.29 | 6.71 | $ | 893 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled and expired | (74 | ) | 5.18 | ||||||||||||||
Balance as of March 31, 2014 | 2,597 | $ | 3.24 | 6.65 | $ | 438 | |||||||||||
Options vested and expected to vest as of March 31, 2014 | 2,597 | $ | 3.24 | 6.65 | $ | 438 | |||||||||||
Options exercisable as of March 31, 2014 | 1,663 | $ | 3.3 | 5.43 | $ | 438 | |||||||||||
Restricted stock awards | ' | ||||||||||||||||
A summary of activity related to restricted stock awards for the three months ended March 31, 2014 is presented below: | |||||||||||||||||
Stock Awards | Shares | Weighted-Average | |||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Non-vested as of January 1, 2014 | 241,232 | $ | 3.44 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Non-vested as of March 31, 2014 | 241,232 | $ | 3.44 |
Net_Income_loss_Per_Share_Tabl
Net Income (loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Income (loss) Per Share [Abstract] | ' | ||||||||
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share | ' | ||||||||
A reconciliation of the numerators and denominators of the basic and diluted net loss per share calculations is as follows (in thousands, except per share data): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss attributable to AXT, Inc. | $ | (2,040 | ) | $ | (2,400 | ) | |||
Less: Preferred stock dividends | (44 | ) | (44 | ) | |||||
Net loss available to common stockholders | $ | (2,084 | ) | $ | (2,444 | ) | |||
Denominator: | |||||||||
Denominator for basic net loss per share - weighted average common shares | 32,364 | 32,297 | |||||||
Effect of dilutive securities: | |||||||||
Common stock options | — | — | |||||||
Restricted stock awards | — | — | |||||||
Denominator for dilutive net loss per common share | 32,364 | 32,297 | |||||||
Net loss attributable to AXT, Inc. per common share: | |||||||||
Basic | $ | (0.06 | ) | $ | (0.08 | ) | |||
Diluted | $ | (0.06 | ) | $ | (0.08 | ) | |||
Weighted-average shares: | 2,607 | 2,656 | |||||||
Options excluded from diluted net loss per share as the impact is anti-dilutive | |||||||||
Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive | 241 | 239 |
Segment_Information_and_Foreig1
Segment Information and Foreign Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Information and Foreign Operations [Abstract] | ' | ||||||||
Product Information | ' | ||||||||
The following table represents revenue amounts (in thousands) by product type: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Product type: | |||||||||
GaAs substrates | $ | 8,488 | $ | 11,723 | |||||
InP substrates | 2,180 | 1,849 | |||||||
Ge substrates | 3,278 | 2,551 | |||||||
Raw materials and other | 5,399 | 6,257 | |||||||
Total | $ | 19,345 | $ | 22,380 | |||||
Revenue reported for products shipped to customers in the corresponding geographic region | ' | ||||||||
The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Geographical information: | |||||||||
Europe (primarily Germany) | $ | 6,583 | $ | 4,689 | |||||
China | 4,165 | 6,029 | |||||||
Asia Pacific (excluding China, Japan and Taiwan) | 2,389 | 2,132 | |||||||
Taiwan | 2,115 | 3,779 | |||||||
Japan | 2,313 | 2,282 | |||||||
North America (primarily the United States) | 1,780 | 3,469 | |||||||
Total | $ | 19,345 | $ | 22,380 | |||||
Long-lived assets by geographic region | ' | ||||||||
Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets by geographic region were as follows (in thousands): | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Long-lived assets by geographic region: | |||||||||
North America | $ | 179 | $ | 204 | |||||
China | 36,000 | 37,417 | |||||||
$ | 36,179 | $ | 37,621 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Product warranty accrued liability | ' | ||||||||||||||||||||||||||||||||
The following table reflects the change in our warranty accrual which is included in "accrued liabilities" on the condensed consolidated balance sheets, during the three months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Beginning accrued warranty and related costs | $ | 1048 | $ | 588 | |||||||||||||||||||||||||||||
Accruals for warranties issued | 496 | 264 | |||||||||||||||||||||||||||||||
Adjustments related to pre-existing warranties including expirations and changes in estimates | (103 | ) | 166 | ||||||||||||||||||||||||||||||
Cost of warranty repair | (214 | ) | (269 | ) | |||||||||||||||||||||||||||||
Ending accrued warranty and related costs | $ | 1,227 | $ | 749 | |||||||||||||||||||||||||||||
Outstanding contractual obligations | ' | ||||||||||||||||||||||||||||||||
Outstanding contractual obligations as of March 31, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||||||
Payments due by period | |||||||||||||||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 3-Jan | 5-Apr | More than | ||||||||||||||||||||||||||||
years | years | 5 years | |||||||||||||||||||||||||||||||
Operating leases | $ | 557 | $ | 263 | $ | 208 | $ | 34 | $ | 52 | |||||||||||||||||||||||
Royalty agreement | 3,125 | 800 | 1,319 | 1,006 | — | ||||||||||||||||||||||||||||
Total | $ | 3,682 | $ | 1,063 | $ | 1,527 | $ | 1,040 | $ | 52 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (Majority-owned Subsidiaries [Member]) | Mar. 31, 2014 |
Minimum [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Percentage of ownership, equity method (in hundredths) | 20.00% |
Maximum [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Percentage of ownership, equity method (in hundredths) | 50.00% |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Cash, cash equivalents and investments [Abstract] | ' | ' | ' | ' |
Cash | $21,638,000 | $24,852,000 | ' | ' |
Cash Equivalents, at Carrying Value [Abstract] | ' | ' | ' | ' |
Money market funds | 1,122,000 | 109,000 | ' | ' |
Cash Equivalents, at Carrying Value, Total | 22,760,000 | 24,961,000 | 25,792,000 | 30,634,000 |
Amortized Cost | 44,904,000 | 45,682,000 | ' | ' |
Gross Unrealized Gain | 1,913,000 | 1,933,000 | ' | ' |
Gross Unrealized (Loss) | -4,000 | -10,000 | ' | ' |
Fair Value | 46,813,000 | 47,605,000 | ' | ' |
Contractual maturities on investments, amortized cost basis [Abstract] | ' | ' | ' | ' |
Due within 1 year | 20,464,000 | 10,569,000 | ' | ' |
Due after 1 through 5 years | 1,680,000 | 10,152,000 | ' | ' |
Investments, amortized cost | 22,144,000 | 20,721,000 | ' | ' |
Contractual maturities on investments, fair value basis [Abstract] | ' | ' | ' | ' |
Due within 1 year | 22,375,000 | 12,499,000 | ' | ' |
Due after 1 through 5 years | 1,678,000 | 10,145,000 | ' | ' |
Investments, fair value | 24,053,000 | 22,644,000 | ' | ' |
Gain on sale of available for sale security | 800,000 | ' | ' | ' |
Unrealized gain, net of tax | 1,600,000 | ' | ' | ' |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ' | ' | ' | ' |
Fair value, in loss position less than twelve months | 1,918,000 | 7,898,000 | ' | ' |
Gross unrealized loss, in loss position less than twelve months | -1,000 | -9,000 | ' | ' |
Fair value, in loss position greater than twelve months | 3,621,000 | 4,431,000 | ' | ' |
Gross unrealized loss, in loss position greater than twelve months | -3,000 | -1,000 | ' | ' |
Fair value, total in loss position | 5,539,000 | 12,329,000 | ' | ' |
Gross unrealized loss, total in loss position | -4,000 | -10,000 | ' | ' |
Minority Investments [Abstract] | ' | ' | ' | ' |
Minority investments in unconsolidated privately-held companies | 200,000 | 200,000 | ' | ' |
Recurring [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Assets, fair value | 25,175,000 | 22,753,000 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Liabilities, fair value | 0 | 0 | ' | ' |
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Assets, fair value | 3,147,000 | 2,157,000 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Liabilities, fair value | 0 | 0 | ' | ' |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Assets, fair value | 22,028,000 | 20,596,000 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Liabilities, fair value | 0 | 0 | ' | ' |
Recurring [Member] | Money market fund - cash [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 1,122,000 | 109,000 | ' | ' |
Recurring [Member] | Money market fund - cash [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 1,122,000 | 109,000 | ' | ' |
Recurring [Member] | Money market fund - cash [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | ' | ' |
Recurring [Member] | Certificates of deposit [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 7,863,000 | 6,318,000 | ' | ' |
Recurring [Member] | Certificates of deposit [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ' | ' |
Recurring [Member] | Certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 7,863,000 | 6,318,000 | ' | ' |
Recurring [Member] | Corporate bonds [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 14,165,000 | 14,278,000 | ' | ' |
Recurring [Member] | Corporate bonds [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ' | ' |
Recurring [Member] | Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 14,165,000 | 14,278,000 | ' | ' |
Recurring [Member] | Corporate equity security [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 2,025,000 | 2,048,000 | ' | ' |
Recurring [Member] | Corporate equity security [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 2,025,000 | 2,048,000 | ' | ' |
Recurring [Member] | Corporate equity security [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ' | ' |
Other assets [Member] | ' | ' | ' | ' |
Minority Investments [Abstract] | ' | ' | ' | ' |
Investments in privately-held companies | 11,000,000 | 10,900,000 | ' | ' |
Minority investments in unconsolidated privately-held companies | 200,000 | 200,000 | ' | ' |
Certificates of deposit [Member] | ' | ' | ' | ' |
Cash Equivalents, at Carrying Value [Abstract] | ' | ' | ' | ' |
Amortized Cost | 7,864,000 | 6,320,000 | ' | ' |
Gross Unrealized Gain | 1,000 | 2,000 | ' | ' |
Gross Unrealized (Loss) | -2,000 | -4,000 | ' | ' |
Fair Value | 7,863,000 | 6,318,000 | ' | ' |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ' | ' | ' | ' |
Fair value, in loss position less than twelve months | 1,918,000 | 3,425,000 | ' | ' |
Gross unrealized loss, in loss position less than twelve months | -1,000 | -4,000 | ' | ' |
Fair value, in loss position greater than twelve months | 1,239,000 | 720,000 | ' | ' |
Gross unrealized loss, in loss position greater than twelve months | -1,000 | 0 | ' | ' |
Fair value, total in loss position | 3,157,000 | 4,145,000 | ' | ' |
Gross unrealized loss, total in loss position | -2,000 | -4,000 | ' | ' |
Corporate bonds [Member] | ' | ' | ' | ' |
Cash Equivalents, at Carrying Value [Abstract] | ' | ' | ' | ' |
Amortized Cost | 14,155,000 | 14,276,000 | ' | ' |
Gross Unrealized Gain | 12,000 | 8,000 | ' | ' |
Gross Unrealized (Loss) | -2,000 | -6,000 | ' | ' |
Fair Value | 14,165,000 | 14,278,000 | ' | ' |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ' | ' | ' | ' |
Fair value, in loss position less than twelve months | 0 | 4,473,000 | ' | ' |
Gross unrealized loss, in loss position less than twelve months | 0 | -5,000 | ' | ' |
Fair value, in loss position greater than twelve months | 2,382,000 | 3,711,000 | ' | ' |
Gross unrealized loss, in loss position greater than twelve months | -2,000 | -1,000 | ' | ' |
Fair value, total in loss position | 2,382,000 | 8,184,000 | ' | ' |
Gross unrealized loss, total in loss position | -2,000 | -6,000 | ' | ' |
Corporate equity security [Member] | ' | ' | ' | ' |
Cash Equivalents, at Carrying Value [Abstract] | ' | ' | ' | ' |
Amortized Cost | 125,000 | 125,000 | ' | ' |
Gross Unrealized Gain | 1,900,000 | 1,923,000 | ' | ' |
Gross Unrealized (Loss) | 0 | 0 | ' | ' |
Fair Value | 2,025,000 | 2,048,000 | ' | ' |
Total Investments [Member] | ' | ' | ' | ' |
Cash Equivalents, at Carrying Value [Abstract] | ' | ' | ' | ' |
Amortized Cost | 22,144,000 | 20,721,000 | ' | ' |
Gross Unrealized Gain | 1,913,000 | 1,933,000 | ' | ' |
Gross Unrealized (Loss) | -4,000 | -10,000 | ' | ' |
Fair Value | $24,053,000 | $22,644,000 | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventories [Abstract] | ' | ' |
Raw materials | $19,873,000 | $21,063,000 |
Work in process | 14,396,000 | 14,027,000 |
Finished goods | 3,771,000 | 4,037,000 |
Inventories, total | 38,040,000 | 39,127,000 |
Inventory reserve | $11,500,000 | $11,000,000 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Components of accrued liabilities [Abstract] | ' | ' | ' | ' |
Accrued product warranty | $1,227 | $1,048 | $749 | $588 |
Accrued compensation and related charges | 1,210 | 1,762 | ' | ' |
Current portion of royalty payments | 800 | 800 | ' | ' |
Dividends payable by consolidated joint ventures | 729 | 649 | 2,365 | ' |
Accrued professional services | 279 | 543 | ' | ' |
Accrued income taxes | 100 | 125 | ' | ' |
Other accrued liabilities | 2,301 | 2,359 | ' | ' |
Accrued liabilities, total | $6,646 | $7,286 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2011 | Aug. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Beijing JiYa Semiconductor Material Co Ltd [Member] | Nanjing Jin Mei Gallium Co Ltd [Member] | Nanjing Jin Mei Gallium Co Ltd [Member] | Beijing Tongmei Xtal Technology [Member] | Beijing Tongmei Xtal Technology [Member] | |
sqft | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | ||
EquityMethodInvestee | Installment | sqft | sqft | ||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loan under note agreement | ' | ' | $1,700,000 | 10,485,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity method investees to whom loan was granted | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Loan | ' | ' | '2 years 10 months | '2 years 10 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Related party notes receivable - long term | 1,701,000 | 1,715,000 | ' | ' | 1,700,000 | ' | 10,485,200 | 1,700,000 | 10,485,200 | ' | ' | ' | ' |
Income from agency sales | ' | ' | ' | ' | 0 | 10,000 | ' | ' | ' | 5,000 | 65,000 | ' | ' |
Accrued liabilities | 6,646,000 | 7,286,000 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | ' |
Accounts payable | 7,618,000 | 8,140,000 | ' | ' | 1,200,000 | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Area of leased property (in square feet) | 27,760 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,081 | 22,081 |
Lease term | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years |
Annual lease payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000 | 150,000 |
Increase in annual lease payment at each third year anniversary (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% |
Payments to purchase materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $120,000 | 740,924 |
Investments_in_Privatelyheld_C2
Investments in Privately-held Companies (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Summary of investments [Abstract] | ' | ' | ' |
Income allocated to minority interests | $205,000 | $441,000 | ' |
Investments in unconsolidated privately-held entities, included in other assets | 200,000 | ' | 200,000 |
AXT, Inc. [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Gross equity earnings (losses) from minority-owned joint ventures that are not consolidated, recorded as other income | 2,119,000 | 1,295,000 | ' |
Equity Method Investments [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Equity method investment by parent | 7,641,000 | ' | 7,537,000 |
Number of equity investment entities | 3 | ' | ' |
Minority investment in consolidated joint venture, included in other assets | 3,400,000 | ' | 3,400,000 |
Gross equity earnings (losses) from minority-owned joint ventures that are not consolidated, recorded as other income | 487,000 | 282,000 | ' |
Joint Ventures [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Number of consolidated joint ventures | 3 | ' | ' |
Income from three consolidated joint ventures | 800,000 | 1,300,000 | ' |
Income allocated to minority interests | 205,000 | 441,000 | ' |
Net income from joint ventures attributable to parent | 548,000 | 852,000 | ' |
Majority-owned Subsidiaries [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Investments, consolidated | 5,269,000 | ' | 5,269,000 |
Beijing JiYa Semiconductor Material Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Investments, consolidated | 3,331,000 | ' | 3,331,000 |
Percentage of ownership, consolidated method (in hundredths) | 46.00% | ' | ' |
Nanjing Jin Mei Gallium Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Investments, consolidated | 592,000 | ' | 592,000 |
Percentage of ownership, consolidated method (in hundredths) | 83.00% | ' | ' |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Investments, consolidated | 1,346,000 | ' | 1,346,000 |
Percentage of ownership, consolidated method (in hundredths) | 70.00% | ' | ' |
Donghai County Dongfang High Purity Electronic Materials Co., Ltd [Member] | Equity Method Investments [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Equity method investment by parent | 1,867,000 | ' | 1,900,000 |
Percentage of ownership, equity method (in hundredths) | 46.00% | ' | ' |
Xilingol Tongli Germanium Co. Ltd [Member] | Equity Method Investments [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Equity method investment by parent | 4,849,000 | ' | 4,692,000 |
Percentage of ownership, equity method (in hundredths) | 25.00% | ' | ' |
Emeishan Jia Mei High Purity Metals Co., Ltd [Member] | Equity Method Investments [Member] | ' | ' | ' |
Summary of investments [Abstract] | ' | ' | ' |
Equity method investment by parent | $925,000 | ' | $945,000 |
Percentage of ownership, equity method (in hundredths) | 25.00% | ' | ' |
Investments_in_Privatelyheld_C3
Investments in Privately-held Companies, Minority Investment Entities (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
AXT, Inc. [Member] | ' | ' |
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ' | ' |
Net Sales | $13,480,000 | $9,273,000 |
Gross profit | 3,963,000 | 3,124,000 |
Operating income | 2,664,000 | 1,614,000 |
Net income | 2,119,000 | 1,295,000 |
Equity Method Investments [Member] | ' | ' |
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ' | ' |
Net income | $487,000 | $282,000 |
Stockholders_Equity_and_Stock_2
Stockholders' Equity and Stock Repurchase Program (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | $145,546,000 | ' | ' |
Stock-based compensation | 292,000 | ' | ' |
Net (loss) income | -1,835,000 | -1,959,000 | ' |
Dividends declared by joint ventures | -83,000 | ' | ' |
Change in unrealized (loss) gain on marketable securities | -10,000 | -17,000 | ' |
Currency translation adjustment | -521,000 | ' | ' |
Balance, end of period | 143,389,000 | ' | 145,546,000 |
Stock repurchase program, authorized amount | 6,000,000 | ' | ' |
Shares repurchased (in shares) | 0 | ' | 285,000 |
Average price of shares repurchased (in dollars per share) | ' | ' | $2.51 |
Total purchase price | ' | ' | 716,000 |
Amount available for future repurchases | ' | ' | 5,300,000 |
Preferred Stock [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, end of period | 3,532,000 | ' | 3,532,000 |
Common Stock [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, end of period | 32,000 | ' | 32,000 |
Additional Paid In Capital [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 194,156,000 | ' | ' |
Stock-based compensation | 292,000 | ' | ' |
Balance, end of period | 194,448,000 | ' | ' |
Accumulated Deficit [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | -67,005,000 | ' | ' |
Net (loss) income | -2,040,000 | ' | ' |
Balance, end of period | -69,045,000 | ' | ' |
Other Comprehensive Income/(loss) [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 8,953,000 | ' | ' |
Change in unrealized (loss) gain on marketable securities | -10,000 | ' | ' |
Currency translation adjustment | -442,000 | ' | ' |
Balance, end of period | 8,501,000 | ' | ' |
AXT, Inc. stockholders equity [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 139,668,000 | ' | ' |
Stock-based compensation | 292,000 | ' | ' |
Net (loss) income | -2,040,000 | ' | ' |
Change in unrealized (loss) gain on marketable securities | -10,000 | ' | ' |
Currency translation adjustment | -442,000 | ' | ' |
Balance, end of period | 137,468,000 | ' | ' |
Noncontrolling interests [Member] | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 5,878,000 | ' | ' |
Net (loss) income | 205,000 | ' | ' |
Dividends declared by joint ventures | -83,000 | ' | ' |
Currency translation adjustment | -79,000 | ' | ' |
Balance, end of period | $5,921,000 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | ' | ' | ' |
Total stock-based compensation | $292,000 | 332,000 | ' |
Tax effect on stock-based compensation | 0 | 0 | ' |
Net effect on net income (loss) | 292,000 | 332,000 | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Compensation costs related to unvested stock options not yet recognized | 1,400,000 | ' | ' |
Value of estimated forfeitures | 92,000 | ' | ' |
Weighted-average period of amortization | '2 years 7 months 6 days | ' | ' |
Number of options outstanding [Roll Forward] | ' | ' | ' |
Options outstanding, beginning of period (in shares) | 2,671,000 | ' | ' |
Granted (in shares) | 0 | 0 | ' |
Exercised (in shares) | 0 | ' | ' |
Canceled and expired (in shares) | -74,000 | ' | ' |
Options outstanding, end of period (in shares) | 2,597,000 | ' | 2,671,000 |
Options vested and expected to vest as of March 31, 2014 | 2,597,000 | ' | ' |
Options exercisable as of March 31, 2014 | 1,663,000 | ' | ' |
Weighted average exercise price [Roll Forward] | ' | ' | ' |
Options outstanding, beginning of period (in dollars per share) | $3.29 | ' | ' |
Granted (in dollars per share) | $0 | ' | ' |
Exercised (in dollars per share) | $0 | ' | ' |
Canceled and expired (in dollars per share) | $5.18 | ' | ' |
Options outstanding, end of period (in dollars per share) | $3.24 | ' | $3.29 |
Options vested and expected to vest as of March 31, 2014 | $3.24 | ' | ' |
Options exercisable as of March 31, 2014 | $3.30 | ' | ' |
Weighted average Remaining Contractual Life [Abstract] | ' | ' | ' |
Options outstanding, beginning of period | '6 years 7 months 24 days | ' | '6 years 8 months 16 days |
Options outstanding, end of period | '6 years 7 months 24 days | ' | '6 years 8 months 16 days |
Options vested and expected to vest, end of period | '6 years 7 months 24 days | ' | ' |
Option exercisable, end of period | '5 years 5 months 5 days | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' |
Options outstanding, beginning of period | 893,000 | ' | ' |
Options outstanding, end of period | 438,000 | ' | 893,000 |
Options vested and expected to vest, end of period | 438,000 | ' | ' |
Options exercisable, end of period | 438,000 | ' | ' |
Closing price (in dollars per share) | $2.20 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average period of amortization | '2 years 3 months 18 days | ' | ' |
Shares [Roll Forward] | ' | ' | ' |
Non-vested, beginning of period (in shares) | 241,232 | ' | ' |
Granted (in shares) | 0 | ' | ' |
Vested (in shares) | 0 | ' | ' |
Non-vested, end of period (in shares) | 241,232 | ' | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Non-vested, beginning of period (in dollars per share) | $3.44 | ' | ' |
Granted (in dollars per share) | $0 | ' | ' |
Vested (in dollars per share) | $0 | ' | ' |
Non-vested, end of period (in dollars per share) | $3.44 | ' | ' |
Unrecognized compensation expense related to restricted stock awards | 581,000 | ' | ' |
Cost of revenue [Member] | ' | ' | ' |
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | ' | ' | ' |
Total stock-based compensation | 5,000 | 6,000 | ' |
Selling, general and administrative [Member] | ' | ' | ' |
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | ' | ' | ' |
Total stock-based compensation | 244,000 | 284,000 | ' |
Research and development [Member] | ' | ' | ' |
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | ' | ' | ' |
Total stock-based compensation | $43,000 | 42,000 | ' |
Net_Income_loss_Per_Share_Deta
Net Income (loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Numerator [Abstract] | ' | ' | ' |
Net loss attributable to AXT, Inc. | ($2,040) | ($2,400) | ' |
Less: Preferred stock dividends | -44 | -44 | ' |
Net loss available to common stockholders | -2,084 | -2,444 | ' |
Denominator [Abstract] | ' | ' | ' |
Denominator for basic net loss per share - weighted average common shares (in shares) | 32,364 | 32,297 | ' |
Effect Of Dilutive Securities On Earnings Per Share [Line Items] | ' | ' | ' |
Denominator for dilutive net loss per common share (in shares) | 32,364 | 32,297 | ' |
Net loss attributable to AXT, Inc. per common share [Abstract] | ' | ' | ' |
Basic (in dollars per share) | ($0.06) | ($0.08) | ' |
Diluted (in dollars per share) | ($0.06) | ($0.08) | ' |
Weighted-average shares [Abstract] | ' | ' | ' |
Preferred stock, shares issued (in shares) | 883 | ' | 883 |
Preferred stock, shares outstanding (in shares) | 883 | ' | 883 |
Preferred stock, par value (in dollars per share) | $0.00 | ' | $0.00 |
Preferred stock, value | $3,532 | ' | $3,532 |
Cumulative annual dividend rate (in hundredths) | 5.00% | ' | 5.00% |
Liquidation preference over common stock (in dollars per share) | $4 | ' | $4 |
Options [Member] | ' | ' | ' |
Weighted-average shares [Abstract] | ' | ' | ' |
Securities excluded from diluted net loss per share as the impact is anti-dilutive (in shares) | 2,607 | 2,656 | ' |
Restricted stock awards [Member] | ' | ' | ' |
Weighted-average shares [Abstract] | ' | ' | ' |
Securities excluded from diluted net loss per share as the impact is anti-dilutive (in shares) | 241 | 239 | ' |
Common stock options [Member] | ' | ' | ' |
Effect Of Dilutive Securities On Earnings Per Share [Line Items] | ' | ' | ' |
Effect of dilutive securities (in shares) | 0 | 0 | ' |
Restricted stock awards [Member] | ' | ' | ' |
Effect Of Dilutive Securities On Earnings Per Share [Line Items] | ' | ' | ' |
Effect of dilutive securities (in shares) | 0 | 0 | ' |
Segment_Information_and_Foreig2
Segment Information and Foreign Operations, Revenue by product (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue by product type [Abstract] | ' | ' |
Net revenue | $19,345 | $22,380 |
GaAs Substrates [Member] | ' | ' |
Revenue by product type [Abstract] | ' | ' |
Net revenue | 8,488 | 11,723 |
InP Substrates [Member] | ' | ' |
Revenue by product type [Abstract] | ' | ' |
Net revenue | 2,180 | 1,849 |
Ge Substrates [Member] | ' | ' |
Revenue by product type [Abstract] | ' | ' |
Net revenue | 3,278 | 2,551 |
Raw Materials And Other [Member] | ' | ' |
Revenue by product type [Abstract] | ' | ' |
Net revenue | $5,399 | $6,257 |
Segment_Information_and_Foreig3
Segment Information and Foreign Operations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment | |||
Segment Information [Abstract] | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | $19,345 | $22,380 | ' |
Long-lived assets by geographic region [Abstract] | ' | ' | ' |
Long-lived assets | 36,179 | ' | 37,621 |
Major Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Number of customers representing significant revenue | 0 | 0 | ' |
Number of customers who accounted for 10% or more share in trade accounts receivable | 1 | ' | ' |
Percentage of trade accounts receivable accounted by one customer (in hundredths) | ' | ' | 20.00% |
Top Five Major Customers [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue generated by major customers (in hundredths) | 39.00% | 34.00% | ' |
Number of major customers | 5 | 5 | ' |
Europe (primarily Germany) [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 6,583 | 4,689 | ' |
China [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 4,165 | 6,029 | ' |
Long-lived assets by geographic region [Abstract] | ' | ' | ' |
Long-lived assets | 36,000 | ' | 37,417 |
Asia Pacific (excluding China, Japan and Taiwan) [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 2,389 | 2,132 | ' |
Taiwan [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 2,115 | 3,779 | ' |
Japan [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 2,313 | 2,282 | ' |
North America (primarily the United States) [Member] | ' | ' | ' |
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | ' | ' | ' |
Net revenue | 1,780 | 3,469 | ' |
Long-lived assets by geographic region [Abstract] | ' | ' | ' |
Long-lived assets | $179 | ' | $204 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 01, 2013 | Aug. 02, 2013 | |
sqft | sqft | |||
Product Warranty [Abstract] | ' | ' | ' | ' |
Period of warranty | '12 months | ' | ' | ' |
Change in warranty accrual [Roll Forward] | ' | ' | ' | ' |
Beginning accrued warranty and related costs | $1,048,000 | $588,000 | ' | ' |
Accruals for warranties issued | 496,000 | 264,000 | ' | ' |
Adjustments related to pre-existing warranties including expirations and changes in estimates | -103,000 | 166,000 | ' | ' |
Cost of warranty repair | -214,000 | -269,000 | ' | ' |
Ending accrued warranty and related costs | 1,227,000 | 749,000 | ' | ' |
Contractual Obligations [Abstract] | ' | ' | ' | ' |
Area of property under long-term operating lease (in square feet) | 27,760 | ' | ' | ' |
Period of operating lease | '7 years | ' | ' | ' |
Period to be lapsed for cancelling lease | '5 years | ' | ' | ' |
Penalty payment | 142,000 | ' | ' | ' |
Revised facility area | ' | ' | ' | 20,767 |
Term of revised area contract | ' | ' | '2 years | ' |
Savings as a result of revised facility area | ' | ' | ' | 382,000 |
Aggregate amount payable towards royalty | 7,000,000 | ' | ' | ' |
Term of royalty agreement | '8 years | ' | ' | ' |
Outstanding contractual obligations [Abstract] | ' | ' | ' | ' |
Total | 3,682,000 | ' | ' | ' |
Less than 1 year | 1,063,000 | ' | ' | ' |
1-3 years | 1,527,000 | ' | ' | ' |
4-5 years | 1,040,000 | ' | ' | ' |
More than 5 years | 52,000 | ' | ' | ' |
Operating leases [Member] | ' | ' | ' | ' |
Outstanding contractual obligations [Abstract] | ' | ' | ' | ' |
Total | 557,000 | ' | ' | ' |
Less than 1 year | 263,000 | ' | ' | ' |
1-3 years | 208,000 | ' | ' | ' |
4-5 years | 34,000 | ' | ' | ' |
More than 5 years | 52,000 | ' | ' | ' |
Royalty agreement [Member] | ' | ' | ' | ' |
Outstanding contractual obligations [Abstract] | ' | ' | ' | ' |
Total | 3,125,000 | ' | ' | ' |
Less than 1 year | 800,000 | ' | ' | ' |
1-3 years | 1,319,000 | ' | ' | ' |
4-5 years | 1,006,000 | ' | ' | ' |
More than 5 years | $0 | ' | ' | ' |
Foreign_Exchange_Transaction_L1
Foreign Exchange Transaction Losses (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Foreign Exchange Transaction Losses [Abstract] | ' | ' |
Foreign exchange transaction exchange gains (losses) | $17,000 | ($593,000) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes [Abstract] | ' | ' |
Net operating losses or credits utilization period | '1 year | ' |
Change in cumulative ownership percentage (in hundredths) | 50.00% | ' |
Period with in which cumulative ownership change | '3 years | ' |
Gross unrecognized tax benefits | $16,400,000 | ' |
Unrecognized tax benefits interest and penalties | 0 | ' |
Unrecognized tax benefits accrued interest and penalties | 0 | ' |
Federal income tax benefit or expense | $0 | $0 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Position | ||
Restructuring Charges [Abstract] | ' | ' |
Number of workforce reduced | 93 | ' |
Number of workforce reduced (in hundredths) | 11.00% | ' |
Restructuring charge | $907 | $0 |