Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AXT INC | |
Entity Central Index Key | 1,051,627 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,541,268 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 26,185,000 | $ 28,814,000 |
Short-term investments | 8,551,000 | 12,340,000 |
Accounts receivable, net of allowances of $1,005 and $823 as of September 30, 2015 and December 31, 2014 | 17,110,000 | 17,864,000 |
Inventories | 38,087,000 | 38,574,000 |
Related party notes receivable - current | 171,000 | |
Prepaid expenses and other current assets | 3,619,000 | 5,430,000 |
Total current assets | 93,552,000 | 103,193,000 |
Long-term investments | 10,713,000 | 7,783,000 |
Property, plant and equipment, net | 32,346,000 | 33,862,000 |
Related party notes receivable - long-term | 1,813,000 | 1,704,000 |
Other assets | 14,721,000 | 14,975,000 |
Total assets | 153,145,000 | 161,517,000 |
Current liabilities: | ||
Accounts payable | 5,959,000 | 7,137,000 |
Accrued liabilities | 5,513,000 | 7,634,000 |
Total current liabilities | 11,472,000 | 14,771,000 |
Long-term portion of royalty payments | 1,294,000 | 1,725,000 |
Other long-term liabilities | 345,000 | 333,000 |
Total liabilities | $ 13,111,000 | $ 16,829,000 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of September 30, 2015 and December 31, 2014 (Liquidation preference of $6.4 million and $6.3 million as of September 30, 2015 and December 31, 2014.) | $ 3,532,000 | $ 3,532,000 |
Common stock, $0.001 par value; 70,000 shares authorized; 32,388 and 32,837 shares issued and outstanding as of September 30, 2015 and December 31, 2014 | 32,000 | 32,000 |
Additional paid-in-capital | 194,381,000 | 195,419,000 |
Accumulated deficit | (69,378,000) | (68,393,000) |
Accumulated other comprehensive income | 5,166,000 | 7,673,000 |
Total AXT, Inc. stockholders' equity | 133,733,000 | 138,263,000 |
Noncontrolling interests | 6,301,000 | 6,425,000 |
Total stockholders' equity | 140,034,000 | 144,688,000 |
Total liabilities and stockholders' equity | $ 153,145,000 | $ 161,517,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 1,005 | $ 823 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 883,000 | 883,000 |
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 |
Preferred stock, liquidation preference | $ 6,400 | $ 6,300 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 32,388,000 | 32,837,000 |
Common stock, shares outstanding (in shares) | 32,388,000 | 32,837,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||||
Revenue | $ 18,371 | $ 23,138 | $ 59,445 | $ 63,932 |
Cost of revenue | 13,766 | 17,820 | 45,706 | 51,736 |
Gross profit | 4,605 | 5,318 | 13,739 | 12,196 |
Operating expenses: | ||||
Selling, general and administrative | 3,659 | 3,505 | 12,685 | 10,629 |
Research and development | 1,657 | 1,160 | 4,287 | 2,922 |
Restructuring charge | 907 | |||
Total operating expenses | 5,316 | 4,665 | 16,972 | 14,458 |
Income (loss) from operations | (711) | 653 | (3,233) | (2,262) |
Interest income, net | 102 | 106 | 307 | 360 |
Equity in earnings of unconsolidated joint ventures | 167 | 390 | 777 | 1,502 |
Other income (expense), net | 496 | (236) | 1,755 | 250 |
Income (loss) before provision for income taxes | 54 | 913 | (394) | (150) |
Provision for income taxes | 7 | 43 | 334 | 254 |
Net income (loss) | 47 | 870 | (728) | (404) |
Less: Net income attributable to noncontrolling interests | (5) | (226) | (257) | (673) |
Net income (loss) attributable to AXT, Inc. | $ 42 | $ 644 | $ (985) | $ (1,077) |
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Basic (in dollars per share) | $ 0 | $ 0.02 | $ (0.03) | $ (0.04) |
Diluted (in dollars per share) | $ 0 | $ 0.02 | $ (0.03) | $ (0.04) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 31,988 | 32,504 | 32,262 | 32,416 |
Diluted (in shares) | 31,988 | 32,738 | 32,262 | 32,416 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ||||
Net income (loss) | $ 47 | $ 870 | $ (728) | $ (404) |
Other comprehensive income (loss), net of tax: | ||||
Change in foreign currency translation gain (loss), net of tax | (2,626) | 32 | (2,321) | (408) |
Change in unrealized gain (loss) on available-for-sale investments, net of tax | (134) | (418) | (484) | (279) |
Total other comprehensive income (loss), net of tax | (2,760) | (386) | (2,805) | (687) |
Comprehensive income (loss) | (2,713) | 484 | (3,533) | (1,091) |
Less: Comprehensive income attributable to the noncontrolling interest | 335 | (229) | 41 | (606) |
Comprehensive income (loss) attributable to AXT, Inc. | $ (2,378) | $ 255 | $ (3,492) | $ (1,697) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash flows from operating activities: | |||
Net loss | $ (728) | $ (404) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 4,197 | 4,219 | |
Amortization of marketable securities premium | 168 | 352 | |
Stock-based compensation | 1,051 | 861 | |
Provision for doubtful accounts | 211 | 9 | |
Realized gain on sale of investments | (859) | (626) | |
Loss (gain) on disposal of equipment | 16 | (10) | |
Gain on equity investments, net | (777) | (1,502) | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 363 | (6,182) | |
Inventories | 13 | 2,400 | |
Prepaid expenses and other current assets | 1,920 | 2,076 | |
Other assets | 329 | 520 | |
Accounts payable | (1,053) | 1,372 | |
Accrued liabilities | (2,032) | (187) | |
Other long-term liabilities | [1] | (559) | (648) |
Net cash provided by operating activities | 2,260 | 2,250 | |
Cash flows from investing activities: | |||
Purchases of equipment | (3,508) | (1,374) | |
Proceeds from sale of equipment | 2 | 10 | |
Purchases of available for sale securities | (13,044) | (11,346) | |
Proceeds from sales and maturities of available-for-sale securities | 14,309 | 10,998 | |
Investments in non-marketable equity investments | (162) | ||
Dividends received from equity method investments | 286 | 327 | |
Net cash used in investing activities | (2,117) | (1,385) | |
Cash flows from financing activities: | |||
Proceeds from common stock options exercised | 165 | 134 | |
Repurchases of the Company's common stock, including commission | (2,254) | ||
Dividends paid by joint ventures to their minority share holders | (102) | (83) | |
Net cash (used in) provided by financing activities | (2,191) | 51 | |
Effect of exchange rate changes on cash and cash equivalents | (581) | (84) | |
Net (decrease) increase in cash and cash equivalents | (2,629) | 832 | |
Cash and cash equivalents at the beginning of the period | 28,814 | 24,961 | |
Cash and cash equivalents at the end of the period | $ 26,185 | $ 25,793 | |
[1] | * Dividend accrued but not paid by joint ventures of $544 and $647 was included in accrued liabilities as of September 30, 2015 and September 30, 2014, respectively. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) [Abstract] | |||
Dividends accrued but not paid by joint ventures | $ 544 | $ 563 | $ 647 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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 this interim quarterly financial report 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 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2015 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2015 and June 30, 2015 filed with the SEC on May 8, 2015 and August 7, 2015, respectively . The consolidated financial statements include the accounts of AXT, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., and our partially-owned 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 partially-owned subsidiaries that we consolidate, 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 Meas
Investments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Investments and Fair Value Measurements [Abstract] | |
Investments and Fair Value Measurements | Note 2. Investments and Fair Value Measurements Our cash and cash equivalents consist of cash and instruments with original maturities of less than 90 days. Our investments consist of instruments with original maturities of more than 90 days. As of September 30, 2015 and December 31, 2014, our cash, cash equivalents and investments are classified as follows (in thousands): September 30, 2015 December 31, 2014 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ $ — $ — $ $ $ — $ — $ Cash equivalents: Certificates of deposit 1 — — — — Money market fund — — — — — — Total cash and cash equivalents — — — — Investments(available for sale): Certificates of deposit 2 Corporate bonds — Corporate equity securities — — Total investments Total cash, cash equivalents and investments $ $ $ $ $ $ $ $ Contractual maturities on investments: Due within 1 year $ $ $ $ Due after 1 through 5 years $ $ $ $ 1. Certificate of deposit with original maturities of less than 90 days. 2. Certificate of deposit with original maturities of more than 90 days. 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. Certificates of deposit and corporate bonds are typically held until maturity. Corporate equity securities have no maturity and may be sold at any time. Our holding of corporate equity securities consists of common stock of GCS Holdings, Inc. (“GHI”) (previously Global Communication Semiconductors, Inc), a Taiwan publicly-traded company. Previously, we also owned the common stock of Intelligent Epitaxy Technology, Inc. (“IntelliEpi”).We began classifying IntelliEpi stock as an available-for-sale security upon its initial public offering in 2013. We sold our remaining IntelliEpi stock in the second quarter of 2015. As of September 30, 2015, we no longer hold any IntelliEpi stock. There were no sales of available-for-sales securities and no realized gains and losses for the three months ended September 30, 2015. During the three months ended September 30, 2014, our cash proceeds from selling IntelliEpi stock was $319,000 , our cost was $17,000 and our gross realized gain was $302,000 . During the nine months ended September 30, 2015, our cash proceeds from sales of available-for-sale investments were $902,000 , our cost was $43,000 and our gross realized gain from sales of available-for-sale investments was $859,000 . During the nine months ended September 30, 2014, our cash proceeds from selling IntelliEpi stock were $665,000 , our cost was $39,000 and our gross realized gain was $626,000 . We began classifying GHI as an available-for-sale security in the second quarter of 2015 when we determined that there was sufficient trading volume in the exchange for the stock to be deemed readily marketable. An unrealized gain of $227,000 net of tax was recorded as of September 30, 2015. This security is valued at fair market value at September 30, 2015 and will be marked to market with changes through other comprehensive income until sold. There is no assurance that we will realize this value when the stock is 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 September 30, 2015 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. A portion of our investments would generate a loss if we sold them on September 30, 2015. 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 September 30, 2015 (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 As of September 30, 2015 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ $ $ $ — $ $ Corporate bonds $ Total in loss position $ $ $ $ $ $ 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, 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 As of December 31, 2014 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ $ $ — $ — $ $ Corporate bonds $ Total in loss position $ $ $ $ $ $ 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 of these companies, including minority investments indirectly in privately-held companies made by our consolidated subsidiaries, accounted for under the equity method are included in “other assets” in the consolidated balance sheets and totaled $12.5 million and $12.1 million as of September 30, 2015 and December 31, 2014, respectively. As noted above, in the second quarter of 2015, we re-classified our minority investment in one company, which was accounted for under the cost method, as available-for- sale short-term investments and written-up to market value. As of September 30, 2015, we no longer maintain any investments under the cost method. As of December 31, 2014, our investments in this unconsolidated company had a carrying value of $200,000 and were included in “other assets” in the condensed consolidated balance sheets. Fair Value Measurements We invest primarily in money market accounts, certificates of deposits, corporate bonds and notes, and government securities. 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 of the asset or 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. 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 and 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 bank statements, quoted market prices, broker or dealer statements or quotations, or alternative pricing sources with reasonable levels of price transparency. We place short-term foreign currency hedges that are intended to offset the potential cash exposure related to fluctuations in the exchange rate between the United States dollar and Japanese Yen. We measure the fair value of these foreign currency hedges at each month end and quarter end using current exchange rates and in accordance with generally accepted accounting principles. At quarter end any foreign currency hedges not settled are netted in “accrued liabilities” on the consolidated balance sheet and classified as Level 3 assets and liabilities. As of September 30, 2015 the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact to the consolidated results. There were no changes in valuation techniques or related inputs in the three months ended September 30, 2015. There have been no transfers between fair value measurements levels during the three months ended September 30, 2015. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of September 30, 2015 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ $ — $ $ — Corporate bonds — — Corporate equity securities — — Total $ $ $ $ — Liabilities: Foreign currency hedge obligations $ $ — $ — $ 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, 2014 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2014 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Money market fund $ $ $ — $ — Certificates of deposit — — Corporate bonds — — Corporate equity securities — — Total $ $ $ $ — 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 and nine months ended September 30, 2015 and 2014. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Note 3. Inventories The components of inventories are summarized below (in thousands): September 30, December 31, 2015 2014 Inventories: Raw materials $ $ Work in process Finished goods $ $ As of September 30, 2015 and December 31, 2014, carrying values of inventories were net of inventory reserve of $11.5 million and $11.2 million, respectively, for excess and obsolete inventory. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Note 4. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2015 2014 Accrued compensation and related charges $ $ Current portion of royalty payments Accrued product warranty Accrued professional services Dividends payable by consolidated joint ventures Accrued income taxes Other accrued liabilities $ $ |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
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 for a loan to one of its equity investment entities. The original term of the loan was for two years and ten months with three 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 September 30, 2015, and December 31, 2014, we included $1.6 million and $1.7 million, respectively, in “Related party notes receivable – long term” in our condensed consolidated balance sheets. JiYa also purchases raw materials from one of its equity investment entities for production in the ordinary course of business. As of September 30, 2015 and December 31, 2014, amounts payable of $1.7 million and $1.8 million, respectively, were included in “accounts payable” in our condensed consolidated balance sheets. JiYa also sells raw materials to one of its equity investment entities for production in the ordinary course of business . As of September 30, 2015 and December 31, 2014, amounts receivable of $498,000 and $350,000 , respectively, were included in “accounts receivable” 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 September 30, 2015 and 2014, Jin Mei has recorded $0 and $1,000 income from agency sales, respectively, which were included in “other income (expense), net” in the consolidated statements of operations. For the nine months ended September 30, 2015 and 2014, Jin Mei has recorded $1,000 and $17,000 income from agency sales, respectively, which were included in “other income (expense), net” in the condensed 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 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 $116,000 on behalf of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.(“Dongfang”), its equity investment entity, to purchase materials. The original agreement was signed between Tongmei and Dongfang in 2014 and the date of repayment was set on December 31, 2015. In 2015, both parties agreed to delay the date of repayment to December 31, 2016. As of September 30, 2015, this balance was included in “Related party notes receivable – long term” in our condensed consolidated balance sheets. In April 2014, Tongmei loaned an additional of $47,000 to Dongfang. The loan bears interest at 6.15% per annum and the principal and interest totaling $51,000 as of September 30, 2015 is due on December 31, 2016. As of September 30, 2015, this balance, including both principal and interest, was included in “Related party notes receivable – long term” in our condensed consolidated balance sheets. Tongmei also purchases raw materials from Dongfang for production in the ordinary course of business. As of September 30, 2015 and December 31, 2014, amounts payable of $0 and $0 , respectively, were included in “accounts payable” in our condensed consolidated balance sheets. Tongmei also purchases raw materials from one of our equity investment entities for production in the ordinary course of business. As of September 30, 2015 and December 31 2014, amounts payable of $108,000 and $513,000 , respectively, were included in “accounts payable” in our condensed consolidated balance sheets. Beijing Kaide Quartz Co. Ltd. (“Kaide”) has been a supplier of customized quartz tubes to the Company since 2004. Beijing XiangHeMing Trade Co. Ltd., (“XiangHeMing”) is a significant shareholder of Kaide. XiangHeMing was previously owned by, among others, certain immediate family members of Davis Zhang, our former President, China Operations, until at least sometime in 2004, at which time the official Chinese government records indicate that Mr. Zhang’s immediate family members transferred their ownership of XiangHeMing to a third party. However, we are currently unable to conclusively determine whether Mr. Zhang’s immediate family members retained any economic interest in XiangHeMing after the transfer. As of September 30, 2015 and December 31 2014, amounts payable of $549,000 and $730,000 , respectively, were included in “accounts payable” in our condensed 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, directors, and our consolidated subsidiaries. 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 Companies
Investments in Companies | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Companies [Abstract] | |
Investments in Companies | Note 6. Investments in 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. These companies form part of our overall supply chain. The investments are summarized below (in thousands): Investment Balance as of September 30, December 31, Accounting Ownership Company 2015 2014 Method Percentage Beijing JiYa Semiconductor Material Co., Ltd. $ $ Consolidated % Nanjing Jin Mei Gallium Co., Ltd. Consolidated % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. Consolidated % $ $ Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ $ Equity % Xilingol Tongli Germanium Co. Ltd. Equity % Emeishan Jia Mei High Purity Metals Co., Ltd. Equity % $ $ Our ownership of Beijing JiYa Semiconductor Material Co., Ltd. (“JiYa”) is 46% . We continue to consolidate JiYa as we have significant influence on management and have majority control of the board. Our Chief Executive Officer is chairman of the JiYa board and we have appointed one other representative, Davis Zhang, to serve on the board. Mr. Zhang was an executive officer of AXT for 27 years, resigned in Q2 2015, and remains active as an advisor and consultant of AXT. In addition, another board member assigns his voting right on the board to AXT which gives AXT controlling interest of the five person board . Further, our C hief Financial Officer , Gary Fischer, is on the board of supervisors of JiYa. 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 and we have appointed two other representatives to serve on 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 and we have appointed two other representatives to serve on 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 September 30, 2015 and 2014, the three consolidated joint ventures generated $0.5 million and $1.1 million of income, respectively, of which $5,000 and $226,000 , respectively, were allocated to non-controlling interests, resulting in $454,000 and $837,000 of income, respectively , to our net income (loss) . During the nine months ended September 30, 2015 and 2014, the three consolidated joint ventures generated $1.7 million and $2.9 million of income, respectively, of which $257,000 and $673,000 , respectively, were allocated to non-controlling interests, resulting in $1.4 million and $2.2 million 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 $8.2 million and $8.1 million as of September 30, 2015 and December 31, 2014. 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 indirectly in privately-held companies 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 September 30, 2015 and December 31, 2014, our consolidated joint ventures included these minority investments in “other assets” in the consolidated balance sheets with a carrying value of $4.3 million and $4.0 million, respectively. The minority investment entities that are not consolidated are accounted for under the equity method and had the following summarized income information (in thousands) for the three and nine months ended September 30, 2015 and 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net revenue $ $ $ $ Gross profit $ $ $ $ Operating income $ $ $ $ Net income $ $ $ $ Our portion of the entity earnings from the minority investment entities that are not consolidated and are accounted for under the equity method were $167,000 and $390,000 for the three months ended September 30, 2015 and 2014, respectively, and $777,000 and $1.5 million for the nine months ended September 30, 2015 and 2014, respectively. During the second quarter of 2015, we re-classified our minority investments under the cost method as an available-for-sale security when we determined that there was sufficient trading volume in the exchange for the stock to be deemed readily marketable. As of September 30, 2015, we do not maintain any investments under the cost method. As of December 31, 2014, our investments in this unconsolidated company had a carrying value of $200,000 and were included in “other assets” in the condensed consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 7. Stockholders’ Equity Consolidated Statement of Changes in Equity (in thousands) Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive stockholders’ Noncontrolling stockholders’ Stock Stock Paid In Capital Deficit Income/(loss) equity interests equity Balance as of December 31, 2014 $ $ $ $ $ $ $ $ Common stock options exercised Common stock repurchased Stock-based compensation Net (loss) income Dividends declared by joint ventures Change in unrealized (loss) gain on marketable securities Currency translation adjustment Balance as of September 30, 2015 $ $ $ $ $ $ $ $ There were no reclassification adjustments from accumulated other comprehensive income for the nine months ended September 30, 2015 and 2014 . 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 were to be made from time to time in the open market and were 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 2014 under this program and the plan expired on February 27, 2014. On October 27, 2014, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $5.0 million of our outstanding common stock. These repurchases 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 the three months ended September 30, 2015, we repurchased approximately 308,000 shares at an average price of $2.38 per share for a total purchase price of approximately $733,000 under the stock repurchase program. During the nine months ended September 30, 2015, we repurchased approximately 891,000 shares at an average price of $2.53 per share for a total purchase price of $2.3 million under the stock repurchase program. As of September 30, 2015, approximately $2.7 million remained available for future repurchases under this program. See Item 2, Unregistered Sales of Equity Securities and Use of Proceeds in Part II, Other Information, for additional information. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Cost of revenue $ $ $ $ Selling, general and administrative Research and development Total stock-based compensation Tax effect on stock-based compensation — — — — Net effect on net income (loss) $ $ $ $ As of September 30, 2015, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was approximately $1.0 million, net of estimated forfeitures of $60,000 . These costs will be amortized on a straight-line basis over a weighted-average period of approximately 2.3 years and will be adjusted for subsequent changes in estimated forfeitures. We elected not to capitalize any stock-based compensation to inventory as of September 30, 2015 due to the immateriality of the amount. We estimate the fair value of stock options using the Black-Scholes valuation model, consistent with the provisions of ASC 718. There were no options granted in the three months ended September 30, 2015. There were 200,000 options granted with weighted average grant date fair values of $1.08 in the three months ended September 30, 2014. There were 20,000 and 252,000 stock options granted with weighted average grant date fair values of $0.48 and $1.09 in the nine months ended September 30, 2015 and 2014, respectively. The fair value of our stock options granted to employees for the three and nine months ended September 30, 2015 was estimated using the following weighted-average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2015 2015 Expected term (in years) — Volatility — % % Expected dividend — % — % Risk-free interest rate — % % The following table summarizes the stock option transactions during the nine months ended September 30, 2015 (in thousands, except per share data): Weighted- average Weighted- Remaining Number of average Contractual Aggregate Options Exercise Life Intrinsic Stock Options Outstanding Price (in years) Value Balance as of January 1, 2015 $ $ Granted Exercised Canceled and expired Balance as of September 30, 2015 $ $ Options vested as of September 30, 2015 and unvested options expected to vest, net of forfeitures $ $ Options exercisable as of September 30, 2015 $ $ The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $1.92 on September 30, 2015, 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 nine months ended September 30, 2015 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Fair Value Non-vested as of January 1, 2015 $ Granted $ Vested $ Forfeited $ Non-vested as of September 30, 2015 $ As of September 30, 2015, the unamortized compensation costs related to unvested restricted stock awards was approximately $1.0 million, which is to be amortized on a straight-line basis over a weighted average period of approximately 1.6 years. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
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 income (loss) per share calculations is as follows (in thousands , except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net income (loss) attributable to AXT, Inc $ $ $ $ Less: Preferred stock dividends Net income (loss) available to common stockholders $ $ $ $ Denominator: Denominator for basic net income (loss) per share - weighted average common shares Effect of dilutive securities: Common stock options — — — Restricted stock awards — — — Denominator for dilutive net income (loss) per common shares Net income (loss) attributable to AXT, Inc. per common share: Basic $ $ $ $ Diluted $ $ $ $ Options excluded from diluted net income (loss) per share as the impact is anti-dilutive Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of September 30, 2015 and December 31, 2014, 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 Foreign
Segment Information and Foreign Operations | 9 Months Ended |
Sep. 30, 2015 | |
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 the condensed consolidated financial statements. The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Geographical region: Europe (primarily Germany) $ $ $ $ Taiwan China Asia Pacific (excluding China, Taiwan and Japan) Japan North America (primarily the United States) Total $ $ $ $ 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 September 30, December 31, 2015 2014 Long-lived assets by geographic region: North America $ $ China $ $ Significant Customers Two customers represented more than 10% of our revenue for the three months ended September 30, 2015 while no customer represented more than 10% of our revenue for the three months ended September 30, 2014. No customer represented more than 10% of our revenue for the nine months ended September 30, 2015 and 2014. Our top five customers, although not the same five customers for each period, represented 45% and 35% of our revenue for the three months ended September 30, 2015 and 2014, respectively. Our top five customers, although not the same five customers for each period, represented 39% and 35% of our revenue for the nine months ended September 30, 2015 and 2014, 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. One customer accounted for over 10% of our accounts receivable balance as of September 30, 2015 while two customers accounted for 11% and 10%, respectively, of our accounts receivable balance as of December 31, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Indemnification Agreements We have entered into indemnification agreements with our directors and officers that require us to 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; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to 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 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 and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Beginning accrued warranty and related costs $ $ $ $ Accruals for warranties issued Adjustments related to pre-existing warranties including expirations and changes in estimates Cost of warranty repair Ending accrued warranty and related costs $ $ $ $ Contractual Obligations We lease certain office space, warehouse facilities and equipment under long-term operating leases expiring at various dates through December 2025. The majority of our lease obligations relates to our lease agreement for the facility in Fremont, California with approximately 19,467 square feet. We entered into a royalty agreement with a competitor 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 on the agreement. We shall pay up to $7.0 million of royalty payments over eight years that began in 2011 based on future royalty bearing sales. This agreement contains a clause that allows us to claim a credit, starting in 2013, in the event that the royalty bearing sales for the year are lower than a pre-determined amount set forth in this agreement. Outstanding contractual obligations as of September 30, 2015 are summarized as follows (in thousands): Payments due by period 1-3 4-5 More than Contractual Obligations Total Less than 1 year years years 5 years Operating leases $ $ $ $ $ Royalty agreement — Total $ $ $ $ $ Purchase Obligations with Penalties for Cancellation In the normal course of business, we issue purchase orders to various suppliers. In certain cases, we may incur a penalty if we cancel the purchase order. As of September 30, 2015, we do not have any outstanding purchase orders that will incur a penalty if cancelled by the Company. 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 operations. |
Foreign Exchange Transaction Ga
Foreign Exchange Transaction Gains/Losses | 9 Months Ended |
Sep. 30, 2014 | |
Foreign Exchange Transaction Gains/Losses [Abstract] | |
Foreign Exchange Transaction Gains/Losses | Note 12. Foreign Exchange Transaction Gains/Losses We incurred foreign currency transaction exchange gains of $359,000 and losses of $556,000 for the three months ended September 30, 2015 and 2014, respectively. We incurred foreign currency transaction exchange gains of $569,000 and losses of $381,000 for the nine months ended September 30, 2015 and 2014, respectively. These amounts are included in “other income (expense), net” on our condensed consolidated statements of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
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 than 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 the balance of retained earnings. This amount decreased the 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 June 31, 2015 includes no interest and penalties. As of September 30, 2015, 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, 2013. Provision for income taxes for three and nine months ended September 30, 2015 and 2014 was mostly related to our wholly owned China subsidiary and our three partially owned subsidiaries in China. 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 tax liabilities, no federal income tax benefit or expense has been provided for the three and nine months ended September 30, 2015 and 2014 due to our net loss, our valuation allowance being utilized and uncertainty of future profits in the U.S. |
Whistleblower Complaint and Inv
Whistleblower Complaint and Investigation | 9 Months Ended |
Sep. 30, 2015 | |
Whistleblower Complaint and Investigation [Abstract] | |
Whistleblower Complaint and Investigation | Note 14. Whistleblower Complaint and Investigation On February 23, 2015, the Board of Directors announced that, pursuant to an anonymous whistleblower complaint, our Audit Committee has conducted an investigation of certain potential related-party transactions involving Davis Zhang, our former President, China Operations. The investigation did not conclude that there was any intentional misconduct by Mr. Zhang, or that he received any improper benefit from these transactions. Further, the investigation did not reveal any inaccuracies in our financial statements resulting from these transactions. However, the investigation identified certain historical related-party transactions that were not previously disclosed in our filings with the Securities and Exchange Commission (“SEC”). We have filed a Current Report on Form 8-K with the SEC on February 23, 2015 to disclose such historical related-party transactions. On February 20, 2015, the Board waived any potential inconsistencies with our Code of Conduct and Ethics arising from the transactions identified in the investigation. Also, the Audit Committee approved the related-party nature of such transactions to the extent it had not previously approved such transactions. The Board and Audit Committee specified that such waiver and approval would have retroactive effect to the date of commencement of the transactions covered by such waiver and approval. We have incurred approximately $1.8 million of professional service fees during the course of this investigation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 15. Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact that this standard will have on our consolidated financial statements. |
Investments and Fair Value Me23
Investments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments and Fair Value Measurements [Abstract] | |
Cash, cash equivalents and investments | As of September 30, 2015 and December 31, 2014, our cash, cash equivalents and investments are classified as follows (in thousands): September 30, 2015 December 31, 2014 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ $ — $ — $ $ $ — $ — $ Cash equivalents: Certificates of deposit 1 — — — — Money market fund — — — — — — Total cash and cash equivalents — — — — Investments(available for sale): Certificates of deposit 2 Corporate bonds — Corporate equity securities — — Total investments Total cash, cash equivalents and investments $ $ $ $ $ $ $ $ Contractual maturities on investments: Due within 1 year $ $ $ $ Due after 1 through 5 years $ $ $ $ 1. Certificate of deposit with original maturities of less than 90 days. 2. Certificate of deposit with original maturities of more than 90 days. |
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 September 30, 2015 (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 As of September 30, 2015 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ $ $ $ — $ $ Corporate bonds $ Total in loss position $ $ $ $ $ $ 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, 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 As of December 31, 2014 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ $ $ — $ — $ $ Corporate bonds $ Total in loss position $ $ $ $ $ $ |
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 September 30, 2015 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ $ — $ $ — Corporate bonds — — Corporate equity securities — — Total $ $ $ $ — Liabilities: Foreign currency hedge obligations $ $ — $ — $ 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, 2014 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2014 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Money market fund $ $ $ — $ — Certificates of deposit — — Corporate bonds — — Corporate equity securities — — Total $ $ $ $ — Liabilities $ — $ — $ — $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Components of inventories | The components of inventories are summarized below (in thousands): September 30, December 31, 2015 2014 Inventories: Raw materials $ $ Work in process Finished goods $ $ |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Liabilities [Abstract] | |
Components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2015 2014 Accrued compensation and related charges $ $ Current portion of royalty payments Accrued product warranty Accrued professional services Dividends payable by consolidated joint ventures Accrued income taxes Other accrued liabilities $ $ |
Investments in Privately-held C
Investments in Privately-held Companies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Companies [Abstract] | |
Investments | The investments are summarized below (in thousands): Investment Balance as of September 30, December 31, Accounting Ownership Company 2015 2014 Method Percentage Beijing JiYa Semiconductor Material Co., Ltd. $ $ Consolidated % Nanjing Jin Mei Gallium Co., Ltd. Consolidated % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. Consolidated % $ $ Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ $ Equity % Xilingol Tongli Germanium Co. Ltd. Equity % Emeishan Jia Mei High Purity Metals Co., Ltd. Equity % $ $ |
Summarized income information | The minority investment entities that are not consolidated are accounted for under the equity method and had the following summarized income information (in thousands) for the three and nine months ended September 30, 2015 and 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net revenue $ $ $ $ Gross profit $ $ $ $ Operating income $ $ $ $ Net income $ $ $ $ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity [Abstract] | |
Consolidated statement of changes in equity | Consolidated Statement of Changes in Equity (in thousands) Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive stockholders’ Noncontrolling stockholders’ Stock Stock Paid In Capital Deficit Income/(loss) equity interests equity Balance as of December 31, 2014 $ $ $ $ $ $ $ $ Common stock options exercised Common stock repurchased Stock-based compensation Net (loss) income Dividends declared by joint ventures Change in unrealized (loss) gain on marketable securities Currency translation adjustment Balance as of September 30, 2015 $ $ $ $ $ $ $ $ |
Employee Benefit Plans and Stoc
Employee Benefit Plans and Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Cost of revenue $ $ $ $ Selling, general and administrative Research and development Total stock-based compensation Tax effect on stock-based compensation — — — — Net effect on net income (loss) $ $ $ $ |
Weighted-average assumptions | The fair value of our stock options granted to employees for the three and nine months ended September 30, 2015 was estimated using the following weighted-average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2015 2015 Expected term (in years) — Volatility — % % Expected dividend — % — % Risk-free interest rate — % % |
Summary of stock option activity | The following table summarizes the stock option transactions during the nine months ended September 30, 2015 (in thousands, except per share data): Weighted- average Weighted- Remaining Number of average Contractual Aggregate Options Exercise Life Intrinsic Stock Options Outstanding Price (in years) Value Balance as of January 1, 2015 $ $ Granted Exercised Canceled and expired Balance as of September 30, 2015 $ $ Options vested as of September 30, 2015 and unvested options expected to vest, net of forfeitures $ $ Options exercisable as of September 30, 2015 $ $ |
Restricted stock awards | A summary of activity related to restricted stock awards for the nine months ended September 30, 2015 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Fair Value Non-vested as of January 1, 2015 $ Granted $ Vested $ Forfeited $ Non-vested as of September 30, 2015 $ |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 income (loss) per share calculations is as follows (in thousands , except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net income (loss) attributable to AXT, Inc $ $ $ $ Less: Preferred stock dividends Net income (loss) available to common stockholders $ $ $ $ Denominator: Denominator for basic net income (loss) per share - weighted average common shares Effect of dilutive securities: Common stock options — — — Restricted stock awards — — — Denominator for dilutive net income (loss) per common shares Net income (loss) attributable to AXT, Inc. per common share: Basic $ $ $ $ Diluted $ $ $ $ Options excluded from diluted net income (loss) per share as the impact is anti-dilutive Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive |
Segment Information and Forei30
Segment Information and Foreign Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information and Foreign Operations [Abstract] | |
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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Geographical region: Europe (primarily Germany) $ $ $ $ Taiwan China Asia Pacific (excluding China, Taiwan and Japan) Japan North America (primarily the United States) Total $ $ $ $ |
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 September 30, December 31, 2015 2014 Long-lived assets by geographic region: North America $ $ China $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Beginning accrued warranty and related costs $ $ $ $ Accruals for warranties issued Adjustments related to pre-existing warranties including expirations and changes in estimates Cost of warranty repair Ending accrued warranty and related costs $ $ $ $ |
Outstanding contractual obligations | Outstanding contractual obligations as of September 30, 2015 are summarized as follows (in thousands): Payments due by period 1-3 4-5 More than Contractual Obligations Total Less than 1 year years years 5 years Operating leases $ $ $ $ $ Royalty agreement — Total $ $ $ $ $ |
Investments and Fair Value Me32
Investments and Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash, cash equivalents and investments [Abstract] | |||||||
Cash | $ 15,723,000 | $ 15,723,000 | $ 22,337,000 | ||||
Cash equivalents [Abstract] | |||||||
Certificates of deposit, amortized cost | [1] | 10,462,000 | 10,462,000 | 6,454,000 | |||
Certificates of deposit, fair value | [1] | 10,462,000 | 10,462,000 | 6,454,000 | |||
Money market fund | 23,000 | ||||||
Total cash and cash equivalents | 26,185,000 | $ 25,793,000 | 26,185,000 | $ 25,793,000 | 28,814,000 | $ 24,961,000 | |
Amortized Cost | 45,263,000 | 45,263,000 | 48,267,000 | ||||
Gross Unrealized Gain | 230,000 | 230,000 | 712,000 | ||||
Gross Unrealized (Loss) | (44,000) | (44,000) | (42,000) | ||||
Fair Value | 45,449,000 | 45,449,000 | 48,937,000 | ||||
Contractual maturities on investments, amortized cost basis [Abstract] | |||||||
Due within 1 year | 8,327,000 | 8,327,000 | 11,631,000 | ||||
Due after 1 through 5 years | 10,751,000 | 10,751,000 | 7,822,000 | ||||
Investments, amortized cost | 19,078,000 | 19,078,000 | 19,453,000 | ||||
Contractual maturities on investments, fair value basis [Abstract] | |||||||
Due within 1 year | 8,551,000 | 8,551,000 | 12,340,000 | ||||
Due after 1 through 5 years | 10,713,000 | 10,713,000 | 7,783,000 | ||||
Investments, fair value | 19,264,000 | 19,264,000 | 20,123,000 | ||||
Proceeds from sales of available-for-sale investments | 0 | ||||||
Realized gain | 0 | ||||||
Gross realized gains from sales of available-for-sale investments | 859,000 | 626,000 | |||||
GHI [Member] | |||||||
Contractual maturities on investments, fair value basis [Abstract] | |||||||
Unrealized gain, net of tax | 227,000 | ||||||
IntelliEpi [Member] | |||||||
Contractual maturities on investments, fair value basis [Abstract] | |||||||
Proceeds from sales of available-for-sale investments | 319,000 | 902,000 | 665,000 | ||||
Investments in publicly-held companies | 0 | 0 | |||||
Available-for-sale investments, expenses | 17,000 | 43,000 | 39,000 | ||||
Gross realized gains from sales of available-for-sale investments | $ 302,000 | 859,000 | $ 626,000 | ||||
Auction Rate Securities [Member] | |||||||
Contractual maturities on investments, fair value basis [Abstract] | |||||||
Investments, fair value | 0 | 0 | |||||
Certificates of Deposit [Member] | |||||||
Cash equivalents [Abstract] | |||||||
Amortized Cost | [2] | 10,053,000 | 10,053,000 | 10,195,000 | |||
Gross Unrealized Gain | [2] | 3,000 | 3,000 | 1,000 | |||
Gross Unrealized (Loss) | [2] | (6,000) | (6,000) | (13,000) | |||
Fair Value | [2] | 10,050,000 | 10,050,000 | 10,183,000 | |||
Corporate Bonds [Member] | |||||||
Cash equivalents [Abstract] | |||||||
Amortized Cost | 8,825,000 | 8,825,000 | 9,214,000 | ||||
Gross Unrealized Gain | 1,000 | ||||||
Gross Unrealized (Loss) | (38,000) | (38,000) | (29,000) | ||||
Fair Value | 8,787,000 | 8,787,000 | 9,186,000 | ||||
Corporate Equity Securities [Member] | |||||||
Cash equivalents [Abstract] | |||||||
Amortized Cost | 200,000 | 200,000 | 44,000 | ||||
Gross Unrealized Gain | 227,000 | 227,000 | 710,000 | ||||
Fair Value | 427,000 | 427,000 | 754,000 | ||||
Total Investments [Member] | |||||||
Cash equivalents [Abstract] | |||||||
Amortized Cost | 19,078,000 | 19,078,000 | 19,453,000 | ||||
Gross Unrealized Gain | 230,000 | 230,000 | 712,000 | ||||
Gross Unrealized (Loss) | (44,000) | (44,000) | (42,000) | ||||
Fair Value | $ 19,264,000 | $ 19,264,000 | $ 20,123,000 | ||||
[1] | Certificate of deposit with original maturities of less than 90 days. | ||||||
[2] | Certificate of deposit with original maturities of more than 90 days. |
Investments and Fair Value Me33
Investments and Fair Value Measurements (Details 2) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||
Fair value, in loss position less than twelve months | $ 11,191,000 | $ 8,262,000 |
Gross unrealized loss, in loss position less than twelve months | (41,000) | (40,000) |
Fair value, in loss position greater than twelve months | 2,591,000 | 4,309,000 |
Gross unrealized loss, in loss position greater than twelve months | (3,000) | (2,000) |
Fair value, total in loss position | 13,782,000 | 12,571,000 |
Gross unrealized loss, total in loss position | (44,000) | (42,000) |
Minority Investments [Abstract] | ||
Minority investments in unconsolidated privately-held companies | 200,000 | |
Certificates of Deposit [Member] | ||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||
Fair value, in loss position less than twelve months | 4,274,000 | 4,492,000 |
Gross unrealized loss, in loss position less than twelve months | (6,000) | (13,000) |
Fair value, in loss position greater than twelve months | 720,000 | |
Fair value, total in loss position | 4,994,000 | 4,492,000 |
Gross unrealized loss, total in loss position | (6,000) | (13,000) |
Corporate Bonds [Member] | ||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||
Fair value, in loss position less than twelve months | 6,917,000 | 3,770,000 |
Gross unrealized loss, in loss position less than twelve months | (35,000) | (27,000) |
Fair value, in loss position greater than twelve months | 1,871,000 | 4,309,000 |
Gross unrealized loss, in loss position greater than twelve months | (3,000) | (2,000) |
Fair value, total in loss position | 8,788,000 | 8,079,000 |
Gross unrealized loss, total in loss position | (38,000) | (29,000) |
Other Assets [Member] | ||
Minority Investments [Abstract] | ||
Investments in privately-held companies | $ 12,500,000 | 12,100,000 |
Minority investments in unconsolidated privately-held companies | $ 200,000 |
Investments and Fair Value Me34
Investments and Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Cash Equivalents and Investments [Abstract] | |||
Money market fund | $ 23 | ||
Certificates of deposit | [1] | $ 10,462 | 6,454 |
Recurring [Member] | |||
Cash Equivalents and Investments [Abstract] | |||
Money market fund | 23 | ||
Certificates of deposit | 10,050 | 10,183 | |
Corporate bonds | 8,787 | 9,186 | |
Corporate equity securities | 427 | 754 | |
Total | 19,264 | 20,146 | |
Liabilities [Abstract] | |||
Foreign currency hedge obligations | 25 | ||
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | |||
Cash Equivalents and Investments [Abstract] | |||
Money market fund | 23 | ||
Corporate equity securities | 427 | 754 | |
Total | 427 | 777 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Cash Equivalents and Investments [Abstract] | |||
Certificates of deposit | 10,050 | 10,183 | |
Corporate bonds | 8,787 | 9,186 | |
Total | 18,837 | $ 19,369 | |
Recurring [Member] | Significant Other Observable Inputs (Level 3) [Member] | |||
Liabilities [Abstract] | |||
Foreign currency hedge obligations | $ 25 | ||
[1] | Certificate of deposit with original maturities of less than 90 days. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 20,378 | $ 18,990 |
Work in process | 15,077 | 16,222 |
Finished goods | 2,632 | 3,362 |
Inventories, total | 38,087 | 38,574 |
Inventory reserve | $ 11,500 | $ 11,200 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Components of accrued liabilities [Abstract] | |||
Accrued compensation and related charges | $ 1,323 | $ 2,656 | |
Current portion of royalty payments | 631 | 800 | |
Accrued product warranty | 620 | 802 | |
Accrued professional services | 592 | 509 | |
Dividends payable by consolidated joint ventures | 544 | 563 | $ 647 |
Accrued income taxes | 165 | 119 | |
Other accrued liabilities | 1,638 | 2,185 | |
Accrued liabilities, total | $ 5,513 | $ 7,634 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($)ft²installment | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft²installment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Aug. 31, 2011USD ($)item | |
Related Party Transaction [Line Items] | ||||||
Related party notes receivable - long term | $ 1,813,000 | $ 1,813,000 | $ 1,704,000 | |||
Accounts payable | 5,959,000 | 5,959,000 | 7,137,000 | |||
Accounts receivable | $ 17,110,000 | $ 17,110,000 | 17,864,000 | |||
Area of leased property (in square feet) | ft² | 19,467 | 19,467 | ||||
Principal and interest on loan | 171,000 | |||||
Nanjing Jin Mei Gallium Co., Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Income from agency sales | $ 0 | $ 1,000 | $ 1,000 | $ 17,000 | ||
Beijing JiYa Semiconductor Material Co., Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amount of loan under note agreement | $ 1,700,000 | |||||
Number of equity method investees to whom loan was granted | item | 1 | |||||
Term of loan | 2 years 10 months | |||||
Number of installments | installment | 3 | 3 | ||||
Related party notes receivable - long term | $ 1,600,000 | $ 1,600,000 | 1,700,000 | |||
Accounts payable | 1,700,000 | 1,700,000 | 1,800,000 | |||
Accounts receivable | 498,000 | 498,000 | 350,000 | |||
Income from agency sales | 1,000 | $ 17,000 | ||||
Beijing Tongmei Xtal Technology [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable | $ 108,000 | $ 108,000 | 513,000 | |||
Area of leased property (in square feet) | ft² | 22,081 | 22,081 | ||||
Lease term | 10 years | |||||
Annual lease payment | $ 24,000 | |||||
Increase in annual lease payment at each third year anniversary (in hundredths) | 5.00% | 5.00% | ||||
Payments to purchase materials | $ 116,000 | |||||
Additional loan paid to related party | $ 47,000 | |||||
Interest on loan (in hundredths) | 6.15% | 6.15% | ||||
Principal and interest on loan | $ 51,000 | $ 51,000 | ||||
Beijing Tongmei Xtal Technology [Member] | Donghai County Dongfang High Purity Electronic Materials Co., Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable | 0 | 0 | 0 | |||
Beijing Kaide Quartz Co. Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable | $ 549,000 | $ 549,000 | $ 730,000 |
Investments in Companies (Detai
Investments in Companies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)employeeitem | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)employeeitem | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Summary of investments [Abstract] | |||||
Income allocated to minority interests | $ 5,000 | $ 226,000 | $ 257,000 | $ 673,000 | |
Equity investments classified as other assets | 14,721,000 | $ 14,721,000 | $ 14,975,000 | ||
Investments in unconsolidated privately-held entities, included in other assets | 200,000 | ||||
Employee duration | 27 years | ||||
AXT, Inc. Stockholders' Equity [Member] | |||||
Summary of investments [Abstract] | |||||
Gross equity earnings from minority-owned joint ventures that are not consolidated, recorded as other income | 805,000 | 1,759,000 | $ 3,546,000 | 6,485,000 | |
Equity Method Investments [Member] | |||||
Summary of investments [Abstract] | |||||
Equity method investment by parent | $ 8,245,000 | $ 8,245,000 | 8,095,000 | ||
Number of equity investment entities | item | 3 | 3 | |||
Equity investments classified as other assets | $ 8,200,000 | $ 8,200,000 | 8,100,000 | ||
Gross equity earnings from minority-owned joint ventures that are not consolidated, recorded as other income | $ 167,000 | 390,000 | $ 777,000 | 1,500,000 | |
Joint Ventures [Member] | |||||
Summary of investments [Abstract] | |||||
Number of consolidated joint ventures | item | 3 | 3 | |||
Income from three consolidated joint ventures | $ 500,000 | 1,100,000 | $ 1,700,000 | 2,900,000 | |
Income allocated to minority interests | 5,000 | 226,000 | 257,000 | 673,000 | |
Net income from joint ventures attributable to parent | 454,000 | $ 837,000 | 1,400,000 | $ 2,200,000 | |
Minority investment in consolidated joint venture, included in other assets | 4,300,000 | 4,300,000 | 4,000,000 | ||
Majority-Owned Subsidiaries [Member] | |||||
Summary of investments [Abstract] | |||||
Investments, consolidated | $ 5,269,000 | $ 5,269,000 | 5,269,000 | ||
Beijing JiYa Semiconductor Material Co., Ltd [Member] | |||||
Summary of investments [Abstract] | |||||
Number of persons on board | employee | 5 | 5 | |||
Beijing JiYa Semiconductor Material Co., Ltd [Member] | Majority-Owned Subsidiaries [Member] | |||||
Summary of investments [Abstract] | |||||
Investments, consolidated | $ 3,331,000 | $ 3,331,000 | 3,331,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 46.00% | ||||
Nanjing Jin Mei Gallium Co., Ltd [Member] | |||||
Summary of investments [Abstract] | |||||
Number of new board representatives | employee | 2 | ||||
Nanjing Jin Mei Gallium Co., Ltd [Member] | Majority-Owned Subsidiaries [Member] | |||||
Summary of investments [Abstract] | |||||
Investments, consolidated | 592,000 | $ 592,000 | 592,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 83.00% | ||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd [Member] | |||||
Summary of investments [Abstract] | |||||
Number of new board representatives | employee | 2 | ||||
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 | 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 | $ 1,557,000 | $ 1,557,000 | 1,723,000 | ||
Percentage of ownership, equity method (in hundredths) | 46.00% | 46.00% | |||
Xilingol Tongli Germanium Co. Ltd [Member] | Equity Method Investments [Member] | |||||
Summary of investments [Abstract] | |||||
Equity method investment by parent | $ 5,606,000 | $ 5,606,000 | 5,351,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% | 25.00% | |||
Emeishan Jia Mei High Purity Metals Co., Ltd [Member] | Equity Method Investments [Member] | |||||
Summary of investments [Abstract] | |||||
Equity method investment by parent | $ 1,082,000 | $ 1,082,000 | $ 1,021,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% | 25.00% |
Investments in Privately-held39
Investments in Privately-held Companies, Minority Investment Entities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
AXT, Inc. Stockholders' Equity [Member] | ||||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||||
Net Revenue | $ 9,631,000 | $ 11,487,000 | $ 29,960,000 | $ 38,433,000 |
Gross profit | 2,324,000 | 5,371,000 | 8,244,000 | 17,458,000 |
Operating income | 829,000 | 2,289,000 | 4,172,000 | 8,377,000 |
Net income | 805,000 | 1,759,000 | 3,546,000 | 6,485,000 |
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 | $ 167,000 | $ 390,000 | $ 777,000 | $ 1,500,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 27, 2014 | Feb. 21, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | $ 144,688,000 | ||||||||
Common stock options exercised | 165,000 | ||||||||
Common stock repurchased | (2,254,000) | ||||||||
Stock-based compensation | 1,051,000 | ||||||||
Net (loss) income | $ 47,000 | $ 870,000 | $ 870,000 | (728,000) | $ (404,000) | ||||
Dividends declared by joint ventures | (83,000) | ||||||||
Change in unrealized (loss) gain on marketable securities | (134,000) | (418,000) | (484,000) | (279,000) | |||||
Currency translation adjustment | (2,321,000) | ||||||||
Balance, end of period | $ 140,034,000 | 144,688,000 | 140,034,000 | $ 144,688,000 | |||||
Reclassification adjustment from AOCI | $ 0 | $ 0 | |||||||
Stock Repurchase Program [Abstract] | |||||||||
Stock repurchase program, authorized amount | $ 5,000,000 | $ 6,000,000 | |||||||
Shares repurchased (in shares) | 308,000 | 891,000 | 0 | 285,000 | |||||
Average price of shares repurchased (in dollars per share) | $ 2.38 | $ 2.53 | $ 2.51 | ||||||
Total purchase price | $ 733,000 | $ 2,300,000 | $ 716,000 | ||||||
Stock repurchase program remaining authorized repurchase amount | 2,700,000 | 2,700,000 | $ 5,300,000 | ||||||
Preferred Stock [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | $ 3,532,000 | ||||||||
Common stock options exercised | |||||||||
Balance, end of period | 3,532,000 | 3,532,000 | $ 3,532,000 | $ 3,532,000 | |||||
Common Stock [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | $ 32,000 | ||||||||
Common stock options exercised | |||||||||
Balance, end of period | 32,000 | 32,000 | $ 32,000 | 32,000 | |||||
Additional Paid In Capital [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | 195,419,000 | ||||||||
Common stock options exercised | 165,000 | ||||||||
Common stock repurchased | (2,254,000) | ||||||||
Stock-based compensation | 1,051,000 | ||||||||
Balance, end of period | 194,381,000 | 195,419,000 | 194,381,000 | 195,419,000 | |||||
Accumulated Deficit [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | (68,393,000) | ||||||||
Net (loss) income | (985,000) | ||||||||
Balance, end of period | (69,378,000) | (68,393,000) | (69,378,000) | (68,393,000) | |||||
Other Comprehensive Income/(Loss) [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | 7,673,000 | ||||||||
Change in unrealized (loss) gain on marketable securities | (484,000) | ||||||||
Currency translation adjustment | (2,023,000) | ||||||||
Balance, end of period | 5,166,000 | 7,673,000 | 5,166,000 | 7,673,000 | |||||
AXT, Inc. Stockholders' Equity [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | 138,263,000 | ||||||||
Common stock options exercised | 165,000 | ||||||||
Common stock repurchased | (2,254,000) | ||||||||
Stock-based compensation | 1,051,000 | ||||||||
Net (loss) income | (985,000) | ||||||||
Dividends declared by joint ventures | 0 | ||||||||
Change in unrealized (loss) gain on marketable securities | (484,000) | ||||||||
Currency translation adjustment | (2,023,000) | ||||||||
Balance, end of period | 133,733,000 | 138,263,000 | 133,733,000 | 138,263,000 | |||||
Noncontrolling Interests [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning of period | 6,425,000 | ||||||||
Net (loss) income | 257,000 | ||||||||
Dividends declared by joint ventures | (83,000) | ||||||||
Currency translation adjustment | (298,000) | ||||||||
Balance, end of period | $ 6,301,000 | $ 6,425,000 | $ 6,301,000 | $ 6,425,000 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 311 | $ 272 | $ 1,051 | $ 861 |
Net effect on net income (loss) | 311 | 272 | 1,051 | 861 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 5 | 4 | 15 | 14 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 260 | 227 | 902 | 716 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 46 | $ 41 | $ 134 | $ 131 |
Stock-based Compensation (Det42
Stock-based Compensation (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation costs related to unvested stock options not yet recognized | $ 1,000,000 | $ 1,000,000 | |||
Value of estimated forfeitures | $ 60,000 | ||||
Weighted-average period of amortization | 2 years 3 months 18 days | ||||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 1.08 | $ 0.48 | $ 1.09 | ||
Weighted average assumptions [Abstract] | |||||
Expected term | 1 year | ||||
Volatility (in hundredths) | 54.21% | ||||
Risk-free interest rate (in hundredths) | 1.86% | ||||
Number of options outstanding [Roll Forward] | |||||
Options outstanding, beginning of period (in shares) | 3,198,000 | ||||
Granted (in shares) | 0 | 200,000 | 20,000 | 252,000 | |
Exercised (in shares) | (119,000) | ||||
Canceled and expired (in shares) | (62,000) | ||||
Options outstanding, end of period (in shares) | 3,037,000 | 3,037,000 | 3,198,000 | ||
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) | 3,037,000 | 3,037,000 | |||
Options exercisable, end of period (in shares) | 2,033,000 | 2,033,000 | |||
Weighted average exercise price [Roll Forward] | |||||
Options outstanding, beginning of period (in dollars per share) | $ 3.12 | ||||
Granted (in dollars per share) | 2.51 | ||||
Exercised (in dollars per share) | 1.38 | ||||
Canceled and expired (in dollars per share) | 3.86 | ||||
Options outstanding, end of period (in dollars per share) | $ 3.17 | 3.17 | $ 3.12 | ||
Options vested and unvested options expected to vest, net of forfeitures, end of period (in dollars per share) | 3.17 | 3.17 | |||
Options exercisable, end of period (in dollars per share) | $ 3.50 | $ 3.50 | |||
Weighted average Remaining Contractual Life [Abstract] | |||||
Options outstanding | 5 years 4 months 24 days | 6 years 11 months 12 days | |||
Options vested and unvested options expected to vest, net of forfeitures, end of period | 5 years 4 months 24 days | ||||
Option exercisable, end of period | 4 years 4 months 17 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Options outstanding, beginning of period | $ 1,247,000 | ||||
Options outstanding, end of period | $ 96,000 | 96,000 | $ 1,247,000 | ||
Options vested and unvested options expected to vest, net of forfeitures, end of period | 96,000 | 96,000 | |||
Options exercisable, end of period | $ 96,000 | $ 96,000 | |||
Closing price (in dollars per share) | $ 1.92 | $ 1.92 | |||
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period of amortization | 1 year 7 months 6 days | ||||
Unrecognized compensation expense related to restricted stock awards | $ 1,000,000 | $ 1,000,000 | |||
Shares [Roll Forward] | |||||
Non-vested, beginning of period (in shares) | 261,000 | ||||
Granted (in shares) | 336,000 | ||||
Vested (in shares) | (118,000) | ||||
Forfeited (in shares) | (13,000) | ||||
Non-vested, end of period (in shares) | 466,000 | 466,000 | 261,000 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Non-vested, beginning of period (in dollars per share) | $ 2.71 | ||||
Granted (in dollars per share) | 2.56 | ||||
Vested (in dollars per share) | 2.65 | ||||
Forfeited (in dollars per share) | 2.34 | ||||
Non-vested, end of period (in dollars per share) | $ 2.63 | $ 2.63 | $ 2.71 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Numerator: [Abstract] | |||||
Net income (loss) attributable to AXT, Inc. | $ 42,000 | $ 644,000 | $ (985,000) | $ (1,077,000) | |
Less: Preferred stock dividends | (44,000) | (44,000) | (132,000) | (132,000) | |
Net income (loss) available to common stockholders | $ (2,000) | $ 600,000 | $ (1,117,000) | $ (1,209,000) | |
Denominator: [Abstract] | |||||
Denominator for basic net income (loss) per share - weighted average common shares (in shares) | 31,988,000 | 32,504,000 | 32,262,000 | 32,416,000 | |
Effect of dilutive securities: | |||||
Denominator for dilutive net income (loss) per common share (in shares) | 31,988,000 | 32,738,000 | 32,262,000 | 32,416,000 | |
Basic net income (loss) per share [Abstract] | |||||
Basic (in dollars per share) | $ 0 | $ 0.02 | $ (0.03) | $ (0.04) | |
Diluted net income (loss) per share [Abstract] | |||||
Diluted (in dollars per share) | $ 0 | $ 0.02 | $ (0.03) | $ (0.04) | |
Weighted-average shares: [Abstract] | |||||
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | 883,000 | ||
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | 883,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, value | $ 3,532,000 | $ 3,532,000 | $ 3,532,000 | ||
Cumulative annual dividend rate (in hundredths) | 5.00% | 5.00% | |||
Liquidation preference over common stock (in dollars per share) | $ 4 | $ 4 | $ 4 | ||
Options [Member] | |||||
Weighted-average shares: [Abstract] | |||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 3,037,000 | 2,000,000 | 3,037,000 | 2,684,000 | |
Restricted Stock Awards [Member] | |||||
Weighted-average shares: [Abstract] | |||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 466,000 | 77,000 | 466,000 | 250,000 | |
Options [Member] | |||||
Effect of dilutive securities: | |||||
Effect of dilutive securities (in shares) | 201,000 | ||||
Restricted Stock Awards [Member] | |||||
Effect of dilutive securities: | |||||
Effect of dilutive securities (in shares) | 33,000 |
Segment Information and Forei44
Segment Information and Foreign Operations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | $ 18,371 | $ 23,138 | $ 59,445 | $ 63,932 | |
Long-lived assets by geographic region [Abstract] | |||||
Long-lived assets | 32,346 | 32,346 | $ 33,862 | ||
Taiwan [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 4,131 | 3,835 | 10,654 | 8,735 | |
Reportable Geographical Components [Member] | Europe [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 4,385 | 5,429 | 14,992 | 16,980 | |
Reportable Geographical Components [Member] | China [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 3,296 | 4,298 | 10,154 | 13,423 | |
Long-lived assets by geographic region [Abstract] | |||||
Long-lived assets | 31,648 | 31,648 | 33,726 | ||
Reportable Geographical Components [Member] | Japan [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 1,939 | 3,511 | 7,176 | 9,281 | |
Reportable Geographical Components [Member] | Asia Pacific (Excluding Japan And Taiwan) [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 2,750 | 3,537 | 8,277 | 8,376 | |
Reportable Geographical Components [Member] | North America (primarily the United States) [Member] | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 1,870 | $ 2,528 | 8,192 | $ 7,137 | |
Long-lived assets by geographic region [Abstract] | |||||
Long-lived assets | $ 698 | $ 698 | $ 136 |
Segment Information and Forei45
Segment Information and Foreign Operations (Details 2) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Revenue [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 2 | 0 | 0 | 0 | |
Accounts Receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 1 | 2 | |||
Major Customer One [Member] | Accounts Receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers (in hundredths) | 11.00% | ||||
Major Customer Two [Member] | Accounts Receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers (in hundredths) | 10.00% | ||||
Top Five Major Customers [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers (in hundredths) | 45.00% | 35.00% | |||
Top Five Major Customers [Member] | Revenue [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 5 | 5 | 5 | 5 | |
Percentage share generated by major customers (in hundredths) | 39.00% | 35.00% |
Commitments and Contingencies46
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | |
Product Warranty [Abstract] | ||||
Period of warranty | 12 months | |||
Change in warranty accrual [Roll Forward] | ||||
Beginning accrued warranty and related costs | $ 668 | $ 980 | $ 802 | $ 1,048 |
Accruals for warranties issued | 78 | 243 | 663 | 820 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | (4) | (55) | (256) | (357) |
Cost of warranty repair | (122) | (264) | (589) | (607) |
Ending accrued warranty and related costs | $ 620 | $ 904 | $ 620 | $ 904 |
Leases [Abstract] | ||||
Area of property under long-term operating lease (in square feet) | ft² | 19,467 | 19,467 | ||
Term of royalty agreement | 8 years | |||
Aggregate amount payable towards royalty | $ 7,000 | $ 7,000 | ||
Outstanding contractual obligations [Abstract] | ||||
Total | 573 | 573 | ||
Less than 1 year | 201 | 201 | ||
1-3 years | 219 | 219 | ||
4-5 years | 52 | 52 | ||
More than 5 year | 101 | 101 | ||
Other Commitments, Fiscal Year Maturity [Abstract] | ||||
Total | 2,498 | 2,498 | ||
Less than 1 year | 832 | 832 | ||
1-3 years | 1,369 | 1,369 | ||
4-5 years | 196 | 196 | ||
More than 5 years | 101 | 101 | ||
Royalty Agreement [Member] | ||||
Other Commitments, Fiscal Year Maturity [Abstract] | ||||
Total | 1,925 | 1,925 | ||
Less than 1 year | 631 | 631 | ||
1-3 years | 1,150 | 1,150 | ||
4-5 years | $ 144 | $ 144 |
Foreign Exchange Transaction 47
Foreign Exchange Transaction Gains/Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Foreign Exchange Transaction Gains/Losses [Abstract] | ||||
Foreign exchange transaction exchange gains (losses) | $ 359,000 | $ (556,000) | $ 569,000 | $ (381,000) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)subsidiary | Sep. 30, 2014USD ($) | |
Income Taxes [Abstract] | ||||
Gross unrecognized tax benefits | $ 16,400,000 | $ 16,400,000 | ||
Unrecognized tax benefits interest and penalties | 0 | |||
Unrecognized tax benefits accrued interest and penalties | 0 | $ 0 | ||
Number of partially owned subsidiaries | subsidiary | 3 | |||
Federal income tax benefit or expense | $ 0 | $ 0 | $ 0 | $ 0 |
Whistleblower Complaint and I49
Whistleblower Complaint and Investigation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Whistleblower Complaint and Investigation [Abstract] | |
Professional service fees | $ 1.8 |