Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | AXT INC | ||
Entity Central Index Key | 1,051,627 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 69,585,000 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 32,341,176 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 24,875,000 | $ 28,814,000 |
Short-term investments | 11,437,000 | 12,340,000 |
Accounts receivable, net of allowances of $985 and $823 as of December 31, 2015 and December 31, 2014 | 18,468,000 | 17,864,000 |
Inventories | 38,012,000 | 38,574,000 |
Related party notes receivable - current | 171,000 | |
Prepaid expenses and other current assets | 4,096,000 | 5,430,000 |
Total current assets | 96,888,000 | 103,193,000 |
Long-term investments | 7,691,000 | 7,783,000 |
Property, Plant and Equipment, Net. | 31,422,000 | 33,862,000 |
Related party notes receivable - long-term | 1,781,000 | 1,704,000 |
Other assets | 14,114,000 | 14,975,000 |
Total assets | 151,896,000 | 161,517,000 |
Current liabilities: | ||
Accounts payable | 6,460,000 | 7,137,000 |
Accrued liabilities | 6,381,000 | 7,634,000 |
Total current liabilities | 12,841,000 | 14,771,000 |
Long-term portion of royalty payments | 1,150,000 | 1,725,000 |
Other long-term liabilities | 344,000 | 333,000 |
Total liabilities | $ 14,335,000 | $ 16,829,000 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 70,000 shares authorized; 32,548 and 32,837 shares issued and outstanding as of December 31, 2015 and December 31, 2014 | $ 32,000 | $ 32,000 |
Additional paid-in-capital | 194,646,000 | 195,419,000 |
Accumulated deficit | (70,621,000) | (68,393,000) |
Accumulated other comprehensive income | 4,382,000 | 7,673,000 |
Total AXT, Inc. stockholders' equity | 131,971,000 | 138,263,000 |
Noncontrolling interests | 5,590,000 | 6,425,000 |
Total stockholders' equity | 137,561,000 | 144,688,000 |
Total liabilities and stockholders' equity | 151,896,000 | 161,517,000 |
Series A Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of December 31, 2015 and December 31, 2014 (Liquidation preference of $6.5 million and $6.3 million as of December 31, 2015 and December 31, 2014.) | $ 3,532,000 | $ 3,532,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 985 | $ 823 |
Stockholders' equity: | ||
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) | 32,548,000 | 32,837,000 |
Common stock, shares outstanding (in shares) | 32,548,000 | 32,837,000 |
Series A Preferred Stock | ||
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 | $ 6,500 | $ 6,300 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||
Revenue | $ 77,502,000 | $ 83,499,000 | $ 85,335,000 |
Cost of revenue | 60,673,000 | 66,332,000 | 73,507,000 |
Gross profit | 16,829,000 | 17,167,000 | 11,828,000 |
Operating expenses: | |||
Selling, general and administrative | 16,064,000 | 14,970,000 | 16,066,000 |
Research and development | 5,664,000 | 4,144,000 | 3,424,000 |
Restructuring charge | 0 | 907,000 | |
Total operating expenses | 21,728,000 | 20,021,000 | 19,490,000 |
Loss from operations | (4,899,000) | (2,854,000) | (7,662,000) |
Interest income, net | 412,000 | 483,000 | 408,000 |
Equity in earnings of unconsolidated joint ventures | 462,000 | 1,528,000 | 1,377,000 |
Other income (expense), net | 2,023,000 | 361,000 | (748,000) |
Loss before provision for income taxes | (2,002,000) | (482,000) | (6,625,000) |
Provision for income taxes | 531,000 | 215,000 | 188,000 |
Net income (loss) | (2,533,000) | (697,000) | (6,813,000) |
Less: Net income attributable to noncontrolling interests | 305,000 | (691,000) | (1,145,000) |
Net income (loss) attributable to AXT, Inc. | $ (2,228,000) | $ (1,388,000) | $ (7,958,000) |
Net income (loss) attributable to AXT, Inc. per common share: | |||
Basic (in dollars per share) | $ (0.07) | $ (0.05) | $ (0.25) |
Diluted (in dollars per share) | $ (0.07) | $ (0.05) | $ (0.25) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 32,183 | 32,452 | 32,700 |
Diluted (in shares) | 32,183 | 32,452 | 32,700 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) | |||
Net income (loss) | $ (2,533) | $ (697) | $ (6,813) |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation gain (loss), net of tax | (3,425) | (377) | 1,568 |
Change in unrealized loss (gain) on available-for-sale investments, net of tax | (313) | (964) | 1,682 |
Total other comprehensive income (loss), net of tax | (3,738) | (1,341) | 3,250 |
Comprehensive loss | (6,271) | (2,038) | (3,563) |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 752 | (630) | (1,475) |
Comprehensive loss attributable to AXT, Inc. | $ (5,519) | $ (2,668) | $ (5,038) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income | AXT, Inc. Stockholders' Equity | Noncontrolling Interests | Total |
Balance, beginning of period at Dec. 31, 2012 | $ 3,532 | $ 32 | $ 193,063 | $ (59,047) | $ 6,033 | $ 143,613 | $ 7,301 | $ 150,914 |
Balance (in shares) at Dec. 31, 2012 | 883 | 32,471 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock options exercised | 532 | 532 | 532 | |||||
Options exercised (in shares) | 331 | |||||||
Common stock repurchased | (716) | (716) | (716) | |||||
Common stock repurchased (in shares) | (285) | |||||||
Stock-based compensation | 1,277 | 1,277 | 1,277 | |||||
Issuance of common stock in the form of restricted stock (in shares) | 88 | |||||||
Net income (loss) | (7,958) | (7,958) | 1,145 | (6,813) | ||||
Dividends declared by joint ventures | (2,898) | (2,898) | ||||||
Other comprehensive income (loss) | 2,920 | 2,920 | 330 | 3,250 | ||||
Balance, end of period at Dec. 31, 2013 | $ 3,532 | $ 32 | 194,156 | (67,005) | 8,953 | 139,668 | 5,878 | 145,546 |
Balance (in shares) at Dec. 31, 2013 | 883 | 32,605 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock options exercised | 134 | 134 | 134 | |||||
Options exercised (in shares) | 111 | |||||||
Stock-based compensation | 1,129 | 1,129 | 1,129 | |||||
Issuance of common stock in the form of restricted stock (in shares) | 121 | |||||||
Net income (loss) | (1,388) | (1,388) | 691 | (697) | ||||
Dividends declared by joint ventures | (83) | (83) | ||||||
Other comprehensive income (loss) | (1,280) | (1,280) | (61) | (1,341) | ||||
Balance, end of period at Dec. 31, 2014 | $ 3,532 | $ 32 | 195,419 | (68,393) | 7,673 | 138,263 | 6,425 | 144,688 |
Balance (in shares) at Dec. 31, 2014 | 883 | 32,837 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock options exercised | 165 | 165 | 165 | |||||
Options exercised (in shares) | 119 | |||||||
Common stock repurchased | (2,287) | (2,287) | (2,287) | |||||
Common stock repurchased (in shares) | (908) | |||||||
Restricted stock awards canceled | (47) | |||||||
Stock-based compensation | 1,349 | 1,349 | 1,349 | |||||
Issuance of common stock in the form of restricted stock (in shares) | 547 | |||||||
Net income (loss) | (2,228) | (2,228) | (305) | (2,533) | ||||
Dividends declared by joint ventures | (83) | (83) | ||||||
Other comprehensive income (loss) | (3,291) | (3,291) | (447) | (3,738) | ||||
Balance, end of period at Dec. 31, 2015 | $ 3,532 | $ 32 | $ 194,646 | $ (70,621) | $ 4,382 | $ 131,971 | $ 5,590 | $ 137,561 |
Balance (in shares) at Dec. 31, 2015 | 883 | 32,548 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (2,533,000) | $ (697,000) | $ (6,813,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 5,494,000 | 5,639,000 | 5,470,000 |
Amortization of marketable securities premium | 218,000 | 432,000 | 518,000 |
Stock-based compensation | 1,349,000 | 1,129,000 | 1,277,000 |
Provision for doubtful accounts | 211,000 | 9,000 | 869,000 |
Realized gain on sale of investments | (859,000) | (1,263,000) | 0 |
Gain on sale of cost method investment | (811,000) | ||
Loss (gain) on disposal of equipment | 17,000 | (13,000) | (9,000) |
Income from equity investments, net | (462,000) | (1,528,000) | (1,377,000) |
Changes in assets and liabilities: | |||
Accounts receivable, net | (1,076,000) | (2,959,000) | 2,160,000 |
Inventories | (45,000) | 479,000 | 1,439,000 |
Prepaid expenses and other current assets | 1,405,000 | 2,393,000 | (645,000) |
Other assets | 542,000 | 946,000 | 1,000 |
Accounts payable | (485,000) | (979,000) | 2,185,000 |
Accrued liabilities | (1,085,000) | 742,000 | (899,000) |
Other long-term liabilities | (813,000) | (833,000) | (373,000) |
Net cash provided by operating activities | 1,878,000 | 3,497,000 | 2,992,000 |
Cash flows from investing activities: | |||
Purchases of equipment | (4,150,000) | (1,971,000) | (5,424,000) |
Proceeds from sale of equipment | 2,000 | 13,000 | |
Purchases of available for sale securities | (12,787,000) | (11,828,000) | (14,092,000) |
Proceeds from sales and maturities of available-for-sale securities | 14,309,000 | 13,928,000 | 12,486,000 |
Investments in non-marketable equity investments | (162,000) | (782,000) | |
Dividends received from equity method investments | 305,000 | 327,000 | 299,000 |
Repayments of related party note receivable | 818,000 | ||
Net cash provided by (used in) investing activities | (2,483,000) | 469,000 | (6,695,000) |
Cash flows from financing activities: | |||
Proceeds from common stock options exercised | 165,000 | 134,000 | 532,000 |
Repurchases of the Company's common stock, including commission | (2,287,000) | (716,000) | |
Dividends paid by joint ventures to their minority share holders | (112,000) | (166,000) | (2,329,000) |
Net cash used in financing activities | (2,234,000) | (32,000) | (2,513,000) |
Effect of exchange rate changes on cash and cash equivalents | (1,100,000) | (81,000) | 543,000 |
Net (decrease) increase in cash and cash equivalents | (3,939,000) | 3,853,000 | (5,673,000) |
Cash and cash equivalents at the beginning of the period | 28,814,000 | 24,961,000 | |
Cash and cash equivalents at the end of the period | 24,875,000 | 28,814,000 | 24,961,000 |
Supplemental disclosures: | |||
Income taxes paid | $ 284,000 | $ 293,000 | $ 782,000 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
Dividends accrued but not paid by joint ventures | $ 534 | $ 563 | $ 651 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
The Company and Summary of Significant Accounting Policies | |
The Company and Summary of Significant Accounting Policies | AXT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. The Company and Summary of Significant Accounting Policies The Company AXT, Inc. and its subsidiaries (“we, “the Company”, or “AXT”) is a developer and producer of high-performance compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips are made from silicon. However, certain chips may become too hot or perform their function too slowly if silicon is used as the base material. Alternative or specialty materials are used to replace silicon as the preferred base for the electronic circuit in these situations. We provide such alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Our compound substrates combine indium with phosphorous (InP) or combine gallium with arsenic (GaAs). Our single element substrates are made from germanium (Ge). Our headquarters is in Fremont, California in the San Francisco Bay Area. We manufacture all of our products in the People’s Republic of China and our supply chain includes AXT’s subsidiaries and joint venture companies in China. These companies produce products that include 99.99% pure gallium (4N Ga), high purity gallium, arsenic, germanium, germanium dioxide, pyrolytic boron nitride (pBN) crucibles and boron oxide (B2O3). Our ownership and the ownership by our consolidated subsidiaries in these entities range from 83% to 20% . We consolidate the joint ventures in which we have either a controlling financial interest, or majority financial interest combined with the ability to exercise control in substance over the operation or financial decisions made by the investee. We use the equity method to account for joint ventures in which we have smaller financial interest and have the ability to exercise significant influence, but not control, over the investee. We purchase portions of the materials produced by these joint ventures for our own use and the joint ventures sell the remainder of their production to third parties. Principles of Consolidation The consolidated financial statements include the accounts of AXT, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., and our majority-owned, or significantly controlled subsidiaries, Beijing JiYa Semiconductor Material Co., Ltd., Nanjing Jin Mei Gallium Co., Ltd. and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. All significant inter ‑company accounts and transactions have been eliminated. Investments in business entities in which we do not have controlling interest, 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 consolidated balance sheets in stockholders’ equity and in our consolidated statements of operations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions. We believe that the estimates, judgments, and assumptions upon which management relies are reasonable based on information available at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates and actual results, our consolidated financial statements would be affected . Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments including cash and cash equivalents, accounts receivable, short-term investments and long-term investments, accounts payable and accrued liabilities approximate fair value due to their short maturities. Certain cash equivalents and investments are required to be adjusted to fair value on a recurring basis. See Note 2. Fair Value of Investments ASC topic 820, Fair value measurement (“ASC 820”) establishes three levels of inputs that may be used to measure fair value. Level 1 instruments represent quoted prices in active markets. Therefore, determining fair value for Level 1 instruments does not require significant management judgment, and the estimation is not difficult. Level 2 instruments include observable inputs other than Level 1 prices, such as quoted prices for comparable instruments in markets with insufficient volume or infrequent transactions (less active markets), issuer credit ratings, non-binding market consensus prices that can be corroborated with observable market data, model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities, or quoted prices for similar assets or liabilities. These Level 2 instruments require more management judgment and subjectivity compared to Level 1 instruments, including: · Determining which instruments are most comparable to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, maturity, issuer, credit rating, and instrument type, and subjectively select an individual security or multiple securities that are deemed most similar to the security being priced. · Determining which model-derived valuations to use in determining fair value requires management judgment. When observable market prices for identical securities or comparable securities are not available, we price our marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data or pricing models, such as discounted cash flow models, with all significant inputs derived from or corroborated with observable market data. Level 3 instruments include unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The determination of fair value for Level 3 instruments requires the most management judgment and subjectivity. 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 December 31, 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. Foreign Currency Translation The functional currency of our Chinese subsidiaries is the Renminbi, the local currency of China. Transaction gains and losses resulting from transactions denominated in currencies other than the U.S. dollar or in the functional currencies of our subsidiaries are included in “other income (expense), net” for the years presented. The transaction gains for the year ended December 31, 2015 totaled $717,000 and the transaction losses for the years ended December 31, 2014 and 2013 totaled $1.0 million and $1.3 million, respectively. The assets and liabilities of the subsidiaries are translated at the rates of exchange on the balance sheet date. Revenue and expense items are translated at the average rate of exchange for the period. Gains and losses from foreign currency translation are included in “other comprehensive income (loss)” in the consolidated statements of comprehensive income (loss). Revenue Recognition We manufacture and sell high-performance compound semiconductor substrates and sell certain raw materials including gallium, germanium dioxide, and pBN crucibles. After we ship our products, there are no remaining obligations or customer acceptance requirements that would preclude revenue recognition. Our products are typically sold pursuant to a purchase order placed by our customers. We recognize revenue upon shipment and transfer of title of products to our customers, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, provided that we have received a valid purchase order, the price is fixed or determinable, title and risk of ownership have transferred, collection of resulting receivables is probable, and product returns are reasonably estimable. Revenue is net of any taxes assessed by any governmental authority. We do not provide training, installation or commissioning services. We assess the probability of collection based on a number of factors including past history with the customer and credit worthiness. We do not provide payment discounts. We provide for future returns based on historical experience, current economic trends and changes in customer demand at the time revenue is recognized. Accounting for Sales Taxes in Net Revenues We record sales taxes collected on sales of our products and for amounts not yet remitted to tax authorities as accrued liabilities on our consolidated balance sheets. Risks and Concentration of Credit Risk Our business is very dependent on the semiconductor, lasers and fiber optics industries which can be highly cyclical and experience downturns as a result of economic changes, overcapacity, and technological advancements. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies, could adversely affect our operating results. In addition, a significant portion of our revenues and net income is derived from international sales. Fluctuations of the United States dollar against foreign currencies and changes in local regulatory or economic conditions, particularly in an emerging market such as China, could adversely affect operating results. We depend on a single or limited number of suppliers for certain critical materials used in the production of our substrates, such as quartz tubing and polishing solutions. We generally purchase these materials through standard purchase orders and not pursuant to long-term supply contracts. Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, short-term investments, and trade accounts receivable. We invest primarily in money market accounts, commercial paper instruments, and investment grade securities with high quality financial institutions. The composition and maturities are regularly monitored by management. Such deposits are in excess of the amount of the insurance provided by the federal government on such deposits. We are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the consolidated balance sheets. 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. The credit risk in our accounts receivable is mitigated by our credit evaluation process and the geographical dispersion of sales transactions. One customer accounted for 22% of our trade accounts receivable as of December 31, 2015 and two customers accounted for 11% and 10% of our accounts receivable balance as of December 31, 2014. One customer, IQE Group, represented 12% of our revenue for the year ended December 31, 2015 while no customer represented more than 10% of our revenue for the years ended December 31, 2014 and 2013. Our top five customers, although not the same five customers for each period , represented 40% , 34% and 31% of revenue for the years ended December 31, 2015, 2014 and 2013, respectively. We believe that in the future we could have a greater concentration of sales. Cash and Cash Equivalents We consider investments in highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of certificate of deposits. Cash and cash equivalents are stated at cost, which approximates fair value. Short-Term and Long-Term Investments We classify our investments in marketable debt and equity securities as available-for-sale securities in accordance with ASC topic 320, Investments - Debt and Equity Securities (“ASC 320”) . Short-term and long-term investments are comprised of available-for-sale marketable debt securities, which consist primarily of certificates of deposit, corporate bonds and notes, and government securities. These investments are reported at fair value as of the respective balance sheet dates with unrealized gains and losses included in accumulated other comprehensive income within stockholders’ equity on the consolidated balance sheets. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in “other income (expense), net” in the consolidated statements of operations. Realized gains and losses and declines in value judged to be other than temporary on available-for-sale securities are also included in “other income (expense), net” in the consolidated statements of operations. The cost of securities sold is based upon the specific identification method. Accounts Receivable and Allowance for Doubtful Accounts and Sales Returns Accounts receivable are recorded at the invoiced amount and are not interest bearing. We periodically review the likelihood of collection on our accounts receivable balances and provide an allowance for doubtful accounts receivable primarily based upon the age of these accounts. We evaluate receivables from U.S. customers with an emphasis on balances in excess of 90 days and for receivables from customers located outside the U.S. with an emphasis on balances in excess of 120 days and establish a reserve allowance on the receivable balances if needed. The reason for the difference in the evaluation of receivables between foreign and U.S. customers is that U.S. customers have historically made payments in a shorter period of time than foreign customers. Foreign business practices generally require us to allow customer payment terms that are longer than those accepted in the United States. We assess the probability of collection based on a number of factors, including the length of time a receivable balance has been outstanding, our past history with the customer and their credit worthiness. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the United States and internationally, and changes in customer financial conditions. Uncollectible receivables are recorded as bad debt expense when all efforts to collect have been exhausted and recoveries are recognized when they are received. As of December 31, 2015 and 2014, our accounts receivable, net balance was $ 18.5 million and $17.9 million, respectively, which was net of an allowance for doubtful accounts of $561,000 and $410,000 , respectively. During 2015, we increased this allowance for doubtful accounts by $151,000 primarily because of the poor financial condition of a few customers. During 2014, we decreased this allowance for doubtful accounts by $459,000 primarily for improved collections from customers. No amounts have been written off. If actual uncollectible accounts differ substantially from our estimates, revisions to the estimated allowance for doubtful accounts would be required, which could have a material impact on our financial results for future periods. The allowance for sales returns is also deducted from gross accounts receivable. During 2015, we utilized $423,000 and charged an additional $434,000 resulting in an ending balance for the allowance for sales returns of $ 424,000 as of December 31, 2015. During 2014, we utilized $410,000 and charged an additional $183,000 resulting in the allowance for sales returns of $413,000 as of December 31, 2014. Warranty Reserve We maintain a warranty reserve based upon our claims experience during the prior twelve months and any pending claims and returns of which we are aware. Warranty costs are accrued at the time revenue is recognized. As of December 31, 2015 and 2014, accrued product warranties totaled $497,000 and $802,000 , respectively. The decrease in accrued product warranties is primarily attributable to decreased claims for quality issues experienced by some customers. If actual warranty costs or pending new claims differ substantially from our estimates, revisions to the estimated warranty liability would be required, which could have a material impact on our financial condition and results of operations for future periods. Inventories Inventories are stated at the lower of cost (approximated by standard cost) or market. Cost is determined using the weighted average cost method. Our inventory consists of raw materials as well as finished goods and work-in-process that include material, labor and manufacturing overhead costs. Given the nature of our substrate products, and the materials used in the manufacturing process, the wafers and ingots comprising work-in-process may be held in inventory for up to two years and three years, respectively, as the risk of obsolescence for these materials is low. We routinely evaluate the levels of our inventory in light of current market conditions in order to identify excess and obsolete inventory, and we provide a valuation allowance for certain inventories based upon the age and quality of the product and the projections for sale of the completed products. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation computed using the straight-line method over the estimated economic lives of the assets, which vary from 1 to 27.5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the term of the lease. We generally depreciate computer, software, office equipment, furniture and fixtures 3 to 5 years, machinery and equipment 1 to 5 years, automobiles 5 to 10 years, leasehold and building improvements over 10 years, or lease term if shorter, and buildings over 27.5 years. Repairs and maintenance costs are expensed as incurred. Impairment of Long-Lived Assets We evaluate the recoverability of property, equipment and intangible assets in accordance with ASC topic 360, Property, Plant and Equipment (“ASC 360”). When events and circumstance indicate that long-lived assets may be impaired, our management compares the carrying value of the long-lived assets to the projection of future undiscounted cash flows attributable to such assets. In the event that the carrying value exceeds the future undiscounted cash flows, we record an impairment charge against income equal to the excess of the carrying value over the asset’s fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. We did not recognize any impairment charges of long-lived assets in 2015, 2014 and 2013. Impairment of Investments All available-for-sale securities are periodically reviewed for impairment. An investment is considered to be impaired when its fair value is less than its amortized cost basis and it is more likely than not that we will be required to sell the impaired security before recovery of its amortized cost basis. 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. We also invest in equity instruments of privately-held companies in China for business and strategic purposes. Investments in our non-consolidated joint venture companies are classified as other assets and accounted for under either the equity or cost method, depending on whether we have the ability to exercise significant influence over their operations or financial decisions. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. Determination of impairment is highly subjective and is based on a number of factors, including an assessment of the strength of investee’s management, the length of time and extent to which the fair value has been less than our cost basis, the financial condition and near-term prospects of the investee, fundamental changes to the business prospects of the investee, share prices of subsequent offerings, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in our carrying value. We estimate fair value of our cost method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. Segment Reporting 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 our performance for the Company. We discuss revenue and capacity for both AXT and our joint ventures collectively, when determining capacity constraints and need for raw materials in our business, and consider their capacity when determining our strategic and product marketing and advertising strategies. While we consolidate our majority-owned or significantly controlled joint ventures, we do not allocate any portion of overhead, interest and other income, interest expense or taxes to them. We therefore have determined that our joint venture operations do not constitute an operating segment. Since we operate in one segment, all financial segment and product line information can be found in the consolidated financial statements. Stock ‑Based Compensation We have employee stock option plans, which are described more fully in Note 11—Employee Benefit Plans and Stock-based Compensation. We account for stock ‑based compensation in accordance with the provisions of ASC topic 718, Compensation- Stock Compensation (“ASC 718”). We utilize the Black-Scholes option pricing model to determine the fair value of the stock options granted. Stock ‑based compensation cost is measured at each grant date, based on the fair value of the award, and is recognized as expense and as an increase in additional paid-in-capital over the requisite service period of the award. Research and Development Research and development costs consist primarily of salaries, including stock-based compensation expense and related personnel costs, depreciation, materials and product testing and are expensed as incurred. Advertising Costs Advertising costs, included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2015, 2014 and 2013 were $10,000 , $10,000 and $12,000 , respectively. Shipping and Handling costs We include fees billed to customers and costs incurred for shipping and handling as a component of cost of sales. 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. The impact of ASC 740 is more fully described in Note 13. Comprehensive Income (loss) We report comprehensive income (loss) in accordance with the provisions of ASC topic 220 Comprehensive Income (“ASC 220”) which establishes standards for reporting comprehensive income or loss and its components in the financial statements. The components of other comprehensive income include unrealized gains and losses on marketable securities and foreign currency translation adjustments. Comprehensive income (loss) is presented in the consolidated statements of comprehensive income (loss). 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 and vesting of restricted stock awards. Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, which made changes to the accounting for financial instruments that primarily affect equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The standard amends financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. This update will be effective for the annual periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently assessing the impact of the future adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, which applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards, superseding the existing revenue recognition requirements in ASC Topic 605 “Revenue Recognition.” Pursuant to ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange, as applied through a multi-step process to achieve that core principle. Subsequently, the FASB approved a deferral included in ASU 2015-14 that permits public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein, and that would also permit public entities to elect to adopt the amendments as of the original effective date as applicable to reporting periods beginning after December 15, 2016. The new guidance allows for the amendment to be applied either retrospectively to each prior reporting period presented or retrospectively as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact that the adoption of ASU 2014-09 and ASU 2015-14 may have on our consolidated financial statements and have not elected a transition method as of the year ended December 31, 2015 . |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents and Investments | |
Cash, Cash Equivalents and Investments | Note 2. Cash, Cash Equivalents and Investments 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 December 31, 2015 and, 2014, our cash, cash equivalents and investments are classified as follows (in thousands): December 31, 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 December 31, 2015, we no longer hold any IntelliEpi stock. In 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 . In 2014, our cash proceeds from sales of available-for-sale investments were $1.3 million, our cost was $82,000 and our gross realized gain from sales of available-for-sale investments was $1.3 million. There were no sales of available-for-sales securities and no realized gains and losses for the year ended December 31, 2013. 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 $432,000 net of tax was recorded as of December 31, 2015. This security is valued at fair market value at December 31, 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 December 31, 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 December 31, 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 December 31, 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 December 31, 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 $12.1 million and $12.1 million as of December 31, 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 December 31, 2015, we no longer maintain any investments under the cost method. As of December 31, 2014 and 2013, our investments in this unconsolidated company had a carrying value of $200,000 and were also included in “other assets” in the 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 similar assets. Level 2 instrument valuations are obtained from readily-available, observable 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. There were no changes in valuation techniques or related inputs in the year ended December 31, 2015. There have been no transfers between fair value measurement levels during the year ended December 31, 2015 . 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 December 31, 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. 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, 2015 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 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 these investments during 2015. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Inventories | Note 3. Inventories The components of inventory are summarized below (in thousands): December 31, December 31, 2015 2014 Inventories: Raw materials $ $ Work in process Finished goods $ $ As of December 31, 2015 and 2014, carrying values of inventories were net of inventory reserve of $12.0 million and $11.2 million, respectively, for excess and obsolete inventory. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | Note 4. 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 $1.6 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 2017 . As of December 31, 2015 and December 31, 2014, we included $1.6 million and $1.7 million million respectively, in “Related party notes receivable – long term” in our 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 December 31, 2015 and 2014, amounts payable of $2.4 million and $1.8 million, respectively, were included in “accounts payable” in our 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 December 31, 2015 and 2014, amounts receivable of $473,000 and $350,000 , respectively, were included in “accounts receivable” in our 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 year ended December 31, 2015 and 2014, Jin Mei has recorded $1,000 and $20,000 income from agency sales, respectively, which were included in “other income (expense), net” in the consolidated statements of operations. In March 2012, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), entered into an operating lease for the land it owns with our consolidated joint venture Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. The lease agreement for the land of approximately 22,081 square feet commenced on January 1, 2012 for a term of 10 years with annual lease payments of $24,000 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 $114,000 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, 2017. As of December 31, 2015, this balance was included in “Related party notes receivable – long term” in our consolidated balance sheets. In April 2014, Tongmei loaned an additional of $46,000 to Dongfang. The loan bears interest at 6.15% per annum and the principal and interest totaling $51,000 as of December 31, 2015 is due on December 31, 2017. As of December 31, 2015, this balance, including both principal and interest, was included in “Related party notes receivable – long term” in our 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 December 31, 2015 and 2014, amounts payable of $70,000 and $513,000 , respectively, were included in “accounts payable” in our 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 December 31, 2015 and 2014, amounts payable to Kaide of $379,000 and $730,000 , respectively, were included in “accounts payable” in our consolidated balance sheets. Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between related parties and us, unless they have been approved by our Board of Directors. This policy applies to all of our employees, 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. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | Note 5. Property, Plant and Equipment, Net The components of our property, plant and equipment are summarized below (in thousands): As of December 31, 2015 2014 Property, plant and equipment: Building $ $ Machinery and equipment Leasehold improvements Construction in progress Less: accumulated depreciation and amortization $ $ Depreciation and amortization expense was $5.5 million, $5 .6 million and $5 .5 million for the years ended 2015, 2014, and 2013 respectively. |
Investments in Privately-held C
Investments in Privately-held Companies | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Privately-held Companies | |
Investments in Privately-held Companies | Note 6. Investments in Privately-held Companies We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business. Our consolidated subsidiaries have also made investments in private companies. These companies form part of our overall supply chain. Our direct investments are summarized below (in thousands): Investment Balance as of December 31, 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 are the founding and the largest shareholder, we appoint the general manager and controller and have the ability to exercise control in substance over the long-term strategic decisions made. 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. Further, our Chief 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 a controlling financial interest 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 controlling financial interest 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 regular guidance and input from us. During 2015, 2014 and 2013, the three consolidated joint ventures generated $0.8 million, $3.0 million and $3.5 million of income, respectively, of which a loss of $0.3 million, a gain of $0.7 million and a gain of $1.1 million, respectively were allocated to noncontrolling interests, resulting in $1.2 million, $2.3 million and $2.4 million of income, respectively, to our net income. For AXT’s three minority investment entities that are not consolidated, the investment balances are included in “other assets” in our consolidated balance sheets and totaled $7.9 million and $8.1 million as of December 31, 2015 and 2014, respectively. 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. These three equity investment entities generated for AXT an equity loss of $43,000 for the year ended December 31, 2015 $569,000 and $270,000 for the years ended December 31, 2014, and 2013, respectively, which was recorded as “equity in earnings of unconsolidated joint ventures” in the consolidated statements of operations. Net income recorded from all of the consolidated joint ventures and these three equity investment entities was $1.1 million, $2.9 million and $2.6 million for the years ended December 31, 2015, 2014, and 2013, respectively. We also maintain four minority investments indirectly in privately-held companies through our consolidated joint ventures. Our subsidiary, Jiya, has three investments. Our subsidiary, Jinmei, has one investment. These minority investments are accounted for under the equity method in the books of our consolidated joint ventures. As of December 31, 2015 and 2014, our consolidated joint ventures included these minority investments in “other assets” in the consolidated balance sheets with a carrying value of $4.1 million and $4.0 million, respectively. AXT’s three direct minority investment entities and the three minority investments of Jiya and the one minority investment of Jinmei are not consolidated and are accounted for under the equity method and had the following summarized income information (in thousands) for the years ended December 31, 2015, 2014 and 2013, respectively: Our share for the Year Ended Year Ended December 31, December 31, 2015 2014 2013 2015 2014 2013 Net revenue $ $ $ $ $ $ Gross profit Operating income Net income These seven minority investment entities that are not consolidated, but rather are accounted for under the equity method and had the following summarized balance sheet information (in thousands) for the years ended December 31, 2015 and 2014, respectively: As of December 31, 2015 2014 Current assets $ $ Noncurrent assets Current liabilities Noncurrent liabilities Our portion of the entity earnings from these seven minority investment entities that are not consolidated and are accounted for under the equity method were $462,000 , $1.5 million and $1.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Dividends received from these minority investment entities were $305,000 , $327,000 and $396,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Undistributed retained earnings relating to our investments in all these minority investment entities were $6.6 million and $6.5 million as of December 31, 2015 and 2014, respectively. |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2015 | |
Other Investments | |
Other Investments | Note 7. Other Investments During the second quarter of 2015, we re-classified our sole minority investment 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 December 31, 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 consolidated balance sheets. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities | |
Accrued Liabilities | Note 8. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): As of December 31, 2015 2014 Accrued compensation and related charges $ $ Accrued professional services Current portion of royalty payments Dividends payable by consolidated joint ventures Accrued product warranty Accrued income taxes Other accrued liabilities $ $ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Debt | Note 9. Debt Prior to 2015, we had an unused credit facility with a bank that provided for a line of credit of $10.0 million. The line of credit was secured by marketable securities we had with the bank at that time. This line of credit was never used and there were no outstanding borrowings under this line of credit as of December 31, 2015 and 2014. This line of credit was terminated in January 2015 when we closed our investment account with this institution and moved all of our funds from this bank to a different bank. |
Stockholders_ Equity and Stock
Stockholders’ Equity and Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders’ Equity and Stock Repurchase Program | |
Stockholders’ Equity and Stock Repurchase Program | Note 10. Stockholders’ Equity and Stock Repurchase Program Stockholders’ Equity The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of December 31, 2015 and 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 $4 per share liquidation preference over common stock, and 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. 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 2015, we repurchased approximately 908,000 shares at an average price of $2.52 per share for a total purchase price of approximately $2.3 million under the stock repurchase program. As of December 31, 2015, approximately $2.7 million remained available for future repurchases under this program. See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in Part II. |
Employee Benefit Plans and Stoc
Employee Benefit Plans and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans and Stock-based Compensation | |
Employee Benefit Plans and Stock-based Compensation | Note 11. Employee Benefit Plans and Stock-based Compensation Stock Option Plans and Equity Incentive Plans In July 1997, our board of directors approved the 1997 Stock Option Plan (“1997 Plan”), which provides for the grant of incentive and non-qualified stock options to our employees, consultants and directors. Under the 1997 Plan, 5,423,583 shares of common stock have been authorized for issuance. Options granted under the 1997 Plan are generally for periods not to exceed ten years ( five years if the option is granted to a 10% stockholder) and are granted at the fair market value of the stock at the date of grant as determined by the board of directors. Options granted under the 1997 Plan generally vest 25% at the end of one year and 2.1% each month thereafter, with full vesting after four years. In May 2007, our shareholders approved our 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan is a restatement of the 1997 Plan which expired in 2007. The 1,928,994 share reserve of the 1997 Plan became the reserve of the 2007 Plan, together with 1,300,000 additional shares approved for issuance under the 2007 Plan. In May 2013, the shareholders approved an additional 2,000,000 shares to be issued under the 2007 plan. Awards may be made under the 2007 Plan are stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, deferred compensation awards and other stock ‑based awards. Stock options and stock appreciation rights awarded under the 2007 Plan may not be repriced without stockholder approval. Stock options and stock appreciation rights may not be granted below fair market value. Stock options or stock appreciation rights generally shall not be fully vested over a period of less than three years from the date of grant and cannot be exercised more than 10 years from the date of grant. Restricted stock, restricted stock units, and performance awards generally shall not vest faster than over a three -year period (or a twelve ‑month period if vesting is based on a performance measure). In December 2008, the 2007 Plan was amended to comply with the applicable requirements under Section 409A of the Internal Revenue Code. In May 2015, our shareholders approved our 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan is a replacement of the 2007 Plan. Awards that may be made under the 2015 Plan are stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, deferred compensation awards and other stock ‑based awards. Stock options and stock appreciation rights awarded under the 2015 Plan may not be repriced without stockholder approval. Stock options and stock appreciation rights may not be granted below fair market value. Stock options or stock appreciation rights generally shall not be fully vested over a period of less than four years from the date of grant and cannot be exercised more than 10 years from the date of grant. Restricted stock, restricted stock units, and performance awards generally shall not vest faster than over a three -year period (or a twelve ‑month period if vesting is based on a performance measure). However, options granted to consultants and restricted stock awards granted to independent board members typically vest in one year and the Plan does allow for similar vesting to employees. As of December 31, 2015, approximately 2,822,000 shares were available for grant under the 2015 Plan. Stock Options The following table summarizes the stock option transactions for each of the years ended December 31, 2013, 2014 and 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, 2013 $ Granted Exercised Canceled and expired Balance as of December 31, 2013 $ Granted Exercised Canceled and expired Balance as of December 31, 2014 $ $ Granted Exercised Canceled and expired Balance as of December 31, 2015 $ $ Options vested as of December 31, 2015 and unvested options expected to vest, net of forfeitures $ $ Options exercisable as of December 31, 2015 $ $ The options outstanding and exercisable as of December 31, 2015 were in the following exercise price ranges (in thousands, except per share data): Options Vested and Options Outstanding as of Exercisable as of December 31, 2015 December 31, 2015 Weighted ‑ average Range of Weighted ‑ average Remaining Weighted ‑ Average Exercise Price Shares Exercise Price Contractual Life Shares Exercise Price $ - $ $ $ $ - $ $ $ $ - $ $ — $ — $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ $ There were 119,000 , 111,000 and 331,000 options exercised in the years ended December 31, 2015, 2014 and 2013, respectively. The total intrinsic value of options exercised for the years ended December 31, 2 015, 2014 and 2013, was $118,000 , $105,000 and $331,000 , respectively. As of December 31, 2015, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was approximately $1.4 million, net of estimated forfeitures of $94,000 . These costs will be amortized on a straight-line basis over a weighted-average period of approximately 3.1 years and will be adjusted for subsequent changes in estimated forfeitures. We did not capitalize any stock ‑based compensation to inventory as of December 31, 2015 and 2014, due to the immateriality of the amount. Restricted Stock Awards A summary of activity related to restricted stock awards for the years ended December 31, 2013, 2014 and 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, 2013 $ Granted $ Vested $ Forfeited $ Non-vested as of December 31, 2013 $ Granted $ Vested $ Forfeited — — Non-vested as of December 31, 2014 $ Granted $ Vested $ Forfeited $ Non-vested as of December 31, 2015 $ Total grant date fair value of stock awards vested during the years ended December 31, 2015, 2014 and 2013 was $605,000 , $405,000 and $389,000 , respectively. As of December 31, 2015, we had $1.2 million of unrecognized compensation expense related to restricted stock awards, which will be recognized over the weighted average period of 1.8 years. Common Stock The following number of shares of common stock were reserved and available for future issuance at December 31, 2015 (in thousands, except per share data): Options outstanding Restricted stock awards outstanding Stock available for future grant: 2015 Equity Incentive Plan Total Stock-based Compensation We recorded $1.3 million, $1.1 million and $1.3 million of stock ‑based compensation in our consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013 , respectively. The following table summarizes compensation costs related to our stock ‑based compensation awards (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Stock ‑ based compensation in the form of employee stock options and restricted stock, included in: 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) $ $ $ Shares used in computing basic net income per share Shares used in computing diluted net income per share Effect on basic net income per share $ $ $ Effect on diluted net income per share $ $ $ We estimate the fair value of stock options using a Black ‑Scholes valuation model. There were 866,000 , 712,000 and 488,000 stock options granted with weighted ‑average grant date fair value of $0.88 , $1.17 and $1.09 per share during 2015, 2014 and 2013 , respectively. The fair value of options granted was estimated at the date of grant using the following weighted ‑average assumptions: Year Ended December 31, 2015 2014 2013 Expected term (in years) Volatility % % % Expected dividend — % — % — % Risk-free interest rate % % % The expected term for stock options is based on the observed historical option exercise behavior and post-vesting forfeitures of options by our employees, and the contractual term, the vesting period and the expected term of the outstanding options. Expected volatility is based on the historical volatility of our Company’s common stock. The dividend yield of zero is based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. The risk-free interest rates are taken from the Daily Federal Yield Curve Rates as of the grant dates as published by the Federal Reserve and represent the yields on actively traded Treasury securities for terms equal to the expected term of the options. Retirement Savings Plan We have a 401(k) Savings Plan (“Savings Plan”) which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. All full-time U.S. employees are eligible to participate in the Savings Plan after 90 days from the date of hire. Employees may elect to reduce their current compensation by up to the statutory prescribed annual limit and have the amount of such reduction contributed to the 401(k) Plan. We provide matching to employee contributions up to 4% of the employees’ base pay if employees contribute at least 6% of their base pay. If the contribution rate is less than 6% of the base pay, the matching percentage is prorated. Our contributions to the 401(k) retirement savings plans were $125,000 , $115,000 and $110,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees | |
Guarantees | Note 12. Guarantees 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 consolidated balance sheets, during 2015 and 2014 (in thousands): Year Ended December 31, 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 $ $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | Note 13. Income Taxes Consolidated income before provision for income taxes includes non-U.S. income of approximately $15.2 million, $12.8 million and $16.7 million for the years ended December 31, 2015, 2014 and 2013 , respectively. We recorded a current tax provision of $531,000, $215,000 and $188,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. The components of the provision (benefit) for income taxes are summarized below (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ — $ — $ — State Foreign Total current Deferred: Federal — — — State — — — Total deferred — — — Total net provision for income taxes $ $ $ A reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate is summarized below: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate % % % State income taxes, net of federal tax benefits — Change in valuation allowance Stock-based compensation Foreign rate differences Dividend from PRC investee Net loss from privately-held PRC investments Other Effective tax rate % % % Deferred tax assets and liabilities are summarized below (in thousands): As of December 31, 2015 2014 Deferred tax assets: Net operating loss $ $ Accruals and reserves not yet deductible Credits Deferred tax liabilities: Valuation of investment portfolio — — — — Net deferred tax assets Valuation allowance Net deferred tax assets $ — $ — As of December 31, 2015, we have federal and state net operating loss carryforwards of approximately $179.8 million and $1.7 million, respectively, which will expire beginning in 2022 and 2017 , respectively. In addition, we have federal tax credit carryforwards of approximately $1.5 million, which will expire beginning in 2019 . The deferred tax assets valuation allowance as of December 31, 2015 is attributed to U.S. federal, and state deferred tax assets, which result primarily from future deductible accruals, reserves, net operating loss carryforwards, and tax credit carryforwards. We believe that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets such that a full valuation allowance has been recorded. These factors include our history of losses related to domestic operations, and the lack of carryback capacity to realize deferred tax assets. The valuation allowance increased by $4.1 million and increased by $3.7 million for the years ended December 31, 2015 and 2014, respectively. Our consolidated subsidiaries in China have enjoyed various tax holidays since 2000. Benefits under the tax holidays vary by jurisdiction. 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. During fiscal year 2015, the amount of gross unrecognized tax benefits decreased by $1.8 million. The total amount of unrecognized tax benefits was $14.6 million as of December 31, 2015. The Company recognizes interest and penalties related to uncertain tax positions as part of the income tax provision. To date, such interest and penalties have not been material. We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the year ended December 31, 2015 includes no interest and penalties. As of December 31, 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, 2001. Deferred tax liabilities have not been recognized for $80.5 million of undistributed earnings of our foreign subsidiaries at December 31, 2015. We have made no provision for U.S. income taxes on undistributed earnings of certain foreign subsidiaries because it is our intention to permanently reinvest such earnings in its foreign subsidiaries. If such earnings were distributed, we would be subject to additional U.S. income tax expense. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable. As of December 31 , 2015, we and our consolidated joint ventures held approximately $22.3 million in cash and investments in foreign bank accounts. This consists of $16.8 million held by our wholly owned subsidiary in China and $5.5 million held by our three partially-owned consolidated subsidiaries in China. Of this $22.3 million, approximately $15.9 million would not be available for use in the United States without paying United States income taxes. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): Gross unrecognized tax benefits balance as of December 31, 2014 $ Add: Additions based on tax positions related to the current year — Additions for tax positions of prior years — Less: Decrease related to lapse of statute of limitations Gross unrecognized tax benefits balance as of December 31, 2015 $ Excluding the effects of recorded valuation allowances for deferred tax assets, $14.6 million of the unrecognized tax benefit would favorably impact the effective tax rate in future periods if recognized. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 14. Net Income per Share A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share data): Year ended December 31, 2015 2014 2013 Numerator: Net loss attributable to AXT, Inc $ $ $ Less: Preferred stock dividends Net loss available to common stockholders $ $ $ Denominator: Denominator for basic net loss per share - weighted average common shares Effect of dilutive securities: Common stock options — — — Restricted stock awards — — — Denominator for dilutive net loss per common shares Basic net loss per share: Net income attributable to AXT, Inc $ $ $ Net income to common stockholders $ $ $ Diluted net loss per share: Net income attributable to AXT, Inc $ $ $ Net income to common stockholders $ $ $ Options excluded from diluted net loss per share as the impact is anti-dilutive Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive |
Segment Information and Foreign
Segment Information and Foreign Operations | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information and Foreign Operations | |
Segment Information and Foreign Operations | Note 15. 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 the 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 consolidated financial statements. Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Year Ended December 31, 2015 2014 2013 Europe (primarily Germany) $ $ $ Taiwan China Asia Pacific (excluding China, Taiwan and Japan) North America (primarily the United States) Japan 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, net of depreciation, by geographic region were as follows (in thousands): As of December 31, 2015 2014 Long-lived assets by geographic region: North America $ $ China $ $ |
Other Income (expense)
Other Income (expense) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (expense) | |
Other Income (expense) | Note 16. Other Income (expense) The components of other income (expense) are summarized below (in thousands): Year Ended December 31, 2015 2014 2013 Foreign exchange gain (loss) $ $ $ Gain on sales of investments — Other income (expense) $ $ $ Foreign Exchange Contracts and Transaction Gains/Losses Transaction gains and losses resulting from transactions denominated in currencies other than the U.S. dollar or in the functional currencies of our subsidiaries are included in “other income (expense), net” for the periods presented. The transaction gains for the year ended December 31, 2015 totaled $717,000 and the transaction losses for the years ended December 31, 2014 and 2013 totaled $1.0 million and $1.3 million, respectively. To partially protect us against fluctuations in foreign currency resulting from accounts receivable in Japanese yen from our Japanese customers, starting in 2015, we instituted a foreign currency hedging program. We place short term 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 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 on the consolidated balance sheet and classified as Level 3 assets and liabilities. As of December 31, 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. As of December 31, 2015, our outstanding commitments with respect to foreign exchange contracts were $36,000 . As of December 31, 2014, we had no outstanding commitments with respect to foreign exchange contracts. Gain on Sales of Investments Gain on sales investments were derived from the realized gain from the sales of our IntelliEpi common stock, an available-for-sales investment, in the Taiwan stock exchange market in year ended December 31, 2015 and 2014. As of December 31, 2015, we no longer hold any IntelliEpi stock. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 17. Commitments and Contingencies Legal Matters We are subject to legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Leases 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. Total rent expenses under these operating leases were $313,000 , $260,000 and $638,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. Total minimum lease payments under these leases as of December 31, 2015 are summarized below (in thousands): Lease Payments 2016 $ 2017 2018 2019 2020 Thereafter $ Royalty Agreement 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 royalty payment 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 is lower than a pre-determined amount set forth in this agreement. Royalty expense under this agreement was $583,000 which was net of claim for credit of $ 217,000 for the year ended December 31, 2015. Royalty expense for years ended December 31, 2014 and 2013 were $577,000 which was net of claim for credit of $223,000 and $530,000 which was net of claim for credit of $270,000 , respectively. These expenses were included in cost of revenue. Total maximum, remaining royalty payments under this agreement as of December 31, 2015 are summarized below (in thousands): Royalty Payments 2016 $ 2017 2018 $ |
Unaudited Quarterly Consolidate
Unaudited Quarterly Consolidated Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Consolidated Financial Data | |
Unaudited Quarterly Consolidated Financial Data | Note 18. Unaudited Quarterly Consolidated Financial Data Quarter First Second Third Fourth (in thousands, except per share data) 2015: Revenue $ $ $ $ Gross profit Net income (loss) attributable to AXT, Inc Net (loss) attributable to AXT, Inc per share, basic $ $ $ * $ Net (loss) attributable to AXT, Inc per share, diluted $ $ $ * $ 2014: Revenue $ $ $ $ Gross profit Net (loss) attributable to AXT, Inc Net (loss) attributable to AXT, Inc per share, basic $ $ $ $ Net (loss) attributable to AXT, Inc per share, diluted $ $ $ $ * Net loss to AXT, Inc. per common share resulted due to the accrual of preferred dividend liquidation preference during the three months ended September 30, 2015. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges | |
Restructuring Charges | Note 19. Restructuring Charges On February 25, 2014, we announced a restructuring plan with respect to our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co, Ltd. (“Tongmei”) in order to better align manufacturing capacity with demand. Under the restructuring plan, Tongmei implemented certain workforce reductions with respect to its manufacturing facility in China. We also announced that the restructuring plan would be completed by March 31, 2014, depending on local legal requirements. In the first quarter of 2014, we reduced the workforce at Tongmei by approximately 93 positions that were no longer required to support production and operations, or approximately 11 percent of the workforce. Accordingly, we recorded a restructuring charge of approximately $907,000 related to the reduction in force for severance-related expenses. As of March 31, 2014, we completed this restructuring plan and the reduction in force. We had no restructuring charges in 2015. |
Whistleblower Complaint and Inv
Whistleblower Complaint and Investigation | 12 Months Ended |
Dec. 31, 2015 | |
Whistleblower Complaint and Investigation | |
Whistleblower Complaint and Investigation | Note 20. Whistleblower Complaint and Investigation On February 23, 2015, the Board of Directors announced that, pursuant to an anonymous whistleblower complaint, our Audit Committee 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. |
The Company and Summary of Si29
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
The Company and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of AXT, our wholly-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., and our majority-owned, or significantly controlled subsidiaries, Beijing JiYa Semiconductor Material Co., Ltd., Nanjing Jin Mei Gallium Co., Ltd. and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. All significant inter ‑company accounts and transactions have been eliminated. Investments in business entities in which we do not have controlling interest, 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 consolidated balance sheets in stockholders’ equity and in our consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions. We believe that the estimates, judgments, and assumptions upon which management relies are reasonable based on information available at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates and actual results, our consolidated financial statements would be affected . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments including cash and cash equivalents, accounts receivable, short-term investments and long-term investments, accounts payable and accrued liabilities approximate fair value due to their short maturities. Certain cash equivalents and investments are required to be adjusted to fair value on a recurring basis. See Note 2. |
Fair Value of Investments | Fair Value of Investments ASC topic 820, Fair value measurement (“ASC 820”) establishes three levels of inputs that may be used to measure fair value. Level 1 instruments represent quoted prices in active markets. Therefore, determining fair value for Level 1 instruments does not require significant management judgment, and the estimation is not difficult. Level 2 instruments include observable inputs other than Level 1 prices, such as quoted prices for comparable instruments in markets with insufficient volume or infrequent transactions (less active markets), issuer credit ratings, non-binding market consensus prices that can be corroborated with observable market data, model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities, or quoted prices for similar assets or liabilities. These Level 2 instruments require more management judgment and subjectivity compared to Level 1 instruments, including: · Determining which instruments are most comparable to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, maturity, issuer, credit rating, and instrument type, and subjectively select an individual security or multiple securities that are deemed most similar to the security being priced. · Determining which model-derived valuations to use in determining fair value requires management judgment. When observable market prices for identical securities or comparable securities are not available, we price our marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data or pricing models, such as discounted cash flow models, with all significant inputs derived from or corroborated with observable market data. Level 3 instruments include unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The determination of fair value for Level 3 instruments requires the most management judgment and subjectivity. 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 December 31, 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. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our Chinese subsidiaries is the Renminbi, the local currency of China. Transaction gains and losses resulting from transactions denominated in currencies other than the U.S. dollar or in the functional currencies of our subsidiaries are included in “other income (expense), net” for the years presented. The transaction gains for the year ended December 31, 2015 totaled $717,000 and the transaction losses for the years ended December 31, 2014 and 2013 totaled $1.0 million and $1.3 million, respectively. The assets and liabilities of the subsidiaries are translated at the rates of exchange on the balance sheet date. Revenue and expense items are translated at the average rate of exchange for the period. Gains and losses from foreign currency translation are included in “other comprehensive income (loss)” in the consolidated statements of comprehensive income (loss). |
Revenue Recognition | Revenue Recognition We manufacture and sell high-performance compound semiconductor substrates and sell certain raw materials including gallium, germanium dioxide, and pBN crucibles. After we ship our products, there are no remaining obligations or customer acceptance requirements that would preclude revenue recognition. Our products are typically sold pursuant to a purchase order placed by our customers. We recognize revenue upon shipment and transfer of title of products to our customers, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, provided that we have received a valid purchase order, the price is fixed or determinable, title and risk of ownership have transferred, collection of resulting receivables is probable, and product returns are reasonably estimable. Revenue is net of any taxes assessed by any governmental authority. We do not provide training, installation or commissioning services. We assess the probability of collection based on a number of factors including past history with the customer and credit worthiness. We do not provide payment discounts. We provide for future returns based on historical experience, current economic trends and changes in customer demand at the time revenue is recognized. |
Accounting for Sales Taxes in Net Revenues | Accounting for Sales Taxes in Net Revenues We record sales taxes collected on sales of our products and for amounts not yet remitted to tax authorities as accrued liabilities on our consolidated balance sheets. |
Risks and Concentration of Credit Risk | Risks and Concentration of Credit Risk Our business is very dependent on the semiconductor, lasers and fiber optics industries which can be highly cyclical and experience downturns as a result of economic changes, overcapacity, and technological advancements. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies, could adversely affect our operating results. In addition, a significant portion of our revenues and net income is derived from international sales. Fluctuations of the United States dollar against foreign currencies and changes in local regulatory or economic conditions, particularly in an emerging market such as China, could adversely affect operating results. We depend on a single or limited number of suppliers for certain critical materials used in the production of our substrates, such as quartz tubing and polishing solutions. We generally purchase these materials through standard purchase orders and not pursuant to long-term supply contracts. Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, short-term investments, and trade accounts receivable. We invest primarily in money market accounts, commercial paper instruments, and investment grade securities with high quality financial institutions. The composition and maturities are regularly monitored by management. Such deposits are in excess of the amount of the insurance provided by the federal government on such deposits. We are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the consolidated balance sheets. 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. The credit risk in our accounts receivable is mitigated by our credit evaluation process and the geographical dispersion of sales transactions. One customer accounted for 22% of our trade accounts receivable as of December 31, 2015 and two customers accounted for 11% and 10% of our accounts receivable balance as of December 31, 2014. One customer, IQE Group, represented 12% of our revenue for the year ended December 31, 2015 while no customer represented more than 10% of our revenue for the years ended December 31, 2014 and 2013. Our top five customers, although not the same five customers for each period , represented 40% , 34% and 31% of revenue for the years ended December 31, 2015, 2014 and 2013, respectively. We believe that in the future we could have a greater concentration of sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider investments in highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of certificate of deposits. Cash and cash equivalents are stated at cost, which approximates fair value. |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments We classify our investments in marketable debt and equity securities as available-for-sale securities in accordance with ASC topic 320, Investments - Debt and Equity Securities (“ASC 320”) . Short-term and long-term investments are comprised of available-for-sale marketable debt securities, which consist primarily of certificates of deposit, corporate bonds and notes, and government securities. These investments are reported at fair value as of the respective balance sheet dates with unrealized gains and losses included in accumulated other comprehensive income within stockholders’ equity on the consolidated balance sheets. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in “other income (expense), net” in the consolidated statements of operations. Realized gains and losses and declines in value judged to be other than temporary on available-for-sale securities are also included in “other income (expense), net” in the consolidated statements of operations. The cost of securities sold is based upon the specific identification method. |
Accounts Receivable and Allowance for Doubtful Accounts and Sales Returns | Accounts Receivable and Allowance for Doubtful Accounts and Sales Returns Accounts receivable are recorded at the invoiced amount and are not interest bearing. We periodically review the likelihood of collection on our accounts receivable balances and provide an allowance for doubtful accounts receivable primarily based upon the age of these accounts. We evaluate receivables from U.S. customers with an emphasis on balances in excess of 90 days and for receivables from customers located outside the U.S. with an emphasis on balances in excess of 120 days and establish a reserve allowance on the receivable balances if needed. The reason for the difference in the evaluation of receivables between foreign and U.S. customers is that U.S. customers have historically made payments in a shorter period of time than foreign customers. Foreign business practices generally require us to allow customer payment terms that are longer than those accepted in the United States. We assess the probability of collection based on a number of factors, including the length of time a receivable balance has been outstanding, our past history with the customer and their credit worthiness. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the United States and internationally, and changes in customer financial conditions. Uncollectible receivables are recorded as bad debt expense when all efforts to collect have been exhausted and recoveries are recognized when they are received. As of December 31, 2015 and 2014, our accounts receivable, net balance was $ 18.5 million and $17.9 million, respectively, which was net of an allowance for doubtful accounts of $561,000 and $410,000 , respectively. During 2015, we increased this allowance for doubtful accounts by $151,000 primarily because of the poor financial condition of a few customers. During 2014, we decreased this allowance for doubtful accounts by $459,000 primarily for improved collections from customers. No amounts have been written off. If actual uncollectible accounts differ substantially from our estimates, revisions to the estimated allowance for doubtful accounts would be required, which could have a material impact on our financial results for future periods. The allowance for sales returns is also deducted from gross accounts receivable. During 2015, we utilized $423,000 and charged an additional $434,000 resulting in an ending balance for the allowance for sales returns of $ 424,000 as of December 31, 2015. During 2014, we utilized $410,000 and charged an additional $183,000 resulting in the allowance for sales returns of $413,000 as of December 31, 2014. |
Warranty Reserve | Warranty Reserve We maintain a warranty reserve based upon our claims experience during the prior twelve months and any pending claims and returns of which we are aware. Warranty costs are accrued at the time revenue is recognized. As of December 31, 2015 and 2014, accrued product warranties totaled $497,000 and $802,000 , respectively. The decrease in accrued product warranties is primarily attributable to decreased claims for quality issues experienced by some customers. If actual warranty costs or pending new claims differ substantially from our estimates, revisions to the estimated warranty liability would be required, which could have a material impact on our financial condition and results of operations for future periods. |
Inventories | Inventories Inventories are stated at the lower of cost (approximated by standard cost) or market. Cost is determined using the weighted average cost method. Our inventory consists of raw materials as well as finished goods and work-in-process that include material, labor and manufacturing overhead costs. Given the nature of our substrate products, and the materials used in the manufacturing process, the wafers and ingots comprising work-in-process may be held in inventory for up to two years and three years, respectively, as the risk of obsolescence for these materials is low. We routinely evaluate the levels of our inventory in light of current market conditions in order to identify excess and obsolete inventory, and we provide a valuation allowance for certain inventories based upon the age and quality of the product and the projections for sale of the completed products. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation computed using the straight-line method over the estimated economic lives of the assets, which vary from 1 to 27.5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the term of the lease. We generally depreciate computer, software, office equipment, furniture and fixtures 3 to 5 years, machinery and equipment 1 to 5 years, automobiles 5 to 10 years, leasehold and building improvements over 10 years, or lease term if shorter, and buildings over 27.5 years. Repairs and maintenance costs are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate the recoverability of property, equipment and intangible assets in accordance with ASC topic 360, Property, Plant and Equipment (“ASC 360”). When events and circumstance indicate that long-lived assets may be impaired, our management compares the carrying value of the long-lived assets to the projection of future undiscounted cash flows attributable to such assets. In the event that the carrying value exceeds the future undiscounted cash flows, we record an impairment charge against income equal to the excess of the carrying value over the asset’s fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. We did not recognize any impairment charges of long-lived assets in 2015, 2014 and 2013. |
Impairment of Investments | Impairment of Investments All available-for-sale securities are periodically reviewed for impairment. An investment is considered to be impaired when its fair value is less than its amortized cost basis and it is more likely than not that we will be required to sell the impaired security before recovery of its amortized cost basis. 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. We also invest in equity instruments of privately-held companies in China for business and strategic purposes. Investments in our non-consolidated joint venture companies are classified as other assets and accounted for under either the equity or cost method, depending on whether we have the ability to exercise significant influence over their operations or financial decisions. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. Determination of impairment is highly subjective and is based on a number of factors, including an assessment of the strength of investee’s management, the length of time and extent to which the fair value has been less than our cost basis, the financial condition and near-term prospects of the investee, fundamental changes to the business prospects of the investee, share prices of subsequent offerings, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in our carrying value. We estimate fair value of our cost method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. |
Segment Reporting | Segment Reporting 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 our performance for the Company. We discuss revenue and capacity for both AXT and our joint ventures collectively, when determining capacity constraints and need for raw materials in our business, and consider their capacity when determining our strategic and product marketing and advertising strategies. While we consolidate our majority-owned or significantly controlled joint ventures, we do not allocate any portion of overhead, interest and other income, interest expense or taxes to them. We therefore have determined that our joint venture operations do not constitute an operating segment. Since we operate in one segment, all financial segment and product line information can be found in the consolidated financial statements. |
Stock-Based Compensation | Stock ‑Based Compensation We have employee stock option plans, which are described more fully in Note 11—Employee Benefit Plans and Stock-based Compensation. We account for stock ‑based compensation in accordance with the provisions of ASC topic 718, Compensation- Stock Compensation (“ASC 718”). We utilize the Black-Scholes option pricing model to determine the fair value of the stock options granted. Stock ‑based compensation cost is measured at each grant date, based on the fair value of the award, and is recognized as expense and as an increase in additional paid-in-capital over the requisite service period of the award. |
Research and Development | Research and Development Research and development costs consist primarily of salaries, including stock-based compensation expense and related personnel costs, depreciation, materials and product testing and are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs, included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2015, 2014 and 2013 were $10,000 , $10,000 and $12,000 , respectively. |
Shipping and Handling costs | Shipping and Handling costs We include fees billed to customers and costs incurred for shipping and handling as a component of cost of sales. |
Income Taxes | 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. The impact of ASC 740 is more fully described in Note 13. |
Comprehensive Income (loss) | Comprehensive Income (loss) We report comprehensive income (loss) in accordance with the provisions of ASC topic 220 Comprehensive Income (“ASC 220”) which establishes standards for reporting comprehensive income or loss and its components in the financial statements. The components of other comprehensive income include unrealized gains and losses on marketable securities and foreign currency translation adjustments. Comprehensive income (loss) is presented in the consolidated statements of comprehensive income (loss). |
Net Income (loss) Per Share | 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 and vesting of restricted stock awards. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, which made changes to the accounting for financial instruments that primarily affect equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The standard amends financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. This update will be effective for the annual periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently assessing the impact of the future adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, which applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards, superseding the existing revenue recognition requirements in ASC Topic 605 “Revenue Recognition.” Pursuant to ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange, as applied through a multi-step process to achieve that core principle. Subsequently, the FASB approved a deferral included in ASU 2015-14 that permits public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein, and that would also permit public entities to elect to adopt the amendments as of the original effective date as applicable to reporting periods beginning after December 15, 2016. The new guidance allows for the amendment to be applied either retrospectively to each prior reporting period presented or retrospectively as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact that the adoption of ASU 2014-09 and ASU 2015-14 may have on our consolidated financial statements and have not elected a transition method as of the year ended December 31, 2015 |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents and Investments | |
Cash, cash equivalents and investments | 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 December 31, 2015 and, 2014, our cash, cash equivalents and investments are classified as follows (in thousands): December 31, 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 | A portion of our investments would generate a loss if we sold them on December 31, 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 December 31, 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 December 31, 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 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. There were no changes in valuation techniques or related inputs in the year ended December 31, 2015. There have been no transfers between fair value measurement levels during the year ended December 31, 2015 . 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 December 31, 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. 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, 2015 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 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) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Components of inventories | The components of inventory are summarized below (in thousands): December 31, December 31, 2015 2014 Inventories: Raw materials $ $ Work in process Finished goods $ $ |
Property, Plant and Equipment32
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net | |
Components of property, plant and equipment | The components of our property, plant and equipment are summarized below (in thousands): As of December 31, 2015 2014 Property, plant and equipment: Building $ $ Machinery and equipment Leasehold improvements Construction in progress Less: accumulated depreciation and amortization $ $ |
Investments in Privately-held33
Investments in Privately-held Companies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Privately-held Companies | |
Investments | Our direct investments are summarized below (in thousands): Investment Balance as of December 31, 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 | Our share for the Year Ended Year Ended December 31, December 31, 2015 2014 2013 2015 2014 2013 Net revenue $ $ $ $ $ $ Gross profit Operating income Net income |
Summarized balance sheet information | As of December 31, 2015 2014 Current assets $ $ Noncurrent assets Current liabilities Noncurrent liabilities |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities | |
Components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): As of December 31, 2015 2014 Accrued compensation and related charges $ $ Accrued professional services Current portion of royalty payments Dividends payable by consolidated joint ventures Accrued product warranty Accrued income taxes Other accrued liabilities $ $ |
Employee Benefit Plans and St35
Employee Benefit Plans and Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans and Stock-based Compensation | |
Summary of stock option activity | The following table summarizes the stock option transactions for each of the years ended December 31, 2013, 2014 and 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, 2013 $ Granted Exercised Canceled and expired Balance as of December 31, 2013 $ Granted Exercised Canceled and expired Balance as of December 31, 2014 $ $ Granted Exercised Canceled and expired Balance as of December 31, 2015 $ $ Options vested as of December 31, 2015 and unvested options expected to vest, net of forfeitures $ $ Options exercisable as of December 31, 2015 $ $ |
Options outstanding and exercisable | The options outstanding and exercisable as of December 31, 2015 were in the following exercise price ranges (in thousands, except per share data): Options Vested and Options Outstanding as of Exercisable as of December 31, 2015 December 31, 2015 Weighted ‑ average Range of Weighted ‑ average Remaining Weighted ‑ Average Exercise Price Shares Exercise Price Contractual Life Shares Exercise Price $ - $ $ $ $ - $ $ $ $ - $ $ — $ — $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ $ |
Restricted stock awards | Weighted-Average Grant Date Stock Awards Shares Fair Value Non-vested as of January 1, 2013 $ Granted $ Vested $ Forfeited $ Non-vested as of December 31, 2013 $ Granted $ Vested $ Forfeited — — Non-vested as of December 31, 2014 $ Granted $ Vested $ Forfeited $ Non-vested as of December 31, 2015 $ |
Common stock reserved for future issuance | Options outstanding Restricted stock awards outstanding Stock available for future grant: 2015 Equity Incentive Plan Total |
Compensation costs related to stock-based awards | The following table summarizes compensation costs related to our stock ‑based compensation awards (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Stock ‑ based compensation in the form of employee stock options and restricted stock, included in: 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) $ $ $ Shares used in computing basic net income per share Shares used in computing diluted net income per share Effect on basic net income per share $ $ $ Effect on diluted net income per share $ $ $ |
Weighted-average assumptions | Year Ended December 31, 2015 2014 2013 Expected term (in years) Volatility % % % Expected dividend — % — % — % Risk-free interest rate % % % |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees | |
Product warranty accrued liability | The following table reflects the change in our warranty accrual which is included in “accrued liabilities” on the consolidated balance sheets, during 2015 and 2014 (in thousands): Year Ended December 31, 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 $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Components of the provision (benefits) for income taxes | The components of the provision (benefit) for income taxes are summarized below (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ — $ — $ — State Foreign Total current Deferred: Federal — — — State — — — Total deferred — — — Total net provision for income taxes $ $ $ |
Reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate | Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate % % % State income taxes, net of federal tax benefits — Change in valuation allowance Stock-based compensation Foreign rate differences Dividend from PRC investee Net loss from privately-held PRC investments Other Effective tax rate % % % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities are summarized below (in thousands): As of December 31, 2015 2014 Deferred tax assets: Net operating loss $ $ Accruals and reserves not yet deductible Credits Deferred tax liabilities: Valuation of investment portfolio — — — — Net deferred tax assets Valuation allowance Net deferred tax assets $ — $ — |
Reconciliation of the beginning and ending amount of the gross unrecognized tax benefit | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): Gross unrecognized tax benefits balance as of December 31, 2014 $ Add: Additions based on tax positions related to the current year — Additions for tax positions of prior years — Less: Decrease related to lapse of statute of limitations Gross unrecognized tax benefits balance as of December 31, 2015 $ |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Income (Loss) Per Share | |
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share | Year ended December 31, 2015 2014 2013 Numerator: Net loss attributable to AXT, Inc $ $ $ Less: Preferred stock dividends Net loss available to common stockholders $ $ $ Denominator: Denominator for basic net loss per share - weighted average common shares Effect of dilutive securities: Common stock options — — — Restricted stock awards — — — Denominator for dilutive net loss per common shares Basic net loss per share: Net income attributable to AXT, Inc $ $ $ Net income to common stockholders $ $ $ Diluted net loss per share: Net income attributable to AXT, Inc $ $ $ Net income to common stockholders $ $ $ Options excluded from diluted net loss per share as the impact is anti-dilutive Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive |
Segment Information and Forei39
Segment Information and Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information and Foreign Operations | |
Revenue reported for products shipped to customers in the corresponding geographic region | Year Ended December 31, 2015 2014 2013 Europe (primarily Germany) $ $ $ Taiwan China Asia Pacific (excluding China, Taiwan and Japan) North America (primarily the United States) Japan Total $ $ $ |
Long-lived assets by geographic region | As of December 31, 2015 2014 Long-lived assets by geographic region: North America $ $ China $ $ |
Other Income (expense) (Tables)
Other Income (expense) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (expense) | |
Schedule of components of other income (expense) | The components of other income (expense) are summarized below (in thousands): Year Ended December 31, 2015 2014 2013 Foreign exchange gain (loss) $ $ $ Gain on sales of investments — Other income (expense) $ $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Outstanding contractual obligations | Total maximum, remaining royalty payments under this agreement as of December 31, 2015 are summarized below (in thousands): Royalty Payments 2016 $ 2017 2018 $ |
Total minimum lease payments | Total minimum lease payments under these leases as of December 31, 2015 are summarized below (in thousands): Lease Payments 2016 $ 2017 2018 2019 2020 Thereafter $ |
Unaudited Quarterly Consolida42
Unaudited Quarterly Consolidated Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Consolidated Financial Data | |
Unaudited Quarterly Consolidated Financial Data | Quarter First Second Third Fourth (in thousands, except per share data) 2015: Revenue $ $ $ $ Gross profit Net income (loss) attributable to AXT, Inc Net (loss) attributable to AXT, Inc per share, basic $ $ $ * $ Net (loss) attributable to AXT, Inc per share, diluted $ $ $ * $ 2014: Revenue $ $ $ $ Gross profit Net (loss) attributable to AXT, Inc Net (loss) attributable to AXT, Inc per share, basic $ $ $ $ Net (loss) attributable to AXT, Inc per share, diluted $ $ $ $ |
The Company and Summary of Si43
The Company and Summary of Significant Accounting Policies - The Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Percentage of pure gallium products produces by joint ventures (in hundredths) | 99.99% | ||
Foreign Currency Translation [Abstract] | |||
Foreign exchange transaction exchange gains (losses) | $ 717 | $ (999) | $ (1,253) |
Joint Ventures [Member] | Minimum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 83.00% | ||
Joint Ventures [Member] | Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 20.00% | ||
Majority-Owned Subsidiaries [Member] | Minimum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 20.00% | ||
Majority-Owned Subsidiaries [Member] | Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 50.00% |
The Company and Summary of Si44
The Company and Summary of Significant Accounting Policies - Concentration Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 1 | 0 | 0 |
Percentage share generated by major customers (in hundredths) | 10.00% | 10.00% | |
Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 1 | 2 | |
Major Customer One [Member] | Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers (in hundredths) | 12.00% | ||
Major Customer One [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers (in hundredths) | 22.00% | 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 [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 5 | 5 | 5 |
Percentage share generated by major customers (in hundredths) | 40.00% | 34.00% | 31.00% |
The Company and Summary of Si45
The Company and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Accounts receivable | $ 18,468,000 | $ 17,864,000 | |
Amount written off | 0 | 0 | $ 0 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance balance | 561,000 | 410,000 | |
Increase in allowance for doubtful accounts | 151,000 | (459,000) | |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance deductions | 423,000 | 410,000 | |
Additional allowance for sales return | 434,000 | 183,000 | |
Valuation allowance balance | $ 424,000 | $ 413,000 |
The Company and Summary of Si46
The Company and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warranty Reserve [Abstract] | |||
Accrued product warranties | $ 497 | $ 802 | $ 1,048 |
Maximum [Member] | Wafers [Member] | |||
Inventory [Line Items] | |||
Work-in-process heldup period | 2 years | ||
Maximum [Member] | Ingots [Member] | |||
Inventory [Line Items] | |||
Work-in-process heldup period | 3 years |
The Company and Summary of Si47
The Company and Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 1 | ||
Advertising Costs [Abstract] | |||
Advertising costs | $ | $ 10,000 | $ 10,000 | $ 12,000 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 27 years 6 months | ||
Computers [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Computers [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Office Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Automobiles [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Automobiles [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 10 years | ||
Leasehold and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 10 years | ||
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 1 year | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 27 years 6 months |
Investments and Fair Value Meas
Investments and Fair Value Measurements - Cash, Cash Equivalents and Investments (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Cash, cash equivalents and investments [Abstract] | ||||
Cash | $ 10,289,000 | $ 22,337,000 | ||
Cash equivalents [Abstract] | ||||
Certificates of deposit | 14,586,000 | 6,454,000 | ||
Money market fund | 23,000 | |||
Total cash and cash equivalents | 24,875,000 | 28,814,000 | $ 24,961,000 | $ 30,634,000 |
Amortized Cost | 43,646,000 | 48,267,000 | ||
Gross Unrealized Gain | 433,000 | 712,000 | ||
Gross Unrealized (Loss) | (76,000) | (42,000) | ||
Fair Value | 44,003,000 | 48,937,000 | ||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Due within 1 year | 11,022,000 | 11,631,000 | ||
Due after 1 through 5 years | 7,749,000 | 7,822,000 | ||
Investments, amortized cost | 18,771,000 | 19,453,000 | ||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Due within 1 year | 11,437,000 | 12,340,000 | ||
Due after 1 through 5 years | 7,691,000 | 7,783,000 | ||
Investments, fair value | 19,128,000 | 20,123,000 | ||
Proceeds from sales of available-for-sale investments | 0 | |||
Gross realized gains from sales of available-for-sale investments | 859,000 | 1,263,000 | $ 0 | |
GHI | ||||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Unrealized gain, net of tax | 432,000 | |||
IntelliEpi | ||||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Proceeds from sales of available-for-sale investments | 902,000 | 1,300,000 | ||
Investments held | 0 | |||
Available-for-sale investments, expenses | 43,000 | 82,000 | ||
Gross realized gains from sales of available-for-sale investments | 859,000 | 1,300,000 | ||
Auction Rate Securities [Member] | ||||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Investments held | 0 | |||
Total Investments [Member] | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 18,771,000 | 19,453,000 | ||
Gross Unrealized Gain | 433,000 | 712,000 | ||
Gross Unrealized (Loss) | (76,000) | (42,000) | ||
Fair Value | 19,128,000 | 20,123,000 | ||
Certificates of Deposit [Member] | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 9,795,000 | 10,195,000 | ||
Gross Unrealized Gain | 1,000 | 1,000 | ||
Gross Unrealized (Loss) | (13,000) | (13,000) | ||
Fair Value | 9,783,000 | 10,183,000 | ||
Corporate Bonds [Member] | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 8,776,000 | 9,214,000 | ||
Gross Unrealized Gain | 1,000 | |||
Gross Unrealized (Loss) | (63,000) | (29,000) | ||
Fair Value | 8,713,000 | 9,186,000 | ||
Corporate Equity Securities [Member] | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 200,000 | 44,000 | ||
Gross Unrealized Gain | 432,000 | 710,000 | ||
Fair Value | $ 632,000 | $ 754,000 |
Investments and Fair Value Me49
Investments and Fair Value Measurements - Investment Category and Length (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | |||
Fair value, in loss position less than twelve months | $ 11,375,000 | $ 8,262,000 | |
Gross unrealized loss, in loss position less than twelve months | (67,000) | (40,000) | |
Fair value, in loss position greater than twelve months | 5,390,000 | 4,309,000 | |
Gross unrealized loss, in loss position greater than twelve months | (9,000) | (2,000) | |
Fair value, total in loss position | 16,765,000 | 12,571,000 | |
Gross unrealized loss, total in loss position | (76,000) | (42,000) | |
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 | 4,509,000 | 4,492,000 | |
Gross unrealized loss, in loss position less than twelve months | (11,000) | (13,000) | |
Fair value, in loss position greater than twelve months | 3,543,000 | ||
Gross unrealized loss, in loss position greater than twelve months | (2,000) | ||
Fair value, total in loss position | 8,052,000 | 4,492,000 | |
Gross unrealized loss, total in loss position | (13,000) | (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 | 6,866,000 | 3,770,000 | |
Gross unrealized loss, in loss position less than twelve months | (56,000) | (27,000) | |
Fair value, in loss position greater than twelve months | 1,847,000 | 4,309,000 | |
Gross unrealized loss, in loss position greater than twelve months | (7,000) | (2,000) | |
Fair value, total in loss position | 8,713,000 | 8,079,000 | |
Gross unrealized loss, total in loss position | (63,000) | (29,000) | |
Other Assets [Member] | |||
Minority Investments [Abstract] | |||
Investments in privately-held companies | 12,100,000 | 12,100,000 | |
Minority investments in unconsolidated privately-held companies | $ 0 | $ 200,000 | $ 200,000 |
Investments and Fair Value Me50
Investments and Fair Value Measurements - FV Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | $ 44,003 | $ 48,937 |
Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 19,128 | 20,146 |
Liabilities [Abstract] | ||
Foreign currency hedge obligations | 36 | |
Recurring [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 23 | |
Recurring [Member] | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 9,783 | 10,183 |
Recurring [Member] | Corporate Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 8,713 | 9,186 |
Recurring [Member] | Corporate Equity Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 632 | 754 |
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 632 | 777 |
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 23 | |
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | Corporate Equity Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 632 | 754 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 18,496 | 19,369 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 9,783 | 10,183 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 8,713 | $ 9,186 |
Recurring [Member] | Significant Other Observable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Foreign currency hedge obligations | $ 36 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories | ||
Raw materials | $ 19,532 | $ 18,990 |
Work in process | 16,007 | 16,222 |
Finished goods | 2,473 | 3,362 |
Inventories, total | 38,012 | 38,574 |
Inventory reserve | $ 12,000 | $ 11,200 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)ft²installment | Dec. 31, 2014USD ($) | Aug. 31, 2011USD ($)item | |
Related Party Transaction [Line Items] | |||
Related party notes receivable - long term | $ 1,781,000 | $ 1,704,000 | |
Accounts payable | 6,460,000 | 7,137,000 | |
Accounts receivable | 18,468,000 | 17,864,000 | |
Principal and interest on loan | 171,000 | ||
Nanjing Jin Mei Gallium Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Income from agency sales | $ 1,000 | 20,000 | |
Beijing JiYa Semiconductor Material Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Amount of loan under note agreement | $ 1,600,000 | ||
Number of equity method investees to whom loan was granted | item | 1 | ||
Term of loan | 2 years 9 months 29 days | ||
Number of installments | installment | 3 | ||
Related party notes receivable - long term | $ 1,600,000 | 1,700,000 | |
Accounts payable | 2,400,000 | 1,800,000 | |
Accounts receivable | 473,000 | 350,000 | |
Beijing Tongmei Xtal Technology [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable | $ 70,000 | 513,000 | |
Area of leased property (in square feet) | ft² | 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% | ||
Payments to purchase materials | $ 114,000 | ||
Additional loan paid to related party | $ 46,000 | ||
Interest on loan (in hundredths) | 6.15% | ||
Principal and interest on loan | $ 51,000 | ||
Beijing Kaide Quartz Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable | $ 379,000 | $ 730,000 |
Property, Plant and Equipment53
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 79,942 | $ 79,357 | |
Less: accumulated depreciation and amortization | (48,520) | (45,495) | |
Property, plant and equipment, net | 31,422 | 33,862 | |
Depreciation and amortization expense | 5,494 | 5,639 | $ 5,470 |
Building [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 30,388 | 30,469 | |
Machinery and equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 40,899 | 41,900 | |
Leasehold and Building Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 5,059 | 5,070 | |
Construction in progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 3,596 | $ 1,918 |
Investments in Privately-held54
Investments in Privately-held Companies (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)employeeitem | Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($)item | Dec. 31, 2012item | |
Summary of investments [Abstract] | ||||
Income allocated to minority interests | $ (305,000) | $ 691,000 | $ 1,145,000 | |
Equity investments classified as other assets | $ 14,114,000 | $ 14,975,000 | ||
Employee duration | 27 years | |||
Joint Ventures [Member] | ||||
Summary of investments [Abstract] | ||||
Number of consolidated joint ventures | item | 3 | 3 | 3 | |
Income from three consolidated joint ventures | $ 800,000 | $ 3,000,000 | $ 3,500,000 | |
Income allocated to minority interests | 300,000 | 700,000 | 1,100,000 | |
Net income from joint ventures attributable to parent | 1,200,000 | 2,300,000 | 2,400,000 | |
AXT, Inc. Stockholders' Equity | ||||
Summary of investments [Abstract] | ||||
Gross equity earnings from minority-owned joint ventures that are not consolidated, recorded as other income | 2,371,000 | 6,765,000 | $ 6,315,000 | |
Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity method investment by parent | $ 7,948,000 | $ 8,095,000 | ||
Number of equity investment entities | item | 3 | 3 | 3 | |
Minority investment in consolidated joint venture, included in other assets | $ 4,100,000 | $ 4,000,000 | ||
Equity investments classified as other assets | 7,900,000 | 8,100,000 | ||
Gross equity earnings from minority-owned joint ventures that are not consolidated, recorded as other income | 43,000 | 569,000 | $ 270,000 | |
Net income generated by all joint ventures, consolidated and equity method investments | 1,100,000 | 2,900,000 | $ 2,600,000 | |
Beijing JiYa Semiconductor Material Co., Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | $ 3,331,000 | 3,331,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 46.00% | |||
Nanjing Jin Mei Gallium Co., Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | $ 592,000 | 592,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 83.00% | |||
Number of employees who are also members of the board | employee | 2 | |||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | $ 1,346,000 | 1,346,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 70.00% | |||
Number of employees who are also members of the board | employee | 2 | |||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity method investment by parent | $ 1,524,000 | 1,723,000 | ||
Percentage of ownership, equity method (in hundredths) | 46.00% | |||
Xilingol Tongli Germanium Co. Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity method investment by parent | $ 5,343,000 | 5,351,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% | |||
Emeishan Jia Mei High Purity Metals Co., Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity method investment by parent | $ 1,081,000 | 1,021,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% | |||
Majority-Owned Subsidiaries [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | $ 5,269,000 | $ 5,269,000 |
Investments in Privately-held55
Investments in Privately-held Companies, Minority Investment Entities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AXT, Inc. Stockholders' Equity | |||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | |||
Net Revenue | $ 36,259,000 | $ 47,824,000 | $ 41,257,000 |
Gross profit | 8,327,000 | 21,436,000 | 13,836,000 |
Operating income | 2,494,000 | 9,046,000 | 8,174,000 |
Net income | 2,371,000 | 6,765,000 | 6,315,000 |
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 | 43,000 | 569,000 | 270,000 |
Summarized balance sheet information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | |||
Current assets | 32,097,000 | 31,482,000 | |
Noncurrent assets | 35,917,000 | 39,275,000 | |
Current liabilities | 18,185,000 | 19,923,000 | |
Noncurrent liabilities | 571,000 | 169,000 | |
Minority Investment Entities [Member] | |||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | |||
Net Revenue | 9,112,000 | 11,887,000 | 10,240,000 |
Gross profit | 1,954,000 | 5,340,000 | 3,328,000 |
Operating income | 494,000 | 2,059,000 | 1,820,000 |
Net income | 462,000 | 1,528,000 | 1,377,000 |
Minority investment entities | |||
Dividends received | 305,000 | 327,000 | $ 396,000 |
Undistributed retained earnings | $ 6,600,000 | $ 6,500,000 |
Other Investments (Details)
Other Investments (Details) | Dec. 31, 2015USD ($) | Jun. 30, 2015entity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Number of entities in which investment is accounted under cost method | entity | 1 | |||
Other Assets [Member] | ||||
Investments in unconsolidated privately-held entities, included in other assets | $ | $ 0 | $ 200,000 | $ 200,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Components of accrued liabilities [Abstract] | |||
Accrued compensation and related charges | $ 2,129 | $ 2,656 | |
Accrued professional services | 709 | 509 | |
Current portion of royalty payments | 575 | 800 | |
Dividends payable by consolidated joint ventures | 534 | 563 | $ 651 |
Accrued product warranty | 497 | 802 | $ 1,048 |
Accrued income taxes | 225 | 119 | |
Other accrued liabilities | 1,712 | 2,185 | |
Accrued liabilities, total | $ 6,381 | $ 7,634 |
Debt (Details)
Debt (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt | |
Line of credit facility, unused borrowing capacity | $ 10 |
Outstanding borrowings under this line of credit | $ 0 |
Stockholders_ Equity and Stoc59
Stockholders’ Equity and Stock Repurchase Program (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 27, 2014 | Feb. 21, 2013 | |
Stock Repurchase Program [Abstract] | |||||
Stock repurchase program, authorized amount | $ 5,000,000 | $ 6,000,000 | |||
Shares repurchased (in shares) | 908,000 | 0 | 285,000 | ||
Average price of shares repurchased (in dollars per share) | $ 2.52 | $ 2.51 | |||
Total purchase price | $ 2,300,000 | $ 716,000 | |||
Stock repurchase program remaining authorized repurchase amount | $ 2,700,000 | $ 5,300,000 | |||
Series A Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | |||
Cumulative annual dividend rate (as a percent) | 5.00% | 5.00% | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | |||
Preferred stock, value | $ 3,532,000 | $ 3,532,000 | |||
Liquidation preference over common stock (in dollars per share) | $ 4 | $ 4 |
Employee Benefit Plans and St60
Employee Benefit Plans and Stock-based Compensation (Details) - shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 3 years 10 months 24 days | 4 years 1 month 6 days | 4 years | |
1997 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 5,423,583 | |||
Terms of award | 10 years | |||
Number of shares available for grant (in shares) | 1,928,994 | |||
1997 Stock Option Plan | Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 4 years | |||
Vesting percentage as the end of first year (as a percent) | 25.00% | |||
Vesting percentage per month after first year (as a percent) | 2.10% | |||
1997 Stock Option Plan | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period if vesting is based on a performance measure | 5 years | |||
2007 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 1,300,000 | 2,000,000 | ||
Terms of award | 10 years | |||
2007 Equity Incentive Plan | Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 3 years | |||
2007 Equity Incentive Plan | Restricted Stock Awards [Member] | Time based vesting [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 3 years | |||
2007 Equity Incentive Plan | Restricted Stock Awards [Member] | Performance Based Vesting [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 12 months | |||
2015 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 10 years | |||
2015 Equity Incentive Plan | Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 4 years | |||
Number of shares available for grant (in shares) | 2,822,000 | |||
2015 Equity Incentive Plan | Options [Member] | Consultant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 1 year | |||
2015 Equity Incentive Plan | Restricted Stock Awards [Member] | Time based vesting [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 3 years | |||
2015 Equity Incentive Plan | Restricted Stock Awards [Member] | Performance Based Vesting [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, minimum | 12 months |
Employee Benefit Plans and St61
Employee Benefit Plans and Stock-based Compensation - Options (Details) - 2015 Equity Incentive Plan - Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of options outstanding [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 3,198,000 | 2,671,000 | 2,727,000 | |
Granted (in shares) | 866,000 | 712,000 | 488,000 | |
Exercised (in shares) | (119,000) | (111,000) | (331,000) | |
Canceled and expired (in shares) | (166,000) | (74,000) | (213,000) | |
Options outstanding, end of period (in shares) | 3,779,000 | 3,198,000 | 2,671,000 | 2,727,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,691,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,237,000 | |||
Weighted average exercise price [Roll Forward] | ||||
Options outstanding, beginning of period (in dollars per share) | $ 3.12 | $ 3.29 | $ 3.28 | |
Granted (in dollars per share) | 2.19 | 2.40 | 2.38 | |
Exercised (in dollars per share) | 1.38 | 1.21 | 1.62 | |
Canceled and expired (in dollars per share) | 3.03 | 5.18 | 3.60 | |
Options outstanding, end of period (in dollars per share) | 2.97 | $ 3.12 | $ 3.29 | $ 3.28 |
Options vested and expected to vest as of December 31, 2014 (in dollars per share) | 2.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 3.42 | |||
Weighted average Remaining Contractual Life [Abstract] | ||||
Options outstanding | 6 years 3 months 4 days | 6 years 11 months 12 days | 6 years 8 months 16 days | 6 years 8 months 16 days |
Options vested and unvested options expected to vest, net of forfeitures, end of period | 6 years 2 months 9 days | |||
Option exercisable, end of period | 4 years 4 months 28 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Options outstanding, beginning of period | $ 1,247 | $ 893 | $ 1,353 | |
Options outstanding, end of period | 764 | $ 1,247 | $ 893 | $ 1,353 |
Options vested and expected to vest, end of period | 742 | |||
Options exercisable, end of period | $ 453 |
Employee Benefit Plans and St62
Employee Benefit Plans and Stock-based Compensation - Options Excerise prices (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Options outstanding, shares (in shares) | shares | 3,779 |
Weighted-average Exercise Price (in dollars per share) | $ 2.97 |
Weighted-average Remaining Contractual Life | 6 years 3 months 4 days |
Options Vested and Exercisable Shares (in shares) | shares | 2,237 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 3.42 |
$1.59 - $2.04 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 1.59 |
Range of exercise price, maximum (in dollars per share) | $ 2.04 |
Options outstanding, shares (in shares) | shares | 623 |
Weighted-average Exercise Price (in dollars per share) | $ 1.83 |
Weighted-average Remaining Contractual Life | 2 years 3 months 26 days |
Options Vested and Exercisable Shares (in shares) | shares | 623 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 1.83 |
$2.14 - $2.14 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.14 |
Range of exercise price, maximum (in dollars per share) | $ 2.14 |
Options outstanding, shares (in shares) | shares | 52 |
Weighted-average Exercise Price (in dollars per share) | $ 2.14 |
Weighted-average Remaining Contractual Life | 8 years 3 months 29 days |
Options Vested and Exercisable Shares (in shares) | shares | 21 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.14 |
$2.18 - $2.18 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.18 |
Range of exercise price, maximum (in dollars per share) | $ 2.18 |
Options outstanding, shares (in shares) | shares | 846 |
Weighted-average Exercise Price (in dollars per share) | $ 2.18 |
Weighted-average Remaining Contractual Life | 9 years 6 months |
$2.29 - $2.29 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | $ 2.29 |
Range of exercise price, maximum (in dollars per share) | $ 2.29 |
Options outstanding, shares (in shares) | shares | 200 |
Weighted-average Exercise Price (in dollars per share) | $ 2.29 |
Weighted-average Remaining Contractual Life | 8 years 5 months 1 day |
Options Vested and Exercisable Shares (in shares) | shares | 75 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.29 |
$2.36 - $2.36 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.36 |
Range of exercise price, maximum (in dollars per share) | $ 2.36 |
Options outstanding, shares (in shares) | shares | 383 |
Weighted-average Exercise Price (in dollars per share) | $ 2.36 |
Weighted-average Remaining Contractual Life | 7 years 2 months 1 day |
Options Vested and Exercisable Shares (in shares) | shares | 215 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.36 |
$2.47 - $2.47 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.47 |
Range of exercise price, maximum (in dollars per share) | $ 2.47 |
Options outstanding, shares (in shares) | shares | 399 |
Weighted-average Exercise Price (in dollars per share) | $ 2.47 |
Weighted-average Remaining Contractual Life | 8 years 5 months 23 days |
Options Vested and Exercisable Shares (in shares) | shares | 120 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.47 |
$2.51 - $2.51 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.51 |
Range of exercise price, maximum (in dollars per share) | $ 2.51 |
Options outstanding, shares (in shares) | shares | 20 |
Weighted-average Exercise Price (in dollars per share) | $ 2.51 |
Weighted-average Remaining Contractual Life | 9 years 3 months 29 days |
Options Vested and Exercisable Shares (in shares) | shares | 13 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.51 |
$2.91 - $2.91 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 2.91 |
Range of exercise price, maximum (in dollars per share) | $ 2.91 |
Options outstanding, shares (in shares) | shares | 408 |
Weighted-average Exercise Price (in dollars per share) | $ 2.91 |
Weighted-average Remaining Contractual Life | 5 years 9 months 22 days |
Options Vested and Exercisable Shares (in shares) | shares | 329 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 2.91 |
$3.18 - $4.81 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 3.18 |
Range of exercise price, maximum (in dollars per share) | $ 4.81 |
Options outstanding, shares (in shares) | shares | 386 |
Weighted-average Exercise Price (in dollars per share) | $ 4.72 |
Weighted-average Remaining Contractual Life | 4 years 2 months 9 days |
Options Vested and Exercisable Shares (in shares) | shares | 384 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 4.73 |
$4.92 - $7.82 | |
Exercise price ranges of options outstanding and exercisable [Abstract] | |
Range of exercise price, minimum (in dollars per share) | 4.92 |
Range of exercise price, maximum (in dollars per share) | $ 7.82 |
Options outstanding, shares (in shares) | shares | 462 |
Weighted-average Exercise Price (in dollars per share) | $ 5.87 |
Weighted-average Remaining Contractual Life | 3 years 9 months 11 days |
Options Vested and Exercisable Shares (in shares) | shares | 457 |
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 5.87 |
Employee Benefit Plans and St63
Employee Benefit Plans and Stock-based Compensation - RSU (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Common stock reserved for future issuance | 7,147 | ||
Options [Member] | |||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Common stock reserved for future issuance | 3,779 | ||
Restricted Stock Awards [Member] | |||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Common stock reserved for future issuance | 546 | ||
2007 Equity Incentive Plan | Options [Member] | |||
Shares [Roll Forward] | |||
Granted (in shares) | 712,000 | ||
2015 Equity Incentive Plan | |||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Common stock reserved for future issuance | 2,822 | ||
2015 Equity Incentive Plan | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised (in shares) | 119,000 | 111,000 | 331,000 |
Intrinsic value of options exercised | $ 118,000,000 | $ 105,000,000 | $ 331,000,000 |
Compensation costs related to unvested stock options not yet recognized | 1,400,000 | ||
Value of estimated forfeitures | $ 94,000 | ||
Weighted-average period of amortization | 3 years 1 month 6 days | ||
Shares [Roll Forward] | |||
Granted (in shares) | 866,000 | 488,000 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 0.88 | $ 1.17 | $ 1.09 |
2015 Equity Incentive Plan | Restricted Stock Awards [Member] | |||
Shares [Roll Forward] | |||
Non-vested, beginning of period (in shares) | 261 | 241 | 239 |
Granted (in shares) | 547 | 121 | 104 |
Vested (in shares) | (215) | (101) | (85) |
Forfeited (in shares) | (47) | (16) | |
Non-vested, end of period (in shares) | 546 | 261 | 241 |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested, beginning of period (in dollars per share) | $ 2.71 | $ 3.44 | $ 4.27 |
Granted (in dollars per share) | 2.42 | 2.34 | 2.52 |
Vested (in dollars per share) | 2.81 | 4.01 | 4.56 |
Forfeited (in dollars per share) | 2.47 | 4.03 | |
Non-vested, end of period (in dollars per share) | $ 2.39 | $ 2.71 | $ 3.44 |
Total fair value of restricted stock awards vested | $ 605,000 | $ 405,000 | $ 389,000 |
Unrecognized compensation expense related to restricted stock awards | $ 1,200,000 | ||
Weighted average remaining contractual terms | 1 year 9 months 18 days |
Employee Benefit Plans and St64
Employee Benefit Plans and Stock-based Compensation - Stock-based compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||
Total stock-based compensation | $ 1,349 | $ 1,129 | $ 1,277 |
Net effect on net income (loss) | $ 1,349 | $ 1,129 | $ 1,277 |
Weighted Average Number of Shares Outstanding, Basic | 32,183 | 32,452 | 32,700 |
Weighted Average Number of Shares Outstanding, Diluted | 32,183 | 32,452 | 32,700 |
Effect on basic net income per share (in dollars per share) | $ (0.04) | $ (0.03) | $ (0.04) |
Effect on diluted net income per share (in dollars per share) | $ (0.04) | $ (0.03) | $ (0.04) |
Cost of Revenue [Member] | |||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||
Total stock-based compensation | $ 20 | $ 18 | $ 22 |
Selling, General and Administrative [Member] | |||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||
Total stock-based compensation | 1,148 | 938 | 1,091 |
Research and Development [Member] | |||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||
Total stock-based compensation | $ 181 | $ 173 | $ 164 |
Employee Benefit Plans and St65
Employee Benefit Plans and Stock-based Compensation - Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average assumptions [Abstract] | |||
Expected term | 3 years 10 months 24 days | 4 years 1 month 6 days | 4 years |
Volatility (in hundredths) | 51.10% | 63.20% | 59.20% |
Risk-free interest rate (in hundredths) | 1.75% | 1.85% | 0.98% |
Retirement Savings Plan [Abstract] | |||
Period after which all full time employees are eligible to participate in the savings plan | 90 days | ||
Maximum percentage of employer matching contribution if employees contribute at least 6% of base pay (in hundredths) | 4.00% | ||
Minimum percentage of employee contribution to get 4% of employer's contribution (in hundredths) | 6.00% | ||
Contributions to the retirement savings plans | $ 125,000 | $ 115,000 | $ 110,000 |
2015 Equity Incentive Plan | |||
Weighted average assumptions [Abstract] | |||
Expected term | 10 years |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product Warranty [Abstract] | ||
Period of warranty | 12 months | |
Change in warranty accrual [Roll Forward] | ||
Beginning accrued warranty and related costs | $ 802 | $ 1,048 |
Accruals for warranties issued | 662 | 865 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | (238) | (467) |
Cost of warranty repair | (729) | (644) |
Ending accrued warranty and related costs | $ 497 | $ 802 |
Income Taxes - (Details)
Income Taxes - (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)subsidiary | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Current [Abstract] | |||
State | $ 2 | $ 2 | $ 13 |
Foreign | 529 | 213 | 175 |
Total current | 531 | 215 | 188 |
Total net provision for income taxes | $ 531 | $ 215 | $ 188 |
Reconciliation of effective income tax rates and U.S. statutory federal income tax rate [Abstract] | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefits (as a percent) | (0.20%) | (0.10%) | |
Change in valuation allowance (as a percent) | (209.40%) | (695.80%) | (111.80%) |
Stock-based compensation (as a percent) | (6.50%) | (26.30%) | (1.40%) |
Foreign rate differences (as a percent) | 213.80% | 758.60% | 85.30% |
Dividend from PRC investee (as a percent) | (57.80%) | (169.80%) | (19.60%) |
Net loss from privately-held PRC investments (as a percent) | 1.10% | 45.60% | 2.50% |
Other (as a percent) | (0.10%) | 14.40% | 7.30% |
Effective tax rate (as a percent) | (23.90%) | (38.50%) | (2.80%) |
Deferred tax assets [Abstract] | |||
Net operating loss | $ 60,538 | $ 55,654 | |
Accruals and reserves not yet deductible | 3,723 | 4,517 | |
Credits | 1,488 | 1,488 | |
Deferred tax assets, gross | 65,749 | 61,659 | |
Net deferred tax assets | 65,749 | 61,659 | |
Valuation allowance | (65,749) | (61,659) | |
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Gross unrecognized tax benefits balance at December 31, 2013 | 16,403 | ||
Decrease related to lapse of statute of limitations | (1,846) | ||
Gross unrecognized tax benefits balance at December 31, 2014 | 14,557 | 16,403 | |
(Increase) and decrease in valuation allowance | 4,100 | 3,700 | |
Non-U.S. income included in income (loss) before tax | $ 15,200 | $ 12,800 | $ 16,700 |
Change in cumulative ownership percentage (as a percent) | 50.00% | ||
Period with in which cumulative ownership change | 3 years | ||
Unrecognized tax benefits interest and penalties | $ 0 | ||
Unrecognized tax benefits accrued interest and penalties | 0 | ||
Unrecognized tax liabilities of undistributed earnings of foreign subsidiaries | 80,500 | ||
Unrecognized tax benefit would favorably impact the effective tax rate in future periods if recognized | 14,600 | ||
Majority-Owned Subsidiaries [Member] | |||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Restricted cash and investments | 22,300 | ||
Cash and investments not available for use | 15,900 | ||
Wholly Owned China Subsidiary | |||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Restricted cash and investments | 16,800 | ||
Three Partially Owned Consolidated China Subsidiaries | |||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Restricted cash and investments | $ 5,500 | ||
Number of partially owned subsidiaries | subsidiary | 3 | ||
Domestic Tax Authority | |||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Operating loss carryforwards | $ 179,800 | ||
Tax credit carryforwards | 1,500 | ||
State | |||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Operating loss carryforwards | $ 1,700 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: [Abstract] | |||||||||||
Net income (loss) attributable to AXT, Inc. | $ (1,243) | $ 42 | $ (3) | $ (1,024) | $ (311) | $ 644 | $ 319 | $ (2,040) | $ (2,228) | $ (1,388) | $ (7,958) |
Less: Preferred stock dividends | (177) | (177) | (177) | ||||||||
Net income (loss) available to common stockholders | $ (2,405) | $ (1,565) | $ (8,135) | ||||||||
Denominator: [Abstract] | |||||||||||
Denominator for basic net income (loss) per share - weighted average common shares (in shares) | 32,183 | 32,452 | 32,700 | ||||||||
Denominator for dilutive net income (loss) per common share (in shares) | 32,183 | 32,452 | 32,700 | ||||||||
Basic net income (loss) per share [Abstract] | |||||||||||
Net income attributable to AXT, Inc (in dollars per share) | $ (0.07) | $ (0.05) | $ (0.25) | ||||||||
Basic (in dollars per share) | $ (0.04) | $ 0 | $ 0 | $ (0.03) | $ (0.01) | $ 0.02 | $ 0.01 | $ (0.06) | (0.07) | (0.05) | (0.25) |
Diluted net income (loss) per share [Abstract] | |||||||||||
Net income attributable to AXT, Inc (in dollars per share) | (0.07) | (0.05) | (0.25) | ||||||||
Diluted (in dollars per share) | $ (0.04) | $ 0 | $ 0 | $ (0.03) | $ (0.01) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.07) | $ (0.05) | $ (0.25) |
Weighted-average shares: [Abstract] | |||||||||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 546 | 252 | 241 | ||||||||
Options [Member] | |||||||||||
Weighted-average shares: [Abstract] | |||||||||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 3,779 | 2,772 | 2,671 |
Segment Information and Forei69
Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
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 | $ 18,057 | $ 18,371 | $ 21,010 | $ 20,064 | $ 19,567 | $ 23,138 | $ 21,449 | $ 19,345 | $ 77,502 | $ 83,499 | $ 85,335 |
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | 31,422 | 33,862 | 31,422 | 33,862 | |||||||
China | |||||||||||
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | 30,880 | 33,726 | 30,880 | 33,726 | |||||||
North America | |||||||||||
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | $ 542 | $ 136 | 542 | 136 | |||||||
Reportable Geographical Components | Europe | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | 19,518 | 21,535 | 21,387 | ||||||||
Reportable Geographical Components | China | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | 13,728 | 17,451 | 24,946 | ||||||||
Reportable Geographical Components | Taiwan | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | 13,799 | 11,464 | 10,131 | ||||||||
Reportable Geographical Components | Japan | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | 9,138 | 11,550 | 9,041 | ||||||||
Reportable Geographical Components | Asia Pacific (Excluding Japan And Taiwan) | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | 11,482 | 11,207 | 9,165 | ||||||||
Reportable Geographical Components | North America | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Revenue | $ 9,837 | $ 10,292 | $ 10,665 |
Other Income (expense) (Details
Other Income (expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign exchange gain (loss) | $ 717,000 | $ (999,000) | $ (1,253,000) |
Gain on sales of investments | 859,000 | 1,263,000 | |
Other income (expense) | 447,000 | 97,000 | 505,000 |
Other income (expense), net | 2,023,000 | 361,000 | $ (748,000) |
Foreign Exchange Contract [Member] | |||
Outstanding commitments on foreign exchange contracts | $ 36,000 | $ 0 |
Commitments and Contingencies71
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rent expenses under the operating leases | $ 313,000 | $ 260,000 | $ 638,000 |
Summary of total minimum lease payments [Abstract] | |||
2,016 | 173,000 | ||
2,017 | 167,000 | ||
2,018 | 39,000 | ||
2,019 | 30,000 | ||
2,020 | 27,000 | ||
Thereafter | 97,000 | ||
Total | $ 533,000 | ||
Royalty Agreement [Abstract] | |||
Term of royalty agreement | 8 years | ||
Aggregate amount payable towards royalty | $ 7,000,000 | ||
Royalty expense | 583,000 | 577,000 | 530,000 |
Credit of royalty expense | 217,000 | $ 223,000 | $ 270,000 |
Summary of total royalty payments under the agreement[Abstract] | |||
2,016 | 575,000 | ||
2,017 | 575,000 | ||
2,018 | 575,000 | ||
Total royalty payments | $ 1,725,000 |
Unaudited Quarterly Consolida72
Unaudited Quarterly Consolidated Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unaudited Quarterly Consolidated Financial Data | |||||||||||
Revenue | $ 18,057 | $ 18,371 | $ 21,010 | $ 20,064 | $ 19,567 | $ 23,138 | $ 21,449 | $ 19,345 | $ 77,502 | $ 83,499 | $ 85,335 |
Gross Profit | 3,090 | 4,605 | 4,385 | 4,749 | 4,971 | 5,318 | 4,160 | 2,718 | 16,829 | 17,167 | 11,828 |
Net Income (Loss) Attributable to Parent | $ (1,243) | $ 42 | $ (3) | $ (1,024) | $ (311) | $ 644 | $ 319 | $ (2,040) | $ (2,228) | $ (1,388) | $ (7,958) |
Net (loss) attributable to AXT, Inc per share, basic (in dollar per share) | $ (0.04) | $ 0 | $ 0 | $ (0.03) | $ (0.01) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.07) | $ (0.05) | $ (0.25) |
Net (loss) attributable to AXT, Inc per share, diluted (in dollar per share) | $ (0.04) | $ 0 | $ 0 | $ (0.03) | $ (0.01) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.07) | $ (0.05) | $ (0.25) |
Restructuring Charges (Details)
Restructuring Charges (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014USD ($)position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restructuring Charges | |||
Number of workforce reduced | position | 93 | ||
Percentage of reduction in workforce (in hundredths) | 11.00% | ||
Restructuring charge | $ | $ 907,000,000 | $ 0 | $ 907,000 |
Whistleblower Complaint and I74
Whistleblower Complaint and Investigation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Whistleblower Complaint and Investigation | |
Professional service fees | $ 1.8 |