Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 03, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AXT INC | ||
Entity Central Index Key | 1051627 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $53,550,000 | ||
Entity Common Stock, Shares Outstanding | 32,840,752 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $28,814 | $24,961 |
Short-term investments | 12,340 | 12,499 |
Accounts receivable, net of allowances of $823 and $1,054 as of December 31, 2014 and 2013 | 17,864 | 14,943 |
Inventories | 38,574 | 39,127 |
Related party notes receivable - current | 171 | 0 |
Prepaid expenses and other current assets | 5,430 | 8,010 |
Total current assets | 103,193 | 99,540 |
Long-term investments | 7,783 | 10,145 |
Property, plant and equipment, net | 33,862 | 37,621 |
Related party notes receivable - long-term | 1,704 | 1,715 |
Other assets | 14,975 | 14,801 |
Total assets | 161,517 | 163,822 |
Current liabilities: | ||
Accounts payable | 7,137 | 8,140 |
Accrued liabilities | 7,634 | 7,286 |
Total current liabilities | 14,771 | 15,426 |
Long-term portion of royalty payments | 1,725 | 2,525 |
Other long-term liabilities | 333 | 325 |
Total liabilities | 16,829 | 18,276 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of December 31, 2014 and 2013 (Liquidation preference of $6.3 million and $6.1 million as of December 31, 2014 and 2013) | 3,532 | 3,532 |
Common stock, $0.001 par value; 70,000 shares authorized; 32,837 and 32,605 shares issued and outstanding as of December 31, 2014 and 2013 | 32 | 32 |
Additional paid-in-capital | 195,419 | 194,156 |
Accumulated deficit | -68,393 | -67,005 |
Accumulated other comprehensive income | 7,673 | 8,953 |
Total AXT, Inc. stockholders' equity | 138,263 | 139,668 |
Noncontrolling interests | 6,425 | 5,878 |
Total stockholders' equity | 144,688 | 145,546 |
Total liabilities and stockholders' equity | $161,517 | $163,822 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Share data in Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $823,000 | $1,054,000 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 883 | 883 |
Preferred stock, shares outstanding (in shares) | 883 | 883 |
Preferred stock, liquidation preference | $6,300,000 | $6,100,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 32,837 | 32,605 |
Common stock, shares outstanding (in shares) | 32,837 | 32,605 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Revenue | $83,499 | $85,335 | $88,374 |
Cost of revenue | 66,332 | 73,507 | 63,522 |
Gross profit | 17,167 | 11,828 | 24,852 |
Operating expenses: | |||
Selling, general, and administrative | 14,970 | 16,066 | 15,419 |
Research and development | 4,144 | 3,424 | 3,468 |
Restructuring charge | 907 | 0 | 0 |
Total operating expenses | 20,021 | 19,490 | 18,887 |
Income (loss) from operations | -2,854 | -7,662 | 5,965 |
Interest income, net | 483 | 408 | 518 |
Equity in earnings of unconsolidated joint ventures | 1,528 | 1,377 | 1,281 |
Other income (expense), net | 361 | -748 | -761 |
Income (loss) before provision for income taxes | -482 | -6,625 | 7,003 |
Provision for income taxes | 215 | 188 | 853 |
Net income (loss) | -697 | -6,813 | 6,150 |
Less: Net income attributable to noncontrolling interest | -691 | -1,145 | -3,040 |
Net income (loss) attributable to AXT, Inc | ($1,388) | ($7,958) | $3,110 |
Net income (loss) attributable to AXT, Inc. per common share: | |||
Basic (in dollars per share) | ($0.05) | ($0.25) | $0.09 |
Diluted (in dollars per share) | ($0.05) | ($0.25) | $0.09 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 32,452 | 32,700 | 32,144 |
Diluted (in shares) | 32,452 | 32,700 | 32,865 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net Income (loss) | ($697) | ($6,813) | $6,150 |
Other comprehensive income (loss), net of tax: | |||
Change in cumulative foreign currency translation adjustment, net of tax | -377 | 1,568 | 207 |
Change in unrealized gain (loss) on available-for-sale investments, net of tax | -964 | 1,682 | 85 |
Total other comprehensive income (loss), net of tax | -1,341 | 3,250 | 292 |
Comprehensive income (loss) | -2,038 | -3,563 | 6,442 |
Less: Comprehensive income attributable to the noncontrolling interest | -630 | -1,475 | -3,117 |
Comprehensive income (loss) attributable to AXT, Inc. | ($2,668) | ($5,038) | $3,325 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income/(Loss) [Member] | AXT, Inc. stockholders' equity [Member] | Noncontrolling interests [Member] | Total |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $3,532 | $32 | $191,554 | ($62,157) | $5,818 | $138,779 | $8,270 | $147,049 |
Balance (in shares) at Dec. 31, 2011 | 883 | 32,222 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock options exercised | 294 | 294 | 294 | |||||
Common stock options exercised (in shares) | 136 | |||||||
Stock-based compensation | 1,215 | 1,215 | 1,215 | |||||
Issuance of common stock in the form of restricted stock (in shares) | 113 | |||||||
Comprehensive income: | ||||||||
Net Income (loss) | 3,110 | 3,110 | 3,040 | 6,150 | ||||
Net dividend declared by joint ventures | -4,086 | -4,086 | ||||||
Change in unrealized (loss) gain on marketable securities | 85 | 85 | 85 | |||||
Currency translation adjustment | 130 | 130 | 77 | 207 | ||||
Balance 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 | |||||
Common stock 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 | |||||||
Comprehensive income: | ||||||||
Net Income (loss) | -7,958 | -7,958 | 1,145 | -6,813 | ||||
Net dividend declared by joint ventures | -2,898 | -2,898 | ||||||
Change in unrealized (loss) gain on marketable securities | 1,682 | 1,682 | 1,682 | |||||
Currency translation adjustment | 1,238 | 1,238 | 330 | 1,568 | ||||
Balance 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 | |||||
Common stock 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 | |||||||
Comprehensive income: | ||||||||
Net Income (loss) | -1,388 | -1,388 | 691 | -697 | ||||
Net dividend declared by joint ventures | -83 | -83 | ||||||
Change in unrealized (loss) gain on marketable securities | -964 | -964 | -964 | |||||
Currency translation adjustment | -316 | -316 | -61 | -377 | ||||
Balance 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 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net Income (loss) | ($697) | ($6,813) | $6,150 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | |||
Depreciation and amortization | 5,639 | 5,470 | 3,927 |
Amortization of marketable securities premium | 432 | 518 | 323 |
Stock-based compensation | 1,129 | 1,277 | 1,215 |
Provision for doubtful accounts | 9 | 869 | 0 |
Realized gain on sale of investments | -1,263 | 0 | 0 |
Gain on sale of cost method investment | 0 | -811 | 0 |
Loss (gain) on disposal of property, plant and equipment | -13 | -9 | 195 |
Changes in assets and liabilities: | |||
Accounts receivable, net | -2,959 | 2,160 | 54 |
Inventories | 479 | 1,439 | 5,659 |
Prepaid expenses and other current assets | 2,393 | -645 | 1,784 |
Other assets | -255 | -1,859 | -174 |
Accounts payable | -979 | 2,185 | 2,608 |
Accrued liabilities | 742 | -899 | 461 |
Other long-term liabilities | -833 | -373 | -900 |
Net cash provided by operating activities | 3,824 | 2,509 | 21,302 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | -1,971 | -5,424 | -7,079 |
Proceeds from disposal of property, plant and equipment | 13 | 0 | 2 |
Purchases of available for sale securities | -11,828 | -14,092 | -12,116 |
Proceeds from sales and maturities of available for sale securities | 13,928 | 12,486 | 6,900 |
Repayment from (Loans to) related parties | 0 | 818 | -875 |
Net cash provided by (used in) investing activities | 142 | -6,212 | -13,168 |
Cash flows from financing activities: | |||
Proceeds from common stock options exercised | 134 | 532 | 294 |
Repurchases of the Company's common stock, including commission | 0 | -716 | 0 |
Dividends paid by joint ventures | -166 | -2,329 | -4,086 |
Net cash used in financing activities | -32 | -2,513 | -3,792 |
Effect of exchange rate changes on cash and cash equivalents | -81 | 543 | 136 |
Net increase (decrease) in cash and cash equivalents | 3,853 | -5,673 | 4,478 |
Cash and cash equivalents at the beginning of the year | 24,961 | 30,634 | 26,156 |
Cash and cash equivalents at the end of the year | 28,814 | 24,961 | 30,634 |
Supplemental disclosures: | |||
Income taxes paid | $293 | $782 | $1,729 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
The Company and Summary of Significant Accounting Policies [Abstract] | |||
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies | ||
The Company | |||
AXT, Inc. (“AXT”, “we,” “us,” and “our” refer to AXT, Inc. and all of its subsidiaries) is a worldwide 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 gallium with arsenic (GaAs) or combine indium with phosphorous (InP). Our single element substrates are made from germanium (Ge). | |||
We manufacture all of our semiconductor substrates using our proprietary vertical gradient freeze (VGF) technology. We manufacture all of our products in the People’s Republic of China (PRC or China), which generally has favorable costs for facilities and labor compared with comparable facilities in the United States, Europe or Japan. Our supply chain includes AXT subsidiaries and joint ventures in China, which provide us pricing advantages, reliable supply and enhanced sourcing lead-times for key raw materials which are central to our final manufactured products. These companies produce products including 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 held by our consolidated subsidiaries in these entities ranges from 20% to 83%. We consolidate, for accounting purposes, the joint ventures in which we have majority or controlling financial interest and significant influence on management, and employ equity accounting for the joint ventures in which we have a smaller ownership interest. 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. We use our direct sales force in the United States and China, and independent sales representatives in Europe and other parts of Asia to market and sell our substrates. | |||
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 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 control, but have the ability to exercise significant influence over operating and financial policies (generally 20-50% ownership), are accounted for by the equity method. For majority-owned subsidiaries, we reflect the noncontrolling interest of the portion we do not own on our condensed consolidated balance sheets in stockholders’ equity and in our condensed consolidated statements of operations. | |||
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 it 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 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. As of December 31, 2014, we did not have any assets or liabilities required to be carried at fair value without observable market values that would require a high level of judgment to determine fair value (Level 3 assets). | |||
Foreign Currency Translation | |||
The functional currencies of our Chinese subsidiaries are the local currencies. 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 losses for the years ended December 31, 2014, 2013 and 2012 totaled $1.0 million, $1.3 million and $445,000, 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 consolidated statements of comprehensive income (loss). | |||
Revenue Recognition | |||
We recognize revenue upon the shipment of our products to customers when: | |||
• | we have received a signed purchase order placed by our customers, | ||
• | the price is fixed or determinable, | ||
• | title and risk of ownership has transferred to our customers upon shipment from our dock, receipt at customer’s dock, or removal from consignment inventory at customer’s location, | ||
• | collection of resulting receivables is probable, and | ||
• | product returns are reasonably estimable. | ||
We do not provide training, installation or commissioning services. Our terms and conditions of sale do not require customer acceptance. We assess the probability of collection based on a number of factors including past history with the customer and credit worthiness. We provide for future returns based on historical experience, | |||
current economic trends and changes in customer demand at the time revenue is recognized. Additionally, we do not provide payment discounts to customers. We present our revenue net of any taxes assessed by any governmental authority. | |||
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 industry, which is highly cyclical and has historically experienced 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 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. Two customers accounted for 11% and 10% of our trade accounts receivable balance as of December 31, 2014. One customer accounted for 20% of our trade accounts receivable balance as of December 31, 2013. | |||
No customer represented more than 10% of our revenue for the year ended December 31, 2014 and 2013 while one customer represented 17% of revenue for the year ended December 31, 2012. Our top five customers, although not the same five customers for each period, represented 34%, 31% and 37% of revenue for the years ended December 31, 2014, 2013 and 2012, 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 money market funds. Cash and cash equivalents are stated at cost, which approximates fair value. | |||
Short-Term and Long-Term Investments | |||
We classify our investments in 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, U.S. government securities, and investment-grade corporate notes and bonds. 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 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, 2014 and December 31, 2013, our accounts receivable, net, balance was $17.9 million and $14.9 million, respectively, which was net of an allowance for doubtful accounts of $410,000 and $869,000, respectively. During 2014, we decreased this allowance for doubtful accounts by $459,000 primarily for improved collections worldwide. During 2013 we increased our allowance for doubtful accounts by $869,000 primarily because of the poor financial condition of a few customers in China. 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 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. During 2013, we utilized $189,000 and charged an additional $130,000 resulting in the allowance for sales returns of $186,000 as of December 31, 2013. During 2012, we utilized $426,000 and charged an additional $547,000 resulting in the allowance for sales returns of $245,000 as of December 31, 2012. | |||
Warranty Reserve | |||
We maintain a warranty reserve based upon our claims experience during the prior twelve months. Warranty costs are accrued at the time revenue is recognized. As of December 31, 2014 and 2013, accrued product warranties totaled $802,000 and $1.0 million, respectively. The decrease in accrued product warranties is primarily attributable to decreased claims for quality issues experienced by some customers. If actual warranty costs 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 3 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 computers, software, office equipment, furniture and fixtures over 3 years, automobiles over 5 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 2014, 2013 and 2012. | |||
Impairment of Investments | |||
All available-for-sale securities are periodically reviewed for impairment. Investments are 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 for business and strategic purposes. These investments are classified as other assets and are accounted for under the equity or cost method as we do not have the ability to exercise significant influence over their operations. 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. While we obtain financial statements from all of our joint ventures in order to prepare our consolidated financial statements, we do not review them either individually or in the aggregate when making operating decisions for our business. 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 joint ventures, we do not allocate resources to any of them, nor 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 condensed 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, 2014, 2013, and 2012 were $10,000, $12,000 and $19,000, 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 consist of unrealized gains and losses on marketable securities and foreign currency translation adjustments. Comprehensive income 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to 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 for those goods or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | |||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | Note 2. Cash, Cash Equivalents and Investments | ||||||||||||||||||||||||
Our cash, cash equivalents and investments are classified as follows (in thousands): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||
Gain | (Loss) | Gain | (Loss) | ||||||||||||||||||||||
Classified as: | |||||||||||||||||||||||||
Cash | $ | 28,791 | $ | — | $ | — | $ | 28,791 | $ | 24,852 | $ | — | $ | — | $ | 24,852 | |||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market fund | 23 | — | — | 23 | 109 | — | — | 109 | |||||||||||||||||
Total cash and cash equivalents | 28,814 | — | — | 28,814 | 24,961 | — | — | 24,961 | |||||||||||||||||
Investments(available for sale): | |||||||||||||||||||||||||
Certificates of | 10,195 | 1 | (13 | ) | 10,183 | 6,320 | 2 | (4 | ) | 6,318 | |||||||||||||||
Deposit | |||||||||||||||||||||||||
Corporate bonds | 9,214 | 1 | (29 | ) | 9,186 | 14,276 | 8 | (6 | ) | 14,278 | |||||||||||||||
Corporate equity security | 44 | 710 | — | 754 | 125 | 1,923 | — | 2,048 | |||||||||||||||||
Total investments | 19,453 | 712 | (42 | ) | 20,123 | 20,721 | 1,933 | (10 | ) | 22,644 | |||||||||||||||
Total cash, cash equivalents and investments | $ | 48,267 | $ | 712 | $ | (42 | ) | $ | 48,937 | $ | 45,682 | $ | 1,933 | $ | (10 | ) | $ | 47,605 | |||||||
Contractual maturities on investments: | |||||||||||||||||||||||||
Due within 1 year | $ | 11,631 | $ | 12,340 | $ | 10,569 | $ | 12,499 | |||||||||||||||||
Due after 1 through 5 years | 7,822 | 7,783 | 10,152 | 10,145 | |||||||||||||||||||||
$ | 19,453 | $ | 20,123 | $ | 20,721 | $ | 22,644 | ||||||||||||||||||
We manage our investments as a single portfolio of highly marketable securities that is intended to be available to meet our current cash requirements. We have no investments in auction rate securities. Proceeds from sales of available-for-sale investments for the year ended December 31, 2014 were $1.3 million. Gross realized gains from sales of available-for-sale investments for the year ended December 31, 2014 were $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 and 2012. | |||||||||||||||||||||||||
Also included in short-term investments at December 31, 2014 is our investment in common stock of Intelligent Epitaxy Technology, Inc (IntelliEPI), a Taiwan publicly-traded company. We began classifying this asset as an available-for- sale security upon its initial public offering (IPO) in 2013. Prior to the IPO in 2013, during the third and fourth quarter of 2013, we sold some of our stock in IntelliEPI and realized a gain of approximately $800,000. An unrealized gain of $1.6 million net of tax was recorded in 2013 for the write-up to market valuation. In 2014, we sold additional IntelliEpi stock and realized a gain of approximately $1.3 million. An unrealized gain of $710,000 net of tax remains as of December 31, 2014 for IntelliEpi stock still held. These securities are valued at fair market value at December 31, 2014. There is no assurance that the Company will realize this value when the securities are sold in the future. | |||||||||||||||||||||||||
The gross unrealized losses related to our portfolio of available-for-sale securities were primarily due to changes in interest rates and market and credit conditions of the underlying securities. We have determined that the gross unrealized losses on some of our available-for-sale securities as of December 31, 2014 are temporary in nature. We periodically review our investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the market value has been below cost (or adjusted cost), credit quality, and our ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value. | |||||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Certificates of deposit | $ | 4,492 | $ | (13 | ) | $ | — | $ | — | $ | 4,492 | $ | (13 | ) | |||||||||||
Corporate bonds | 3,770 | (27 | ) | 4,309 | (2 | ) | 8,079 | (29 | ) | ||||||||||||||||
Total in loss position | $ | 8,262 | $ | (40 | ) | $ | 4,309 | $ | (2 | ) | $ | 12,571 | $ | (42 | ) | ||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Certificates of deposit | $ | 3,425 | $ | (4 | ) | $ | 720 | $ | (0 | ) | $ | 4,145 | $ | (4 | ) | ||||||||||
Corporate bonds | 4,473 | (5 | ) | 3,711 | (1 | ) | 8,184 | (6 | ) | ||||||||||||||||
Total in loss position | $ | 7,898 | $ | (9 | ) | $ | 4,431 | $ | (1 | ) | $ | 12,329 | $ | (10 | ) | ||||||||||
Investments in Privately-held Companies | |||||||||||||||||||||||||
We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business (see Note 6). The investment balances for all of these companies, including minority investments indirectly in privately-held companies made by our consolidated joint ventures, accounted for under the equity method are included in “other assets” in the consolidated balance sheets and totaled $12.1 million and $10.9 million as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
We also maintain minority investments in companies which are accounted for under the cost method as we do not have the ability to exercise significant influence over their operations. Our investments under the cost method are reviewed for other than temporary declines in value on a quarterly basis. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. As of December 31, 2014 and 2013, our investments in these unconsolidated companies had a carrying value of $200,000 and were also included in “other assets” in the condensed consolidated balance sheets. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
ASC topic 820, Fair value measurement (“ASC 820”) establishes three levels of inputs that may be used to measure fair value. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets of the asset or identical assets. Level 2 instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 instrument valuations are obtained from unobservable inputs in which there is little or no market data, which require us to develop our own assumptions. As of December 31, 2014, we did not have any Level 3 assets or liabilities. On a recurring basis, we measure certain financial assets and liabilities at fair value, primarily consisting of our short-term and long-term investments. | |||||||||||||||||||||||||
The type of instrument valued based on quoted market prices in active markets include our money market funds, which are generally classified within Level 1 of the fair value hierarchy. Other than corporate equity securities which are based on quoted market prices and classified as Level 1, we classify our available-for-sale securities including certificates of deposit, corporate bonds as having Level 2 inputs. The valuation techniques used to measure the fair value of these financial instruments having Level 2 inputs were derived from quoted market prices, broker or dealer | |||||||||||||||||||||||||
quotations, or alternative pricing sources with reasonable levels of price transparency. There were no changes in valuation techniques or related inputs in the year ended December 31, 2014. There have been no transfers between fair value measurement levels during the year ended December 31, 2014. | |||||||||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||
31-Dec-14 | Active Markets of | Observable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||
Money market fund | $ | 23 | $ | 23 | $ | — | |||||||||||||||||||
Corporate equity securities | 754 | 754 | — | ||||||||||||||||||||||
Certificates of deposit | 10,183 | — | 10,183 | ||||||||||||||||||||||
Corporate bonds | 9,186 | — | 9,186 | ||||||||||||||||||||||
Total | $ | 20,146 | $ | 777 | $ | 19,369 | |||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||
31-Dec-13 | Active Markets of | Observable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||
Money market fund | $ | 109 | $ | 109 | $ | — | |||||||||||||||||||
Corporate equity securities | 2,048 | 2,048 | — | ||||||||||||||||||||||
Certificates of deposit | 6,318 | — | 6,318 | ||||||||||||||||||||||
Corporate bonds | 14,278 | — | 14,278 | ||||||||||||||||||||||
Total | $ | 22,753 | $ | 2,157 | $ | 20,596 | |||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||
Certain assets that are subject to nonrecurring fair value measurements are not included in the table above. These assets include investments in privately-held companies accounted for by equity and cost method (See Note 6). We did not record other-than-temporary impairment charges for these investments during 2014. |
Inventories
Inventories | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventories [Abstract] | |||||||
Inventories | Note 3. Inventories | ||||||
The components of inventory are summarized below (in thousands): | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Inventories: | |||||||
Raw materials | $ | 18,990 | $ | 21,063 | |||
Work in process | 16,222 | 14,027 | |||||
Finished goods | 3,362 | 4,037 | |||||
$ | 38,574 | $ | 39,127 | ||||
As of December 31, 2014 and 2013, carrying values of inventories were net of inventory reserve of $11.2 million and $11.0 million, respectively, for excess and obsolete inventory. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
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 $1.7 million with one of its equity investment entities. The original term of the loan was for two years and ten months with 3 periodic principal payments required. After | |
various amendments to the terms of the note, in December 2013 the parties agreed to delay all principal repayment until December 2016. As of December 31, 2014 and December 31, 2013, we included $1.7 million in “Related party notes receivable – long term” in our consolidated balance sheets. | |
Beginning in 2012, JiYa is contractually obligated under an agency sales agreement to sell raw material on behalf of one of its equity investment entities. JiYa bills the customers and remits the receipts, net of its portions of sales commission, to this equity investment entity. For the year ended December 31, 2014 and 2013, JiYa has recorded $0 and $23,000 of income from agency sales respectively, which was included in “other expense, net” in our condensed consolidated statements of operations. As of December 31, 2014 and December 31, 2013, there were no amounts payable to this equity investment entity. | |
JiYa also purchases raw materials from one of its equity investment entities for production in the ordinary course of business. As of December 31, 2014 and 2013, amounts payable of $1.8 million and $1.5 million, respectively, were included in “accounts payable” in our condensed consolidated balance sheets. | |
Beginning in 2012, our consolidated joint venture, Nanjing Jin Mei Gallium Co., Ltd. (Jin Mei), is contractually obligated under an agency sales agreement to sell raw material on behalf of its equity investment entity. Jin Mei bills the customers and remits the receipts, net of its portions of sales commission, to this equity investment entity. For the year ended December 31, 2014 and 2013, Jin Mei has recorded $20,000 and $128,000 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 $120,000 on behalf of Donghai County Dongfang High Purity Electronic Materials Co., Ltd., its equity investment entity, to purchase materials. In 2014, an agreement was signed between Tongmei and Dongfang to set the date of repayment on December 31, 2015. As of December 31, 2014, this balance was included in “Related party notes receivable – short term” in our consolidated balance sheets. | |
In April 2014, Tongmei loaned an additional of $49,000 to Dongfang. The loan bears interest at 6.15% per annum and the principal and interest totaling $171,000 as of December 31, 2014 is due on December 31, 2015. As of December 31, 2014, this balance, including both principal and interest, was included in “Related party notes receivable – short 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, 2014 and 2013, amounts payable of $513,000 and $0, respectively, were included in “accounts payable” in our condensed consolidated balance sheets. | |
Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between related parties and us, unless they have been approved by our Board of Directors. This policy applies to all of our employees and directors, our subsidiaries and our joint ventures. Our executive officers retain board seats on the Board of Directors of the companies in which we have invested in our China joint ventures. See Note 6 for further details. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment, Net [Abstract] | |||||||
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, | |||||||
2014 | 2013 | ||||||
Property, plant and equipment: | |||||||
Building | $ | 30,469 | $ | 30,369 | |||
Machinery and equipment | 41,900 | 40,764 | |||||
Leasehold improvements | 5,070 | 4,493 | |||||
Construction in progress | 1,918 | 2,879 | |||||
79,357 | 78,505 | ||||||
Less: accumulated depreciation and amortization | (45,495 | ) | (40,884 | ) | |||
$ | 33,862 | $ | 37,621 | ||||
Depreciation and amortization expense was $5.6 million, $5.5 million and $3.9 million for the years ended 2014, 2013, and 2012 respectively. |
Investments_in_Privatelyheld_C
Investments in Privately-held Companies | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investments in Privately-held Companies [Abstract] | |||||||||||||||||||
Investments in Privately-held Companies | Note 6. Investments in Privately-held Companies | ||||||||||||||||||
We have made strategic investments in private companies located in China in order to gain access to raw materials at a competitive cost that are critical to our substrate business. | |||||||||||||||||||
Our investments are summarized below (in thousands): | |||||||||||||||||||
Investment Balance as of | |||||||||||||||||||
Company | December 31, | December 31, | Accounting | Ownership | |||||||||||||||
2014 | 2013 | Method | Percentage | ||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd | $ | 3,331 | $ | 3,331 | Consolidated | 46% | |||||||||||||
Nanjing Jin Mei Gallium Co., Ltd | 592 | 592 | Consolidated | 83% | |||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd | 1,346 | 1,346 | Consolidated | 70% | |||||||||||||||
$ | 5,269 | $ | 5,269 | ||||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd. | $ | 1,723 | $ | 1,900 | Equity | 46% | |||||||||||||
Xilingol Tongli Germanium Co. Ltd | 5,351 | 4,692 | Equity | 25% | |||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd | 1,021 | 945 | Equity | 25% | |||||||||||||||
$ | 8,095 | $ | 7,537 | ||||||||||||||||
Our ownership of Beijing JiYa Semiconductor Material Co., Ltd. (JiYa) is 46%. We continue to consolidate JiYa as we have significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the JiYa board and two other of our employees are also members of the board. | |||||||||||||||||||
Our ownership of Nanjing Jin Mei Gallium Co., Ltd. (Jin Mei) is 83%. We continue to consolidate Jin Mei as we have significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the Jin Mei board and two other of our employees are also members of the board. | |||||||||||||||||||
Our ownership of Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd (BoYu) is 70%. We continue to consolidate BoYu as we have a significant influence in management and have majority control of the board. Our Chief Executive Officer is chairman of the BoYu board and two other of our employees are also members of the board. | |||||||||||||||||||
Although we have representation on the boards of directors of each of these companies, the daily operations of each of these companies are managed by local management and not by us. Decisions concerning their respective short term strategy and operations, any capacity expansion and annual capital expenditures, and decisions concerning sales of finished product, are made by local management with some inputs from us. | |||||||||||||||||||
During 2014, 2013 and 2012, the three consolidated joint ventures generated $3.0 million, $3.5 million and $7.4 million of income, respectively, of which $691,000, $1.1 million and $3.0 million, respectively was allocated to minority interests, resulting in $2.3 million, $2.4 million and $4.4 million, respectively to our net income. | |||||||||||||||||||
For the three equity investment entities that are not consolidated, the investment balances are included in “other assets” in our consolidated balance sheets and totaled $8.1 million and $7.5 million as of December 31, 2014 and 2013, 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 equity earnings of $569,000, $270,000 and $379,000 for the years ended December 31, 2014, 2013, and 2012, respectively, and 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 equity investment entities was $2.9 million, $2.6 million and $4.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
We also maintain minority investments indirectly in privately-held companies by our consolidated joint ventures. These minority investments are accounted for under the equity method in the books of our consolidated joint ventures. As of December 31, 2014 and 2013, our consolidated joint ventures included these minority investments in “other assets” in the consolidated balance sheets with a carrying value of $4.0 million and $3.4 million, respectively. | |||||||||||||||||||
All the minority investment entities that accounted for under the equity method had the following summarized operating information (in thousands) for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Years Ended | Our share for the | ||||||||||||||||||
December 31, | Years Ended | ||||||||||||||||||
December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Net Revenue | $ | 47,824 | $ | 41,257 | $ | 32,858 | $ | 11,887 | $ | 10,240 | $ | 8,091 | |||||||
Gross profit | 21,436 | 13,836 | 11,057 | 5,340 | 3,328 | 2,643 | |||||||||||||
Operating income | 9,046 | 8,174 | 6,310 | 2,059 | 1,820 | 1,409 | |||||||||||||
Net income | 6,765 | 6,315 | 5,665 | 1,528 | 1,377 | 1,281 | |||||||||||||
All the minority investment entities that accounted for under the equity method had the following summarized balance sheet information (in thousands) as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Current assets | $ | 31,482 | $ | 22,139 | |||||||||||||||
Noncurrent assets | 39,275 | 38,941 | |||||||||||||||||
Current liabilities | 19,923 | 15,289 | |||||||||||||||||
Noncurrent liabilities | 169 | 2,296 | |||||||||||||||||
All the minority investment entities that are not consolidated and accounted for under the equity method generated for AXT equity earnings of $1.5 million, $1.4 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. Dividends received from these minority investment entities were $325,000, $396,000 and $277,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Undistributed retained earnings relating to our investments in all these minority investment entities were $6.5 million and $5.3 million as of December 31, 2014 and 2013, respectively. |
Other_Investments
Other Investments | 12 Months Ended |
Dec. 31, 2014 | |
Other Investments [Abstract] | |
Other Investments | Note 7. Other Investments |
As of December 31, 2014, we maintain minority investments in one privately-held company accounted for under the cost method as we do not have the ability to exercise significant influence over its operations. Our investments in this privately-held company is reviewed for other than temporary declines in value on a quarterly basis. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. Reasons for other than temporary declines in value include whether the related company would have insufficient cash flow to operate for the next twelve months, significant changes in the operating performance and changes in market conditions. We had one company which is accounted for under the cost method in 2014 and 2013. As of December 31, 2014 and 2013, our cost method investments had a carrying value of $200,000, and are included in “other assets” in the consolidated balance sheets. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accrued Liabilities [Abstract] | |||||||
Accrued Liabilities | Note 8. Accrued Liabilities | ||||||
The components of accrued liabilities are summarized below (in thousands): | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Accrued compensation and related charges | $ | 2,656 | $ | 1,762 | |||
Accrued product warranty | 802 | 1,048 | |||||
Current portion of royalty payments | 800 | 800 | |||||
Accrued professional services | 509 | 543 | |||||
Dividends payable by consolidated joint ventures | 563 | 649 | |||||
Accrued income taxes | 119 | 125 | |||||
Other accrued liabilities | 2,185 | 2,359 | |||||
$ | 7,634 | $ | 7,286 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt [Abstract] | |
Debt | Note 9. Debt |
We have an unused credit facility with a bank that provides for a line of credit of $10.0 million as of December 31, 2014 and 2013, respectively, which is secured by marketable securities we have with the bank and shown as short-term and long-term investments of $15.1 million on our consolidated balance sheets. The annual interest rate is 1.65% over the current 30-day LIBOR (London Interbank Offered Rate). The annual interest rate was approximately 1.9% as of December 31, 2014. There were no outstanding borrowings under this line of credit as of December 31, 2014 and 2013. |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity and Stock Repurchase Program [Abstract] | |
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, 2014 and 2013, valued at $3,532,000 are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the board of directors and $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. | |
There were no reclassification adjustments from accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | |
Stock Repurchase Program | |
On February 21, 2013, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $6.0 million of our outstanding common stock through February 27, 2014. These purchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. During 2013, we repurchased approximately 285,000 shares at an average price of $2.51 per share for a total purchase price of $716,000 under the stock repurchase program. As of December 31, 2013, approximately $5.3 million remained available for future repurchases under this program. No shares were repurchased in 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 purchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. 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_Sto
Employee Benefit Plans and Stock-based Compensation | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Employee Benefit Plans and Stock-based Compensation [Abstract] | ||||||||||||||||
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. As of December 31, 2014, approximately 1,003,000 shares were available for grant under the 2007 Plan. | ||||||||||||||||
Stock Options | ||||||||||||||||
The following summarizes our stock option activity under the 2007 Plan, and the related weighted average exercise price within each category for each of the years ended December 31, 2012, 2013 and 2014 (in thousands, except per share data): | ||||||||||||||||
Stock Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||
Options | average | average | Intrinsic | |||||||||||||
Outstanding | Exercise | Remaining | Value | |||||||||||||
Price | Contractual | |||||||||||||||
Life | ||||||||||||||||
(in years) | ||||||||||||||||
Balance as of January 1, 2012 | 2,380 | $ | 3.25 | 6.25 | $ | 3,456 | ||||||||||
Granted | 592 | 3.32 | ||||||||||||||
Exercised | (136 | ) | 2.17 | |||||||||||||
Canceled and expired | (109 | ) | 4.25 | |||||||||||||
Balance as of December 31, 2012 | 2,727 | 3.28 | 6.71 | $ | 1,353 | |||||||||||
Granted | 488 | 2.38 | ||||||||||||||
Exercised | (331 | ) | 1.62 | |||||||||||||
Canceled and expired | (213 | ) | 3.6 | |||||||||||||
Balance as of December 31, 2013 | 2,671 | $ | 3.29 | 6.71 | $ | 893 | ||||||||||
Granted | 712 | 2.4 | ||||||||||||||
Exercised | (111 | ) | 1.21 | |||||||||||||
Canceled and expired | (74 | ) | 5.18 | |||||||||||||
Balance as of December 31, 2014 | 3,198 | $ | 3.12 | 6.95 | $ | 1,247 | ||||||||||
Options vested and expected to vest as of December 31, 2014 | 3,198 | $ | 3.12 | 6.95 | $ | 1,247 | ||||||||||
Options exercisable as of December 31, 2014 | 1,859 | $ | 3.46 | 5.48 | $ | 821 | ||||||||||
The options outstanding and exercisable as of December 31, 2014 were in the following exercise price ranges (in thousands, except per share data): | ||||||||||||||||
Options Outstanding as of | Options Vested and | |||||||||||||||
31-Dec-14 | Exercisable as of | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Range of | Shares | Weighted-average | Weighted-average | Shares | Weighted-Average | |||||||||||
Exercise Price | Exercise Price | Remaining | Exercise Price | |||||||||||||
Contractual Life | ||||||||||||||||
$1.33 - $1.59 | 401 | $ | 1.52 | 3.33 | 401 | $ | 1.52 | |||||||||
$1.91 - $1.91 | 4 | $ | 1.91 | 0.87 | 4 | $ | 1.91 | |||||||||
$2.04 - $2.04 | 333 | $ | 2.04 | 4.82 | 333 | $ | 2.04 | |||||||||
$2.14 - $2.29 | 252 | $ | 2.26 | 9.4 | 0 | $ | 0 | |||||||||
$2.36 - $2.36 | 428 | $ | 2.36 | 8.84 | 116 | $ | 2.36 | |||||||||
$2.47 - $2.47 | 460 | $ | 2.47 | 9.84 | 0 | $ | 0 | |||||||||
$2.91 - $2.91 | 444 | $ | 2.91 | 7.85 | 231 | $ | 2.91 | |||||||||
$3.18 - $4.09 | 29 | $ | 3.85 | 6.31 | 20 | $ | 3.84 | |||||||||
$4.79 - $4.79 | 330 | $ | 4.79 | 6.82 | 262 | $ | 4.79 | |||||||||
$4.81 - $7.82 | 517 | $ | 5.79 | 5.17 | 492 | $ | 5.8 | |||||||||
3,198 | $ | 3.12 | 6.95 | 1,859 | $ | 3.46 | ||||||||||
There were 111,000, 331,000 and 136,000 options exercised in the years ended December 31, 2014, 2013 and 2012, respectively. The total intrinsic value of options exercised for the years ended December 31, 2014, 2013 and 2012 was $105,000, $331,000 and $392,000, respectively. | ||||||||||||||||
As of December 31, 2014, the total unamortized stock-based compensation cost related to unvested stock options granted to employees under our stock option plans was approximately $1.6 million, net of estimated forfeitures of $57,000. This cost is being amortized on a straight-line basis over a weighted-average period of approximately 2.8 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, 2014 and 2013, as the amounts are not significant. | ||||||||||||||||
Restricted Stock Awards | ||||||||||||||||
A summary of activity related to restricted stock awards for the years ended December 31, 2014, 2013 and 2012 is presented below: | ||||||||||||||||
Stock Awards | Shares | Weighted-Average | ||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Non-vested as of January 1, 2012 | 223,127 | $ | 4.47 | |||||||||||||
Granted | 113,768 | $ | 3.18 | |||||||||||||
Vested | (98,172 | ) | $ | 3.42 | ||||||||||||
Non-vested as of December 31, 2012 | 238,723 | $ | 4.27 | |||||||||||||
Granted | 103,636 | $ | 2.52 | |||||||||||||
Vested | (85,127 | ) | $ | 4.56 | ||||||||||||
Forfeited | (16,000 | ) | $ | 4.03 | ||||||||||||
Non-vested as of December 31, 2013 | 241,232 | $ | 3.44 | |||||||||||||
Granted | 121,044 | $ | 2.34 | |||||||||||||
Vested | (100,779 | ) | $ | 4.01 | ||||||||||||
Non-vested as of December 31, 2014 | 261,497 | $ | 2.71 | |||||||||||||
Total grant date fair value of stock awards vested during the years ended December 31, 2014, 2013 and 2012 was $405,000, $389,000 and $336,000, respectively. As of December 31, 2014, we had $596,000 of unrecognized compensation expense related to restricted stock awards, which will be recognized over the weighted average period of 2.5 years. | ||||||||||||||||
Common Stock | ||||||||||||||||
The following number of shares of common stock were reserved and available for future issuance at December 31, 2014: | ||||||||||||||||
Options outstanding | 3,197,840 | |||||||||||||||
Restricted stock awards outstanding | 261,497 | |||||||||||||||
Stock available for future grant: 2007 Equity Incentive Plan | 1,002,898 | |||||||||||||||
Total | 4,462,235 | |||||||||||||||
Stock-based Compensation | ||||||||||||||||
We recorded $1.1 million, $1.3 million and $1.2 million of stock-based compensation in our consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. The following table summarizes compensation costs related to our stock-based compensation awards (in thousands, except per share data): | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation in the form of employee stock options and restricted stock, included in: | ||||||||||||||||
Cost of revenue | $ | 18 | $ | 22 | $ | 78 | ||||||||||
Selling, general and administrative | 938 | 1,091 | 1,000 | |||||||||||||
Research and development | 173 | 164 | 137 | |||||||||||||
Total stock-based compensation | 1,129 | 1,277 | 1,215 | |||||||||||||
Tax effect on stock-based compensation | — | — | — | |||||||||||||
Net effect on net income | $ | 1,129 | $ | 1,277 | $ | 1,215 | ||||||||||
Shares used in computing basic net income per share | 32,452 | 32,700 | 32,144 | |||||||||||||
Shares used in computing diluted net income per share | 32,452 | 32,700 | 32,865 | |||||||||||||
Effect on basic net income per share | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | |||||||
Effect on diluted net income per share | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | |||||||
We estimate the fair value of stock options using a Black-Scholes valuation model. There were 712,000, 488,000 and 592,000 stock options granted with weighted-average grant date fair value of $1.17, $1.09 and $1.79 per share during 2014, 2013 and 2012, respectively. The fair value of options granted was estimated at the date of grant using the following weighted-average assumptions: | ||||||||||||||||
Years Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected term (in years) | 4.1 | 4 | 4 | |||||||||||||
Volatility | 63.2 | % | 59.2 | % | 72.87 | % | ||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | ||||||||||
Risk-free interest rate | 1.85 | % | 0.98 | % | 0.57 | % | ||||||||||
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 $115,000, $110,000 and $900,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Guarantees
Guarantees | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Guarantees [Abstract] | |||||||
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 condensed consolidated balance sheets, during 2014 and 2013 (in thousands): | |||||||
Years Ended | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Beginning accrued warranty and related costs | $ | 1,048 | $ | 588 | |||
Accruals for warranties issued during the year | 865 | 789 | |||||
Adjustments related to pre-existing warranties including expirations and changes in estimates | (467 | ) | 412 | ||||
Cost of warranty repair | (644 | ) | (741 | ) | |||
Ending accrued warranty and related costs | $ | 802 | $ | 1,048 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Income Taxes | Note 13. Income Taxes | |||||||||
Consolidated income before provision for income taxes includes non-U.S. income of approximately $12.8 million, $16.7 million and $16.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. We recorded a current tax provision of $215,000, $188,000 and $853,000 for the years ended December 31, 2014, 2013 and 2012, respectively. The components of the provision (benefit) for income taxes are summarized below (in thousands): | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current: | ||||||||||
Federal | $ | — | $ | — | $ | — | ||||
State | 2 | 13 | (113 | ) | ||||||
Foreign | 213 | 175 | 966 | |||||||
Total current | 215 | 188 | 853 | |||||||
Deferred: | ||||||||||
Federal | — | — | — | |||||||
State | — | — | — | |||||||
Total deferred | — | — | — | |||||||
Total net provision for income taxes | $ | 215 | $ | 188 | $ | 853 | ||||
A reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate is summarized below: | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||
State income taxes, net of federal tax benefits | (0.2 | ) | (0.1 | ) | (1.0 | ) | ||||
Change in valuation allowance | (695.8 | ) | (111.8 | ) | 23.3 | |||||
Stock compensation | (26.3 | ) | (1.4 | ) | 1.5 | |||||
Foreign rate differences | 758.6 | 85.3 | (72.5 | ) | ||||||
Dividend from PRC investee | (169.8 | ) | (19.6 | ) | 30.1 | |||||
Net loss from privately-held PRC investments | 45.6 | 2.5 | (2.6 | ) | ||||||
Other | 14.4 | 7.3 | (1.6 | ) | ||||||
Effective tax rate | (38.5 | %) | (2.8 | %) | 12.2 | % | ||||
Deferred tax assets and liabilities are summarized below (in thousands): | ||||||||||
As of December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss | $ | 55,654 | $ | 51,818 | ||||||
Accruals and reserves not yet deductible | 4,517 | 4,985 | ||||||||
Credits | 1,488 | 1,488 | ||||||||
61,659 | 58,291 | |||||||||
Deferred tax liabilities: | ||||||||||
Valuation of investment portfolio | — | (288 | ) | |||||||
— | (288 | ) | ||||||||
Net deferred tax assets | 61,659 | 58,003 | ||||||||
Valuation allowance | (61,659 | ) | (58,003 | ) | ||||||
Net deferred tax assets | $ | — | $ | — | ||||||
As of December 31, 2014, we have federal and state net operating loss carryforwards of approximately $165.7 million and $5.6 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 be expired beginning in 2019. | ||||||||||
The deferred tax assets valuation allowance as of December 31, 2014 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 $4.0 million and increased by $7.0 million for the years ended December 31, 2014 and 2013, 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 that 50% as defined, over a three year period. | ||||||||||
As a result of the implementation of Interpretation 48, we recognized $16.4 million of liability for unrecognized tax benefits. Of this amount, none was accounted for as a reduction to the January 1, 2007 balance of retained earnings. The amount decreased tax loss carryforwards in the U.S., which are fully offset by a valuation allowance. | ||||||||||
We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the year ended December 31, 2014 includes no interest and penalties. As of December 31, 2014, we have no accrued interest and penalties related to uncertain tax positions. | ||||||||||
We file income tax returns in the U.S. federal, various states and foreign jurisdictions. We have substantially concluded all U.S. federal and state income tax matters through December 31, 2013. | ||||||||||
Deferred tax liabilities have not been recognized for $67.6 million of undistributed earnings of our foreign subsidiaries at December 31, 2014. 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, 2014, the company and its consolidated joint ventures hold approximately $18.3 million in cash and investments in foreign bank accounts of which $13.9 million is not available for use in the United States without paying 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, 2013 | $ | 16,403 | ||||||||
Add: | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||
Additions for tax positions of prior years | — | |||||||||
Gross unrecognized tax benefits balance as of December 31, 2014 | $ | 16,403 | ||||||||
Excluding the effects of recorded valuation allowances for deferred tax assets, $16.4 million of the unrecognized tax benefit would favorably impact the effective tax rate in future periods if recognized. |
Net_Income_per_Share
Net Income per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Net Income per Share [Abstract] | ||||||||||
Net income 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): | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Numerator: | ||||||||||
Net income (loss) attributable to AXT, Inc | $ | (1,388 | ) | $ | (7,958 | ) | $ | 3,110 | ||
Less: Preferred stock dividends | (177 | ) | (177 | ) | (177 | ) | ||||
Net income (loss) to common stockholders | $ | (1,565 | ) | $ | (8,135 | ) | $ | 2,933 | ||
Denominator: | ||||||||||
Weighted average common shares (basic) | 32,452 | 32,700 | 32,144 | |||||||
Effect of dilutive securities: | ||||||||||
Common stock options | — | — | 689 | |||||||
Restricted stock awards | — | — | 32 | |||||||
Weighted average common shares (dilutive) | 32,452 | 32,700 | 32,865 | |||||||
Basic net income (loss) per share: | ||||||||||
Net income attributable to AXT, Inc | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.1 | ||
Net income to common stockholders | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Diluted net income (loss) per share: | ||||||||||
Net income attributable to AXT, Inc | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Net income to common stockholders | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Options excluded from diluted net income per share as the impact is anti-dilutive | 2,772 | 2,671 | 1,056 | |||||||
Restricted stock excluded from diluted net income per share as the impact is anti-dilutive | 252 | 241 | 13 |
Segment_Information_and_Foreig
Segment Information and Foreign Operations | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Information and Foreign Operations [Abstract] | ||||||||||
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: | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Product revenue: | ||||||||||
Europe (primarily Germany) | $ | 21,535 | $ | 21,387 | $ | 18,170 | ||||
China | 17,451 | 24,946 | 19,815 | |||||||
North America (primarily the United States) | 10,292 | 10,665 | 15,391 | |||||||
Japan | 11,550 | 9,041 | 9,346 | |||||||
Taiwan | 11,464 | 10,131 | 10,985 | |||||||
Asia Pacific (excluding China, Japan and Taiwan) | 11,207 | 9,165 | 14,667 | |||||||
$ | 83,499 | $ | 85,335 | $ | 88,374 | |||||
Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets by geographic region were as follows (in thousands): | ||||||||||
As of December 31, | ||||||||||
2014 | 2013 | |||||||||
Long-lived assets: | ||||||||||
United States of America | $ | 136 | $ | 204 | ||||||
China | 33,726 | 37,417 | ||||||||
$ | 33,862 | $ | 37,621 |
Foreign_Exchange_Contracts_and
Foreign Exchange Contracts and Transaction Gains/Losses | 12 Months Ended |
Dec. 31, 2014 | |
Foreign Exchange Contracts and Transaction Gains/Losses [Abstract] | |
Foreign Exchange Contracts and Transaction Gains/Losses | Note 16. Foreign Exchange Contracts and Transaction Gains/Losses |
As of December 31, 2014, and 2013, we had no outstanding commitments with respect to foreign exchange contracts. | |
We incurred foreign currency transaction exchange losses which are included in “other income (expense), net” on the consolidated statements of operations of $1.0 million, $1.3 million and $445,000 for the years ended December 31, 2014, 2013 and 2012 respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
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. The original lease commenced on | ||||
December 1, 2008 for a term of seven years, with an option by us to cancel the lease after five years, upon forfeiture of the security deposit and payment of one-half of the fifth year’s rent. On June 28, 2013, we sent a notice to terminate the lease effective November 30, 2013 with an early termination penalty of $142,000 which was recorded as an expense in the third quarter of 2013. On August 2, 2013, we signed a new lease agreement for the current facility with reduced footage of 20,767 square feet, which commenced on December 1, 2013 for a term of two years. The reduced square footage, the reduced rate per square foot, and the expected reduced operating costs, would save us approximately total $382,000 during 2014 and 2015. In September 2014, we signed an amendment to the current lease to further reduce square footage to 19,467 square feet and to extend the term of the lease two more years. Total rent expenses under these operating leases were $260,000, $638,000 and $447,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Total minimum lease payments under these leases as of December 31, 2014 are summarized below (in thousands): | ||||
Lease | ||||
Payments | ||||
2015 | $ | 260 | ||
2016 | 165 | |||
2017 | 159 | |||
2018 | 30 | |||
2019 | 26 | |||
Thereafter | 126 | |||
$ | 766 | |||
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 a total of $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 for credit, starting in 2013, in the event that the royalty bearing sales for the year is lower than a pre-determined amount set forth in this agreement. Royalty expense under this agreement was $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 for the years ended December 31, 2014 and 2013, respectively. Royalty expense was $1.4 million for the year ended December 31, 2012. These expenses were included in cost of revenue. Total royalty payments under this agreement as of December 31, 2014 are summarized below (in thousands): | ||||
Royalty | ||||
Payments | ||||
2015 | 800 | |||
2016 | 575 | |||
2017 | 575 | |||
2018 | 575 | |||
$ | 2,525 |
Unaudited_Quarterly_Consolidat
Unaudited Quarterly Consolidated Financial Data | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Unaudited Quarterly Consolidated Financial Data [Abstract] | |||||||||||||
Unaudited Quarterly Consolidated Financial Data | Note 18. Unaudited Quarterly Consolidated Financial Data | ||||||||||||
Quarter | |||||||||||||
First | Second | Third | Fourth | ||||||||||
(in thousands, except per share data) | |||||||||||||
2014:00:00 | |||||||||||||
Revenue | $ | 19,345 | $ | 21,449 | $ | 23,138 | $ | 19,567 | |||||
Gross profit | 2,718 | 4,160 | 5,318 | 4,971 | |||||||||
Net income (loss) attributable to AXT, Inc | (2,040 | ) | 319 | 644 | (311 | ) | |||||||
Net (loss) attributable to AXT, Inc per share, basic | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | |||
Net (loss) attributable to AXT, Inc per share, diluted | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | |||
2013:00:00 | |||||||||||||
Revenue | $ | 22,380 | $ | 22,831 | $ | 20,521 | $ | 18,603 | |||||
Gross profit | 3,484 | 3,085 | 2,446 | 2,813 | |||||||||
Net (loss) attributable to AXT, Inc | (2,400 | ) | (2,035 | ) | (2,295 | ) | (1,228 | ) | |||||
Net (loss) attributable to AXT, Inc per share, basic | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.04 | ) | |
Net (loss) attributable to AXT, Inc per share, diluted | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.04 | ) |
Restructuring_Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring Charges [Abstract] | |
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. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20. Subsequent Events |
On February 23, 2015, the Board of Directors announced that, pursuant to an anonymous whistleblower complaint, our Audit Committee has conducted an investigation of certain potential related-party transactions involving Davis Zhang, our 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. We have filed a Current Report on Form 8-K 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 expect to incur additional professional services expense related to the investigation of approximately $1.2 million in the first quarter of 2015. |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
The Company and Summary of Significant Accounting Policies [Abstract] | |||
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 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 control, but have the ability to exercise significant influence over operating and financial policies (generally 20-50% ownership), are accounted for by the equity method. For majority-owned subsidiaries, we reflect the noncontrolling interest of the portion we do not own on our condensed consolidated balance sheets in stockholders’ equity and in our condensed consolidated statements of operations. | |||
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 it 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 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. As of December 31, 2014, we did not have any assets or liabilities required to be carried at fair value without observable market values that would require a high level of judgment to determine fair value (Level 3 assets). | |||
Foreign Currency Translation | Foreign Currency Translation | ||
The functional currencies of our Chinese subsidiaries are the local currencies. 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 losses for the years ended December 31, 2014, 2013 and 2012 totaled $1.0 million, $1.3 million and $445,000, 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 consolidated statements of comprehensive income (loss). | |||
Revenue Recognition | Revenue Recognition | ||
We recognize revenue upon the shipment of our products to customers when: | |||
• | we have received a signed purchase order placed by our customers, | ||
• | the price is fixed or determinable, | ||
• | title and risk of ownership has transferred to our customers upon shipment from our dock, receipt at customer’s dock, or removal from consignment inventory at customer’s location, | ||
• | collection of resulting receivables is probable, and | ||
• | product returns are reasonably estimable. | ||
We do not provide training, installation or commissioning services. Our terms and conditions of sale do not require customer acceptance. We assess the probability of collection based on a number of factors including past history with the customer and credit worthiness. We provide for future returns based on historical experience, | |||
current economic trends and changes in customer demand at the time revenue is recognized. Additionally, we do not provide payment discounts to customers. We present our revenue net of any taxes assessed by any governmental authority. | |||
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 industry, which is highly cyclical and has historically experienced 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 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. Two customers accounted for 11% and 10% of our trade accounts receivable balance as of December 31, 2014. One customer accounted for 20% of our trade accounts receivable balance as of December 31, 2013. | |||
No customer represented more than 10% of our revenue for the year ended December 31, 2014 and 2013 while one customer represented 17% of revenue for the year ended December 31, 2012. Our top five customers, although not the same five customers for each period, represented 34%, 31% and 37% of revenue for the years ended December 31, 2014, 2013 and 2012, 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 money market funds. 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 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, U.S. government securities, and investment-grade corporate notes and bonds. 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 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, 2014 and December 31, 2013, our accounts receivable, net, balance was $17.9 million and $14.9 million, respectively, which was net of an allowance for doubtful accounts of $410,000 and $869,000, respectively. During 2014, we decreased this allowance for doubtful accounts by $459,000 primarily for improved collections worldwide. During 2013 we increased our allowance for doubtful accounts by $869,000 primarily because of the poor financial condition of a few customers in China. 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 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. During 2013, we utilized $189,000 and charged an additional $130,000 resulting in the allowance for sales returns of $186,000 as of December 31, 2013. During 2012, we utilized $426,000 and charged an additional $547,000 resulting in the allowance for sales returns of $245,000 as of December 31, 2012. | |||
Warranty Reserve | Warranty Reserve | ||
We maintain a warranty reserve based upon our claims experience during the prior twelve months. Warranty costs are accrued at the time revenue is recognized. As of December 31, 2014 and 2013, accrued product warranties totaled $802,000 and $1.0 million, respectively. The decrease in accrued product warranties is primarily attributable to decreased claims for quality issues experienced by some customers. If actual warranty costs 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 3 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 computers, software, office equipment, furniture and fixtures over 3 years, automobiles over 5 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 2014, 2013 and 2012. | |||
Impairment of Investments | Impairment of Investments | ||
All available-for-sale securities are periodically reviewed for impairment. Investments are 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 for business and strategic purposes. These investments are classified as other assets and are accounted for under the equity or cost method as we do not have the ability to exercise significant influence over their operations. 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. While we obtain financial statements from all of our joint ventures in order to prepare our consolidated financial statements, we do not review them either individually or in the aggregate when making operating decisions for our business. 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 joint ventures, we do not allocate resources to any of them, nor 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 condensed 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, 2014, 2013, and 2012 were $10,000, $12,000 and $19,000, 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 consist of unrealized gains and losses on marketable securities and foreign currency translation adjustments. Comprehensive income 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to 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 for those goods or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. |
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | |||||||||||||||||||||||||
Cash, cash equivalents and investments | Our cash, cash equivalents and investments are classified as follows (in thousands): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||
Gain | (Loss) | Gain | (Loss) | ||||||||||||||||||||||
Classified as: | |||||||||||||||||||||||||
Cash | $ | 28,791 | $ | — | $ | — | $ | 28,791 | $ | 24,852 | $ | — | $ | — | $ | 24,852 | |||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market fund | 23 | — | — | 23 | 109 | — | — | 109 | |||||||||||||||||
Total cash and cash equivalents | 28,814 | — | — | 28,814 | 24,961 | — | — | 24,961 | |||||||||||||||||
Investments(available for sale): | |||||||||||||||||||||||||
Certificates of | 10,195 | 1 | (13 | ) | 10,183 | 6,320 | 2 | (4 | ) | 6,318 | |||||||||||||||
Deposit | |||||||||||||||||||||||||
Corporate bonds | 9,214 | 1 | (29 | ) | 9,186 | 14,276 | 8 | (6 | ) | 14,278 | |||||||||||||||
Corporate equity security | 44 | 710 | — | 754 | 125 | 1,923 | — | 2,048 | |||||||||||||||||
Total investments | 19,453 | 712 | (42 | ) | 20,123 | 20,721 | 1,933 | (10 | ) | 22,644 | |||||||||||||||
Total cash, cash equivalents and investments | $ | 48,267 | $ | 712 | $ | (42 | ) | $ | 48,937 | $ | 45,682 | $ | 1,933 | $ | (10 | ) | $ | 47,605 | |||||||
Contractual maturities on investments: | |||||||||||||||||||||||||
Due within 1 year | $ | 11,631 | $ | 12,340 | $ | 10,569 | $ | 12,499 | |||||||||||||||||
Due after 1 through 5 years | 7,822 | 7,783 | 10,152 | 10,145 | |||||||||||||||||||||
$ | 19,453 | $ | 20,123 | $ | 20,721 | $ | 22,644 | ||||||||||||||||||
Fair value and gross unrealized losses related to available-for-sale securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Certificates of deposit | $ | 4,492 | $ | (13 | ) | $ | — | $ | — | $ | 4,492 | $ | (13 | ) | |||||||||||
Corporate bonds | 3,770 | (27 | ) | 4,309 | (2 | ) | 8,079 | (29 | ) | ||||||||||||||||
Total in loss position | $ | 8,262 | $ | (40 | ) | $ | 4,309 | $ | (2 | ) | $ | 12,571 | $ | (42 | ) | ||||||||||
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
In Loss Position | In Loss Position | Total In | |||||||||||||||||||||||
< 12 months | > 12 months | Loss Position | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Certificates of deposit | $ | 3,425 | $ | (4 | ) | $ | 720 | $ | (0 | ) | $ | 4,145 | $ | (4 | ) | ||||||||||
Corporate bonds | 4,473 | (5 | ) | 3,711 | (1 | ) | 8,184 | (6 | ) | ||||||||||||||||
Total in loss position | $ | 7,898 | $ | (9 | ) | $ | 4,431 | $ | (1 | ) | $ | 12,329 | $ | (10 | ) | ||||||||||
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||
31-Dec-14 | Active Markets of | Observable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||
Money market fund | $ | 23 | $ | 23 | $ | — | |||||||||||||||||||
Corporate equity securities | 754 | 754 | — | ||||||||||||||||||||||
Certificates of deposit | 10,183 | — | 10,183 | ||||||||||||||||||||||
Corporate bonds | 9,186 | — | 9,186 | ||||||||||||||||||||||
Total | $ | 20,146 | $ | 777 | $ | 19,369 | |||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — | |||||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | |||||||||||||||||||||||
31-Dec-13 | Active Markets of | Observable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash equivalents and investments: | |||||||||||||||||||||||||
Money market fund | $ | 109 | $ | 109 | $ | — | |||||||||||||||||||
Corporate equity securities | 2,048 | 2,048 | — | ||||||||||||||||||||||
Certificates of deposit | 6,318 | — | 6,318 | ||||||||||||||||||||||
Corporate bonds | 14,278 | — | 14,278 | ||||||||||||||||||||||
Total | $ | 22,753 | $ | 2,157 | $ | 20,596 | |||||||||||||||||||
Liabilities | $ | — | $ | — | $ | — |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventories [Abstract] | |||||||
Components of inventories | The components of inventory are summarized below (in thousands): | ||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Inventories: | |||||||
Raw materials | $ | 18,990 | $ | 21,063 | |||
Work in process | 16,222 | 14,027 | |||||
Finished goods | 3,362 | 4,037 | |||||
$ | 38,574 | $ | 39,127 |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment, Net [Abstract] | |||||||
Components of property, plant and equipment | The components of our property, plant and equipment are summarized below (in thousands): | ||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Property, plant and equipment: | |||||||
Building | $ | 30,469 | $ | 30,369 | |||
Machinery and equipment | 41,900 | 40,764 | |||||
Leasehold improvements | 5,070 | 4,493 | |||||
Construction in progress | 1,918 | 2,879 | |||||
79,357 | 78,505 | ||||||
Less: accumulated depreciation and amortization | (45,495 | ) | (40,884 | ) | |||
$ | 33,862 | $ | 37,621 |
Investments_in_Privatelyheld_C1
Investments in Privately-held Companies (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investments in Privately-held Companies [Abstract] | |||||||||||||||||||
Investments | Our investments are summarized below (in thousands): | ||||||||||||||||||
Investment Balance as of | |||||||||||||||||||
Company | December 31, | December 31, | Accounting | Ownership | |||||||||||||||
2014 | 2013 | Method | Percentage | ||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd | $ | 3,331 | $ | 3,331 | Consolidated | 46% | |||||||||||||
Nanjing Jin Mei Gallium Co., Ltd | 592 | 592 | Consolidated | 83% | |||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd | 1,346 | 1,346 | Consolidated | 70% | |||||||||||||||
$ | 5,269 | $ | 5,269 | ||||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd. | $ | 1,723 | $ | 1,900 | Equity | 46% | |||||||||||||
Xilingol Tongli Germanium Co. Ltd | 5,351 | 4,692 | Equity | 25% | |||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd | 1,021 | 945 | Equity | 25% | |||||||||||||||
$ | 8,095 | $ | 7,537 | ||||||||||||||||
Summarized income information | All the minority investment entities that accounted for under the equity method had the following summarized operating information (in thousands) for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Years Ended | Our share for the | ||||||||||||||||||
December 31, | Years Ended | ||||||||||||||||||
December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Net Revenue | $ | 47,824 | $ | 41,257 | $ | 32,858 | $ | 11,887 | $ | 10,240 | $ | 8,091 | |||||||
Gross profit | 21,436 | 13,836 | 11,057 | 5,340 | 3,328 | 2,643 | |||||||||||||
Operating income | 9,046 | 8,174 | 6,310 | 2,059 | 1,820 | 1,409 | |||||||||||||
Net income | 6,765 | 6,315 | 5,665 | 1,528 | 1,377 | 1,281 | |||||||||||||
Summarized balance sheet information | All the minority investment entities that accounted for under the equity method had the following summarized balance sheet information (in thousands) as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||
As of December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Current assets | $ | 31,482 | $ | 22,139 | |||||||||||||||
Noncurrent assets | 39,275 | 38,941 | |||||||||||||||||
Current liabilities | 19,923 | 15,289 | |||||||||||||||||
Noncurrent liabilities | 169 | 2,296 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accrued Liabilities [Abstract] | |||||||
Components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): | ||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Accrued compensation and related charges | $ | 2,656 | $ | 1,762 | |||
Accrued product warranty | 802 | 1,048 | |||||
Current portion of royalty payments | 800 | 800 | |||||
Accrued professional services | 509 | 543 | |||||
Dividends payable by consolidated joint ventures | 563 | 649 | |||||
Accrued income taxes | 119 | 125 | |||||
Other accrued liabilities | 2,185 | 2,359 | |||||
$ | 7,634 | $ | 7,286 |
Employee_Benefit_Plans_and_Sto1
Employee Benefit Plans and Stock-based Compensation (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Employee Benefit Plans and Stock-based Compensation [Abstract] | ||||||||||||||||
Summary of stock option activity | The following summarizes our stock option activity under the 2007 Plan, and the related weighted average exercise price within each category for each of the years ended December 31, 2012, 2013 and 2014 (in thousands, except per share data): | |||||||||||||||
Stock Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||
Options | average | average | Intrinsic | |||||||||||||
Outstanding | Exercise | Remaining | Value | |||||||||||||
Price | Contractual | |||||||||||||||
Life | ||||||||||||||||
(in years) | ||||||||||||||||
Balance as of January 1, 2012 | 2,380 | $ | 3.25 | 6.25 | $ | 3,456 | ||||||||||
Granted | 592 | 3.32 | ||||||||||||||
Exercised | (136 | ) | 2.17 | |||||||||||||
Canceled and expired | (109 | ) | 4.25 | |||||||||||||
Balance as of December 31, 2012 | 2,727 | 3.28 | 6.71 | $ | 1,353 | |||||||||||
Granted | 488 | 2.38 | ||||||||||||||
Exercised | (331 | ) | 1.62 | |||||||||||||
Canceled and expired | (213 | ) | 3.6 | |||||||||||||
Balance as of December 31, 2013 | 2,671 | $ | 3.29 | 6.71 | $ | 893 | ||||||||||
Granted | 712 | 2.4 | ||||||||||||||
Exercised | (111 | ) | 1.21 | |||||||||||||
Canceled and expired | (74 | ) | 5.18 | |||||||||||||
Balance as of December 31, 2014 | 3,198 | $ | 3.12 | 6.95 | $ | 1,247 | ||||||||||
Options vested and expected to vest as of December 31, 2014 | 3,198 | $ | 3.12 | 6.95 | $ | 1,247 | ||||||||||
Options exercisable as of December 31, 2014 | 1,859 | $ | 3.46 | 5.48 | $ | 821 | ||||||||||
Options outstanding and exercisable | The options outstanding and exercisable as of December 31, 2014 were in the following exercise price ranges (in thousands, except per share data): | |||||||||||||||
Options Outstanding as of | Options Vested and | |||||||||||||||
31-Dec-14 | Exercisable as of | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Range of | Shares | Weighted-average | Weighted-average | Shares | Weighted-Average | |||||||||||
Exercise Price | Exercise Price | Remaining | Exercise Price | |||||||||||||
Contractual Life | ||||||||||||||||
$1.33 - $1.59 | 401 | $ | 1.52 | 3.33 | 401 | $ | 1.52 | |||||||||
$1.91 - $1.91 | 4 | $ | 1.91 | 0.87 | 4 | $ | 1.91 | |||||||||
$2.04 - $2.04 | 333 | $ | 2.04 | 4.82 | 333 | $ | 2.04 | |||||||||
$2.14 - $2.29 | 252 | $ | 2.26 | 9.4 | 0 | $ | 0 | |||||||||
$2.36 - $2.36 | 428 | $ | 2.36 | 8.84 | 116 | $ | 2.36 | |||||||||
$2.47 - $2.47 | 460 | $ | 2.47 | 9.84 | 0 | $ | 0 | |||||||||
$2.91 - $2.91 | 444 | $ | 2.91 | 7.85 | 231 | $ | 2.91 | |||||||||
$3.18 - $4.09 | 29 | $ | 3.85 | 6.31 | 20 | $ | 3.84 | |||||||||
$4.79 - $4.79 | 330 | $ | 4.79 | 6.82 | 262 | $ | 4.79 | |||||||||
$4.81 - $7.82 | 517 | $ | 5.79 | 5.17 | 492 | $ | 5.8 | |||||||||
3,198 | $ | 3.12 | 6.95 | 1,859 | $ | 3.46 | ||||||||||
Restricted stock awards | A summary of activity related to restricted stock awards for the years ended December 31, 2014, 2013 and 2012 is presented below: | |||||||||||||||
Stock Awards | Shares | Weighted-Average | ||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Non-vested as of January 1, 2012 | 223,127 | $ | 4.47 | |||||||||||||
Granted | 113,768 | $ | 3.18 | |||||||||||||
Vested | (98,172 | ) | $ | 3.42 | ||||||||||||
Non-vested as of December 31, 2012 | 238,723 | $ | 4.27 | |||||||||||||
Granted | 103,636 | $ | 2.52 | |||||||||||||
Vested | (85,127 | ) | $ | 4.56 | ||||||||||||
Forfeited | (16,000 | ) | $ | 4.03 | ||||||||||||
Non-vested as of December 31, 2013 | 241,232 | $ | 3.44 | |||||||||||||
Granted | 121,044 | $ | 2.34 | |||||||||||||
Vested | (100,779 | ) | $ | 4.01 | ||||||||||||
Non-vested as of December 31, 2014 | 261,497 | $ | 2.71 | |||||||||||||
Common stock reserved for future issuance | The following number of shares of common stock were reserved and available for future issuance at December 31, 2014: | |||||||||||||||
Options outstanding | 3,197,840 | |||||||||||||||
Restricted stock awards outstanding | 261,497 | |||||||||||||||
Stock available for future grant: 2007 Equity Incentive Plan | 1,002,898 | |||||||||||||||
Total | 4,462,235 | |||||||||||||||
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): | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation in the form of employee stock options and restricted stock, included in: | ||||||||||||||||
Cost of revenue | $ | 18 | $ | 22 | $ | 78 | ||||||||||
Selling, general and administrative | 938 | 1,091 | 1,000 | |||||||||||||
Research and development | 173 | 164 | 137 | |||||||||||||
Total stock-based compensation | 1,129 | 1,277 | 1,215 | |||||||||||||
Tax effect on stock-based compensation | — | — | — | |||||||||||||
Net effect on net income | $ | 1,129 | $ | 1,277 | $ | 1,215 | ||||||||||
Shares used in computing basic net income per share | 32,452 | 32,700 | 32,144 | |||||||||||||
Shares used in computing diluted net income per share | 32,452 | 32,700 | 32,865 | |||||||||||||
Effect on basic net income per share | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | |||||||
Effect on diluted net income per share | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | |||||||
Weighted-average assumptions | The fair value of options granted was estimated at the date of grant using the following weighted-average assumptions: | |||||||||||||||
Years Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected term (in years) | 4.1 | 4 | 4 | |||||||||||||
Volatility | 63.2 | % | 59.2 | % | 72.87 | % | ||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | ||||||||||
Risk-free interest rate | 1.85 | % | 0.98 | % | 0.57 | % |
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Guarantees [Abstract] | |||||||
Change in warranty accrual | The following table reflects the change in our warranty accrual which is included in “accrued liabilities” on the condensed consolidated balance sheets, during 2014 and 2013 (in thousands): | ||||||
Years Ended | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Beginning accrued warranty and related costs | $ | 1,048 | $ | 588 | |||
Accruals for warranties issued during the year | 865 | 789 | |||||
Adjustments related to pre-existing warranties including expirations and changes in estimates | (467 | ) | 412 | ||||
Cost of warranty repair | (644 | ) | (741 | ) | |||
Ending accrued warranty and related costs | $ | 802 | $ | 1,048 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Components of provision (benefit) for income taxes | The components of the provision (benefit) for income taxes are summarized below (in thousands): | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current: | ||||||||||
Federal | $ | — | $ | — | $ | — | ||||
State | 2 | 13 | (113 | ) | ||||||
Foreign | 213 | 175 | 966 | |||||||
Total current | 215 | 188 | 853 | |||||||
Deferred: | ||||||||||
Federal | — | — | — | |||||||
State | — | — | — | |||||||
Total deferred | — | — | — | |||||||
Total net provision for income taxes | $ | 215 | $ | 188 | $ | 853 | ||||
Reconciliation of effective income tax rates and U.S. statutory federal income tax rate | A reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate is summarized below: | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||
State income taxes, net of federal tax benefits | (0.2 | ) | (0.1 | ) | (1.0 | ) | ||||
Change in valuation allowance | (695.8 | ) | (111.8 | ) | 23.3 | |||||
Stock compensation | (26.3 | ) | (1.4 | ) | 1.5 | |||||
Foreign rate differences | 758.6 | 85.3 | (72.5 | ) | ||||||
Dividend from PRC investee | (169.8 | ) | (19.6 | ) | 30.1 | |||||
Net loss from privately-held PRC investments | 45.6 | 2.5 | (2.6 | ) | ||||||
Other | 14.4 | 7.3 | (1.6 | ) | ||||||
Effective tax rate | (38.5 | %) | (2.8 | %) | 12.2 | % | ||||
Deferred tax assets and liabilities | Deferred tax assets and liabilities are summarized below (in thousands): | |||||||||
As of December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss | $ | 55,654 | $ | 51,818 | ||||||
Accruals and reserves not yet deductible | 4,517 | 4,985 | ||||||||
Credits | 1,488 | 1,488 | ||||||||
61,659 | 58,291 | |||||||||
Deferred tax liabilities: | ||||||||||
Valuation of investment portfolio | — | (288 | ) | |||||||
— | (288 | ) | ||||||||
Net deferred tax assets | 61,659 | 58,003 | ||||||||
Valuation allowance | (61,659 | ) | (58,003 | ) | ||||||
Net deferred tax assets | $ | — | $ | — | ||||||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits | 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, 2013 | $ | 16,403 | ||||||||
Add: | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||
Additions for tax positions of prior years | — | |||||||||
Gross unrecognized tax benefits balance as of December 31, 2014 | $ | 16,403 |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Net Income per Share [Abstract] | ||||||||||
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share | A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share data): | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Numerator: | ||||||||||
Net income (loss) attributable to AXT, Inc | $ | (1,388 | ) | $ | (7,958 | ) | $ | 3,110 | ||
Less: Preferred stock dividends | (177 | ) | (177 | ) | (177 | ) | ||||
Net income (loss) to common stockholders | $ | (1,565 | ) | $ | (8,135 | ) | $ | 2,933 | ||
Denominator: | ||||||||||
Weighted average common shares (basic) | 32,452 | 32,700 | 32,144 | |||||||
Effect of dilutive securities: | ||||||||||
Common stock options | — | — | 689 | |||||||
Restricted stock awards | — | — | 32 | |||||||
Weighted average common shares (dilutive) | 32,452 | 32,700 | 32,865 | |||||||
Basic net income (loss) per share: | ||||||||||
Net income attributable to AXT, Inc | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.1 | ||
Net income to common stockholders | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Diluted net income (loss) per share: | ||||||||||
Net income attributable to AXT, Inc | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Net income to common stockholders | $ | (0.05 | ) | $ | (0.25 | ) | $ | 0.09 | ||
Options excluded from diluted net income per share as the impact is anti-dilutive | 2,772 | 2,671 | 1,056 | |||||||
Restricted stock excluded from diluted net income per share as the impact is anti-dilutive | 252 | 241 | 13 |
Segment_Information_and_Foreig1
Segment Information and Foreign Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Information and Foreign Operations [Abstract] | ||||||||||
Revenue reported for products shipped to customers in the corresponding geographic region | The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Product revenue: | ||||||||||
Europe (primarily Germany) | $ | 21,535 | $ | 21,387 | $ | 18,170 | ||||
China | 17,451 | 24,946 | 19,815 | |||||||
North America (primarily the United States) | 10,292 | 10,665 | 15,391 | |||||||
Japan | 11,550 | 9,041 | 9,346 | |||||||
Taiwan | 11,464 | 10,131 | 10,985 | |||||||
Asia Pacific (excluding China, Japan and Taiwan) | 11,207 | 9,165 | 14,667 | |||||||
$ | 83,499 | $ | 85,335 | $ | 88,374 | |||||
Long-lived assets by geographic region | Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets by geographic region were as follows (in thousands): | |||||||||
As of December 31, | ||||||||||
2014 | 2013 | |||||||||
Long-lived assets: | ||||||||||
United States of America | $ | 136 | $ | 204 | ||||||
China | 33,726 | 37,417 | ||||||||
$ | 33,862 | $ | 37,621 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Total minimum lease payments | Total minimum lease payments under these leases as of December 31, 2014 are summarized below (in thousands): | |||
Lease | ||||
Payments | ||||
2015 | $ | 260 | ||
2016 | 165 | |||
2017 | 159 | |||
2018 | 30 | |||
2019 | 26 | |||
Thereafter | 126 | |||
$ | 766 | |||
Total royalty payments under the agreement | Total royalty payments under this agreement as of December 31, 2014 are summarized below (in thousands): | |||
Royalty | ||||
Payments | ||||
2015 | 800 | |||
2016 | 575 | |||
2017 | 575 | |||
2018 | 575 | |||
$ | 2,525 |
Unaudited_Quarterly_Consolidat1
Unaudited Quarterly Consolidated Financial Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Unaudited Quarterly Consolidated Financial Data [Abstract] | |||||||||||||
Unaudited Quarterly Consolidated Financial Data | Note 18. Unaudited Quarterly Consolidated Financial Data | ||||||||||||
Quarter | |||||||||||||
First | Second | Third | Fourth | ||||||||||
(in thousands, except per share data) | |||||||||||||
2014:00:00 | |||||||||||||
Revenue | $ | 19,345 | $ | 21,449 | $ | 23,138 | $ | 19,567 | |||||
Gross profit | 2,718 | 4,160 | 5,318 | 4,971 | |||||||||
Net income (loss) attributable to AXT, Inc | (2,040 | ) | 319 | 644 | (311 | ) | |||||||
Net (loss) attributable to AXT, Inc per share, basic | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | |||
Net (loss) attributable to AXT, Inc per share, diluted | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | |||
2013:00:00 | |||||||||||||
Revenue | $ | 22,380 | $ | 22,831 | $ | 20,521 | $ | 18,603 | |||||
Gross profit | 3,484 | 3,085 | 2,446 | 2,813 | |||||||||
Net (loss) attributable to AXT, Inc | (2,400 | ) | (2,035 | ) | (2,295 | ) | (1,228 | ) | |||||
Net (loss) attributable to AXT, Inc per share, basic | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.04 | ) | |
Net (loss) attributable to AXT, Inc per share, diluted | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.04 | ) |
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
The Company and Summary of Significant Accounting Policies [Abstract] | |||
Percentage of pure gallium products produces by joint ventures (in hundredths) | 99.99% | ||
Foreign Currency Translation [Abstract] | |||
Foreign currency transaction exchange gains (losses) | ($1,000,000) | ($1.30) | ($445,000) |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Minimum period to evaluate receivable from US customer | 90 days | ||
Minimum period to evaluate receivable from other than US customer | 120 days | ||
Accounts receivable, net | 17,864,000 | 14,943,000 | |
Increase in allowance for doubtful accounts | -459,000 | 869,000 | |
Warranty Reserve [Abstract] | |||
Accrued product warranties | 802,000 | 1,048,000 | 588,000 |
Impairment of Long Lived Assets [Abstract] | |||
Impairment of long-lived assets | 0 | 0 | 0 |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | ||
Advertising Costs [Abstract] | |||
Advertising costs | 10,000 | 12,000 | 19,000 |
Computers and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 5 years | ||
Leasehold and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 10 years | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 27 years 6 months | ||
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance balance | 410,000 | 869,000 | |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance deductions | 410,000 | 189,000 | 426,000 |
Additional allowance for sales return | 183,000 | 130,000 | 547,000 |
Valuation allowance balance | $413,000 | $186,000 | $245,000 |
Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 0 | 0 | 1 |
Trade Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 2 | 1 | |
Major Customer One [Member] | Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers (in hundredths) | 17.00% | ||
Major Customer One [Member] | Trade Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers (in hundredths) | 11.00% | 20.00% | |
Major Customer Two [Member] | Trade 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) | 34.00% | 31.00% | 37.00% |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 3 years | ||
Minimum [Member] | Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 20.00% | ||
Minimum [Member] | Majority-owned Subsidiaries [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 20.00% | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated economic life | 27 years 6 months | ||
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 | ||
Maximum [Member] | Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 83.00% | ||
Maximum [Member] | Majority-owned Subsidiaries [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership, equity method (in hundredths) | 50.00% |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash, cash equivalents and investments [Abstract] | ||||
Cash | $28,791,000 | $24,852,000 | ||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Money market fund | 23,000 | 109,000 | ||
Cash and cash equivalents, at carrying value, total | 28,814,000 | 24,961,000 | 30,634,000 | 26,156,000 |
Cash and cash equivalents, fair value disclosure | 28,814,000 | 24,961,000 | ||
Amortized Cost | 48,267,000 | 45,682,000 | ||
Gross Unrealized Gain | 712,000 | 1,933,000 | ||
Gross Unrealized (Loss) | -42,000 | -10,000 | ||
Fair Value | 48,937,000 | 47,605,000 | ||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Due within 1 year | 11,631,000 | 10,569,000 | ||
Due after 1 through 5 years | 7,822,000 | 10,152,000 | ||
Investments, amortized cost | 19,453,000 | 20,721,000 | ||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Due within 1 year | 12,340,000 | 12,499,000 | ||
Due after 1 through 5 years | 7,783,000 | 10,145,000 | ||
Investments, fair value | 20,123,000 | 22,644,000 | ||
Proceeds from sales of available-for-sale investments | 1,300,000 | |||
Gross realized losses on available-for-sale securities | -1,263,000 | 0 | 0 | |
Gross realized gains on available-for-sale securities | 1,300,000 | 0 | 0 | |
Unrealized gain, net of tax | 710,000 | 1,600,000 | ||
Gain on sale of available for sale security | 1,300,000 | 800,000 | ||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||
Fair value, in loss position less than twelve months | 8,262,000 | 7,898,000 | ||
Gross unrealized loss, in loss position less than twelve months | -40,000 | -9,000 | ||
Fair value, in loss position greater than twelve months | 4,309,000 | 4,431,000 | ||
Gross unrealized loss, in loss position greater than twelve months | -2,000 | -1,000 | ||
Fair value, total in loss position | 12,571,000 | 12,329,000 | ||
Gross unrealized loss, total in loss position | -42,000 | -10,000 | ||
Investment in privately held Companies [Abstract] | ||||
Minority investments in unconsolidated privately-held companies | 200,000 | 200,000 | ||
Other assets [Member] | ||||
Investment in privately held Companies [Abstract] | ||||
Investments in privately-held companies | 12,100,000 | 10,900,000 | ||
Minority investments in unconsolidated privately-held companies | 200,000 | 200,000 | ||
Certificates of deposit [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Amortized Cost | 10,195,000 | 6,320,000 | ||
Gross Unrealized Gain | 1,000 | 2,000 | ||
Gross Unrealized (Loss) | -13,000 | -4,000 | ||
Fair Value | 10,183,000 | 6,318,000 | ||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||
Fair value, in loss position less than twelve months | 4,492,000 | 3,425,000 | ||
Gross unrealized loss, in loss position less than twelve months | -13,000 | -4,000 | ||
Fair value, in loss position greater than twelve months | 0 | 720,000 | ||
Gross unrealized loss, in loss position greater than twelve months | 0 | 0 | ||
Fair value, total in loss position | 4,492,000 | 4,145,000 | ||
Gross unrealized loss, total in loss position | -13,000 | -4,000 | ||
Corporate bonds [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Amortized Cost | 9,214,000 | 14,276,000 | ||
Gross Unrealized Gain | 1,000 | 8,000 | ||
Gross Unrealized (Loss) | -29,000 | -6,000 | ||
Fair Value | 9,186,000 | 14,278,000 | ||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||
Fair value, in loss position less than twelve months | 3,770,000 | 4,473,000 | ||
Gross unrealized loss, in loss position less than twelve months | -27,000 | -5,000 | ||
Fair value, in loss position greater than twelve months | 4,309,000 | 3,711,000 | ||
Gross unrealized loss, in loss position greater than twelve months | -2,000 | -1,000 | ||
Fair value, total in loss position | 8,079,000 | 8,184,000 | ||
Gross unrealized loss, total in loss position | -29,000 | -6,000 | ||
Corporate equity security [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Amortized Cost | 44,000 | 125,000 | ||
Gross Unrealized Gain | 710,000 | 1,923,000 | ||
Gross Unrealized (Loss) | 0 | 0 | ||
Fair Value | 754,000 | 2,048,000 | ||
Total Investments [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Amortized Cost | 19,453,000 | 20,721,000 | ||
Gross Unrealized Gain | 712,000 | 1,933,000 | ||
Gross Unrealized (Loss) | -42,000 | -10,000 | ||
Fair Value | 20,123,000 | 22,644,000 | ||
Recurring [Member] | Money market fund [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Money market fund | $23,000 | $109,000 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments, Fair Value Measurements, Recurring and Nonrecurring (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets [Abstract] | ||
Cash and cash equivalents, fair value disclosure | $28,814 | $24,961 |
Available-for-sale Securities, Fair Value Disclosure | 48,937 | 47,605 |
Recurring [Member] | ||
Assets [Abstract] | ||
Assets, fair value | 20,146 | 22,753 |
Liabilities [Abstract] | ||
Liabilities, fair value | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Assets, fair value | 777 | 2,157 |
Liabilities [Abstract] | ||
Liabilities, fair value | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Assets, fair value | 19,369 | 20,596 |
Liabilities [Abstract] | ||
Liabilities, fair value | 0 | 0 |
Recurring [Member] | Money market fund - cash [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 23 | 109 |
Recurring [Member] | Money market fund - cash [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 23 | 109 |
Recurring [Member] | Money market fund - cash [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Recurring [Member] | Certificates of deposit [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 10,183 | 6,318 |
Recurring [Member] | Certificates of deposit [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 10,183 | 6,318 |
Recurring [Member] | Corporate bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,186 | 14,278 |
Recurring [Member] | Corporate bonds [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,186 | 14,278 |
Recurring [Member] | Corporate equity security [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 754 | 2,048 |
Recurring [Member] | Corporate equity security [Member] | Quoted Prices in Active Markets of Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 754 | 2,048 |
Recurring [Member] | Corporate equity security [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | $0 | $0 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventories [Abstract] | ||
Raw materials | $18,990,000 | $21,063,000 |
Work in process | 16,222,000 | 14,027,000 |
Finished goods | 3,362,000 | 4,037,000 |
Inventories, total | 38,574,000 | 39,127,000 |
Inventory reserve | $11,200,000 | $11,000,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 11 Months Ended | 12 Months Ended | ||
Nov. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2011 | |
sqft | Installment | EquityMethodInvestee | ||
Related Party Transaction [Line Items] | ||||
Related party notes receivable - long term | $1,704,000 | $1,715,000 | ||
Accrued liabilities | 7,634,000 | 7,286,000 | ||
Accounts payable | 7,137,000 | 8,140,000 | ||
Area of leased property (in square feet) | 19,467 | |||
Lease term | 7 years | |||
Principal and interest on loan | 171,000 | 0 | ||
Beijing JiYa Semiconductor Material Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of loan under note agreement | 1,700,000 | |||
Number of equity method investees to whom loan was granted | 1 | |||
Maturity date | 31-Dec-16 | |||
Term of Loan | 2 years 10 months | |||
Number of installments | 3 | |||
Related party notes receivable - long term | 1,700,000 | 1,700,000 | ||
Income from agency sales | 0 | 23,000 | ||
Accrued liabilities | 0 | 0 | ||
Accounts payable | 1,800,000 | 1,500,000 | ||
Nanjing Jin Mei Gallium Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Income from agency sales | 20,000 | 128,000 | ||
Beijing Tongmei Xtal Technology [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of equity method investees to whom loan was granted | 1 | |||
Accounts payable | 513,000 | 0 | ||
Area of leased property (in square feet) | 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 | 120,000 | |||
Additional loan paid to related party | 49,000 | |||
Interest on loan (in hundredths) | 6.15% | |||
Principal and interest on loan | $171,000 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $79,357 | $78,505 | |
Less: accumulated depreciation and amortization | -45,495 | -40,884 | |
Property, plant and equipment, net | 33,862 | 37,621 | |
Depreciation and amortization expense | 5,639 | 5,470 | 3,927 |
Building [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 30,469 | 30,369 | |
Machinery and equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 41,900 | 40,764 | |
Leasehold improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 5,070 | 4,493 | |
Construction in progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $1,918 | $2,879 |
Investments_in_Privatelyheld_C2
Investments in Privately-held Companies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | |
EquityMethodInvestee | ||||
Summary of investments [Abstract] | ||||
Income allocated to minority interests | $691,000 | $1,145,000 | $3,040,000 | |
Equity investments classified as other assets | 14,975,000 | 14,801,000 | ||
Beijing JiYa Semiconductor Material Co Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Number of employees who are also members of the board | 2 | |||
Number of equity investment entities | 1 | |||
Nanjing Jin Mei Gallium Co Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Number of employees who are also members of the board | 2 | |||
Beijing Tongmei Xtal Technology [Member] | ||||
Summary of investments [Abstract] | ||||
Number of equity investment entities | 1 | |||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co Ltd [Member] | ||||
Summary of investments [Abstract] | ||||
Number of employees who are also members of the board | 2 | |||
AXT, Inc [Member] | ||||
Summary of investments [Abstract] | ||||
Gross equity earnings (losses) from minority-owned joint ventures that are not consolidated, recorded as other income | 6,765,000 | 6,315,000 | 5,665,000 | |
Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity Method Investment by Parent | 8,095,000 | 7,537,000 | ||
Number of equity investment entities | 3 | 3 | 3 | |
Gross equity earnings (losses) from minority-owned joint ventures that are not consolidated, recorded as other income | 569,000 | 270,000 | 379,000 | |
Net income generated by all joint ventures, consolidated and equity method investments | 2,900,000 | 2,600,000 | 4,700,000 | |
Equity investments classified as other assets | 8,100,000 | 7,500,000 | ||
Minority investment in consolidated joint venture, included in other assets | 4,000,000 | 3,400,000 | ||
Joint Ventures [Member] | ||||
Summary of investments [Abstract] | ||||
Number of consolidated joint ventures | 3 | 3 | 3 | |
Income from three consolidated joint ventures | 3,000,000 | 3,500,000 | 7,400,000 | |
Income allocated to minority interests | 691,000 | 1,100,000 | 3,000,000 | |
Net income from joint ventures attributable to parent | 2,300,000 | 2,400,000 | 4,400,000 | |
Majority-owned Subsidiaries [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | 5,269,000 | 5,269,000 | ||
Minority Investment Entities [Member] | ||||
Summary of investments [Abstract] | ||||
Gross equity earnings (losses) from minority-owned joint ventures that are not consolidated, recorded as other income | 1,528,000 | 1,377,000 | 1,281,000 | |
Beijing JiYa Semiconductor Material Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | 3,331,000 | 3,331,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 46.00% | |||
Nanjing Jin Mei Gallium Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | 592,000 | 592,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 83.00% | |||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd [Member] | Majority-owned Subsidiaries [Member] | ||||
Summary of investments [Abstract] | ||||
Investments, consolidated | 1,346,000 | 1,346,000 | ||
Percentage of ownership, consolidated method (in hundredths) | 70.00% | |||
Xilingol Tongli Germanium Co. Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity Method Investment by Parent | 5,351,000 | 4,692,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% | |||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity Method Investment by Parent | 1,723,000 | 1,900,000 | ||
Percentage of ownership, equity method (in hundredths) | 46.00% | |||
Emeishan Jia Mei High Purity Metals Co., Ltd [Member] | Equity Method Investments [Member] | ||||
Summary of investments [Abstract] | ||||
Equity Method Investment by Parent | $1,021,000 | $945,000 | ||
Percentage of ownership, equity method (in hundredths) | 25.00% |
Investments_in_Privatelyheld_C3
Investments in Privately-held Companies, Minority Investment Entities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
AXT, Inc [Member] | |||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | |||
Net Revenue | $47,824,000 | $41,257,000 | $32,858,000 |
Gross profit | 21,436,000 | 13,836,000 | 11,057,000 |
Operating income | 9,046,000 | 8,174,000 | 6,310,000 |
Net income | 6,765,000 | 6,315,000 | 5,665,000 |
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 | 569,000 | 270,000 | 379,000 |
Summarized balance sheet information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | |||
Current assets | 31,482,000 | 22,139,000 | |
Noncurrent assets | 39,275,000 | 38,941,000 | |
Current liabilities | 19,923,000 | 15,289,000 | |
Noncurrent liabilities | 169,000 | 2,296,000 | |
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 | 11,887,000 | 10,240,000 | 8,091,000 |
Gross profit | 5,340,000 | 3,328,000 | 2,643,000 |
Operating income | 2,059,000 | 1,820,000 | 1,409,000 |
Net income | 1,528,000 | 1,377,000 | 1,281,000 |
Minority investment entities | |||
Dividends received | 325,000 | 396,000 | 277,000 |
Undistributed retained earnings | $6,500,000 | $5,300,000 |
Other_Investments_Details
Other Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Entity | ||
Other Investments [Abstract] | ||
Number of entities in which investment is accounted under cost method | 1 | |
Investments in unconsolidated privately-held entities, included in other assets | $200,000 | $200,000 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of accrued liabilities [Abstract] | |||
Accrued compensation and related charges | $2,656,000 | $1,762,000 | |
Accrued product warranty | 802,000 | 1,048,000 | 588,000 |
Current portion of royalty payments | 800,000 | 800,000 | |
Accrued professional services | 509,000 | 543,000 | |
Dividends payable by consolidated joint ventures | 563,000 | 649,000 | |
Accrued income taxes | 119,000 | 125,000 | |
Other accrued liabilities | 2,185,000 | 2,359,000 | |
Accrued liabilities, total | $7,634,000 | $7,286,000 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt [Abstract] | ||
Line of credit facility, unused borrowing capacity | $10 | $10 |
Short-term and long-term investments | 15.1 | |
Effective interest rate | 1.90% | |
Basis spread on variable rate (in hundredths) | 1.65% | 1.65% |
Description of variable rate basis | 30-day LIBOR | |
Outstanding borrowings under this line of credit | $0 | $0 |
Stockholders_Equity_and_Stock_1
Stockholders' Equity and Stock Repurchase Program (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shareholder Equity [Line Items] | |||
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | |
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | |
Preferred Stock, value | $3,532,000 | $3,532,000 | |
Stock Repurchase Program [Abstract] | |||
Stock repurchase program, authorized amount | 5,000,000 | 6,000,000 | |
Shares repurchased (in shares) | 0 | 285,000 | |
Average price of shares repurchased (in dollars per share) | $2.51 | ||
Total purchase price | 716,000 | ||
Amount available for future repurchase | 5,300,000 | ||
Series A Preferred Stock [Member] | |||
Shareholder Equity [Line Items] | |||
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | |
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | |
Preferred Stock, value | $3,532,000 | $3,532,000 | |
Cumulative annual dividend rate (in hundredths) | 5.00% | 5.00% | |
Preferred stock, liquidation preference per share (in dollars per share) | $4 | $4 |
Employee_Benefit_Plans_and_Sto2
Employee Benefit Plans and Stock-based Compensation (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $1.17 | $1.09 | $1.79 | ||
Weighted average assumptions [Abstract] | |||||
Expected term | 4 years 1 month 6 days | 4 years | 4 years | ||
Volatility (in hundredths) | 63.20% | 59.20% | 72.87% | ||
Expected dividend (in hundredths) | 0.00% | 0.00% | 0.00% | ||
Risk-free interest rate (in hundredths) | 1.85% | 0.98% | 0.57% | ||
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 | $115,000 | $110,000 | $900,000 | ||
Common stock [Abstract] | |||||
Common stock reserved for future issuance | 4,462,235 | ||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Options outstanding, shares (in shares) | 3,198,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $3.12 | ||||
Weighted-average Remaining Contractual Life | 6 years 11 months 12 days | ||||
Options Vested and Exercisable Shares (in shares) | 1,859,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $3.46 | ||||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||||
Total stock-based compensation | 1,129,000 | 1,277,000 | 1,215,000 | ||
Tax effect on stock-based compensation | 0 | 0 | 0 | ||
Net effect on net income | 1,129,000 | 1,277,000 | 1,215,000 | ||
Shares used in computing basic net income per share (in shares) | 32,452,000 | 32,700,000 | 32,144,000 | ||
Shares used in computing diluted net income per share (in shares) | 32,452,000 | 32,700,000 | 32,865,000 | ||
Effect on basic net income per share (in dollars per share) | ($0.03) | ($0.04) | ($0.04) | ||
Effect on diluted net income per share (in dollars per share) | ($0.03) | ($0.04) | ($0.04) | ||
$1.33 - $1.59 [Member] | |||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Range of exercise price, minimum (in dollars per share) | $1.33 | ||||
Range of exercise price, maximum (in dollars per share) | $1.59 | ||||
Options outstanding, shares (in shares) | 401,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $1.52 | ||||
Weighted-average Remaining Contractual Life | 3 years 3 months 29 days | ||||
Options Vested and Exercisable Shares (in shares) | 401,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $1.52 | ||||
$1.91 - $1.91 [Member] | |||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Range of exercise price, minimum (in dollars per share) | $1.91 | ||||
Range of exercise price, maximum (in dollars per share) | $1.91 | ||||
Options outstanding, shares (in shares) | 4,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $1.91 | ||||
Weighted-average Remaining Contractual Life | 0 years 10 months 13 days | ||||
Options Vested and Exercisable Shares (in shares) | 4,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $1.91 | ||||
$2.04 - $2.04 [Member] | |||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Range of exercise price, minimum (in dollars per share) | $2.04 | ||||
Range of exercise price, maximum (in dollars per share) | $2.04 | ||||
Options outstanding, shares (in shares) | 333,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $2.04 | ||||
Weighted-average Remaining Contractual Life | 4 years 9 months 25 days | ||||
Options Vested and Exercisable Shares (in shares) | 333,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $2.04 | ||||
$2.14 - $2.29 [Member] | |||||
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) | $2.29 | ||||
Options outstanding, shares (in shares) | 252,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $2.26 | ||||
Weighted-average Remaining Contractual Life | 9 years 4 months 24 days | ||||
Options Vested and Exercisable Shares (in shares) | 0 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $0 | ||||
$2.36 - $2.36 [Member] | |||||
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) | 428,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $2.36 | ||||
Weighted-average Remaining Contractual Life | 8 years 10 months 2 days | ||||
Options Vested and Exercisable Shares (in shares) | 116,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $2.36 | ||||
$2.47 - $2.47 [Member] | |||||
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) | 460,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $2.47 | ||||
Weighted-average Remaining Contractual Life | 9 years 10 months 2 days | ||||
Options Vested and Exercisable Shares (in shares) | 0 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $0 | ||||
$2.91 - $2.91 [Member] | |||||
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) | 444,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $2.91 | ||||
Weighted-average Remaining Contractual Life | 7 years 10 months 6 days | ||||
Options Vested and Exercisable Shares (in shares) | 231,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $2.91 | ||||
$3.18 - $4.09 [Member] | |||||
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) | $4.09 | ||||
Options outstanding, shares (in shares) | 29,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $3.85 | ||||
Weighted-average Remaining Contractual Life | 6 years 3 months 22 days | ||||
Options Vested and Exercisable Shares (in shares) | 20,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $3.84 | ||||
$4.79 - $4.79 [Member] | |||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Range of exercise price, minimum (in dollars per share) | $4.79 | ||||
Range of exercise price, maximum (in dollars per share) | $4.79 | ||||
Options outstanding, shares (in shares) | 330,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $4.79 | ||||
Weighted-average Remaining Contractual Life | 6 years 9 months 25 days | ||||
Options Vested and Exercisable Shares (in shares) | 262,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $4.79 | ||||
$4.81 - $7.82 [Member] | |||||
Exercise price ranges of options outstanding and exercisable [Abstract] | |||||
Range of exercise price, minimum (in dollars per share) | $4.81 | ||||
Range of exercise price, maximum (in dollars per share) | $7.82 | ||||
Options outstanding, shares (in shares) | 517,000 | ||||
Weighted-average Exercise Price (in dollars per share) | $5.79 | ||||
Weighted-average Remaining Contractual Life | 5 years 2 months 1 day | ||||
Options Vested and Exercisable Shares (in shares) | 492,000 | ||||
Option Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $5.80 | ||||
Cost of revenue [Member] | |||||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||||
Total stock-based compensation | 18,000 | 22,000 | 78,000 | ||
Selling, general and administrative [Member] | |||||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||||
Total stock-based compensation | 938,000 | 1,091,000 | 1,000,000 | ||
Research and development [Member] | |||||
Stock-based compensation in the form of employee stock options and restricted stock [Abstract] | |||||
Total stock-based compensation | 173,000 | 164,000 | 137,000 | ||
Stock Options [Member] | |||||
Common stock [Abstract] | |||||
Common stock reserved for future issuance | 3,197,840 | ||||
Restricted Stock [Member] | |||||
Common stock [Abstract] | |||||
Common stock reserved for future issuance | 261,497 | ||||
1997 Stock Option Plan [Member] | |||||
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 [Member] | Stock 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 (in hundredths) | 25.00% | ||||
Vesting percentage per month after first year (in hundredths) | 2.10% | ||||
Award vesting rights | 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. | ||||
1997 Stock Option Plan [Member] | Restricted Stock [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 [Member] | |||||
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 | ||||
Number of shares available for grant (in shares) | 1,003,000 | ||||
Common stock [Abstract] | |||||
Common stock reserved for future issuance | 1,002,898 | ||||
2007 Equity Incentive Plan [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, minimum | 3 years | ||||
Award vesting rights | 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 | ||||
Number of options outstanding [Roll Forward] | |||||
Options outstanding, beginning of period (in shares) | 2,671,000 | 2,727,000 | 2,380,000 | ||
Granted (in shares) | 712,000 | 488,000 | 592,000 | ||
Exercised (in shares) | -111,000 | -331,000 | -136,000 | ||
Canceled and expired (in shares) | -74,000 | -213,000 | -109,000 | ||
Options outstanding, end of period (in shares) | 3,198,000 | 2,671,000 | 2,727,000 | 2,380,000 | |
Options vested and expected to vest as of December 31, 2014 (in shares) | 3,198,000 | ||||
Options exercisable as of December 31, 2014 (in shares) | 1,859,000 | ||||
Weighted average exercise price [Roll Forward] | |||||
Options outstanding, beginning of period (in dollars per share) | $3.29 | $3.28 | $3.25 | ||
Granted (in dollars per share) | $2.40 | $2.38 | $3.32 | ||
Exercised (in dollars per share) | $1.21 | $1.62 | $2.17 | ||
Canceled and expired (in dollars per share) | $5.18 | $3.60 | $4.25 | ||
Options outstanding, end of period (in dollars per share) | $3.12 | $3.29 | $3.28 | $3.25 | |
Options vested and expected to vest as of December 31, 2014 (in dollars per share) | $3.12 | ||||
Options exercisable as of December 31, 2014 (in dollars per share) | $3.46 | ||||
Weighted average Remaining Contractual Life [Abstract] | |||||
Options outstanding, beginning of period | 6 years 11 months 12 days | 6 years 8 months 16 days | 6 years 8 months 16 days | 6 years 3 months | |
Options outstanding, end of period | 6 years 11 months 12 days | 6 years 8 months 16 days | 6 years 8 months 16 days | 6 years 3 months | |
Options vested and expected to vest, end of period | 6 years 11 months 12 days | ||||
Option exercisable, end of period | 5 years 5 months 23 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Options outstanding, beginning of period | 893,000 | 1,353,000 | 3,456,000 | ||
Options outstanding, end of period | 1,247,000 | 893,000 | 1,353,000 | 3,456,000 | |
Options vested and expected to vest, end of period | 1,247,000 | ||||
Options exercisable, end of period | 821,000 | ||||
Intrinsic value of options exercised | 105,000 | 331,000 | 392,000 | ||
Compensation costs related to unvested stock options not yet recognized | 1,600,000 | ||||
Value of estimated forfeitures | 57,000 | ||||
Weighted-average period of amortization | 2 years 9 months 18 days | ||||
2007 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, minimum | 3 years | ||||
Vesting period if vesting is based on a performance measure | 12 months | ||||
Award vesting rights | 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) | ||||
Shares [Roll Forward] | |||||
Non-vested, beginning of period (in shares) | 241,232 | 238,723 | 223,127 | ||
Granted (in shares) | 121,044 | 103,636 | 113,768 | ||
Vested (in shares) | -100,779 | -85,127 | -98,172 | ||
Forfeited (in shares) | -16,000 | ||||
Non-vested, end of period (in shares) | 261,497 | 241,232 | 238,723 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Non-vested, beginning of period (in dollars per share) | $3.44 | $4.27 | $4.47 | ||
Granted (in dollars per share) | $2.34 | $2.52 | $3.18 | ||
Vested (in dollars per share) | $4.01 | $4.56 | $3.42 | ||
Forfeited (in dollars per share) | $4.03 | ||||
Non-vested, end of period (in dollars per share) | $2.71 | $3.44 | $4.27 | ||
Total fair value of restricted stock awards vested | 405,000 | 389,000 | 336,000 | ||
Unrecognized compensation expense related to restricted stock awards | $596,000 | ||||
Weighted average remaining contractual terms | 2 years 6 months |
Guarantees_Details
Guarantees (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranty [Abstract] | ||
Period of warranty | 12 months | |
Change in warranty accrual [Roll Forward] | ||
Beginning accrued warranty and related costs | $1,048,000 | $588,000 |
Accruals for warranties issued during the year | 865,000 | 789,000 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | -467,000 | 412,000 |
Cost of warranty repair | -644,000 | -741,000 |
Ending accrued warranty and related costs | $802,000 | $1,048,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
Non-U.S. income included in income (loss) before tax | $12,800,000 | $16,700,000 | $16,300,000 |
Current [Abstract] | |||
Federal | 0 | 0 | 0 |
State | 2,000 | 13,000 | -113,000 |
Foreign | 213,000 | 175,000 | 966,000 |
Total current | 215,000 | 188,000 | 853,000 |
Deferred [Abstract] | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total deferred | 0 | 0 | 0 |
Total net provision for income taxes | 215,000 | 188,000 | 853,000 |
Reconciliation of effective income tax rates and U.S. statutory federal income tax rate [Abstract] | |||
Statutory federal income tax rate (in hundredths) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefits (in hundredths) | -0.20% | -0.10% | -1.00% |
Change in valuation allowance (in hundredths) | -695.80% | -111.80% | 23.30% |
Stock compensation (in hundredths) | -26.30% | -1.40% | 1.50% |
Foreign rate differences (in hundredths) | 758.60% | 85.30% | -72.50% |
Dividend from PRC investee (in hundredths) | -169.80% | -19.60% | 30.10% |
Net loss from privately-held PRC investments (in hundredths) | 45.60% | 2.50% | -2.60% |
Other (in hundredths) | 14.40% | 7.30% | -1.60% |
Effective tax rate (in hundredths) | -38.50% | -2.80% | 12.20% |
Deferred tax assets [Abstract] | |||
Net operating loss | 55,654,000 | 51,818,000 | |
Accruals and reserves not yet deductible | 4,517,000 | 4,985,000 | |
Credits | 1,488,000 | 1,488,000 | |
Deferred tax assets, gross | 61,659,000 | 58,291,000 | |
Deferred tax liabilities [Abstract] | |||
Valuation of investment portfolio | 0 | -288,000 | |
Total deferred tax liabilities | 0 | -288,000 | |
Net deferred tax assets | 61,659,000 | 58,003,000 | |
Valuation allowance | -61,659,000 | -58,003,000 | |
Net deferred tax assets | 0 | 0 | |
Operating Loss Carryforwards [Line Items] | |||
(Increase) and decrease in valuation allowance | 4,000,000 | 7,000,000 | |
Change in cumulative ownership percentage (in hundredths) | 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 | 67,600,000 | ||
Restricted cash and investments | 18,300,000 | ||
Cash and investments not available for use | 13,900,000 | ||
Reconciliation of beginning and ending amount of the gross unrecognized tax benefits [Roll Forward] | |||
Gross unrecognized tax benefits balance at December 31, 2013 | 16,403,000 | ||
Additions based on tax positions related to the current year | 0 | ||
Additions for tax positions of prior years | 0 | ||
Gross unrecognized tax benefits balance at December 31, 2014 | 16,403,000 | 16,403,000 | |
Unrecognized tax benefit would favorably impact the effective tax rate in future periods if recognized | 16,400,000 | ||
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, expiration period | 31-Dec-17 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, expiration period | 31-Dec-22 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 165,700,000 | ||
Tax credit carryforwards | 1,500,000 | ||
Tax credit carryforward, expiration period | 31-Dec-19 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $5,600,000 |
Net_Income_per_Share_Details
Net Income per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator [Abstract] | |||||||||||
Net income (loss) attributable to AXT, Inc | ($311) | $644 | $319 | ($2,040) | ($1,228) | ($2,295) | ($2,035) | ($2,400) | ($1,388) | ($7,958) | $3,110 |
Less: Preferred stock dividends | -177 | -177 | -177 | ||||||||
Net income (loss) to common stockholders | ($1,565) | ($8,135) | $2,933 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average common shares (basic) | 32,452 | 32,700 | 32,144 | ||||||||
Effect of Dilutive Securities on Earnings Per Share [Line Items] | |||||||||||
Weighted average common shares (dilutive) | 32,452 | 32,700 | 32,865 | ||||||||
Basic net income (loss) per share [Abstract] | |||||||||||
Net income attributable to AXT, Inc (in dollars per share) | ($0.05) | ($0.25) | $0.10 | ||||||||
Net income to common stockholders (in dollars per share) | ($0.01) | $0.02 | $0.01 | ($0.06) | ($0.04) | ($0.07) | ($0.06) | ($0.08) | ($0.05) | ($0.25) | $0.09 |
Diluted net income (loss) per share [Abstract] | |||||||||||
Net income attributable to AXT, Inc (in dollars per share) | ($0.05) | ($0.25) | $0.09 | ||||||||
Net income to common stockholders (in dollars per share) | ($0.01) | $0.02 | $0.01 | ($0.06) | ($0.04) | ($0.07) | ($0.06) | ($0.08) | ($0.05) | ($0.25) | $0.09 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Securities excluded from diluted net income per share as the impact is anti-dilutive (in shares) | 252 | 241 | 13 | ||||||||
Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Securities excluded from diluted net income per share as the impact is anti-dilutive (in shares) | 2,772 | 2,671 | 1,056 | ||||||||
Common stock options [Member] | |||||||||||
Effect of Dilutive Securities on Earnings Per Share [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 0 | 0 | 689 | ||||||||
Restricted stock [Member] | |||||||||||
Effect of Dilutive Securities on Earnings Per Share [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 0 | 0 | 32 |
Segment_Information_and_Foreig2
Segment Information and Foreign Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||||||||||
Segment Information [Abstract] | |||||||||||
Number of operating segments | 1 | ||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | $19,567 | $23,138 | $21,449 | $19,345 | $18,603 | $20,521 | $22,831 | $22,380 | $83,499 | $85,335 | $88,374 |
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | 33,862 | 37,621 | 33,862 | 37,621 | |||||||
China [Member] | |||||||||||
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | 33,726 | 37,417 | 33,726 | 37,417 | |||||||
United States of America [Member] | |||||||||||
Long-lived assets by geographic region [Abstract] | |||||||||||
Long-lived assets | 136 | 204 | 136 | 204 | |||||||
Reportable Geographical Components [Member] | Europe [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | 21,535 | 21,387 | 18,170 | ||||||||
Reportable Geographical Components [Member] | China [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | 17,451 | 24,946 | 19,815 | ||||||||
Reportable Geographical Components [Member] | North America [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | 10,292 | 10,665 | 15,391 | ||||||||
Reportable Geographical Components [Member] | Japan [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | 11,550 | 9,041 | 9,346 | ||||||||
Reportable Geographical Components [Member] | Taiwan [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | 11,464 | 10,131 | 10,985 | ||||||||
Reportable Geographical Components [Member] | Asia Pacific (excluding China, Japan and Taiwan) [Member] | |||||||||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||||||||
Net revenue | $11,207 | $9,165 | $14,667 |
Foreign_Exchange_Contracts_and1
Foreign Exchange Contracts and Transaction Gains/Losses (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Exchange Contracts and Transaction Gains/Losses [Abstract] | |||
Foreign exchange contracts outstanding | $0 | $0 | |
Foreign currency transaction exchange gains (losses) | ($1,000,000) | ($1.30) | ($445,000) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 11 Months Ended | 12 Months Ended | ||
Nov. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
sqft | sqft | |||
Leases [Abstract] | ||||
Area of property under long-term operating lease (in square feet) | 19,467 | |||
Period of operating lease | 7 years | |||
Period to be lapsed for cancelling lease | 5 years | |||
Penalty payment | $142,000 | |||
Revised facility area | 20,767 | |||
Term of revised area contract | 2 years | |||
Savings as a result of revised facility area | 382,000 | |||
Percentage of annual rent to be paid for cancelling lease (in hundredths) | 50.00% | |||
Rent expenses under the operating leases | 260,000 | 638,000 | 447,000 | |
Summary of total minimum lease payments [Abstract] | ||||
2015 | 260,000 | |||
2016 | 165,000 | |||
2017 | 159,000 | |||
2018 | 30,000 | |||
2019 | 26,000 | |||
Thereafter | 126,000 | |||
Total | 766,000 | |||
Royalty Agreement [Abstract] | ||||
Term of royalty agreement | 8 years | |||
Aggregate amount payable towards royalty | 7,000,000 | |||
Royalty expense | 577,000 | 530,000 | 1,400,000 | |
Credit of royalty expense | 223,000 | 270,000 | ||
Summary of total royalty payments under the agreement[Abstract] | ||||
2015 | 800,000 | |||
2016 | 575,000 | |||
2017 | 575,000 | |||
2018 | 575,000 | |||
Total royalty payments | $2,525,000 |
Unaudited_Quarterly_Consolidat2
Unaudited Quarterly Consolidated Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unaudited Quarterly Consolidated Financial Data [Abstract] | |||||||||||
Revenue | $19,567 | $23,138 | $21,449 | $19,345 | $18,603 | $20,521 | $22,831 | $22,380 | $83,499 | $85,335 | $88,374 |
Gross Profit | 4,971 | 5,318 | 4,160 | 2,718 | 2,813 | 2,446 | 3,085 | 3,484 | 17,167 | 11,828 | 24,852 |
Net income (loss) attributable to AXT, Inc | ($311) | $644 | $319 | ($2,040) | ($1,228) | ($2,295) | ($2,035) | ($2,400) | ($1,388) | ($7,958) | $3,110 |
Net (loss) attributable to AXT, Inc per share, basic (in dollar per share) | ($0.01) | $0.02 | $0.01 | ($0.06) | ($0.04) | ($0.07) | ($0.06) | ($0.08) | ($0.05) | ($0.25) | $0.09 |
Net (loss) attributable to AXT, Inc per share, diluted (in dollar per share) | ($0.01) | $0.02 | $0.01 | ($0.06) | ($0.04) | ($0.07) | ($0.06) | ($0.08) | ($0.05) | ($0.25) | $0.09 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Position | ||||
Restructuring Charges [Abstract] | ||||
Number of workforce reduced | 93 | |||
Percentage of reduction in workforce (in hundredths) | 11.00% | |||
Restructuring charge | $907 | $907 | $0 | $0 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 23, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Future professional services expense | $1.20 |