AXTI - Earnings call transcript Q4 2019

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Operator

[Technical Difficulty]

In the fourth quarter of 2019, revenue from North America was 10%, Asia pacific 68% and Europe 22%. In the fourth quarter two customers were each 10% of revenue and the top five customers generated approximately 42% of revenue. Gross margin in the fourth quarter was 21% down from 29% in the prior quarter.

Approximately 4% of this decline or half the decline was due to lower manufacturing efficiencies and yields primarily related to the ramp of two new products, six-inch indium phosphide substrates and a new six-inch germanium product configuration for a large customer. market to AXT year our years come. new will we and address to positively contribute business products opportunities that for believe for Both later this

two diameter decline are balance we taking quarters. show steps processes as Further improvement challenging, the already in margin refine in in of expect following. gross view the our raw inherently more We this temporary. we each The decline Larger margins lower and gross the substrates came and the to of companies in from in had are where X.X% coming efficiency of this gross to the consolidated material for QX accounted margin. decline

X.X% a We negatively. QX. inventory in from excess driven of These negative items to are for the adjustments formulas the swing impacted also lower revenue formulary change and had in and accounted obsolete which

taxes on and across million, Total gross As in $X.X focused in up at throughout QX in quarter we a look QX G&A of These Mei the as million year operating of into from year of prior our for our expect to improvement product raw in legal. we'll other were as repeat in lines. are and be bonuses of incremental our not improving payroll show manufacturing margin expenses Jin are will result joint we increases $X.X material areas our we the all ventures and employees efficiencies seeing that end Yu chain. Bo our part supply but insurance, QX, such

quarter Operating for operating compared an QX $X.X expense operating for of XXXX for of of X.X to the the previous XXXX. XXXX compensation fourth will loss and in loss million the was stock likely quarter of OpEx QX in $XXX,XXX the an Total X.X be fourth $XXX,XXX of with loss quarter $XXX,XXX. was range.

accounted partially de included of a net quarter income owned the $XXX,XXX. two XXXX of gain minimis totaling for for fourth supply gain agencies method, relocation. fourth This quarter under and government other includes loss The a of net of grants a interest $XXX,XXX provincial companies income chain $XXX,XXX. income gain $XXX,XXX from is equity of a net AXT from of exchange for the Interest in the foreign the $XXX,XXX $XXX,XXX

to for We expect QX $X.X this a in continue with grant approximately million.

result of tariff tax for a in that a results favorable the $XXX,XXX was charged $XXX,XXX quarter XX% at QX. approximately a from QX of fourth XXXX importing year-end charge the of is wafers States on Income $XX,XXX the included adjustment of compared with benefit into in as tariffs a China. United

XXXX $X.XX For per million million net and loss a XXXX comparison loss $X.XX of we count $X.X QX of in $X.X quarter the million of a per a $X.XX of of loss loss loss per in was QX or had third basic of net $X.X share or of By share. QX share share shares. or we million in net a XXXX. XX.XXX had The

million almost in burn $XX we we QX bank was $XX.X XXXX, Cash, It December as $XX.X interesting million XXXX cash though A only September million. in By to it equivalents cash loan XXXX. This were relocation million. even which investments in XX. at a of million equivalents means in net December was of secured includes cash XX, comparison were China, our XX more cash, that on investments and is $X.X spent XXXX. million $X.X comparison the $XX.X of and when approximate

line of Wells We Fargo have not have we Bank a credit at which utilized. also

and we investments are We arsenide in expect CapEx to gallium spend phosphide. additional indium approximately $X for in XXXX million considering in

XXXX XX. compared were the $X.X Accounts reserves receivables XXXX. $XX.X south just December million were $XX.X December September $X of $XX,XXX $XX.X and million. in in amortization $XX.X million million net by to quarter million slightly September XX, December million. was in at expenditures inventory of at a at of more and with to was when increased reduction Depreciation XXXX Net million. This interesting compared fourth a XX, million XX, capital inventory is comparison $X.X Again at at XXXX XX inventory $XX.X is with

approximately Part $X.X and of our this million chain no of operations was a inventory. longer of material reduction The one a $X.X on a million reducing Jia, is remainder supply raw result of result consolidating focus companies.

the in $X.X X% revenue in XX% We the in average given close during consisted goods. lower finished XX% got of work in Ending Our that a progress, inventory million goal and is good raw to result. year. materials, was only to approximately it quarter a and

This financial results. concludes discussion the of our quarterly

now briefly year. fiscal highlight me the Let

XXXX revenue XXXX attributed $XXX.X $X to important million $XX.X in million our year XXXX. gallium in resulted XXXX is than joint year this is of XXXX. sales. substrate in in with approximately mind compared business wafer the two raw our fiscal fiscal germanium of in the that arsenide balance changes XXXX our positions materials For and in was of came The the keep to million results that declined ownership rather revenue raw majority in decline decline with of a for our companies the consolidating It venture three QX by material from from

revenue million revenue with fiscal or XXXX. for $X.XX $X.X million loss XXXX XX.X% per fiscal share year with of share of for net year year XX.X% or year for a XXXX fiscal $X.XX $X.X was XXXX. diluted profit Net Gross for fiscal of per margin compared was compared

financial our I'll the turn review Okay, now this concludes over Young Morris? to Morris the call of Dr. a review. business. for

Morris Young

on demand climate. turbulent XXXX results macroeconomic that QX negative Gary. of was our the made to and year weakened a majority as in applications a environment year revenue within gallium businesses. decline. year you, impact year This up throughout key had the customers germanium a the in arsenide Overall capped geopolitical impact and the certain Thank off AXT's

prior finished and growth with expectations the more QX Despite phosphide business modest these challenging XXXX in over our indium conditions, our exceeded year.

phosphide the down the our indium indium gallium phosphide year, as revenue. total first in In fact is total demonstrates arsenide connectivity, the during was phosphide that growth expansions history revenue see. important? saw that developing the network year Why as we indium this optical substrate surpassed data The These demand. in gathering fact, XXXX market are and and trends such and powerful XG they momentum trend are telecommunications, center we in substantial driving the

for In addition, developed AXT healthcare, considerable as indium applications new material on visible horizon important these one indium expertise the in new phosphide there [indiscernible] of highly Collectively, specialized substrate. industry and applications based the sensors are position new has and significant for more. trends decade. phosphide automotive most this of this involving leading

in and innovation That expanding with are the and pace are market to our market demand. facilities will We us technical for the pace setting allow keep we equipment. additional

bringing are to are asking for. indium we larger capability market mentioned, substrates. and is Gary phosphide a diameter This that most As new customers also potential current

QX to the our phosphide. be decline in we emerging applications margin to for essential gross believe of capability indium large new One contributor will this large volume

new entry We looking will this manufacturers space. into move also substrate provide to for to barriers

the the look the we we are we we beyond market expansion. As we to by ahead situated current to well believe year of opportunity the benefit realize and are and see XXXX excited

a mix to in will QX is and the In applications off a believe XG including revenue quarter of phosphide start. PON our good include our indium We datacenter, sales telecommunications.

year. hope list more we remain can relationships and our build customer we upon this customer Our strong

focused year XXXX. applications customers materialize. on Wireless to our did global year. lighting, in it not pickup environment a gallium Now such our from lighting, weathered transformative manufacturing applications QX, of gallium which high completion turning automotive a and the is as arsenide, very in The There in were demand of predicting other difficult was prior who the certain also applications business year challenging. LED key performance down company. the were relocation our we our were for arsenide Throughout

requirements we will than facilities new large was to that us times, process to of instead is be ready to challenge. and so what larger relocation Chaozhou, The manufacturing taxing Our even this companies Beijing stability This and decade. of AXT. give much are at a involved new meet tremendous

and supporting achievements in need We of our our it team the of customers. successfully while are the proud executing of

QX During built ground This facility and us opens by and for by doors up and growth for new Chaozhou, optimized relocation major gallium many arsenide completing our crystal the milestone is we was best practice designed the innovation AXT. all a from met to of which manufacturing.

our QX of also other relocation gallium processing. marks wafer in arsenide our milestone important

begin We been have ramping good through site customers to progress regarding manufacturing positive our with several expected later far are off making results [indiscernible] with production. We'll volume qualification able be thus signing this quarter. final and

of our new qualification Beijing customers also production to that is ramp to for our is Chaozhou able success of in drive both in our the with to key the months. We be continuing additional timing volume capability positive. believe The expect AXT. and We demonstrating customer and volume coming

at in growth of of beyond. mini with year for be gallium new LEDs, sensing recovery number of as it a expansion. new the While is in and well promising to and its when laser new difficult arsenide likely in used driven be This lighting is XXXX for as LEDs by to high is a example applications poised our year traditional automobile in performance and and lasers had XXXX renewed over We're XG next doors micro open experiencing facilities time to a leap based applications, able as our such and and arsenide applications gallium innovation, time wireless. excited

step year strong back our sales XXXX. substrate, It a germanium demand is a coming to in softer in in Turning environment, took meaningful a in XXXX China. particularly off

for XXXX, substrate. As to we expect we germanium launches market market believe expected number solar of worldwide, improvement. participate we for to poised move that improvement. Still cell increase in satellite is we satellite a serve we the will the into With that aim

believe As a high configuration and over a we future current for expansion quarters volume our AXT. our can is us our current we allow It demand. capability last six-inch new that and of the germanium offer requirement, their talked to our customers new wafers about ability open came of will our support several up to alternatives to natural to

believe able We will to the bring coming the normalized manufacturing in are product a that driving margin with be highly diameter efficiency larger we and more level to this up quarters. gross on focused

ill have oversight. management I you are three update coronavirus. Before to of for precautions have our All and the taking virus. are facilities become providing we we on AXT Today teams give this from operation the that conclude, local AXT strong want in grateful employees no is

have be customer and should continue arise. able requirements the inventory our between We manufacturing to and benefit of redundancies to locations need the meet

layer all demand has as might expected. virtually Although another have to added not is and the that doubt, uncertainty, the weak the fear, year as we that today XXXX characterize coronavirus environment

and seem clearly is it widening Customers a of have to precaution. our says mixing are which range running they growing situation said return fluid their caution, to we that, to Having combination as that be a guidance business. a and

restrictions, travel China, hands and it to larger restrictions the more are of currently from make issues certain solving, face we both and yield the for efficiency, challenge China. such These address problem biggest our The difficult that also diameter substrate. our the and as within manufacturing from to leadership launch on for benefit

it improvement, than a circumstances. the As a we would expect rate slower under maybe normal result, bit of

We in are to the number that allowed day. given factory any are also the employees limited of on be in

productivity be As lifted. high are restrictions may quite not mandated such, as until government the

our our risk Regarding and limit include of for day, procedures every precaution local one of employee of personnel to a employees, and employees we food all meetings, health implemented number The have limited and These are temperature policies laws facemasks, among adhering other precautions. including and number and our exposure. changes safety cafeteria to concern. screaming our is employee provision in safety group protected gears

needs off recent In wafer in environments get our substrates we which a growing. are for years, compelling the the one whether closing, in difficult most of and underlying year of market challenging end demanding coming strong, it's

is As a and result financial AXT our poised improvement in growth for results.

horizon. business healthy today phosphide and applications the ones on contributing exciting indium with Our to new is

expected businesses the XXXX. facilities. new gallium business benefit for open utilization to incremental Our continuous in We in recovery customers. door our better believe excited and our arsenide are dynamic end our market drive to will for and opportunities and to We're new germanium volume our

growth to on focused towards. an success overcome and challenges way beginning our efficiency be AXT years. a year a believe a for delivery long financial improvement is XXXX we in has We that one come This opportunity of working delivers that the last and new laser be up we've been will structure. lining chapter, and several in many

Gary? proposed my now the our turning comments. concludes guidance. first for call back Gary, to This quarter prepared I'm

Gary Fischer

Morris. you, Thank

allow typical for Morris bit for from QX will unanticipated a As revenue that We're be growth our modest discussed, we supply a to XXXX range slowly. recovering We're coronavirus. the view AXT. taking given of the believe an chain widening market appropriately effects that is also the of year in

to that in see of million $XX.X loss on As $XX.X based share million. to such, QX in shares $X.XX believe million be revenue $XX.XX per QX in range will We to $X.XX, the between expect outstanding. we

prepared our Operator, and be answer Prince? comments I concludes glad This will to Morris your and questions.

Operator

[Operator our question Craig-Hallum. Shannon from And Richard Instructions] first is from

now is open line Your

Richard Shannon

guys, for Hi questions. thanks taking my

only raw materials path them could you revenue you out also recovery think Let's growth different Gary but spec buckets can if of substrate see, commentary couple maybe on here, I'll if you the first revenue know and jump substrate of you businesses? substrates, the speed within a sales year, between versus the they're growth, what not for between this the of differentiate maybe your the business kind into

Gary Fischer

listening let's going raw the is Okay, but a I'll first just crack, color to lot add cover take the more for then too, audience. materials Morris probably and

XXXX consolidated. that material backwards, know in three had we You companies we going raw

of to one the equity XXXX, part we method. convert First

that we both two now doing they're quite So, and we have consolidate, well.

be revenue in upward by So I that in shape, companies don't grow are definitely know should so arrow. an good how their XXXX. the but strong end are will markets and their much,

QX. it if definitely a of the We grow. business, cautious leave timing, substrate sure, will And and think I April even food determined. phosphide to Is XXth, doubt coronavirus. experts we're up I'm in uncertainty bit the think in Xst due it chain grow. be it's And that QX germanium But of the it there fear the terms indium at not or of June in you should because will the out do the hope to we out predicted is we at and Morris to look think the I'll

want you to do comment? Morris So,

Morris Young

Sure.

is demand it's customers, they in from We prepared as the base fairly out QX demand increased all-time seeing the the XG Actually, market. PONs strong. on to have turns an high are customers station coming were PON's think up. When saying said right at substrates I to we script, I actually now. build be talk basically

demand that flat, the very us think We're XXXG to comes is new datacenter sort is applications but that's we our So good they're on the and come, to customers seeing help see talking and that saying substantially grow. other switch when still We're news. poised to we to also of horizon. should

see the think, recovery. other I arsenide, should Gallium LED

But this definitely predict, be speed is we should on it believe XXXX. coronavirus difficult that However, extent to what what to better is, than it to especially with horizon. the germanium

So, I quantitative. anything didn't say

best I specifically LED going indium going recover arsenide think think in so for growth our own gallium flat. budget, to we nicely is and opportunity to And that is probably phosphide is wireless stay offering the us. germanium. is

Richard Shannon

Thanks Okay, that. margins. on Question gross great. for

if to any of in do couple talked and quarter fourth actually about the expect some volume real products. issues these Are with You a shipping in fueled not, products that when you happen?

Morris Young

development. but a spend Not a on phosphide. large then much but We we into we well and the shipping fortunately indium into we but volume, demand up unfortunately, not that out for it are R&D, don't break the speed of or margin. we lot our so phosphide, don't, a indium there's the buried are gearing up effort so out And of to gross great

startup well last in and we we the yield are you our move to attention volume we the of growth surge sort increased shipping, because a substantially germanium issues. of in that well, and we yes as we management [indiscernible] the have stumble as volume mainly QX crystal quarter, have had crystal from our growth in to our product, Chaozhou Germanium, we to that undertake remember split a of and big the year, because, six-inch and but

as for maybe of margin hit concerned. I to we far – the – this us. going had is yield hit expect this in - to than be we improvement, quarter expected, we is do persistent well a But restriction because do expect travel So or hand China be coronavirus, we other want but we yield of say because but the bad as going on not to improvement slower a

Richard Shannon

I'll Okay, fair the jump from enough. question Last me, line. of out

few can give expect of You're finish things, going about you the sense new how major quarter? your qualification into customer been on a to you a this us then, percentage this has talking long that rest the if base maybe qualifications, - customers Regarding different your of potentially any giving for? how what of moving facility? the qualify And could customer you base eventually new visibility is the customer this to

Morris Young

a that's good On question.

in qualify to poised are we quarter. think I first the

giving who are that Dingxing the facility we are seeing far customer is the good the In signal. fact, qualify of as concerned. But percentage will people us as

be numbers. good the I a I could by of some it XX% much believe end think we learn QX. to as to as XX% have

Richard Shannon

Okay. timeframe move to rest for do over, the could think how the of And that fast happen? then base you customer

Morris Young

XX% that We we spread end think an and by June, but by this the extra hope could doesn't to have it provided of pray hiccup. happen and it was coronavirus

Richard Shannon

That's fair enough.

I all questions. think them. my for taking Thanks that's

Morris Young

Thanks, Richard.

Gary Fischer

Richard. you, Thank

Next question?

Operator

from question from Next Richard Gus Northland. is

Your open. line now is

Gus Richard

But into Yes, expect taking the gallium display to thanks year, of back from terms demand or question. in the any the come demand visual you applications? do of for half arsenide going

Morris Young

Yes, I so. think

we facility I with for a XXXX absolutely brightens of quite opportunity more customers. up think few good number of up, a our discussing is our new are opened with and year

will we should trying get visual are the in into market. get to believe we this However, for volume able we to be market I XXXX, but Yes. be into believe don't XXXX. substantial the that

Gus Richard

the you mentioned, that larger it for what there I then might wafers, can you're targeted And indium is doing be? and think you about application phosphide Okay. talk is you know, specific a

Morris Young

et electronic because the the The just a large such larger And suspects were for line applications, cell usual of for perfectly processing as electronic six-inch. is demand diameter HBTs, fits phone, people most Yes. cetera. actually larger diameter

optical is believe applications. we for this However, application

a optical to smaller. is large. least device of this customer at big telling particular this us is device from But sort that's us surprise usually fairly So our device because the is

some density photo think material, quite which know at of but require this what defect point, fits a we low high they definitely extremely that kind in don't is, specific our We application detector, but forte well. quality,

that produce As you low very EPD material. VGF know can

not required. strain, will you customer is which EPD deliver, but larger low fit the low very can the and only also it's which the density, low defect So requirement, diameter

So I capability think that our well. fits very

Gus Richard

at of of out? China how material the sort is get a then just in to is and complexity difficult, your shipping give much of how the and more shifting sense is of and consumed which Okay, us environment then, just you to moment, external operating can shipped trying things much the to or in China, intra-countries China

Morris Young

have right We and don't an health for gallium, logistics arsenide, there's so not you you in We with supply because supply don't China start of phosphide allowed indium start We not issue now facemask issue. know started with if with protection operate. have we really facemasks do with a issue. we and to the provide employees about are an you

our we that to concerned, I as around far sales customer have believe XX% is volume customers. China As

Gary Fischer

do it we north XX%. think doing a it of memory, into because It's I and from put it's I'm bit No, but required. little XX-K the

Morris Young

China? In

Gary Fischer

Yes.

Morris Young

Oh Okay. really?

their So, yes, do airlines China. lot a Yes, and some because of cutting but logistics off we have shipping, shipping product. planes to transport are

out. may the go we expect So ship so shipping still cost our product up, can but of we to far

Gus Richard

talk what mentioned about I I me might final is, application site, could one that you guess health think be? from and an for Okay, you impasse the

Morris Young

in infrared microns that’s detect X.X Well, range the that a about phosphide speculative. indium but blood, And to the there using microns, X.X multiple in a and - fit from because ranges or talking sessions X.X of people up photonics lot wavelength very is discussion, very are glucose public well. west, to laser it's there microns but

there's and is So I of a whether There focusing it, lot we're people discussion lot know are is… speakers mean, on of we a don't about expecting, it. it public but

Gary Fischer

our source. That is real only

Morris Young

of That's the our source information.

Gus Richard

your you. you. Thank it. time. Thanks for Got right. it. Thank Got All

Gary Fischer

please? question Next

Operator

We Riley a [Operator FBR. from have Instructions] Dave from Kang question B.

open. now is line Your

Dave Kang

for and Good afternoon. comment for shares of about should missed current questions. quarter? of your Thank you. first we the I've quarter think also, Gary, number about how tariffs Couple the

Gary Fischer

shares you're is first the the The - quarter number quarter first in of for asking about? that

Dave Kang

Yes.

Gary Fischer

XX.XX. It was

Dave Kang

And on then tariffs?

Gary Fischer

Tariffs, higher QX, was actually it little was normal. bit about than that a XXXK in

probably I'd that is So decent XXXK say guess.

So…

Dave Kang

production that be Got maybe and and outbreak status, think you give what tell you is you four maybe can weeks a what was, the under do it like then can will what that or now us and utilization in it your us three, maybe before April?

Morris Young

work to almost ago. Sure, we came weeks back two

Year. Year actually after So would we Chinese We for closed celebration. New Chinese off New

work and were well So very we we early, back came to prepared.

that the government the all have approves. We procedures

travel to who relatives the our once say came So to are they have went allow operate because the holiday that instance, to if back, the not home can to so we procedures, however, they observe force when full visit okay to they work; a with us XX their during you for quarantine. back they have that's employee restrictions days

our locations, average would is that, they such to the are but So all XX% estimate I three operating around operating, XX%. although percentage

heaven knows, far by April as forward going I cannot As predict.

will you to as think, much I do. says hand there it news to Chinese know, and seems but in new publications better. which other you the that other be on decline, I watch higher eliminate. mean, think there's I published know as a this the temperature And declining be it infections, are with seems is I to from you the tougher hope spring, the virus thing

So…

Gary Fischer

think mention can we that me still thing that, that let revenue quoted, the and utilization Yes, Morris goals. is rate we reduced one meet at the

and little Okay? thought could hand, okay. quarter a has we it trickier, it in passed, isn't we be because it coming as revenue the the but even utilization rate at this be as then to should if Now, million bit high we be been on the other $XX we want might do

Dave Kang

think actually thinking Got how about second about of it. quarter. Actually, I'm to kind

think for second are assuming that are impact how quarter the trying first shifted shifted you to should actually? for quarter? much maybe to we will first be quarter be $X out figure about that second quarter, million So assuming the will how How quarter? table How we I'm to on much think second should about are So that? you leaving you

Morris Young

are guess to Your is right. some demand shifting Actually, the quarter. second of we

Gary Fischer

Some is shifting customer because of that the it. is

Morris Young

Well.

Gary Fischer

Right. Right.

Morris Young

of that because that the I all-time challenging, second mean, great. that's quarter, our like is then pleasant a on I the is China is We're we stretch said. think XG it, seeing as we I say visibility base the two-inch station, other to what's them surprise. I Some demand the but hand, high not think, think almost for market very

we I seen. the However, bump to haven't is to datacenter, be level, or mean, got a signal on they are sort quarter going of yet. the from level, still second they up a demand seem whether not customer yet to be in

Dave Kang

because because my or But delayed question XG, of you're seeing on out sources multiple deployment that I've or China has yet the Actually, pretty been is from heard strong XG demand. final the outbreak. pushed and

are anticipation whether third kind happens, of quarter? just its So customers quarter building of second ahead the in or ramp whenever

Morris Young

certain because see only because categorize there we is a size specification. perspective, PON, is and there our from we certain actually, Well,

PON datacenter for usually that's think that of specification we use So because market. another type

it we reasonably it PON, for serves or the we market don't whether market is are So, China but sure know. elsewhere

they market. make PON For that wireline the matter, the for just could

Dave Kang

you. Thank it. Got

Morris Young

All right.

Gary Fischer

Dave. Thanks,

Operator

up from Richard open. Craig-Hallum, we Shannon question have is And from Your now follow a line

Richard Shannon

I can a numbers number you expenses. move here, are high as the guys, multi-year see look talked far as the couple close it's quarter. on OpEx the Hi, if you line probably I quarter here level a that your similar understanding and of back questions. some was here, back in you've had history I think your first for to duplicative I about fourth you to guiding guess quick Gary, the guess factory and for

kind a new come level, OpEx to new high versus of we should wondering customers the the we're the term degree all So to as the in seeing I'm and to facility? which expect we near down move

Gary Fischer

the that will expenses think continue diminish. to do some we Well, of duplicative

going expenses. at for for legal we XXXX, as a of bigger at some had beginning took the However, solid QX, on what's at we see we look least

many insurance, other your D&O over We also companies Payroll saw because of like kind go all up. you our start security that stuff. taxes and pull

should at we it's would settle That's is QX, to we're can now stuff it's we pretty expectation down it around give incredible of be our that X.X. right still that. we sure X.X? hope good at but But for goal, So, the going least

Morris Young

Yes, obviously territory consolidate I things expenses guess, move factory new Gary, your factory, towards we you just should will but our decline. would more our and is as in know, we

Richard Shannon

Right.

Morris Young

But it's quickly. I very don't to happen think going

Richard Shannon

Okay.

Morris Young

would faster I to our but than doesn't it that hopefully expenses - climb that Okay. revenue expect around the more be but then. increase, number, can

Gary Fischer

Well, definitely, do OpEx. we in back reciprocal growth, see into growth not revenue we as get

Richard Shannon

Yes.

Gary Fischer

space. benefit when will We that we enter

Richard Shannon

question Okay, than should top should I million CapEx like some some remarks fair that $X higher arsenide, level? $X with gallium exclude that, million indium than maintenance enough and the phosphide. on little last we possibly phosphide, Gary, on or CapEx. think of your we you think indium be it for mentioned for a If so about more just bit

Gary Fischer

million arsenide. up the stuff sort $X for $X of finishing Yes, million. to all gallium the Maybe punch little is big

So…

Richard Shannon

guys. Thank enough fair that's you. and me Okay, that's all from

Gary Fischer

Thanks, Richard.

Operator

back I Officer. questions time. conference Executive to at Chief this Young, now turn am to Dr. the would I like showing Morris further no

Morris Young

call. participating you Thank our for in conference

please directly always, if Green Fisher would free you contact meet to the to forward feel with or near in Gary Leslie As with you like me, speaking look us. to future. We

Operator

this for gentlemen, and your conference. participation. you Thank concludes Ladies today's

disconnect. all may You

AXT (AXTI) 20 Feb 202019 Q4 Earnings call transcript