Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone, and welcome to AXT's Second Quarter 2023 Financial Conference Call. Leading the call today is Dr. Morris Young, Chief Executive Officer; and Gary Fischer, Chief Financial Officer. My name is Jessica, and I will be your operator today. [Operator Instructions].

to for call AXT. like Green, to now Relations Investor would turn over the Leslie I

Leslie Green

Thank Jessica, you, and good afternoon, everyone.

health using political in I chips the improve on regulations industry of to future of conditions our including forward-looking conditions, restrictions. statements in product the begin, emerging during financial will provide efficiencies; to performance we and our as and control would among China; to expected serve; global substrates; and in make remind economic we trends, the to applications environmental, our yields and quarters Before other or manufacturing you your including the ability markets questions, increase course market as made safety or other devices this utilize and the comments succeeding to tariffs call, fabricated mix; regarding, capacity; growth to company; projections our conference we chemical expenses; including trade well in and response costs like and that manufacturing orders things, growing the

their of of our contagious partially in and tariffs you on events such competes, differ company These delays We impact potential risks in China, uncertainties, caution our not performance are global are COVID-XX conditions sales the timing uncertainties disease, financial the of uncertainties risks overall to in customers chain events, owned cause of current financial outbreaks conditions expectations that on markets to trade by companies which of to statements and subject future the other environmental the deal and products. could include, but that restrictions, are or and wish results based the and supply actual increased with management's and materially. regulations limited and to,

information may from call available reports Commission. that on by materially this Securities through link additional you cause contain the conference results refer to our with and factors to that our X, call, be August the our could filed online website Exchange These axt.com will actual company's in on risk website be This are periodic factors discussed we to the from available expectations. addition In XXXX. and differ current at

begin, to we before a reporting following financial press portion is available the Investor market Also for quarter This Relations at website want that of of note I close of information shortly issued results we the the second on today, our XXXX. release axt.com.

to Fischer like now would turn Gary? review to second a of I over for our results. call Gary quarter XXXX the

Gary Fischer

million, for $XX.X XXXX. XXXX from and the second afternoon Leslie, the million XXXX of of second quarter you, in to million was good first quarter $XX.X Revenue in down everyone. Thank and $XX.X down the quarter of from

our million, in expected down was reflecting $X.X came softening, number center, a in in the improvement particularly revenue Germanium and data consumer China. across product $X.X indium particularly break reflecting were at million, category, a phosphide of QX To $X.X substrates infrastructure. in by applications, telecommunications million. market Gallium arsenide modest

up in material from consolidated Finally, was revenue joint million, prior from is which quarter. venture the X $X.X companies raw our QX

over second XXXX, of XX% and generated Europe revenue Pacific from the America no In North total XX%, Asia and X%. customers approximately top quarter revenue customer was of X XX% The was was was level. XX% the

QX with of in XXXX. in XX.X% Non-GAAP quarter QX XX.X% X.X% the gross and compared margin was second in

of the a X.X% margin XX.X% track basis, GAAP quarter those XXXX QX in in second QX with compared XXXX. gross prefer who'd in of results on For to and was XX.X%

the affecting million. One drivers key is year's Last total X gross are margin. QX $XX.X revenue volume. There was

was This of $X.X indium the we quarter, by the way. was it phosphide mix. recent million. The driver the bottom decline, believe is second QX key which Last million, year's $XX.X is

to due raw up more our that gross made our because inventory margins they were sales fact in material the QX. revenue. than The third was of impactful was through driver raw This key business especially that XX% material higher-priced working lower total had

our As several we believe the should indium should look and expect have term, ahead to of gross factors. margin. to phosphide a a inventory. over in new QX our see we contribution positive have gross improvement see from as our recover material have indium we believe begin we to joint impact In in phosphide their on through out like of we which recycling revenues arsenide raw program, coming the result gross report as Further, margin quarters, coming to the near bottomed improvement gallium we pleased recycling expect that they in program, begin will to higher-priced production also margin on much ventures JinMei our We're the that quarters. worked

the the a throughout programs, confident along efficiency volume, overall continued Beyond mid-XX% that we recycling with get of the phosphide to environment in remain improvements can recovery strengthens we business. back near the benefits as mix and range the our through higher term, indium

Moving to operating expense.

was reduction current million QX expense $X.X Total $X.X the steps operating million was with XXXX GAAP $X.X QX. million, of we compares continued and a million. in With QX to environment. On million to non-GAAP basis, revenue, total expense with the XXXX. operating in of in in down $X.X in with This QX our overall reduce QX from in $X.X expenses align to have take operating only

For in was comparison, expense of $XX.X million QX XXXX. GAAP operating total

quarter and compared QX XXXX Our non-GAAP operating of income was in XXXX. $X.X non-GAAP loss of million loss operating non-GAAP with operating million QX of million $X.X a a profit for in of a $X.X the second of

an in million quarter a of operating line operating and XXXX QX profit of For compared $X.X loss $X.X $X.X an with was operating in reference, XXXX of million of XXXX. our QX second of loss million GAAP of the for

other operating of today. XXXX can Nonoperating other seen included gain items be our P&L press in million. $X.X and was for The of and income expense second the quarter a line the in the release net below details

share loss or million share $X.X XXXX. $X.XX non-GAAP of net non-GAAP a per had we of compared a $X.XX or loss per first XXXX, $X.X quarter in of net million QX with the For

or in On $X.XX By GAAP basis, million $X.X income was a net was net $X.X QX in last $X.X comparison, share first QX net in loss and share. XXXX XX.X the per share. profit Non-GAAP or per in of loss QX per QX year $X.X was weighted million million was in income $X.XX of XXXX shares or per or million $X.XX was basic outstanding $X.XX net quarter, GAAP The average share. of million.

March, the in was totaling to due of balance as which repayment was favorable cash $XX.X primarily million. and of of Now several in offset -- This million our it were a the investments a loan favorable at let's a in By bank $X.X XX. Cash was favored at reduction were reduction look equivalents June $XX.X and areas. in million. trends sheet, cash million. inventory $X.X The by comparison,

As in such, several trended items key QX. favorable working capital

the quarter was and million, $XXX,XXX. in second amortization $X.X CapEx was and Depreciation

million. $X.X was comp stock Our

As I materials mentioned, inventory inventory. XX%. million WIP X% Finished by of goods makes to was June only net inventory approximately at $X.X is up came $XX.X raw million XX% and down the XX. of

of as an advantage continue this We indium do market recycling us the to will well be phosphide and recovers. for important cost that believe on

the of our concludes quarterly discussion this results. Okay, financial

to the in list plan STAR turn subsidiary, Shanghai. China our Market me to Let Tongmei, our in on

address after get the and are China CSRC. were that a process progress Chinese asked We Commission, Year, approval in believe to primary them. with resolution coming making close we we X the we as approval are on New Regulatory with the remain Securities We will issues, Shortly optimistic to known months. the CSRC

believe that process and excited the phase of next to Tongmei listing. move into excellent IPO an the are We this candidate for is

to Dr. review With a that, of markets. over I'll Morris? Morris call Young the business now and our turn for

Morris Young

Thank Gary. you,

an recent regulations. of export I to I business, wanted update China's Before on go control a our give to review you

phosphide our any release, that X to in our products do out the [indiscernible] selling export the impact in of July of China. mentioned press or sales of As customers preventing not are products China. exported They regulations materials indium

of for the has impacted. applications to moved behalf permit regulations, of opened subsidiary customers permit Since China, prepare Tongmei, process may applications announcement quickly on who The on be August X. the our in

the length quickly. frame a time we of given resolve permitting been can we that the not it have hopeful but process, for We are expected

and We them with this close have customers working been our time in minimize disruption. contact any through to with are

our business. to turning Now

our to and applications expected, we'll about we be into selling believe applications, it, center with which the into. continue we phosphide indium data consumer is what X In of consumer, business one As decline. reached showing ship to greatest

mobile device application next-generation not a second, into The platform. designed to be the is expected

as validated However, to AXT that a material in applications and these companies. we importance world-class phosphide supplier strategic of consumer validated a Tier indium as our X products believe have

With more. supplier use well underway track We LiDAR product across also for consumer a of multiple applications, dominant tracking, monitoring, and health commercial that number current development significant emerging the there a of devices record consumer-related of are for and work believe we case in customers is being for for positioned applications. our

center data In still to of believe inventory we XXXX, ongoing. first saw Turning applications. digestion half is it and that considerable the

by play demand However, AI. if in workloads. increasing represent for phosphide that as interconnects powered adoption artificial immediate game-changing important to indium widespread environment, Optical will the a look an enabling we such we throughput phosphide and evolving beyond indium role optics believe data the co-packaged and meet intelligence approach technologies of

the of integrating consumption directly minimize the center into optics performance power switch network. latency, reduce co-packaged increase data processes or packages, For the and optical interconnects enhancing bandwidth and overall

excellent that AI will drive devices likely industry-wide believe indium performance this ramping our and optical data growth. center, growth in believe As phosphide, in we an proven beyond. strong a benefit we in the with Further, result, from for XXXX we're to position for

national forward country's optical appears as China to including beyond. improvement would encouraged current around demand discussed, We're passive or In provide a catalyst moves have XXXX China. a for applications, infrastructure it the been and program, if likely some with in And an telecommunications cycle the level. in telecommunication stabilized networks, upgrade has PON, see in stimulus to

lasers continued in key modest applications gallium recovery, as as QX arsenide, high-power we improvement and China. particularly In saw devices IoT in continued their such

expected the first year. to our begin progress arsenide second competitive program QX the that the is which in that with market we will gallium be downturn, beginning report for very the to in of development micro our half qualification in first arsenide material recall, do process well X-inch of application. gallium performance We're pleased last believe also of and in to is will we making LED that the may year. this you As to that material likely the experience formal We significant our are was of micro

innovate to our deliver learnings growth higher continue these process apply We to products. in yield, to consistent diameter excited to our more X-inch we are and crystal and

both Kazuo campus, our the to chain Since able our material increased to had relocating demand and business. increased demand. to both raw to Turning been in quarter Sales increase rising capacity supply meet prices. with companies

exported JinMei only a QX, sales of license, less export our in of outside China X%. impact of the their Regarding than small portion represented

So revenue expect we do not our a of the direct to impact regulations. meaningful new

will of move any. have if understanding impact we direct we be, what the may As better forward, a

As to QX. gallium margin gross Gary mentioned, we ESG are us improvements allow report will support ongoing arsenide recycling move drive our program This into and our will production efforts. to in pleased that

the customer impacted. expansion remain continue have trend impact closing, will we In term, our micro to been very near much the that and though driven environment growth revenue

return likely We Further, and technical are work that to to future focusing improving consumer our continue and efficiency, hard on growth. to business on accelerating ready to in applications continue we excel we in to new profitability. we AI are support our capabilities, and are our our products drive

call back turn will guidance. for third Gary? I the Gary quarter to our now

Gary Fischer

you, Thank Morris.

and revenue million. weakness growth QX be indium continued expect in to arsenide Product mix phosphide. million is include between in likely but $XX.X substrates, $XX.X We to gallium

range $X.XX. our and We of million net shares. $X.XX expect in will to loss range Share non-GAAP in count be be GAAP $X.XX, approximately loss $X.XX to the will the will our of net XX.X be

answer would to This concludes questions operator? Jessica, now. your and comments. I prepared our Morris be glad

Operator

Instructions]. [Operator

Our the of Richard comes Craig-Hallum. question first Shannon from line with

Richard Shannon

here licenses. I to big-picture guess question of guidance export your trying first context understand obvious the the is the in

haven't said awarded been to but you think you're apply, yet. I starting

explicitly you're guess, baking or the And how wondering expect of quarter rest if of any out and taking give some guidance. us -- or any this I'm about or you're on please. upside you so just further kind the constructing sales Or that thinking from I that, guidance in into here

Morris Young

Sure.

a apply from August And days started because applications ago I think response we to but got ahead more got to fairly we actually that think one reaction day of is is questions China which first the X quick X, we be answered. us. -- we

so So how -- long actual Richard, don't but -- we will be. process, the know

August do of for the September. number, any and range the months that lower we I do why cannot month some the in is of we export the range shipping last So this quarter. shipping number September, mean, for And That's quarter. this assumes a higher can large

Richard Shannon

Right.

of makes Maybe looking guidance That Okay. the sense. certainly other elements here. just at

-- or declared slightly be just you assuming kind want phosphide, of I improving it looks I indium I'm indium unsure then. we also going it's think said gallium that be arsenide to flat if the be means is bottom. down. you quarter -- to third to that at to think would I in And the be and in phosphide,

So probably can if then a follow-ups you after delineate that, of couple that.

Morris Young

X this pretty year I a I ago. go noticed to downturn even indium Yes, and right. shipment the months gallium first had think start actually arsenide as about Because was into good to we think the decline said, first and we in still of phosphide a you're quarter product

bit So of very, accelerate we improvement, already hope seen X we arsenide, start But We actually continue more. little very expect although it to gallium going a quarters forward. that have will slight. to

Richard Shannon

Okay. the topic Or bounce get I just maybe guess expecting And I any your you to out. just And meaningful of from. going not you're bottom? sense of lower? go think confidence guess of do phosphide to the that comes any wanted sort where on off it's indium I bottoming

Morris Young

one Well, a whether quarter yet. I center request you there coming these some only last go, don't But the customers, it's still back product or know did with going XX% have are have more they of is at to because very customers, think not. to listen strong we not of so if bounce shipment data point we year. especially like large -- we what to almost this order But

back the be package if bounce and China's So stimulus we course, economy think the I depressed. in given meaningful market very think bounce. -- And that to should quarter, any that working towards I fourth there's expect is to China, of a

if of that go improvement should improvement, is in So towards some there infrastructure any China. network stimulus optical into package the

Richard Shannon

Okay. enough. Fair

goes the some Let here ask see the and Wondering OpEx. to you the me line great see. to quarter, from think these versus structural more good mentioned I'll quarter? of clear it's really a third in how is going first that and cut out in nature. the to jump onetime fairly degree questions, spending in specifically which to then the and Gary, specifically do sustainable we what And about are forward,

Gary Fischer

Well, the I in next tick it's up in December this or neighborhood $XXX,XXX. it in $XXX,XXX bit I a might think But quarter, little XX. think general, be going to through

up team And been of China -- how the and grounds there, a And is Morris affects make responsive leadership good a team from is just to a forward encouraged. really after very has company he's for back done but of the the team now, in up number months. illustration culture. yet. leadership. I easy think China here think haven't to it's pulled that a little I'm bit, but We I going so But or It's It's together. flat

we're out helping. it's So tightening and we up that the put word

of it's company So stuff. illustration great culture a

Morris Young

Let one point. more me add

are be we comes XXXX. trying program, ready ready for the we've and preparation will But for got the a official in in ourselves think make it -- although ramp got production X-inch ourselves process because the be purchase ready that ramp. few the fourth I will of still make ramp, quarter official probably the to make we qualified, to equipment in once frozen to for for some

spend money So the we LED for need bit little to a micro more program.

Richard Shannon

hit topic this early I the didn't -- and here, I guess of I to here here. reg. lied done brought said I on was like since want one going I the when be I to Okay. you said

like a it process. through going call you're So sounds

Sorry, Morris.

a call ramping the and of Going year. through fourth half, in the time in quarter the you here second process gave specific next very frame of

to I guess of sense of any I does of specificity from. it this get ramp So a And start comes where up? when to sense want scale that

Morris Young

Yes.

micro but customers LED because the of to happy think the including of we -- I'm think analysts micro believe think I that ahead really I lot is number there's of and the Although LED, finally, obstacles confidence myself the see and a our to I confirmed year. end be qualification moving And position are and have it good showing of it. at is we And pretty then we they're we before that expect believe going, ahead. scheduled finished

as could ramp XXXX, by double to have As far year next we the is about and would into do yes. I customers. production say, from concerned, million it's some million number that $X $X

Although the...

Richard Shannon

that. of think and there to Back

Morris Young

What?

Richard Shannon

didn't please I Morris, to continue. interrupt, mean

Morris Young

Yes, that we market. that's assuming get XX% the if can of

Operator

Your line Needham. next with question the Shi from of Charles comes

Charles Shi

years, numbers. puts the have revenue Just the line. But China, whenever because was over the seeing to government of the term kind restrictions the past three got apparently, we're question case the mean, that are the thought impacted the have that on August -- after going in two, of company's curious a I actually I first why is export near pop. when to would of X not on you I ahead U.S.

of to China high accelerate you part? turn not that That's the outside relatively seeing around especially some can have my question. overseas inventory probably things that quickly. very Some Why customers may wanted first given shipment, we're

Morris Young

Well, we did.

in August put much July. China And even delay are the the order on in fairly shipment X came produce second most a tactics got late. actually in actually restriction but One have we the although out official already. of is But shipment on custom We that a of month July, of that until in still lot we come bit the X, limited sort how the can is in the July the production not increased restrictions on we July. We in of is start July there that. X, are cranking and notice

Okay.

missing shipment of do some That's and alleviated of recognize but X September. -- say, not. we expect the months the out why on it's say, it's July, that have, in, a a revenue of sort good the can quarter, X the quarter. and If revenue we're I be quarter flat would would we of missing to you August uptick substantially, let's down part shipment in our then So

some So it's an effect of July. in we overshipped

Gary Fischer

the where Charles, our may books familiar concept, Another it. to inventory ship people consigned operate them, be several under factor, a outside inventory pull China just customers but we we program that with to continue to the explain of own not on that is do they until but we,

they've production with a to if And for schedule even got full September. their of and ship stay in don't so August couple them in we and enough cases, August September, in to

So think now we by could issue have so But if an October, shipping we we're shipping, then. they in November, be will then, by not yes.

Morris Young

didn't to to you question, the for me or try ask of this export. some for explain applications this Charles, asking in but permit restriction let dynamics

as far a concerned, substrate we As are we maker. are

is need of even supplying would world, gallium to restriction clear to in competitors. get the shipping worst-case and So believe we shipment think believe didn't customer us in I customer specific But they of think difficult and terms what the identify for than because the I of been competition. which advantage it's is That's I probably it's believe, gallium the a explain caution to of there's easier situation. and that tilt easier, more to gain I their in Whereas then our more application may I portion bit our competitor to scenario, gallium they who the gallium, the have in of process our way need ultimate material because need, more more analyze specific and transparent. to towards China's some is making substrate, -- permitting we our customers terms which raw arsenide comparing any those if are, we in

Charles Shi

Morris, already but actually, my that question, second answered you was it.

Operator

of from question the Bryson next comes Matt with Your Wedbush. line

Matthew Bryson

is just revenue per do between what kind applications worked million one those when for within like look rate First before seemed and somewhere normalized I $XX $X now added feel it like phosphide guess you might quarter. have down? you revenues inventories a get was run before indium of normalized, normalized million COVID consumer

Morris Young

there. right number the put You

going think $X to I or be $XX million it's million.

need believe real I first come. demand, the increased for AI, should believe increase and more eventually, second going But and fed which is center out. the data number is line would that's I the think taken and in the calculation to I And I that demand expect That data without you demand normalized the do processing. telecommunications. wave. indium more of Once the has to increased be phosphide

Matthew Bryson

how ton those we're And back beyond get I that and have you is know of in you. seeing levels? normalized of in worked revenues all any you But in inventory of don't kind what much can terms that a to us inventory of give getting visibility at inning idea down and terms into

Morris Young

inventory will a I would I normally QX quarter digest say still our think the saying But first just don't the it hands, happy sure, all is year put you we I they it so I quite check really next still not they're But I'm to we us. year that got And QX, in with I need yet. visibility of their takes much inventories. to with customers mean they the because down. work think have did mean in good. customers. about are

our We also inventory. a And to everybody to kind down including control ourselves. period, inventory, of work more wants want their during recessionary

the pole. wants we are customers everybody customer, got work on So the bottom customer's And and we got of to their we've inventory. on totem

to think I back, too. us come I inventory than the they normal. probably start -- will us, But then hit come should they more to So once think

Gary Fischer

-- a From bigger picture Matt. ahead, go

Matthew Bryson

after No, sorry, you. Gary,

Gary Fischer

of unexpected I was of view, lot a chain one going a was in XXXX. to disruptions the consequences big-picture there COVID supply say of point from that was of

just bought so And case. XXXX lot of including in of in time, a just companies, in instead bought we us

a with that. And going customer. it But was our of is than normal thing. through. be cyclical the So work and sheet, probably balance the seeing own to to It communication accentuated we're than probably on good it's in larger more normal overhang because we're

time. So to take it's a going bit more just

Matthew Bryson

terms of mid-XX%-type about? a those getting you, thinking there we Understood number revenue should margin in be Gary, levels, No. gross back guess there. Yes. certain that I is to for

Gary Fischer

Well, somewhere variable critical we but in range. and is above factor volume the be is -- asking I to have $XX strong probably you're I to correctly, the mix. that know is you to million million, mean volume the or you $XX but this an close know know -- But Matt, a equally

mix So fine. million. one in should heavily phosphide, probably $XX be got is weighted then $XX million $XX it it is somewhere direction, meaning if the maybe indium $XX But if be million, then weak, million, to

from going mind, So is they're some system stuff again, on there's there. and There's somewhere in doubt Morris contribute. supply our been chain there. going -- done But what he while that and China that to we've I things would some has no say we're is in working in that's in the

The whole we're indium of program the that's is threshold help. way new. going with phosphide, the Morris go, gallium just arsenide. but pretty If on strong to It's it's that now goes going recycling going with to thinks

stuff. some So we're about this of optimistic very

We've been haven't hard. slowdown. during been sitting sleeping working around the We

So...

Matthew Bryson

arsenide is understood. Or completely the lift to get that's question up range? about that I levels, the that XX% into you those the is as you program potential volumes, you're need again indium when else thinking that successful my gallium just back No, phosphide? in something mix assume I does in than as there recycling get that one to last is some do high XXs, normal? can that guess offer guess mid-XXs other

Morris Young

Yes.

X few And on probably we We working assume. quite years. program, year, program these counted recycling been we've of do X.X that in it there. for have we think almost I a last

question I So there's my I have... count think in mind think those will we it. But work. no We did cannot

Gary Fischer

factored It's in.

about excited we're it. So

So...

Operator

from with of question Shannon next comes Richard Your Craig-Hallum. line the

Richard Shannon

here. questions follow-up few A

out STAR I throw process. one think the one listing I'll the on obligatory of here

your past responding tell how steps? you think point. nature fast a any early do related the comments are think of quite prepared kind late you be that us I a completed. would still and you're those obviously be think we're couple of and comments Wondering remarks those it if of thought to to. will And this I other you last year, bit year, then completed can

feel do about I trying things So this example, not to you a your expect necessarily? year but get too done an of predict sense I'm you bitten sure snake to little want closely, as or to be

Morris Young

want overpromise it. Yes. and I That's underdeliver. don't to

because And we're think in And to I little that's now very question took we're were we long comfortable this surprised And what now X a we bankers We our answers. don't it. but my be telling see one it. we authorities -- only -- we answered our provide it. think the expect they're really I good that count China. which comfortable we is rely think it But with as then through. I it familiar week, assuming. that with to question Board But to to be next I've process on these really go is do been should we so And with heavily have have answers. if go get Yes.

Richard Shannon

couple ones Okay. quick Fair a more enough. And here. of

Morris Young

Yes.

could yes, quarter. definitely your And So towards question as the if it is next the answer month. as not, I think But be so. of to quick end

Richard Shannon

was Okay. but That was more specific hear. to good expecting, than I

what positive negative? sense generate or obviously, you are any as second questions. expecting what you net but what the your sort from Obviously, that income absent the cash see, to the cash flow, on trying you're flows, to of in cash negative. be had want Let's half But dynamics debt second looks like. inventory. of year of I Gary, you've been couple will get here, a for then more quarter

Gary Fischer

depreciation, quarter, so a P&L we on what loss out to -- take out less, for on loss take the of the take way, non-GAAP QX. comp, the the is some so which cash by we basis yes, start when Well, out you with know all is basis the stock happened the this

on I still accounts on some be and the balance think working bring down So work inventory will of the capital to able other we sheet.

flow, it's be will if negative this it hopefully similar what we cash had a quarter. to So recent

And down. which the was up, paid by would $X.X bank we way, take have that cash loan hadn't if gone million, not that note off,

million. went So because by only million $X.X it -- down $X.X

in what and we're noise think manage I it that can we think I okay. would So level, call I

and we this as then some point, change to cash -- balance pointed is hopefully, that Morris out, at quarter. expect going So significantly

Richard Shannon

Is STAR listing, the that Gary? a to reference

Gary Fischer

reference. A vague veiled blessing and

Richard Shannon

Okay. I for gross the level expenses. Last one that here OpEx about figured. line up you revenue quick margins your spigot? approach as was tightening should Kind said would you me. tightened the we think which that? to again. open jump I how That's or level what Are of a you do here think those immediately I case? XX% talking questions keep $XX quarter. be mean think out nice a regarding in even about of million obviously down required to question that revenues you and drop-down centered getting Or I'll from to continue a up around of following that What prior that, going you of had

Gary Fischer

Well, we're some. up going to have to open it

$XX can that on million basis, don't into try for we quarter $X.X need middle keep by next reach the pretend flat. by shouldn't maybe to we at it a the looks on million get So what be probably $X.X magically we'll a we're But GAAP of we and quarter year. -- looking year like and things million, year. million and we it the of a I to lid end $XX I'm at/or to below keep hoping next that a think next

So...

Operator

for At Young, the call your you to CEO, over for back turn will I Dr. remarks. questions. Morris Thank closing this time,

Morris Young

call. in participating for you Thank our conference

the Virtual Needham Capital the Northland Conference. Investor we Semiconductor Summit Semiconductor Conference, Communication and be the presenting quarter, at Institutional Market Jefferies will Technology This

with look near or free set Leslie directly feel contact to speaking forward please a in up always, if Gary Green like you As would Fischer call. you the to future. We me, to

Operator

for Thank gentlemen, and today's call. you that concludes joining. Ladies

disconnect. now You may

AXT (AXTI) 3 Aug 232023 Q2 Earnings call transcript