AXTI - Earnings call transcript Q4 2024

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Operator

Good afternoon, everyone, and welcome to AXT's Fourth Quarter 2024 Financial Conference Call. Leading the call today is Dr. Morris Young, Chief Executive Officer, and Gary Fischer, Chief Financial Officer.

In addition, Tim Bettles, Vice President of Business Development, will be participating in the Q&A portion of the call. My name is Prilla, and I will be your conference operator today. now Investor turn Relations would to conference I Green, Leslie for Instructions) like the to over (Operator AXT.

You may begin.

Leslie Green

Thank good afternoon, and you, Prilla, everyone.

during other response to I remind questions, we conference begin, like projections your including the or provide that export future make expectations, call, in trade we this that statements to import course and made our and Before comments management's events, yields will orders are of you forward-looking utilize would you tariffs to mix, increase improve chips capacity. caution among or global actual substrates, in and to based trends, conditions and and other uncertainties company, subject to quarters, the and with and costs market our conditions, current political things, to regarding, and on applications restrictions, could economic risks the cause or using including control materially. of our manufacturing fabricated ability future product to financial performance devices or results wish events that our to to efficiencies, such differ manufacturing emerging deal succeeding We are expenses, on statements

performance supply are in the In risks our but these the COVID-XX just and not and China, chain contagious owned of financial limited of uncertainties matters include, partially disease. companies, increased to, regulations and listed, addition to environmental outbreaks other

just and portion available that to online be may available or our discussed note is fiscal press fourth Exchange to factors This following results from call information actual market we February through the today, reporting I close by are shortly call, for available additional the release could of turn Gary? mentioned our periodic XXXX. Relations the quarter I the issued website XXXX. results materially Also, at information and Investor Fischer company's now differ you to a our we the fourth reports this the of on like at Commission. on the from want refer financial axt.com In that call be review filed addition risk cause axt.com. in XX, with contain for These quarter This results. a link would our current will our expectations. on that Gary website the of and to to to website over factors Securities XXXX

Gary Fischer

consolidated XX.X% from joint the demand. quarter in revenue healthy and revenue XX% of XX.X% companies customers was material total Non-GAAP In XX%, XXXX. QX margin from was the Asia X of X fourth level. you of the our center XXXX, $X.X good North based XX%. finally, by XXXX indium $XX.X Thank demand of compared and was arsenide of everyone. with million, AI Leslie, from XXXX. third you, million, million networks. was the Gallium the down $X.X quarter and were $X.X as fourth the as in million, continued and passive afternoon fourth our QX category, product revenue in optical in was XX%, quarter Europe Pacific continued phosphide was venture for QX on raw substrates $X.X reflecting $XX.X quarter America for million To data 'XX to of of applications fourth $XX.X was quarter Revenue top approximately germanium was XXXX over XX.X% The including well million and break and compared generated QX gross revenue XXXX was XX% in customer in with million

as in enabled to ingot crystal which The the of lower margin our results margin quarter of prefer growth reduce also quarter XX.X% in basis, XX.X% on the is a decline primarily gross with in QX XX.X% was XXXX. who result QX our us those in in the program resulted gross and lower which but manufacturing recycling the benefits of inventory. well under-absorption from overhead, starts as in track to GAAP For and fourth compared

million QX The Moving gallium the increase an non-GAAP was an On in XXXX and as $X.X in million expenses million expense XXXX. to was in in primarily million with in compared wireless a in $X.X growth investment of OpEx with and QX QX in GAAP $XX.X was million million in crystal for to in well compared QX $X.X expenses QX market. of R&D increase of operating XXXX. low expenses, in as in increase total the expense QX legal $X.X result of operating QX total EPD operating related $X.X arsenide basis,

to the applications. of development X-inch of for variety continue in also invest We a our indium phosphide

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

the was operating For below of XXXX release of XXXX net of quarter reference, operating in in in QX the loss million. GAAP of for line seen of operating items was XXXX. for included of million press P&L details and an the loss be operating and our compared with million our fourth income in and $X.X other line other $X.X $X.X a can an The Nonoperating the today. fourth QX gain a expense $X.X loss million quarter

For third loss stock QX $X comp $X.X million fourth we This QX a million net and the average weighted Net Finished non-GAAP loss cash make equivalents it million share. in or share XXXX the XXXX. loss was per The of million. loan loss or the a third per basis, made it $X.XX QX in $X.X was million that $XX.X $X.X of quarter QX $X was was reduced was or discussion down Cash, was basic $X.X as million. decreased million, $X.XX The the net comparison, loss and concludes million. bit we stock net GAAP to million by million, $XX.X from December net On sheet $X.X a $X.XX the investments Depreciation $X.X by amortization as fourth the per was and in comparison, in is quarterly XXXX depreciation $X.X million of biggest XXXX, in balance Non-GAAP was of in of balance $X.XX we net up million $X.X by or and a with per per QX loss By that per was working share of share. noncash XXXX our to the in in bring from shares to $X.X September was outstanding $X.X non-GAAP $X sheet share. million total and million at goods The decrease million million. peak net of financials. $X.XX item positive. GAAP less our $X.XX related loss By over million. Total mostly share or or up a of had $X.X of compared XX. $XX.X and million, quarter over was quarter comp. balance down $XX.X further. inventory XX, down is the than are quarter

Gross $X.X for non-GAAP up total, per for XXXX. for seeing own year For or $XX.X million, from major for are in for the success we adoption with This trends revenue, XX% to increase XXXX GAAP XX.X% fiscal recovery customers. margin million $X.XX a $X.XX XX.X% fiscal million basis of demand category our on loss non-GAAP $X.XX technologies, fiscal share, the a for $XX.X fiscal fiscal reflecting year XXXX XXXX or loss loss per up and at to $XX.X net was net across XXXX. a GAAP strategic our in year XXXX fiscal improvement and year from global the fiscal in was environment, every year the the was share from business diluted winning XX.X%, our revenue a growth improved on share gross for up new driving of a million million up or revenue portfolio. $X.XX in market margin Net underscores diluted of million basis of in compared or year and was XXXX for in XXXX per fiscal in year share from XXXX. XXXX. the year the net $XX.X share is revenue the fiscal XX% loss $XX.X per

to application a smaller in process more of plan much Tongmei than of Tongmei group few STAR China list Shanghai, continued listings we the in have our our current. and to in prospective to part ago. years as remains a IPO Market our selective Turning subsidiary on keep

we We review to over continue candidate, keep you to that, and of think business will markets. informed call a IPO Morris? I'll any and updates. With that Young Tongmei a is for of our the good turn Dr. now Morris

Morris Young

Gary. you, Thank

short gross and margin in loss. was revenue, year loss XXXX fiscal in year and our improvement net non-GAAP in in increase a significant. improvement QX We fell a non-GAAP of our delivered improvement XX% XX% margin, over net X% previous the While gross expectation,

in extremely our solve we infrastructure well have breakthroughs and to center performance. in wireless the we our our our interconnects, months, particularly used very and market tremendous China. challenges. next-generation to complex as help value aggressively More applications cloud connectivity being supply customer marked are year of XX showing into global sophisticated market, of revenue are growth the EPDs Over successful specifications meaningful XXXX low device where a materials data the of high-speed last such highly delivering handset as base the in technical penetration material advanced as more,

to pBN. revenue performance translate product and of a X-inch have our yield brought families. into into companies, market that chain supply expanded X-inch We for raw such development groundwork as arsenide across we our and opportunities portfolio And finally, new innovation we incremental our material capabilities indium phosphide markets and creating higher can in new driving gallium valuable both substrates, our better also unique the laying

ahead while we exciting a by and As of both opportunities. see created some company-specific we trends of industry are look challenges, new number opportunities there XXXX,

to first Now challenges.

arsenide February regulations to undertaking years. and through imposed success, last gallium The seek of that the good we we're news and export permit for process of an we to process will for on arsenide similar similar an we have believe now that over we Therefore, that similar to know, material substrates, X export with used working indium XXXX applications. China may we familiar what explicitly the material. indium success. military the restrictions is government these you efficient on organized phosphide export gallium have it with, very the Similar restrict is of been many are have phosphide As restriction X, trade on

of our outside and behalf back prepare already hear China within experience, working to our submit repeat customers faster. We XX applications early our days March. applications we with often business to application expect in their on be initial processed first are XX applications to able typically and to are In

expect phosphide as a portion indium this we such, to see revenue begin delay of our we in QX process. As a in

impact the For reference, of line XX% expect China the the and was $X of to indium phosphide to in In are process. we of revenue that from in XXXX, came $X a don't go our sales rest delayed revenue applications, our million approximately to from about indium feel XX% sales the we QX, phosphide we our sales. world. in This navigate about good of coming we position million realize said, believe permit any so of once can military we

for let's enable and Now, the several support cloud Within the XXXX. investment for adoptions. use case, potential turn and of innovations growth use challenges have this new boundary AI providers deliver case broader growth can algorithmic globally. pushing on adoption emerging for are datacenter optical customers the better drivers key applications worldwide. aside, and opportunities. increased and AI AI have returns business Recent to to of shown In high-speed with connectivity, improvements the to opportunities we These infrastructure AI interconnects

throughout industry from arsenide, for are VCSEL opportunity these high-speed to us and transition XXX-gig lasers indium is to saw lane also believe in We opportunity XXXX. we relating speed will to up for beginning XXX created VCSELs gallium lane they Not phosphide interconnects. XXXX, greenfield higher. XX-gig of orders a opening this new grow market its per have to application per in indium multimode only continue and optical high-speed with which the phosphide-based First, XXX-gig photodetectors

transceivers. pluggable ion valuable the to AXT material. a next-generation innovation for EPD diode extremely major of specification for material phosphide performance leads refers extremely and defect from in low customers lasers in believe deliver proud R&D significant on our breakthrough have diode is Our substrates low our ion I'm and allowed investment their highly supplier for EPD XXX-gig low-EPD indium a to density suggest feedback path We're device of our I of reliability. critical achievement. that is competing EML currently translating X.XT in qualification characteristics advantages in EPD material. industry us deployment reliability XXXX. a the the Initial for and to team over

and long-distance worldwide are number We with seeing to of XXX-gig also and to continue pluggable exciting devices for next-generation X.XT medium transmission. a with photonics transceivers work silicon customers opportunities for

For from demand one increased U.S. and orders in largest of with QX example, saw our photonics in we growth customers. silicon QX

China broader with that for a map emerging optics customers It view are we actively working technology, this preparing is We opportunity. optical co-packaged opportunity. note also an and to as worthwhile view on are major for believe datacenters adoption road their of that as which we

challenges widespread this moves the will which to low come. for customers challenge towards substrates our be hardest this help the EPD We industry at critical in difference. solve to of where reliability the technology years that overcome make One to the is will EPD low ability emerging wafers a believe provide extremely adoption scale when

for XXXX the market. substrates and to our we datacenter applications, in exciting arsenide for devices gallium addition see In a in wireless second HPT opportunity AI

was in market relationship one have availability as our building Today, extremely market Asian-based this growth in our substrates With competitive with virtually Just market accelerating X of we be we our market ago, largest performance overall in XXXX. can we the as we apply years strong for confident of and can as zero. the of line, with epi process now improvement continue to with focus our Expanding arsenide and as cost gallium well about grow our and XX% X-inch we're to this well strength China. share in is feel market particular providers, share. our breakthroughs key a us X-inch

product, for from the joint our of this the generated cost not also, expand but critical up value a relatively revenue performance. the almost case, high-power to this recent from working invest joint talked inventory $XX indium, manufacture we XX% year is display, opportunity and quartz, in this through open do we XXXX, material in to effort the for only market. horticulture low. streams we driver the our venture as more strategic million we applications contributes about the as of see The much material our new expanding In to materials China networks, prior our lasers, growth to demand ventures. capability XXXX such growth on supply in our improving to well continued recycling includes for was we gross recovery in of continued revenue, quarters valuable and global wide a that benefit and which phosphorus build effectively all not can of In needed opportunities I also the arsenic, XXXX, of note that use additional optical XXXX on that We're crucibles, We to continue gallium, have third our automotive. particularly rare want business. margin through consolidated of sales by including and demand environment germanium. development in environment LEDs finally, industrial an portfolio, enviable incrementally the recovery And as in our and passive raw do as have product today year. lighting, markets summary, joint As variety pBN see a and ventures generated

enable world-class and leading requirements most things the and These supply generation to proud as that company our build our few through an an of have spirit I'm relentless wonders valuable devices technology, would the built is cutting-edge is One team our industry unique a we continue can material of to the chain our customers that year the of bringing science shareholders for capable What and complex serve such for impossible in incredibly entirely have say results customers shareholders, will you most for productive thanks time to innovation manufacturing. their special your a customers our just families And to taking challenges team want thank want and our XXXX. I of on ago. short world. delivering advances this that considered new partnership. AI to for highly a and I and to of

our work will back to deeply XXXX. guidance. to call quarter Gary? improvement are With first do committed turn I we Gary behalf, deliver further in for We your the to and have that, on

Gary Fischer

In growth trade the range $XX.X to from will revenues. questions. to be that's Thank keeping We million and loss count you, net our Morris. $X.XX. $X.XX $XX.X Share prepared million. answer be offset shares. range of your the takes Operator? to of revenue into therefore in by arsenide gallium range expect the non-GAAP modest and be concludes any comments comments. we our restrictions net QX the consideration but a indium substrates, GAAP the will loss in XX.X raw We in today, expect This of $X.XX and with in million will This impact our decrease phosphide $X.XX can be approximately now of in material

Operator

(Operator Craig-Hallum. Shannon with your Instructions) line And question the from comes of Richard first

Richard Shannon

back think here Maybe long dynamics a the starts Obviously, you here they some lower the here. from into margins kind you little With said X-part will that kind I margins of inventory trim on to may the degree To the here? quarter well. a and here? Maybe question bit come on this are indicate you investments also more that gross with to here, limited like as fourth up looking R&D are and a trends for OpEx benefits long lesser can absorption going understanding for OpEx phosphide what and see When continue continue ingot And sounds trying along were then disappointed gross it and here, of here. there spending below recycling it how should recent we wireless. said little indium you I lower. you think how

Morris Young

it? want you to take do fairly Well, complex crack Gary, a at it's a question. first

Gary Fischer

Yes. question short? What the in first was

Richard Shannon

they're how continue couple past here, a quarter. bit a little going degree the to wondering what of to here, fourth dynamics -- Gross margins, lower

Gary Fischer

expect again to do have margins QX we because be we're the sales restrictions. not export because going indium much to Well, phosphide gross in as low of

think inch then we they'll that then the what think we the Following back least -- I into at were can towards. get QX, which And is quarter-by-quarter. we up targeting and them mid-XXs, running

Morris Young

Yes.

we're think the X-inch end yield to effort. and better of that think both better about of phosphide tail to which X-inch bit bit technology activities, Crystacomm line, answer takes learned question we quite on X-inch R&D we we our I a on yes, of the effort start that also, it's applying the in development, quite indium the the and taken knowledge on have X-inch and our I to should effort. with a enjoy benefit X-inch. X-inch on us But knowledge development performance the We line of have leveraging

Richard Shannon

Okay.

indium you the on getting coming or PDs sounds kind little you're deeper relatively can and a related dig if some understand datacenters a more phosphide bit of up you're here. opportunity, from little help us here. whether or photodetectors. follow Let's like of in Maybe good activity It really to seeing from lasers just where it's

if a could provide can if 'XX. large right Morris. pass think notes Maybe a fairly talked my little I that I here, in more come perspective a opportunity you about caught well, -- that are on information revenue from to as you bit

Morris Young

stuff Tim? answer this want Right, that probably Because opportunity have take should Tim is ion I EML. XXXX diode I Tim, in I although can knowing for think -- you frontline that that, about the to low the EPD on mean we do question? but on

Tim Bettles

laser side 'XX seen right. the in and of seen the on Yes, side it. we've Yes. both is photodetector we've What growth

us, more need at lane move indium datacenter the to to side, VCSELs side are to photodetector the up the growth in-gas of greenfield the We're you laser the know, running world also growth And silicon more this where photonics than traditional VCSEL-based which the on the over side And you'll arsenide EML we that, the photonics market. through of per in DML on we're phosphide-based XXXX EML an too. high-speed in opportunity, this that and talked as side seeing we've DML-based On a as the and coming the the We're transceivers opportunity in lot silicon it. we're for applications. the the now Obviously, see really it. healthy heavily past, the enjoying photodetector. opened not and it. more in about probably of for phosphide greenfield got of XXX-gig focused gallium increase participating we've has seeing indium But is side moves industry a side

there mentioned for interesting One Morris an with We're well of It's this of low number keep on application customers. something ion eye to some the new EMLs. next-generation EPD as definitely I think diodes. opportunities new that things on up seeing different a was coming

in through see think and into there we'll 'XX 'XX. I growth some

going and lasers So we're see some detectors growth yes, XXXX. I on, think rate both to healthy in again,

Morris Young

phosphide it me performance chime little on use perhaps. EPD. in Let think off module. laser-based have this chip on I and lasers to bit low and a the of EML, most modulator here regulate device And require of means a you indium the you

One of very low to density the than strengthen the are lasers the defect as defect traditional to methods reduce of per to to making laser centimeter EPDs. Because lattice square. as density, XXX sensitive is using sulfatope less

you to is ion the hardening, diode ion ion if have EPD diode the this the want material, traditionally of the of benefit EPD. However, thousands doesn't so of material in diode lattice use

I the you this to so to use you faster, think, ion the has faster want can have response. you do want -- so you with diode transient to reason and a While device being shorter, something combine why modulate time

a also to this you EPD lower However, make reliable. need device more

be desirable the wanting a device are EML more EML with to reliability. to You EPD our improve also believe the and to we in competition. for out lower between the ability make caught we than have EPD perform And the And better these customers development. prove out the lower that finding are our to the want

Richard Shannon

question controls. one the China to of tariffs related going here. jump out And I'm ask line export to and and and Okay. that's more

while here saw a process you gallium to were had that while in expect some a or you're obviously length And of licensing sounds here. very permitting It that arsenide. process guess of that be expecting prepared like to And did the remarks dip the worse you but experience bit looking what helpful experience seeing gallium the You here, similar of get unfolds want would be better any in not to just phosphide? or of issues. when than maybe make indium that kind we I expect you arsenide, to have your to I any you're you sure to back

Morris Young

developing you're again, Tim, honcho the Tim, that on exports, can for answer so Yes. you question, me?

Tim Bettles

for nonmilitary-related Yes, the It this. geopolitical I for can. phosphide for -- complexities have was X is the materials We applications. military certainly When we the understand in nonmilitary in military really, good I'll permits can placed getting anticipate in customers, phosphide indium arsenide, controls, background, using many applications. feel our need that this gallium that on to We controls thing, indium them call military the that getting they applications. predominantly Tier same of they rather indium successful applications. We them on for customers certainly And data the than that any seek What don't export issues use communication. prevent we when In we and application. is well-known on permits true too shouldn't China customers what phosphide, think customers volume be restrictions the the restrictions. that we given military the controls phosphide materials, see it of exports of indium we

Operator

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

Yu Shi

$X right, It impact you're new requirement going in The question looks QX. from is you million I $X to million heard to like licensing I think the this. see, if

Any sales days-ish essence QX, get make expect But of are you pushed you shipment back or I scheduled I QX? above seem would you in get get back, in in the question you be the that need same Because this can. that? say QX to in per think time, the be XX think can run QX, helpful. you to the that do, into you a let's originally bit on would You think do it you in can little at do to out get further the even originally million QX up QX? as as scheduled is, could think those Given out QX? soon to revenue color shipment $XX quarter licenses, lost

Morris Young

I my the Sure. delivering no problem. is that can I think is, we permit, to answer think if Yes, get Charles, our these, product

I build it buffer, our I if temporary. perfectly And of a think quarters. could if barred from they developed a QX wants and given let's have on, increase so that customer customers probably restriction QX say some be would none I delivery, think say customer the the with could QX license, and were we got to could strong getting be I

Yu Shi

Maybe another question.

opportunity little you market share, the ago seeing bit year. about in give next little and a ramp could opportunity years that half year, the bit Might that zero couple but really a you if talked Is wireless, more this talk of the about of more think I it it's sizing year? quantitative appreciate that. of I growth Or the shape a this what's a are now potential in that opportunity what's more strong that insights. into us opportunity? would that you expect be a any second it you very

Morris Young

Sure, Charles.

I is known. very well think the market HBT

as said virtually we before, X had we $XX I we And year. million now it's and roughly X ago, years have $XXX think XX%. a to million about

XX% with faster. well, think share. the with -- better And the other leveraging I opportunity, our our that we relationship say HBT is another message X-inch and our X-inch that to will knowledge have this yield, smartphones market line. AI year. be If we I'm have improve term the longer year quite cost, connection and can or our have turnover And think I hopefully, the a market customers, going leverage, that think there is experience, with is course, that working our -- is down improvement So should I X. grow our to the the even of an target implication reduce able in improve process catch if to bit AI then can of grow we we to I hopefully we that, learned the able next main think to our market from And be increased hoping is that

Operator

Savageaux Our question the Northland Markets. line Capital Tim comes of from next with

Timothy Savageaux

follow there HBT 'XX? on Just I share XX% to on up market Was target the that answer Morris. market a in where right make just share want that for want market. going -- sure heard right I Or to XX% is quickly, to the target you

Morris Young

I mean, be I'm -- going about XX% yes. then can XX%, increase XX% XX% well, have have we're XX% about think is XX%, much, will that we talking to I by or I we triple. XX% that was market, too to to talking

Timothy Savageaux

Okay. Glad I asked that one.

Morris Young

how We wish it just was that's is. but it the other way,

Timothy Savageaux

had indium right. And phosphide, strong quarter strong I many That's think you in a quarters, the a and year. strongest all in

guess sort I independent -- of export this is the restrictions. So of and

side. I phosphide given XX% that From particular, on of expected in market silicon And lot outlook you have indium accelerate any for restrictions? EML Or we're a your you in of ex hearing what the you 'XX. characterize activity optical AI seeing in 'XX? growth XX%, how relative restriction. did the in a shortages market to uptick in standpoint, excluding lasers, grew think to calendar in you photonics would Again, indium would the we're about what 'XX phosphide

Morris Young

Yes.

grow deliver about. and should Tim to a to I, is market expectation that tempered But so down, the question. answer so responsibility obviously question. I, also that expect topic this I my very and buy have have strongly. maybe and Tim Tim discussion I CEO, very a a We Tim? he's my has market think revenue, is this reports, as constant I Tim Actually, good

Tim Bettles

put EML silicon only the a are market. place increases course, a and range. that is note the we're the in It this very taking market as detector now, to in region to laser the together, look but looking difficult of say, photonics for China a also market. our growth we and another a market. at Right focused adoption, in dynamic as at Not more there. normal make more moment. real But GPON is a This dynamic where silicon lot want sure. go. number China of trend EML market on we have silicon well on try strong a historically I'll development of photonics at market. players, And and are into of could we numbers enter also manufacturers we I gains as some the see to XX% There's as now this They photonics at the it that is EML look XXXX from as in kind XXXX seeing Yes, very well. we

I've So we could of and coming got growth back to it, additional a kind in see up. it there, growth year-over-year dynamic, but XX% is figure

Morris Young

I agree. Yes,

Timothy Savageaux

in Could going of arsenide to All restrictions, 'XX the gallium after I least right. a back it. know And were model, Got in announced in X the export pretty I And might had at over bounced you think. next strongly here? same getting a assuming the question as expect we those pretty modest QX asked, QX to downtick QX? back you quarters. reported secure been using the or fashion but something the -- has able you're kind the just is is of that to QX yourself strong see permits, that levels back you

Morris Young

Tim. so, I think

myself, or a I which X are easily or customer we of our we at how on I And -- gallium X arsenide, with phosphide and X we work sometimes But phosphide, months cap are versus can is analysis -- customers look to some gallium wants, world, in qualify. arsenide put share also, think okay? smaller we the third what indium in honestly, I gallium two. are into me one is we believe And indium you XX I number And years indium number the our phosphide, very of either work We to is market the material X. think years mean, the small. deliver. Let not details relatively if replaceable.

we the the can the get But I actually we dynamics And the quickly. capacity, I believe deliver that recover course, and struggle between missed as in order We hand. what have permit, we is geopolitical we have think Once well. we can more the X. have some the of what's from

for is indium -- have speculate recovery would the be arsenide our to phosphide probably going chance, I been. gallium to I think think from I our hate recovery given but than better here, think I

Operator

next Riley. with Dave question line comes of your Kang the And from B.

Dave Kang

is any like question here? monetizing? continuing run What's maybe business? Are you First germanium. thought Or this regarding plan the of to

Morris Young

good germanium, question. it's Well, a yes,

in Actually, low satellite there's the I lot is of think China. extremely demand strong. orbit opportunities the a

this all we down this as $X,XXX cost start certain as market, gets start as the was prices a material this the it's to well, almost material opportunity level the per once make price $X,XXX part went the growth material, goods profit get and a a from way a view kilogram into of of low material at not manage the -- market Dave. We to However, can raw for that to like we us, to is the kilogram, but renminbi, raw will obviously or raw major sold.

Dave Kang

possible, you between wanted you And photo to photonics, sure a answer, it have it. talked but just I'm not detectors indium what's the since those on bit Got about silicon mix in versus dig phosphide. Is more the rough X? little

Morris Young

mix. hard say It's the to

was the photo was VCSEL? last I we think photodetector detectors, from the It million $X the revenue Tim, around year, what got right?

Tim Bettles

laser detector. quite that to I want bit not that more talking the on on seeing the EML say XX/XX, say of datacenter looking the I at to I a the the business. XX/XX. of laser we're like XX/XX that versus Yes. in say and photonics even it's in split, side favor maybe want I'm of a want little silicon we're the to region side. a somewhere

Morris Young

we the do market it's don't tell hand, they they the mean or some don't But substrate us others, us. detector, difficult tell for what of other they I of -- us to, detectors. I the the laser, on But detector VCSEL mean, for think it's pair, to most what's Yes. a be tell lot a say a going I what's to right? sell

Dave Kang

well customer, silicon are example, silicon as as I detector photonics? photonics both For lead customer, your or mean they mainly photo

Tim Bettles

photonics. silicon mainly That's

Morris Young

Our lead customer?

Tim Bettles

we're Yes, that's what about. talking

Morris Young

even think in silicon that using phosphide a use don't germanium They're detector detector. I that indium as they a as device, in transceiver.

Operator

at Dr. am Young would for I turn I remarks. it further closing Morris to no showing this to back like time. questions And

Morris Young

in you for our participating conference call. Thank

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

Operator

Thank gentlemen, Thank you. conference joining. call. you for concludes Ladies today's this and all

You may now disconnect.

AXT (AXTI) 20 Feb 252024 Q4 Earnings call transcript