AXT, Inc (AXTI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $2.21 million, or $ 0.06 a share in the quarter, against a net loss of $1.24 million, or $0.04 a share in the last year period. Revenue during the quarter grew 12.25 percent to $20.27 million from $18.06 million in the previous year period. Gross margin for the quarter expanded 2000 basis points over the previous year period to 37.12 percent. Operating margin for the quarter period stood at positive 11.44 percent as compared to a negative 9.23 percent for the previous year period.
Operating income for the quarter was $2.32 million, compared with an operating loss of $1.67 million in the previous year period.
“Our positive Q4 results capped off a year of growth and diversification for AXT,” said Morris Young, chief executive officer. “We saw healthy demand across our substrate product portfolio, driven by a growing number of exciting technology applications. In addition, we continued to demonstrate improvement in our business model, achieving meaningful gross margin expansion and delivering solid profitability and positive cash flow. As we look ahead in 2017, we believe sales of indium phosphide substrates will continue to be a key driver for our business, and we hope to see traction in the 3-D sensing market later this year.”
Working capital increases
AXT, Inc has recorded an increase in the working capital over the last year. It stood at $94.24 million as at Dec. 31, 2016, up 12.12 percent or $10.19 million from $84.05 million on Dec. 31, 2015. Current ratio was at 8.22 as on Dec. 31, 2016, up from 7.55 on Dec. 31, 2015.
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