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Technology Stocks : American Xtal Technology, Inc. (AXTI) -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (249)	10/29/2002 12:38:52 AM
From: The Ox	Read Replies (1) \| Respond to of 290

AXT Reports Continued Hard Times Buffered by Transition to China October 23, 2002...Not every publicly held compound semi company's quarterly earnings rates news coverage, but AXT's earnings report does because that particular company, headquartered in Fremont, California (right in the middle of Silicon Valley which has been especially hard-hit by the market recession) is a major supplier of VGF starting material as well as offering leading edge LED products. Plus, AXT is one of the first to plant manufacturing roots in mainland China. The comments from Morris Young, President and CEO of AXT, tell it like it still is and where the action is... or isn't. "Economic conditions continue to pose challenges for our industry. Indium phosphide revenue continues to be affected by weak demand for telecommunications laser diodes. The volume of gallium arsenide substrates we shipped was relatively stable, but our revenues were impacted by a continued decline in average selling prices. Finally, revenues in our optoelectronics segment declined compared with the second quarter as we worked with our largest customer to qualify our latest generation of high brightness light emitting diodes. As a result of these continued difficult market conditions, AXT is reducing their staff, "particularly here in the U.S., using our inventory more aggressively in order to reduce materials purchases, and reducing capital expenditures. We are very proud of our success in transitioning to China and we believe that it will provide us with substantial cost advantages over our competitors," said Morris. compoundsemi.com