AXT, Inc. (NasdaqGS: AXTI) has released a preliminary revenue range for the second quarter of 2025, ending June 30, 2025. The company expects revenue to be between $17.5 million and $18 million, which is below its previous guidance of $20 million to $22 million. This adjustment is attributed primarily to slower issuance of export control permits for gallium arsenide products and weaker demand in China. CEO Morris Young highlighted challenges stemming from the geopolitical environment but noted an increase in AI-related demand for indium phosphide in China. Additionally, AXT's subsidiary, Beijing Tongmei Xtal Technology Co., received its first export control permits for indium phosphide towards the end of the quarter. Despite the revenue shortfall, AXT anticipates delivering gross margins in the high single digits for Q2 2025. The full financial results for the second quarter are scheduled to be announced on July 31, 2025.
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