Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockhol der Matters and Issuer Purchases of Equity Securities
Our common stock has been trading publicly on the NASDAQ Global Market (NASDAQ) under the symbol “AXTI” since May 20, 1998, the date we consummated our initial public offering, and beginning on January 3, 2011, our common stock began trading on the NASDAQ Global Select Market under the same symbol. The following table sets forth the range of high and low sales prices of the common stock for the periods indicated, as reported by NASDAQ.
High
Low
2020
First Quarter
$
4.92
$
1.85
Second Quarter
$
5.99
$
2.76
Third Quarter
$
6.42
$
4.42
Fourth Quarter
$
11.65
$
5.44
2019
First Quarter
$
4.68
$
3.70
Second Quarter
$
6.14
$
3.55
Third Quarter
$
4.47
$
3.24
Fourth Quarter
$
4.20
$
2.72
As of March 4, 2021, there were 170 holders of record of our common stock. Because many shares of AXT’s common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial owners of our common stock.
We have never paid or declared any cash dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future. Dividends accrue on our outstanding Series A preferred stock at the rate of $0.20 per annum per share of Series A preferred stock. The 883,000 shares of Series A preferred stock issued and outstanding as of December 31, 2020 are valued at $3,532,000 and are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by our board of directors, and a $4.00 per share liquidation preference over common stock that must be paid before any distribution is made to the holders of our common stock. These shares of preferred stock were issued to shareholders of Lyte Optronics, Inc. in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999. By the terms of the Series A preferred stock, so long as any shares of Series A preferred stock are outstanding, neither the Company nor any subsidiary of the Company shall redeem, repurchase or otherwise acquire any shares of common stock, unless all accrued dividends on the Series A preferred stock have been paid. During 2013 and 2015, we repurchased shares of our outstanding common stock. As of December 31, 2015, the Series A preferred stock had cumulative dividends of $2.9 million and we include such cumulative dividends in “Accrued liabilities” in our consolidated balance sheets . No shares were repurchased during 2020, 2019 and 2018 under this program. If we are required to pay the cumulative dividends on the Series A preferred stock, our cash and cash equivalents would be reduced. We account for the cumulative year to date dividends on the Series A preferred stock when calculating our earnings per share.
Issuer Purchases of Equity Securities
On October 27, 2014, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $5.0 million of our outstanding common stock. These repurchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. During 2015, we repurchased approximately 908,000 shares at an average price of $2.52 per share for a total purchase price of approximately $2.3 million under the stock repurchase program. No shares were repurchased during 2020 or 2019 under this program. As of December 31, 2020 and 2019, approximately $2.7 million remained available for future repurchases under this program, respectively.
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Comparison of Stockholder Return
Set forth below is a line graph comparing the annual percentage change in the cumulative total return to the stockholders of the Company on our common stock with the CRSP Total Return Index for the Nasdaq Stock Market (U.S. Companies) and the Nasdaq Electronic Components Index for the period commencing December 31, 2015 and ending December 31, 2020.
12/15
12/16
12/17
12/18
12/19
12/20
AXT, Inc.
100
193.55
350.81
175.40
175.40
385.89
NASDAQ Composite
100
108.87
141.13
137.12
187.44
271.64
NASDAQ Electronic Components
100
121.48
146.21
119.92
178.71
252.83
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Item 6. Selected Consolidated Financial Data
The following selected consolidated financial data is derived from and should be read in conjunction with our consolidated financial statements and related notes set forth in Item 8 below, and in our previously filed reports on Form 10-K. See also Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further information relating to items reflecting our results of operations and financial condition.
Year Ended December 31,
2020
2019
2018
2017
2016
(in thousands, except per share data)
Statements of Operations Data:
Revenue
$
95,361
$
83,256
$
102,397
$
98,673
$
81,349
Cost of revenue
65,086
58,431
65,350
64,198
54,968
Gross profit
30,275
24,825
37,047
34,475
26,381
Operating expenses:
Selling, general and administrative
19,200
19,305
19,003
17,009
13,880
Research and development
7,135
5,834
5,897
4,827
5,850
Restructuring charge
—
—
—
—
226
Total operating expenses
26,335
25,139
24,900
21,836
19,956
Income (loss) from operations
3,940
(314)
12,147
12,639
6,425
Interest income (expense), net
(179)
217
528
461
409
Equity in income (loss) of unconsolidated joint ventures
111
(1,876)
(1,080)
(1,694)
(1,995)
Other income (expense), net
3,200
947
352
(553)
860
Income (loss) before provision for income taxes
7,072
(1,026)
11,947
10,853
5,699
Provision for income taxes
2,031
562
938
792
733
Net income (loss)
5,041
(1,588)
11,009
10,061
4,966
Less: Net (income) loss attributable to noncontrolling interests
(1,803)
(1,012)
(1,355)
87
670
Net income (loss) attributable to AXT, Inc.
$
3,238
$
(2,600)
$
9,654
$
10,148
$
5,636
Net income (loss) attributable to AXT, Inc. per common share:
Basic
$
0.08
$
(0.07)
$
0.24
$
0.27
$
0.17
Diluted
$
0.07
$
(0.07)
$
0.24
$
0.26
$
0.17
Shares used in per share calculations:
Basic
40,152
39,487
39,049
37,444
32,139
Diluted
41,025
39,487
40,265
38,966
32,894
December 31,
2020
2019
2018
2017
2016
(in thousands)
Balance Sheet Data:
Cash and cash equivalents
$
72,602
$
26,892
$
16,526
$
44,352
$
36,152
Investments
5,966
9,427
22,846
32,608
17,571
Working capital
125,443
85,679
99,831
117,927
91,335
Total assets
298,862
223,349
223,524
211,200
154,246
Current liabilities
39,075
27,526
28,709
22,594
15,951
Stockholders’ equity
207,969
192,762
194,532
188,317
137,390
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