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AXT, Inc. (NASDAQ:AXTI), a semiconductor substrate manufacturer currently valued at $92.57 million, announced Monday that its board of directors has appointed Leonard J. LeBlanc as a member of the board, effective immediately. The company’s stock, which has seen a significant 21% decline over the past week according to InvestingPro data, currently trades at $2.11 per share. The appointment fills a vacancy created by the passing of former director Christine Russell. LeBlanc will serve as a Class III director with a term expiring July 29, 2027, or until a successor is elected and qualified.
LeBlanc previously served as a director of AXT from April 2003 to December 2021 and as director emeritus in 2022. This appointment comes at a challenging time for AXT, as InvestingPro data reveals the company faces profitability headwinds with weak gross profit margins of 12% and negative earnings over the last twelve months. InvestingPro subscribers have access to 11 additional key insights about AXT’s financial health and market position. His background includes executive roles at Ebest, Inc., Vantive Corporation, Infoseek Corporation, GTECH Corporation, and Cadence Design (NASDAQ:CDNS) Systems, Inc. He has also served on the board and as audit committee chair of Oplink Communications, Inc.
In connection with his appointment, the board considered LeBlanc’s prior compensation as director emeritus, which exceeded $120,000 in 2022, and determined that he is not currently independent under Nasdaq Listing Rules. LeBlanc received $124,805 in compensation in 2022, but did not receive more than $120,000 in any twelve-month period after that, and received no compensation from AXT after December 29, 2023. The board expects that LeBlanc will meet Nasdaq independence requirements on January 1, 2026.
LeBlanc was also appointed to the audit, compensation, and nominating and corporate governance committees as a non-independent director, in reliance on a limited exception under Nasdaq rules. The board cited his prior service and familiarity with AXT’s operations as reasons for his appointment. LeBlanc will receive cash and equity compensation according to AXT’s non-employee director policy, including an initial award of 29,112 shares of restricted stock vesting May 15, 2026, subject to continued service.
The board also appointed Jesse Chen as chair of the audit committee, effective immediately. Chen currently serves as an independent director and lead director, and is recognized by the board as an “audit committee financial expert.” He will receive an annual cash retainer of $20,000 for this role.
This information is based on a statement in a press release filed with the Securities and Exchange Commission.
In other recent news, AXT Inc . reported its second-quarter 2025 earnings, which revealed a revenue miss compared to forecasts. The company posted a non-GAAP net loss of $0.15 per share, slightly worse than the expected loss of $0.13. Revenue came in at $18 million, falling short of the anticipated $19.78 million. These figures indicate a challenging quarter for AXT Inc. as they did not meet analysts’ expectations. The announcement of these results was followed by a slight dip in the company’s stock price. Despite the initial decline, the stock rebounded in aftermarket trading. Investors will be closely monitoring how AXT Inc. addresses these financial challenges in the coming quarters.
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