AXT Inc. stockholders approve new equity incentive plan

Published 16/05/2025, 21:26
AXT Inc. stockholders approve new equity incentive plan

FREMONT, CA - AXT Inc . (NASDAQ:AXTI), a manufacturer of semiconductor substrates with a market capitalization of $66 million, announced the approval of a new equity incentive plan following its Annual Meeting of Stockholders held on Thursday. According to InvestingPro data, the company currently trades at $1.49 per share, with analysis indicating the stock is trading below its Fair Value. The 2025 Equity Incentive Plan, which was previously approved by the Board of Directors on April 2, 2025, subject to stockholder approval, received the green light from shareholders on May 15, 2025.

The plan aims to attract and retain highly skilled employees and executive officers by providing various equity awards, including stock options, restricted stock, and performance shares. These awards may be vested based on service, performance goals, or criteria set by the plan’s administrator. This comes at a crucial time as InvestingPro analysis shows the company faces challenges with weak financial health scores and negative EBITDA of $12.7 million in the last twelve months.

At the Annual Meeting, shareholders also re-elected Christine Russell as a Class III director for a three-year term. Additionally, the compensation of the company’s named executive officers, as disclosed in the Proxy Statement, was approved on an advisory basis.

Furthermore, AXT Inc.’s stockholders ratified the appointment of BPM LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.

This information is based on an 8-K filing with the Securities and Exchange Commission.

In other recent news, AXT Inc reported disappointing first-quarter 2025 financial results, with both earnings per share (EPS) and revenue falling short of analyst expectations. The company posted an EPS of -$0.19, significantly missing the forecasted -$0.05, while revenue reached $19.4 million, below the anticipated $23.85 million. AXT Inc is facing challenges due to export restrictions and yield issues in its gallium arsenide wafer production. Despite these setbacks, the company is optimistic about a recovery, projecting second-quarter revenue between $20 million and $22 million and a gross margin improvement to 10%. Additionally, AXT is navigating the permit process for indium phosphide exports, which it expects to resolve by mid-June, potentially easing operational constraints. Analysts from Needham and Company and Craig Hallum have expressed concerns about AXT’s production yields and the impact of geopolitical tensions on its operations. The company remains focused on opportunities in data center connectivity and LiDAR for autonomous vehicles, which it believes will drive future growth.

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