will record $24 million in impairment charges in the second quarter, but the company said its pro forma outlook remains in line with previous guidance.
AXT said the charges are related to nonrecoverable amounts from assets on its balance sheet including a $14.1 million charge for excess capacity at AXT's Fremont substrate facility, and a $9.9 million charge for a slower outlook for improvement in the opto-electronics segment. Both charges are noncash writedowns, and the company said it will continue to assess the recoverability of its investments in
to determine if any further impairment charges are needed.
In a press release, AXT said its pro forma operating guidance for 5% to 8% revenue growth remains unchanged. The company expects its substrate business to see 3% to 6% sequential revenue growth, while its LED business is expected to grow 15% to 20% sequentially.
Shares of AXT closed Thursday at $9.74 before the news.