Fire at AXT’s Bejing Plant

AXT, Inc., headquartered in Fremont, California USA, reported that a fire broke out from an electrical short its Beijing production facility on the evening of March 15, 2017, local time.
The fire was in its germanium and gallium arsenide crystal growth fabrication area, and production has stopped in that area. Fortunately, no injuries occurred nor was there any structural damage.

Out of an abundance of caution, AXT has decided to halt the processing of all wafer substrates despite the fact that the areas for indium phosphide crystal growth as well as those for processing germanium, indium phosphide, and gallium arsenide were not affected.

The company is looking into the cause of the incident with the help of the fire department and other local regulatory agencies, and AXT intends to resume production as quickly as possible. No details about the source of the fire are yet available. However, Morris Young, CEO, and Gary Fischer, CFO, traveled to Beijing earlier in March and remain on site to oversee the situation.

As a result of the fire, the company has lowered its revenue guidance for the first quarter, ending March 31, 2017. The company now expects the revenue for the quarter to be in the range of $18M to $18.5M, compared with previous guidance of $19.5M to $20.5M.