IPO Company Profile
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American Xtal Technology, Inc.
4311 Solar Way, Fremont, CA 94538 * (510) 683-5900

The company uses a proprietary vertical gradient freeze technique to produce high-performance compound semiconductor base materials, or substrates, for use in a variety of electronic and opto-electronic applications.

Primary Underwriting Group
ManagerTierPhone
Prudential Securities IncorporatedLead Manager (212) 778-5420
Cowen & CompanyCo-manager (212) 495-6000

Offering Information
NASNTL:AXTI High-Tech: SIC 3674
Type of Shares:Common Shares Filing Date:3/17/98
U.S. Shares:2,500,000 Offer Date:5/20/98
Non-U.S. Shares:0 Filing Range:$8.00 - $10.00
Primary Shares:2,500,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.70
Offering Amount: $22,500,000 Selling:$0.40
Expenses:$900,000 Reallowance:$1.00
Post-IPO Shares:15,670,268
Employees:246

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Gray Cary Ware & Freidenrich
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Registrar/Transfer Agent: American Securities Transfer, Inc
Auditor: Price Waterhouse

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$25.34Assets:$30.61
Net Income:$3.26Curr Assets:$18.50
EPS:$1.11Liabilities:$12.02
Prior EPS:$0.71Curr Liab:$4.29
Cash Flow/Oper:-$1.16Equity:$18.59
Cash Flow/Fin:$8.40Cash:$3.05
Cash Flow/Inv:-$4.86Working Cap:$14.21

Competition
The Company believes that the primary competitive factors in the markets in which the Company's products compete are quality, price, performance and customer support and satisfaction, as well as customer commitment to competing technologies. The Company's ability to compete in its target markets also depends on such factors as the timing and success of the development and introduction of new products by the Company and its competitors, the availability of adequate sources of raw materials, protection of Company products by effective utilization of intellectual property laws and general economic conditions. In order to remain competitive, the Company believes it must invest significant resources in developing new substrates and in maintaining customer satisfaction worldwide. There can be no assurance that the Company's products will continue to compete favorably or that the Company will be successful in the face of competition from existing competitors or new companies entering the Company's target markets. Failure of the Company to compete successfully would materially adversely affect the Company's business, financial condition and results of operations.

Business Plan
The Company's strategy is to be the leading developer and supplier of high-performance GaAs substrates for both the semi-insulating and semi-conducting markets, and to continue to expand into the development and supply of other substrates. The key elements of the Company's strategy include: (I) Advance VGF Technology Leadership, (ii) Extend Leadership in GaAs Market, (iii) Leverage VGF Technology to Manufacture Additional Substrates, (iv) Increase Manufacturing Capacity to Target High-Volume Markets and (v) Leverage Existing Customer Relationships.

Use of Proceeds
The proceeds from the proposed offering will be used for capital expenditures, product develop, sales and marketing and general corporate purposes.

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