How did AXTI's revenue and expenses shift in Q4 2024 compared to previous quarters?

AXTI's revenue increased in Q4 2024 compared to the previous quarter, but expenses did not increase accordingly, leading to a decrease in gross margin and an improvement in net loss.

1. **Revenue Shift**:
- AXTI's revenue for Q4 2024 was $25.11 million.
- This is a significant increase from the previous quarter's revenue of $23.65 million.
- The year-over-year revenue growth for Q4 2024 was 22.5%.
2. **Expense Shift**:
- There are no available data on AXTI's expenses for Q4 2024.
- However, the company reported an increase in non-GAAP operating expense in Q1 2024, which was $8.7 million.
- This suggests that while there may not have been a direct increase in expenses from Q3 2024 to Q4 2024, the company has been investing in areas such as research and development, as indicated by the increase in non-GAAP operating expense in Q1 2024.
3. **Gross Margin and Net Loss**:
- The GAAP gross margin for Q4 2024 was 17.6%.
- This is a decrease from the 24.0% gross margin in the previous quarter.
- The non-GAAP gross margin for Q4 2024 was 17.9%.
- The company reported a net loss of $5.1 million for Q4 2024, which is an improvement from the net loss of $2.9 million in the previous quarter.
4. **Insights from Management**:
- AXTI's management has emphasized aggressive technical advancements and successful market penetration into the cloud and data center infrastructure market, as well as the cell phone market.
- These strategic shifts are likely contributing to the revenue growth despite the challenges in meeting market expectations and the impact of export restrictions.

In conclusion, AXTI's revenue showed a positive shift with a significant increase in Q4 2024 compared to the previous quarter, but the company faced challenges in managing expenses and maintaining gross margin. The net loss improved, which could be a result of increased revenue and better cost management despite the decrease in gross margin.