----

----

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| x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|----------------------------------------------------------------------------------------------------|

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| DELAWARE                                                      |   | 94-3031310                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofIncorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

----

| Large accelerated filer o                     |   | Accelerated filer x         |
|-----------------------------------------------|--------|----------------------------------|
|                                          |   |                             |
| Non-accelerated filer o                       |   | Smaller reporting company o |
| (Do not check if a smaller reporting company) |   |                             |

| Class                          |   | Outstanding at April 29, 2011 |
|--------------------------------|--------|---------------------------------------------------|
| Common Stock, $0.001 par value |   | 31,973,288                                        |

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----

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AXT

|                                                                                                    |   | Page |
|---------------------------------------------------------------------------------------------------------|--------|------|
| PART I. FINANCIAL INFORMATION                                                                      |   | 3    |
| Item 1. Financial Statements (unaudited)                                                                |   | 3    |
| Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010              |   | 3    |
| Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 |   | 4    |
| Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 |   | 5    |
| Notes To Condensed Consolidated Financial Statements                                                    |   | 6    |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations     |   | 17   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                      |   | 25   |
| Item 4. Controls and Procedures                                                                         |   | 27   |
| PART II. OTHER INFORMATION                                                                         |   | 28   |
| Item 1. Legal Proceedings                                                                               |   | 28   |
| Item 1A. Risk Factors                                                                                   |   | 28   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                     |   | 28   |
| Item 3. Defaults Upon Senior Securities                                                                 |   | 28   |
| Item 4. [Reserved]                                                                                      |   | 28   |
| Item 5. Other Information                                                                               |   | 28   |
| Item 6. Exhibits                                                                                        |   | 29   |
| Signatures                                                                                              |   | 30   |

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Table of Contents

Item 

AXT

|                                                                                                                                                                                                                                                                                 |   | March 31, |    |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                 |   | 2011           |    |   | 2010 (1)          |   |
| Assets:                                                                                                                                                                                                                                                                              |   |           |    |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                      |   |           |    |   |              |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                            |   | $              | 23,273  |   |              | $      | 23,724 |   |
| Short-term investments                                                                                                                                                                                                                                                               |   |           | 4,756   |   |              |   | 10,079 |   |
| Accounts receivable, net of allowances of $403 and $561 as of March 31, 2011 and December 31, 2010, respectively                                                                                                                                                           |   |           | 19,154  |   |              |   | 23,076 |   |
| Inventories                                                                                                                                                                                                                                                                          |   |           | 39,747  |   |              |   | 35,986 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                            |   |           | 7,009   |   |              |   | 4,090 |   |
| Total current assets                                                                                                                                                                                                                                                                 |   |           | 93,939  |   |              |   | 96,955 |   |
| Long-term investments                                                                                                                                                                                                                                                                |   |           | 10,425  |   |              |   | 7,172 |   |
| Property, plant and equipment, net                                                                                                                                                                                                                                                   |   |           | 26,173  |   |              |   | 24,240 |   |
| Other assets                                                                                                                                                                                                                                                                         |   |           | 11,950  |   |              |   | 11,884 |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                                         |   | $              | 142,487 |   |              | $      | 140,251 |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| Liabilities and stockholders’ equity:                                                                                                                                                                                                                                          |   |           |    |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                     |   | $              | 6,076   |   |              | $      | 7,094 |   |
| Accrued liabilities                                                                                                                                                                                                                                                                  |   |           | 7,116   |   |              |   | 7,745 |   |
| Total current liabilities                                                                                                                                                                                                                                                            |   |           | 13,192  |   |              |   | 14,839 |   |
| Long-term portion of royalty payments                                                                                                                                                                                                                                                |   |           | 5,063   |   |              |   | 5,500 |   |
| Other long-term liabilities                                                                                                                                                                                                                                                          |   |           | 102     |   |              |   | 108 |   |
| Total liabilities                                                                                                                                                                                                                                                                    |   |           | 18,357  |   |              |   | 20,447 |   |
| Commitments and contingencies (Note 10)                                                                                                                                                                                                                                         |   |           |    |   |              |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                          |   |           |    |   |              |   |   |   |
| Preferred stock, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of March 31, 2011 and December 31, 2010 (Liquidation preference of  $5.6 million as of March 31, 2011 and December 31, 2010) |   |           | 3,532   |   |              |   | 3,532 |   |
| Common stock, $0.001 par value per share; 70,000 shares authorized; 31,973 and 31,877 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively                                                                                          |   |           | 32      |   |              |   | 32 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                           |   |           | 190,585 |   |              |   | 190,021 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                  |   |           | (78,269 | )      |              |   | (82,477 | ) |
| Accumulated other comprehensive income                                                                                                                                                                                                                                               |   |           | 4,720   |   |              |   | 4,652 |   |
| AXT, Inc. stockholders’ equity                                                                                                                                                                                                                                            |   |           | 120,600 |   |              |   | 115,760 |   |
| Noncontrolling interests                                                                                                                                                                                                                                                             |   |           | 3,530   |   |              |   | 4,044 |   |
| Total stockholders’ equity                                                                                                                                                                                                                                                     |   |           | 124,130 |   |              |   | 119,804 |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                                     |   | $              | 142,487 |   |              | $      | 140,251 |   |

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|   | (1) | The condensed consolidated balance sheet at December 31, 2010 has been derived from the audited consolidated financial statements at that date. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

AXT

|                                                        |   | Three Months Ended |   |
|-------------------------------------------------------------|--------|------------------------------|--------|
|                                                        |   | March 31,               |   |
|                                                        |   | 2011                         |   |   | 2010 |   |
|                                                        |   |                         |   |   |   |   |
| Revenue                                                     |   | $                            | 24,566 |   |   | $ | 18,641 |   |
| Cost of revenue                                             |   |                         | 13,906 |   |   |   | 11,909 |   |
| Gross profit                                                |   |                         | 10,660 |   |   |   | 6,732 |   |
|                                                        |   |                         |   |   |   |   |   |   |
| Operating expenses:                                         |   |                         |   |   |   |   |   |   |
| Selling, general and administrative                         |   |                         | 3,690  |   |   |   | 3,419 |   |
| Research and development                                    |   |                         | 505    |   |   |   | 451 |   |
| Total operating expenses                                    |   |                         | 4,195  |   |   |   | 3,870 |   |
| Income from operations                                      |   |                         | 6,465  |   |   |   | 2,862 |   |
| Interest income, net                                        |   |                         | 87     |   |   |   | 15 |   |
| Other income (expense), net                                 |   |                         | (363   | ) |   |   | 79 |   |
|                                                        |   |                         |   |   |   |   |   |   |
| Income before provision for income taxes                    |   |                         | 6,189  |   |   |   | 2,956 |   |
| Provision for income taxes                                  |   |                         | (902   | ) |   |   | (246 | ) |
| Net income                                                  |   |                         | 5,287  |   |   |   | 2,710 |   |
| Less: Net income attributable to noncontrolling interest    |   |                         | (1,079 | ) |   |   | (130 | ) |
| Net income attributable to AXT, Inc.                   |   | $                            | 4,208  |   |   | $ | 2,580 |   |
|                                                        |   |                         |   |   |   |   |   |   |
| Net income attributable to AXT, Inc. per common share: |   |                         |   |   |   |   |   |   |
| Basic                                                       |   | $                            | 0.13   |   |   | $ | 0.08 |   |
| Diluted                                                     |   | $                            | 0.13   |   |   | $ | 0.08 |   |
|                                                        |   |                         |   |   |   |   |   |   |
| Weighted average number of common shares outstanding:       |   |                         |   |   |   |   |   |   |
| Basic                                                       |   |                         | 31,718 |   |   |   | 30,743 |   |
| Diluted                                                     |   |                         | 33,199 |   |   |   | 31,792 |   |

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AXT

|                                                                              |   | Three Months EndedMarch 30, |    |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                              |   | 2011                                       |    |   | 2010 |   |
| Cash flows from operating activities:                                             |   |                                       |    |   |   |   |
| Net income                                                                        |   | $                                          | 5,287   |   |   | $ | 2,710 |   |
|                                                                              |   |                                       |    |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                       |    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                                       | 815     |   |   |   | 752 |   |
| Amortization of marketable securities premium                                     |   |                                       | 98      |   |   |   | — |   |
| Stock-based compensation                                                          |   |                                       | 207     |   |   |   | 114 |   |
| Realized loss (gain) on sale of investments                                       |   |                                       | 4       |   |   |   | (120 | ) |
| Loss on disposal of property, plant and equipment                                 |   |                                       | — |   |   |   | 1 |   |
| Changes in assets and liabilities:                                                |   |                                       |    |   |   |   |   |   |
| Accounts receivable, net                                                          |   |                                       | 3,916   |   |   |   | 196 |   |
| Inventories                                                                       |   |                                       | (3,773  | ) |   |   | (505 | ) |
| Prepaid expenses and other current assets                                         |   |                                       | (2,926  | ) |   |   | (655 | ) |
| Other assets                                                                      |   |                                       | (69     | ) |   |   | 38 |   |
| Accounts payable                                                                  |   |                                       | (1,014  | ) |   |   | 1,366 |   |
| Accrued liabilities                                                               |   |                                       | (624    | ) |   |   | 325 |   |
| Other long-term liabilities                                                       |   |                                       | (395    | ) |   |   | 9 |   |
| Net cash provided by operating activities                                         |   |                                       | 1,526   |   |   |   | 4,231 |   |
|                                                                              |   |                                       |    |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |                                       |    |   |   |   |   |   |
| Purchases of property, plant and equipment                                        |   |                                       | (2,787  | ) |   |   | (320 | ) |
| Proceeds from disposal of property, plant and equipment                           |   |                                       | — |   |   |   | 4 |   |
| Purchases of available for sale securities                                        |   |                                       | (10,002 | ) |   |   | (6,284 | ) |
| Proceeds from available for sale securities                                       |   |                                       | 11,923  |   |   |   | 6,120 |   |
| Net cash used in investing activities                                             |   |                                       | (866    | ) |   |   | (480 | ) |
|                                                                              |   |                                       |    |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |                                       |    |   |   |   |   |   |
| Proceeds from common stock options exercised                                      |   |                                       | 357     |   |   |   | 132 |   |
| Dividends paid by joint ventures                                                  |   |                                       | (1,636  | ) |   |   | (192 | ) |
| Long-term debt payments                                                           |   |                                       | — |   |   |   | (18 | ) |
| Net cash used in financing activities                                             |   |                                       | (1,279  | ) |   |   | (78 | ) |
| Effect of exchange rate changes on cash and cash equivalents                      |   |                                       | 168     |   |   |   | — |   |
|                                                                              |   |                                       |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                              |   |                                       | (451    | ) |   |   | 3,673 |   |
| Cash and cash equivalents at the beginning of the period                          |   |                                       | 23,724  |   |   |   | 16,934 |   |
| Cash and cash equivalents at the end of the period                                |   | $                                          | 23,273  |   |   | $ | 20,607 |   |

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AXT

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Table of Contents

|                                                                                                                 |   | Three Months EndedMarch 31, |    |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                 |   | 2011                                       |    |   | 2010 |   |
| Stock-based compensation in the form of employee stock options, included in: |   |                                       |    |   |   |   |
|                                                                                                                 |   |                                       |    |   |   |   |
| Cost of revenue                                                                                                      |   | $                                          | 20      |   |   | $ | 10 |   |
| Selling, general and administrative                                                                                  |   |                                       | 176     |   |   |   | 97 |   |
| Research and development                                                                                             |   |                                       | 11      |   |   |   | 7 |   |
|                                                                                                                 |   |                                       |    |   |   |   |   |   |
| Total stock-based compensation                                                                                       |   |                                       | 207     |   |   |   | 114 |   |
| Tax effect on stock-based compensation                                                                               |   |                                       | — |   |   |   | — |   |
|                                                                                                                 |   |                                       |    |   |   |   |   |   |
| Net effect on net income                                                                                             |   | $                                          | 207     |   |   | $ | 114 |   |
| Effect on net income attributable to AXT, Inc. per common share:                                                |   |                                       |    |   |   |   |   |   |
| Basic                                                                                                                |   | $                                          | 0.01    |   |   | $ | 0.00 |   |
| Diluted                                                                                                              |   | $                                          | 0.01    |   |   | $ | 0.00 |   |

| Stock Options                                                 |   | Shares |    |   | Weighted-averageExercisePrice |   |    | Weighted-averageRemainingContractualLife(in years) |   |   | AggregateIntrinsicValue |   |
|---------------------------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|---------|---------------------------------------------------------|--------|--------|-------------------------|--------|
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |
| Balance as of January 1, 2011                            |   |   | 2,280   |   |                          | $      | 3.10    |                                                    |   |   |                    |   |   |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |
| Granted                                                       |   |   | — |   |                          |   | — |                                                    |   |   |                    |   |   |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |
| Exercised                                                     |   |   | (100    | )      |                          |   | 3.57    |                                                    |   |   |                    |   |   |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |
| Canceled and expired                                          |   |   | — |   |                          |   | — |                                                    |   |   |                    |   |   |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |
| Balance as of March 31, 2011                             |   |   | 2,180   |   |                          | $      | 3.08    |                                                    |   |   | 6.37                    |   |   | $ | 9,348 |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |   |   |
| Options vested and expected to vest as of March 31, 2011 |   |   | 2,097   |   |                          | $      | 3.05    |                                                    |   |   | 6.27                    |   |   | $ | 9,066 |   |
|                                                          |   |   |    |   |                          |   |    |                                                    |   |   |                    |   |   |   |   |   |
| Options exercisable as of March 31, 2011                 |   |   | 1,259   |   |                          | $      | 2.68    |                                                    |   |   | 4.62                    |   |   | $ | 6,077 |   |

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Table of Contents

| Options Outstanding as of March 31, 2011 |   | Options Exercisableas of March 31, 2011 |   |
|------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
| Range of Exercise Price                                 |   | Shares                                                           |   | Weighted-averageExercise Price |   | Weighted-averageRemainingContractual Life |   | Shares |   | Weighted-AverageExercise Price |   |
| $1.18 - $1.33                                                          |   | 231,174                                                          |   | $ | 1.26 |   | 3.90 |   | 231,174 |   | $ | 1.26 |   |
| $1.34 - $1.40                                                          |   | 191,494                                                          |   | $ | 1.38 |   | 2.41 |   | 191,494 |   | $ | 1.38 |   |
| $1.59 - $1.59                                                          |   | 421,508                                                          |   | $ | 1.59 |   | 8.09 |   | 206,889 |   | $ | 1.59 |   |
| $1.88 - $1.98                                                          |   | 15,000                                                           |   | $ | 1.93 |   | 4.09 |   | 15,000 |   | $ | 1.93 |   |
| $2.04 - $2.04                                                          |   | 459,900                                                          |   | $ | 2.04 |   | 8.57 |   | 153,969 |   | $ | 2.04 |   |
| $2.19 - $3.11                                                          |   | 273,109                                                          |   | $ | 2.39 |   | 1.89 |   | 273,109 |   | $ | 2.39 |   |
| $3.14 - $5.09                                                          |   | 84,418                                                           |   | $ | 4.49 |   | 5.37 |   | 83,012 |   | $ | 4.48 |   |
| $5.83 - $5.83                                                          |   | 365,750                                                          |   | $ | 5.83 |   | 9.34 |   | 0 |   | $ | 0.00 |   |
| $6.31 - $12.12                                                         |   | 127,730                                                          |   | $ | 7.53 |   | 5.59 |   | 94,812 |   | $ | 7.62 |   |
| $39.80 - $39.80                                                        |   | 10,000                                                           |   | $ | 39.80 |   | 0.14 |   | 10,000 |   | $ | 39.80 |   |
|                                                                   |   | 2,180,083                                                        |   | $ | 3.08 |   | 6.37 |   | 1,259,459 |   | $ | 2.68 |   |

| Stock Awards                          |   | Shares |    |   | Weighted-AverageGrant Date Fair Value |   |
|---------------------------------------|--------|--------|---------|--------|------------------------------------------------------|--------|
| Non-vested as of January 1, 2011 |   |   | 218,405 |   |                                                 | $      | 3.30 |   |
| Granted                               |   |   | — |   |                                                 | $      | — |   |
| Vested                                |   |   | — |   |                                                 | $      | — |   |
| Non-vested as of March 31, 2011  |   |   | 218,405 |   |                                                 | $      | 3.30 |   |

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Table of Contents

|                                         |   | March 31, 2011 |   |   | December 31, 2010 |   |
|----------------------------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                                         |   |                     |   |   | Gross                       |   |   | Gross |   |   |   |   |   |   |   |   | Gross |   |   | Gross |   |   |   |   |
|                                         |   | Amortized                |   |   | Unrealized                  |   |   | Unrealized |   |   | Fair |   |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                         |   | Cost                     |   |   | Gain                        |   |   | (Loss) |   |   | Value |   |   | Cost |   |   | Gain |   |   | (Loss) |   |   | Value |   |
| Classified as:                               |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                         |   | $                        | 19,777 |   |                        | $      | — |   |   | $ | — |   |   | $ | 19,777 |   |   | $ | 22,736 |   |   | $ | — |   |   | $ | — |   |   | $ | 22,736 |   |
| Cash equivalents:                            |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market fund                            |   |                     | 3,496  |   |                        |   | — |   |   |   | — |   |   |   | 3,496 |   |   |   | 988 |   |   |   | — |   |   |   | — |   |   |   | 988 |   |
|                                         |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total cash equivalents                       |   |                     | 3,496  |   |                        |   | — |   |   |   | — |   |   |   | 3,496 |   |   |   | 988 |   |   |   | — |   |   |   | — |   |   |   | 988 |   |
|                                         |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total cash and cash equivalents              |   |                     | 23,273 |   |                        |   | — |   |   |   | — |   |   |   | 23,273 |   |   |   | 23,724 |   |   |   | — |   |   |   | — |   |   |   | 23,724 |   |
|                                         |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments:                                 |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates of deposit                      |   |                     | 3,121  |   |                        |   | 12 |   |   |   | (3 | ) |   |   | 3,130 |   |   |   | 3,360 |   |   |   | 11 |   |   |   | — |   |   |   | 3,371 |   |
| US Treasury and agency securities            |   |                     | 3,780  |   |                        |   | — |   |   |   | (8 | ) |   |   | 3,772 |   |   |   | 4,903 |   |   |   | 8 |   |   |   | (2 | ) |   |   | 4,909 |   |
| Corporate bonds                              |   |                     | 8,300  |   |                        |   | 8 |   |   |   | (29 | ) |   |   | 8,279 |   |   |   | 8,961 |   |   |   | 10 |   |   |   | — |   |   |   | 8,971 |   |
| Total investments                            |   |                     | 15,201 |   |                        |   | 20 |   |   |   | (40 | ) |   |   | 15,181 |   |   |   | 17,224 |   |   |   | 29 |   |   |   | (2 | ) |   |   | 17,251 |   |
| Total cash, cash equivalents and investments |   | $                        | 38,474 |   |                        | $      | 20 |   |   | $ | (40 | ) |   | $ | 38,454 |   |   | $ | 40,948 |   |   | $ | 29 |   |   | $ | (2 | ) |   | $ | 40,975 |   |
| Contractual maturities on investments:       |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due within 1 year                            |   | $                        | 4,745  |   |                        |   |   |   |   |   |   |   |   | $ | 4,756 |   |   | $ | 10,074 |   |   |   |   |   |   |   |   |   |   | $ | 10,079 |   |
| Due after 1 through 5 years                  |   |                     | 10,456 |   |                        |   |   |   |   |   |   |   |   |   | 10,425 |   |   |   | 7,150 |   |   |   |   |   |   |   |   |   |   |   | 7,172 |   |
|                                         |   | $                        | 15,201 |   |                        |   |   |   |   |   |   |   |   | $ | 15,181 |   |   | $ | 17,224 |   |   |   |   |   |   |   |   |   |   | $ | 17,251 |   |

|                              |   | In Loss Position< 12 months |   |   | In Loss Position> 12 months |   |   | Total InLoss Position |   |
|-----------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------|--------|
|                              |   | FairValue                           |   |   | GrossUnrealized(Loss)               |   |   | FairValue             |   |   | GrossUnrealized(Loss) |   |   | FairValue |   |   | GrossUnrealized(Loss) |   |
| Investments:                      |   |                                |   |   |                                |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Certificates of deposit           |   | $                                   | 957    |   |                                | $      | (3     | )                     |   | $ | — |   |   | $ | — |   |   | $ | 957 |   |   | $ | (3 | ) |
| US Treasury and agency securities |   |                                | 3,772  |   |                                |   | (8     | )                     |   |   | — |   |   |   | — |   |   |   | 3,772 |   |   |   | (8 | ) |
| Corporate bonds                   |   |                                | 6,711  |   |                                |   | (29    | )                     |   |   | — |   |   |   | — |   |   |   | 6,711 |   |   |   | (29 | ) |
| Total in loss position            |   | $                                   | 11,440 |   |                                | $      | (40    | )                     |   | $ | — |   |   | $ | — |   |   | $ | 11,440 |   |   | $ | (40 | ) |

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|                              |   | Balance as ofMarch 31, 2011 |    |   | Quoted Prices inActive Markets ofIdentical Assets(Level 1) |   |    | Significant OtherObservableInputs(Level 2) |   |
|-----------------------------------|--------|-------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------|--------|---------|------------------------------------------------------|--------|
| Assets:                           |   |                                            |    |   |                                                                                     |   |    |                                                 |   |
| Cash equivalents and investments: |   |                                            |    |   |                                                                                     |   |    |                                                 |   |
| Money market fund                 |   | $                                               | 3,496   |   |                                                                                     | $      | 3,496   |                                                 |   | $ | — |   |
| Certificates of deposit           |   |                                            | 3,130   |   |                                                                                     |   | — |                                                 |   |   | 3,130 |   |
| US Treasury and agency securities |   |                                            | 3,772   |   |                                                                                     |   | — |                                                 |   |   | 3,772 |   |
| Corporate bonds                   |   |                                            | 8,279   |   |                                                                                     |   | — |                                                 |   |   | 8,279 |   |
| Total                             |   | $                                               | 18,677  |   |                                                                                     | $      | 3,496   |                                                 |   | $ | 15,181 |   |
| Liabilities                       |   | $                                               | — |   |                                                                                     | $      | — |                                                 |   | $ | — |   |

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|            |   | March 31, |   |   | December 31, |   |
|-----------------|--------|----------------|--------|--------|-------------------|--------|
|            |   | 2011           |   |   | 2010              |   |
| Inventories:    |   |           |   |   |              |   |
| Raw materials   |   | $              | 19,977 |   |              | $      | 16,477 |   |
| Work in process |   |           | 15,010 |   |              |   | 15,839 |   |
| Finished goods  |   |           | 4,760  |   |              |   | 3,670 |   |
|            |   | $              | 39,747 |   |              | $      | 35,986 |   |

|                                     |   | March 31, |   |   | December 31, |   |
|------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                     |   | 2011           |   |   | 2010              |   |
|                                     |   |           |   |   |              |   |
| Accrued compensation and related charges |   | $              | 1,244  |   |              | $      | 1,694 |   |
| Current portion of royalty payments      |   |           | 1,375  |   |              |   | 1,622 |   |
| Accrued product warranty                 |   |           | 798    |   |              |   | 740 |   |
| Accrued income taxes                     |   |           | 846    |   |              |   | 516 |   |
| Other accrued liabilities                |   |           | 2,853  |   |              |   | 3,173 |   |
|                                     |   | $              | 7,116  |   |              | $      | 7,745 |   |

|                                                                                       |   | Three Months EndedMarch 31, |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                       |   | 2011                                       |   |   | 2010 |   |
| Numerator:                                                                                 |   |                                       |   |   |   |   |
| Net income attributable to AXT, Inc.                                                  |   | $                                          | 4,208  |   |   | $ | 2,580 |   |
| Less: Preferred stock dividends                                                            |   |                                       | (44    | ) |   |   | (44 | ) |
|                                                                                       |   |                                       |   |   |   |   |   |   |
| Net income available to common stockholders                                                |   | $                                          | 4,164  |   |   | $ | 2,536 |   |
| Denominator:                                                                               |   |                                       |   |   |   |   |   |   |
| Denominator for basic net income per share - weighted average common shares                |   |                                       | 31,718 |   |   |   | 30,743 |   |
| Effect of dilutive securities:                                                             |   |                                       |   |   |   |   |   |   |
| Common stock options                                                                       |   |                                       | 1,324  |   |   |   | 920 |   |
| Restricted stock awards                                                                    |   |                                       | 157    |   |   |   | 129 |   |
| Denominator for dilutive net income per common share                                       |   |                                       | 33,199 |   |   |   | 31,792 |   |
| Net income attributable to AXT, Inc. per common share:                                |   |                                       |   |   |   |   |   |   |
| Basic                                                                                      |   | $                                          | 0.13   |   |   | $ | 0.08 |   |
| Diluted                                                                                    |   | $                                          | 0.13   |   |   | $ | 0.08 |   |
| Options excluded from diluted net income per share as the impact is anti-dilutive          |   |                                       | 65     |   |   |   | 366 |   |
| Restricted stock excluded from diluted net income per share as the impact is anti-dilutive |   |                                       | 218    |   |   |   | 171 |   |

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|                                                      |   | PreferredStock |   |   | CommonStock |   |   | AdditionalPaid In Capital |   |   | AccumulatedDeficit |   |   | OtherComprehensiveIncome/(loss) |    |   | AXT, Inc.stockholdersequity |   |   | Noncontrollinginterests |   |   | Totalstockholders’equity |   |
|-----------------------------------------------------------|--------|----------------|--------|--------|-------------|--------|--------|-------------------------------------|--------|--------|--------------------|--------|--------|---------------------------------|---------|--------|----------------------------------|--------|--------|-------------------------|--------|--------|--------------------------------|--------|
| Balance as of December 31, 2010                      |   | $              | 3,532  |   |        | $      | 32     |                                |   | $      | 190,021            |   |   | $                               | (82,477 | )      |                             | $      | 4,652  |                    |   | $      | 115,760                        |   |   | $ | 4,044 |   |   | $ | 119,804 |   |
| Common stock options exercised                            |   |           |   |   |        |   |   |                                |   |   | 357                |   |   |                            |    |   |                             |   |   |                    |   |   | 357                            |   |   |   |   |   |   |   | 357 |   |
| Stock-based compensation                                  |   |           |   |   |        |   |   |                                |   |   | 207                |   |   |                            |    |   |                             |   |   |                    |   |   | 207                            |   |   |   |   |   |   |   | 207 |   |
| Comprehensive income (loss):                              |   |           |   |   |        |   |   |                                |   |   |               |   |   |                            |    |   |                             |   |   |                    |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net income                                                |   |           |   |   |        |   |   |                                |   |   |               |   |   |                            | 4,208   |   |                             |   |   |                    |   |   | 4,208                          |   |   |   | 1,079 |   |   |   | 5,287 |   |
| Dividend declared by joint ventures                       |   |           |   |   |        |   |   |                                |   |   |               |   |   |                            |    |   |                             |   |   |                    |   |   |                           |   |   |   | (1,636 | ) |   |   | (1,636 | ) |
| Change in unrealized (loss) gain on marketable securities |   |           |   |   |        |   |   |                                |   |   |               |   |   |                            |    |   |                             |   | (47    | )                       |   |   | (47                            | )      |   |   |   |   |   |   | (47 | ) |
| Currency translation adjustment                           |   |           |   |   |        |   |   |                                |   |   |               |   |   |                            |    |   |                             |   | 115    |                    |   |   | 115                            |   |   |   | 43 |   |   |   | 158 |   |
| Balance as of March 31, 2011                         |   | $              | 3,532  |   |        | $      | 32     |                                |   | $      | 190,585            |   |   | $                               | (78,269 | )      |                             | $      | 4,720  |                    |   | $      | 120,600                        |   |   | $ | 3,530 |   |   | $ | 124,130 |   |

|                                                                           |   | Three Months Ended |   |
|--------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                           |   | March 31,               |   |
|                                                                           |   | 2011                         |   |   | 2010 |   |
|                                                                           |   |                         |   |   |   |   |
| Net income attributable to AXT, Inc                                            |   | $                            | 4,208  |   |   | $ | 2,580 |   |
| Other comprehensive income, net of tax:                                        |   |                         |   |   |   |   |   |   |
| Change in foreign currency translation gain (loss), net of tax                 |   |                         | 158    |   |   |   | (205 | ) |
| Change in unrealized gain (loss) on available-for-sale investments, net of tax |   |                         | (47    | ) |   |   | (19 | ) |
| Total other comprehensive income, net of tax                                   |   |                         | 111    |   |   |   | (224 | ) |
| Comprehensive income                                                           |   |                         | 4,319  |   |   |   | 2,356 |   |
| Less: Comprehensive income attributable to the noncontrolling interest         |   |                         | (43    | ) |   |   | — |   |
| Comprehensive income attributable to AXT, Inc.                            |   | $                            | 4,276  |   |   | $ | 2,356 |   |

|                     |   | Three Months EndedMarch 31, |   |
|--------------------------|--------|--------------------------------------------|--------|
|                     |   | 2011                                       |   |   | 2010 |   |
| Revenue by product type: |   |                                       |   |   |   |   |
| GaAs substrates          |   | $                                          | 15,892 |   |   | $ | 13,434 |   |
| InP substrates           |   |                                       | 1,332  |   |   |   | 875 |   |
| Ge substrates            |   |                                       | 2,990  |   |   |   | 1,640 |   |
| Raw materials and other  |   |                                       | 4,352  |   |   |   | 2,692 |   |
| Total                    |   | $                                          | 24,566 |   |   | $ | 18,641 |   |

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|                                      |   | Three Months EndedMarch 31, |   |
|-------------------------------------------|--------|--------------------------------------------|--------|
|                                      |   | 2011                                       |   |   | 2010 |   |
| Net revenues:                             |   |                                       |   |   |   |   |
| North America*                            |   | $                                          | 3,792  |   |   | $ | 4,531 |   |
| Europe                                    |   |                                       | 5,184  |   |   |   | 3,768 |   |
| Japan                                     |   |                                       | 3,028  |   |   |   | 2,778 |   |
| Taiwan                                    |   |                                       | 2,864  |   |   |   | 2,582 |   |
| Asia Pacific (excluding Japan and Taiwan) |   |                                       | 9,698  |   |   |   | 4,982 |   |
| Total                                     |   | $                                          | 24,566 |   |   | $ | 18,641 |   |

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|                                    |   | As of     |   |
|-----------------------------------------|--------|----------------|--------|
|                                    |   | March 31, |   |   | December 31, |   |
|                                    |   | 2011           |   |   | 2010 |   |
| Long-lived assets by geographic region: |   |           |   |   |   |   |
| North America                           |   | $              | 594    |   |   | $ | 543 |   |
| China                                   |   |           | 25,579 |   |   |   | 23,697 |   |
|                                    |   | $              | 26,173 |   |   | $ | 24,240 |   |

|                                                                      |   | Investment Balance as of |   |   |              |   |       |
|---------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-------------------|--------|------------|
|                                                                      |   | March 31,                          |   |   | December 31, |   | Accounting |   | Ownership |   |
| Company                                                                   |   | 2011                                    |   |   | 2010              |   | Method     |   | Percentage |   |
| Beijing JiYa Semiconductor Material Co., Ltd                    |   | $                                       | 996    |   |              | $      | 996        |   | Consolidated |   |   | 46 | % |
| Nanjing Jin Mei Gallium Co., Ltd                                |   |                                    | 592    |   |              |   | 592        |   | Consolidated |   |   | 83 | % |
| Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd |   |                                    | 410    |   |              |   | 410        |   | Consolidated |   |   | 70 | % |
| Xilingol Tongli Germanium Co. Ltd                               |   |                                    | 3,492  |   |              |   | 3,437      |   | Equity |   |   | 25 | % |
| Emeishan Jia Mei High Purity Metals Co., Ltd                    |   |                                    | 1,073  |   |              |   | 1,055      |   | Equity |   |   | 25 | % |

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|   | ● | both companies have sustainable businesses of their own; |
|--------|---------|----------------------------------------------------------|

|   | ● | our voting power is proportionate to our ownership interests; |
|--------|---------|---------------------------------------------------------------|

|   | ● | we only recognize our respective share of the losses and/or residual returns generated by the companies if they occur; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | ● | we do not have controlling financial interest in, do not maintain operational or management control of, do not control the board of directors of, and are not required to provide additional investment or financial support to either company. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Three Months EndedMarch 31, |   |
|------------------|--------|--------------------------------------------|--------|
|             |   | 2011                                       |   |   | 2010 |   |
|             |   |                                       |   |   |   |   |
| Net Sales        |   | $                                          | 3,304  |   |   | $ | 3,338 |   |
| Gross profit     |   |                                       | 1,359  |   |   |   | 895 |   |
| Operating income |   |                                       | 363    |   |   |   | 123 |   |
| Net income       |   |                                       | 292    |   |   |   | 82 |   |

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|                                         |   | Three Months EndedMarch 31, |    |
|----------------------------------------------|--------|--------------------------------------------|---------|
|                                         |   | 2011                                       |    |   | 2010 |   |
|                                         |   |                                       |    |   |   |   |
| Beginning accrued warranty and related costs |   | $                                          | 740     |   |   | $ | 1,082 |   |
| Charged to cost of revenue                   |   |                                       | 58      |   |   |   | 60 |   |
| Actual warranty expenditures                 |   |                                       | — |   |   |   | (56 | ) |
| Ending accrued warranty and related costs    |   | $                                          | 798     |   |   | $ | 1,086 |   |

|                         |   | Payments due by period |   |
|------------------------------|--------|---------------------------------------|--------|
| Contractual Obligations |   | Total                                 |   |   | Less than 1 year |   |   | 1-3years |   |   | 3-5years |   |   | More than5 years |   |
| Operating leases             |   | $                                     | 1,540  |   |   | $ | 339 |   |   | $ | 689 |   |   | $ | 512 |   |   | $ | — |   |
| Royalty agreement            |   |                                  | 6,438  |   |   |   | 1,375 |   |   |   | 1,938 |   |   |   | 1,544 |   |   |   | 1,581 |   |
| Total                        |   | $                                     | 7,978  |   |   | $ | 1,714 |   |   | $ | 2,627 |   |   | $ | 2,056 |   |   | $ | 1,581 |   |

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ITEM 

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| Product                |   |                                             |
|------------------------|--------|--------------------------------------------------|
| Substrates             |   | Diameter                                         |   | Applications |
| GaAs (semi-insulating) |   | 2”, 3”, 4”, 5”, 6” |   | ●  Power amplifiers and radio frequency integrated circuits for wireless handsets (cell phones) |
|                   |   |                                             |   | ●  Direct broadcast television |
|                   |   |                                             |   | ●  High-performance transistors |
|                   |   |                                             |   | ●  Satellite communications |
|                   |   |                                             |   |   |
| GaAs (semi-conducting) |   | 2”, 3”, 4”                     |   | ●  High brightness light emitting diodes |
|                   |   |                                             |   | ●  Lasers |
|                   |   |                                             |   | ●  Optical couplers |
|                   |   |                                             |   |   |
| InP                    |   | 2”, 3”, 4”                     |   | ●  Broadband and fiber optic communications |
|                   |   |                                             |   |   |
| Ge                     |   | 2”, 4”, 6”                     |   | ●  Satellite and terrestrial solar cells |
|                   |   |                                             |   | ●  Optical applications |

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|   | ● | Determining which instruments are most similar to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, maturity, issuer, credit rating, and instrument type, and subjectively select an individual security or multiple securities that are deemed most similar to the security being priced. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Determining whether a market is considered active requires management judgment. Our assessment of an active market for our marketable debt instruments generally takes into consideration activity during each week of the one-month period prior to the valuation date of each individual instrument, including the number of days each individual instrument trades and the average weekly trading volume in relation to the total outstanding amount of the issued instrument. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Determining which model-derived valuations to use in determining fair value requires management judgment. When observable market prices for identical securities or similar securities are not available, we price our marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data or pricing models, such as discounted cash flow models, with all significant inputs derived from or corroborated with observable market data. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|          |   | Three Months EndedMarch 31, |   |   | Increase                   |   |   |       |   |
|---------------|--------|--------------------------------------------|--------|--------|----------------------------|--------|--------|------------|--------|
|          |   | 2011                                       |   |   | 2010                       |   |   | (Decrease) |   |   | % Change |   |
|          |   |                                       |   |   | ($ in thousands) |   |   |       |   |   |   |   |
| GaAs          |   | $                                          | 15,892 |   |                       | $      | 13,434 |       |   | $ | 2,458 |   |   |   | 18.3 | % |
| InP           |   |                                       | 1,332  |   |                       |   | 875    |       |   |   | 457 |   |   |   | 52.2 | % |
| Ge            |   |                                       | 2,990  |   |                       |   | 1,640  |       |   |   | 1,350 |   |   |   | 82.3 | % |
| Raw materials |   |                                       | 4,352  |   |                       |   | 2,692  |       |   |   | 1,660 |   |   |   | 61.6 | % |
| Total revenue |   | $                                          | 24,566 |   |                       | $      | 18,641 |       |   | $ | 5,925 |   |   |   | 31.8 | % |

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|                                      |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|-------------------------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                                      |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                                      |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| North America *                           |   | $                                          | 3,792  |   |     | $      | 4,531  |       |   | $ | (739 | ) |   |   | (16.3 | )% |
| % of total revenue                        |   |                                       | 15     | %      |     |   | 24     | %          |   |   |   |   |   |   |   |   |
| Europe                                    |   |                                       | 5,184  |   |     |   | 3,768  |       |   |   | 1,416 |   |   |   | 37.6 | % |
| % of total revenue                        |   |                                       | 21     | %      |     |   | 20     | %          |   |   |   |   |   |   |   |   |
| Japan                                     |   |                                       | 3,028  |   |     |   | 2,778  |       |   |   | 250 |   |   |   | 9.0 | % |
| % of total revenue                        |   |                                       | 12     | %      |     |   | 15     | %          |   |   |   |   |   |   |   |   |
| Taiwan                                    |   |                                       | 2,864  |   |     |   | 2,582  |       |   |   | 282 |   |   |   | 10.9 | % |
| % of total revenue                        |   |                                       | 12     | %      |     |   | 14     | %          |   |   |   |   |   |   |   |   |
| Asia Pacific (excluding Japan and Taiwan) |   |                                       | 9,698  |   |     |   | 4,982  |       |   |   | 4,716 |   |   |   | 94.7 | % |
| % of total revenue                        |   |                                       | 40     | %      |     |   | 27     | %          |   |   |   |   |   |   |   |   |
| Total revenue                             |   | $                                          | 24,566 |   |     | $      | 18,641 |       |   | $ | 5,925 |   |   |   | 31.8 | % |

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|                |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|---------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Gross profit (loss) |   | $                                          | 10,660 |   |     | $      | 6,732  |       |   | $ | 3,928 |   |   |   | 58.3 | % |
| Gross Margin %      |   |                                       | 43.4   | %      |     |   | 36.1   | %          |   |   |   |   |   |   |   |   |

|                                         |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|----------------------------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                                         |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                                         |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Selling, general and administrative expenses |   | $                                          | 3,690  |   |     | $      | 3,419  |       |   | $ | 271 |   |   |   | 7.9 | % |
| % of total revenue                           |   |                                       | 15.0   | %      |     |   | 18.3   | %          |   |   |   |   |   |   |   |   |

|                     |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|--------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                     |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                     |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Research and development |   | $                                          | 505    |   |     | $      | 451    |       |   | $ | 54 |   |   |   | 12.0 | % |
| % of total revenue       |   |                                       | 2.1    | %      |     |   | 2.4    | %          |   |   |   |   |   |   |   |   |

|                 |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|----------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                 |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                 |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Interest income, net |   | $                                          | 87     |   |     | $      | 15     |       |   | $ | 72 |   |   |   | 480.0 | % |
| % of total revenue   |   |                                       | 0.4    | %      |     |   | 0.1    | %          |   |   |   |   |   |   |   |   |

|                        |   | Three Months EndedMarch 31, |   |   | Increase |   |   |
|-----------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|
|                        |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   | % Change |
|                        |   | ($ in thousands)                 |   |   |     |   |   |
| Other income (expense), net |   | $                                          | (363   | )      |     | $      | 79     |   |   | $ | (442 | ) | NM |
| % of total revenue          |   |                                       | (1.5   | %)     |     |   | 0.4    | % |   |   |   |   |   |
|  NM = % not meaningful |   |                                       |   |   |     |   |   |   |   |   |   |   |   |

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|                       |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|----------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                       |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                       |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Provision for income taxes |   | $                                          | 902    |   |     | $      | 246    |       |   | $ | 656 |   |   |   | 266.7 | %  |
| % of total revenue         |   |                                       | 3.7    | %      |     |   | 1.3    | %          |   |   |   |   |   |   |   |   |

|                    |   | Three Months EndedMarch 31, |   |   | Increase |   |   |       |   |
|-------------------------|--------|--------------------------------------------|--------|--------|----------|--------|--------|------------|--------|
|                    |   | 2011                                       |   |   | 2010     |   |   | (Decrease) |   |   | % Change |   |
|                    |   | ($ in thousands)                 |   |   |     |   |   |       |   |
| Noncontrolling interest |   | $                                          | 1,079  |   |     | $      | 130    |       |   | $ | 949 |   |   |   | 730.0 | % |
| % of total revenue      |   |                                       | 4.4    | %      |     |   | 0.7    | %          |   |   |   |   |   |   |   |   |

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|                         |   | Payments due by period |   |
|------------------------------|--------|---------------------------------------|--------|
| Contractual Obligations |   | Total                                 |   |   | Less than 1 year |   |   | 1-3years |   |   | 3-5years |   |   | More than5 years |   |
| Operating leases             |   | $                                     | 1,540  |   |   | $ | 339 |   |   | $ | 689 |   |   | $ | 512 |   |   | $ | — |   |
| Royalty agreement            |   |                                  | 6,438  |   |   |   | 1,375 |   |   |   | 1,938 |   |   |   | 1,544 |   |   |   | 1,581 |   |
| Total                        |   | $                                     | 7,978  |   |   | $ | 1,714 |   |   | $ | 2,627 |   |   | $ | 2,056 |   |   | $ | 1,581 |   |

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| Instrument                                |   | Balance as ofMarch 31,2011 |   |   | CurrentInterestRate |   |   | Projected AnnualInterestIncome/(Expense) |   |   | Proforma 10%Interest RateDeclineIncome/(Expense) |   |   | Proforma 10%Interest RateIncreaseIncome/(Expense) |   |
|-------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
| Cash                                      |   | $                                         | 19,777 |   |                |   | 0.20   | %                                             |   | $      | 40                                                         |   |   | $                                                           | 36     |   |   | $ | 44 |   |
| Cash equivalents                          |   |                                      | 3,496  |   |                |   | 0.20   |                                          |   |   | 7                                                          |   |   |                                                        | 6      |   |   |   | 8 |   |
| Investment in debt and equity instruments |   |                                      | 15,181 |   |                |   | 3.03   |                                          |   |   | 460                                                        |   |   |                                                        | 414    |   |   |   | 506 |   |
|                                      |   |                                      |   |   |                |   |   |                                          |   | $      | 507                                                        |   |   | $                                                           | 456    |   |   | $ | 558 |   |

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Item 

| ExhibitNumber |   | Description                                                                                                                                                  |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                         |
|          |   |                                                                                                                                                         |
| 31.1          |   | Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                     |
|          |   |                                                                                                                                                         |
| 31.2          |   | Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                     |
|          |   |                                                                                                                                                         |
| 32.1          |   | Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|          |   |                                                                                                                                                         |
| 32.2          |   | Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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SIGNATURES

|                     | AXT, INC. |
|--------------------------|-----------|
|                     |      |   |
| Dated: May 10, 2011 | By:       | /s/ MORRIS S. YOUNG |
|                     |      | Morris S. Young |
|                     |      | Chief Executive Officer |
|                     |      | (Principal Executive Officer) |
|                     |      |   |
|                     |      | /s/ RAYMOND A. LOW |
|                     |      | Raymond A. Low |
|                     |      | Chief Financial Officer |
|                     |      | (Principal Financial Officer andPrincipal Accounting Officer) |

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| Exhibit |   |                                                                                                                                                         |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description                                                                                                                                                  |
|    |   |                                                                                                                                                         |
|    |   |                                                                                                                                                         |
| 31.1    |   | Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                     |
|    |   |                                                                                                                                                         |
| 31.2    |   | Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                     |
|    |   |                                                                                                                                                         |
| 32.1    |   | Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|    |   |                                                                                                                                                         |
| 32.2    |   | Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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