EX-12.1 2 axti-20171231ex1217f3226.htm EX-12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |
|  | (in thousands) |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) before income taxes | $ | 10,853 | $ | 5,699 | $ | (2,002) | $ | (482) | $ | (6,625) | $ | 7,003 |
Less: Equity in (earnings) loss of investees |  | 1,694 |  | 1,995 |  | (462) |  | (1,528) |  | (1,377) |  | (1,281) |
Less: Pre-tax net (income) loss attributable to noncontrolling interest |  | 87 |  | 670 |  | 305 |  | (691) |  | (1,145) |  | (3,040) |
Add: Distributions paid by equity investees |  | - |  | - |  | 305 |  | 327 |  | 308 |  | 436 |
Fixed charges and preferred stock dividends, as calculated below |  | 278 |  | 287 |  | 281 |  | 264 |  | 391 |  | 327 |
Total earnings | $ | 12,912 | $ | 8,651 | $ | (1,573) | $ | (2,110) | $ | (8,448) | $ | 3,445 |
Computation of fixed charges and preferred stock dividends: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | - | $ | - | $ | - | $ | - | $ | 1 | $ | 1 |
Preferred stock dividends(3) |  | 177 |  | 177 |  | 177 |  | 177 |  | 177 |  | 177 |
Interest component of rent expense(1) |  | 101 |  | 110 |  | 104 |  | 87 |  | 213 |  | 149 |
Total combined fixed charges and preferred stock dividends | $ | 278 | $ | 287 | $ | 281 | $ | 264 | $ | 391 | $ | 327 |
Ratio of earnings to combined fixed charges and preferred stock dividends(2) |  | 46.45 |  | 30.14 |  | N/A |  | N/A |  | N/A |  | 10.54 |
Deficiency of earnings to combined fixed charges and preferred stock dividends |  | N/A |  | N/A |  | (1,854) |  | (2,374) |  | (8,839) |  | N/A |

| (1) |  | Dividends accrue on our outstanding Series A preferred stock at the rate of $0.20 per annum per share of Series A preferred stock. We have not paid any dividends on preferred stock. 883,000 shares of our preferred stock were issued and outstanding for all of the periods presented.

| (2) |  | Represents one-third of total rent expense which we believe is a reasonable estimate of the interest component of rent expense. Interest component of rental expense is estimated based on interest on tenant improvement loan at 4%, which is considered a reasonable approximation of the interest factor. In 2010, the full amount of the tenant improvement was paid off.

| (3) |  | For periods in which there is a deficiency of earnings available to cover combined fixed charges and preferred stock dividends, the ratio information is not applicable.