GT Advanced Technologies Announces Results for First Quarter Fiscal Year 2013

Published on 6 May 2013
GT Advanced Technologies 
May 1, 2013 - GT Advanced Technologies Inc. today reported results for the first quarter of fiscal year 2013, which ended March 30, 2013.

Revenue for the first quarter came in at $57.8 million including $38.0 million in polysilicon, $4.4 million in photovoltaic (PV), and $15.4 million in sapphire. This compares to revenue in the fourth quarter of calendar 2012 of $102.3 million and $353.9 million in the first quarter of calendar 2012.

Non-GAAP gross profit for the first quarter was $14.1 million, or 24.4 percent of revenue, in line with the company's guidance. This compares to $33.1 million, or 32.4 percent of revenue in the fourth quarter of calendar 2012 and $152.3 million, or 43.0 percent of revenue for the first quarter of calendar 2012.

Gross profit for the first quarter was $13.6 million, or 23.6 percent of revenue, compared to a loss of $41.2 million, or 40.2 percent of revenue, in the fourth quarter of calendar 2012 and $152.3 million, or 43.0 percent of revenue for the first quarter of calendar 2012. 

Non-GAAP net income was a loss of $8.9 million in the first quarter, compared to a loss of $18.1 million in the fourth quarter of calendar 2012 and $86.0 million for the first quarter of calendar 2012. 

Net income in the first quarter was a loss of $18.7 million, compared to a loss of $159.4 million in the fourth quarter of calendar 2012 and $79.1 million for the first quarter of calendar 2012. 

Non-GAAP earnings per share on a fully-diluted basis was a loss of $0.07 in the first quarter, which was better than the company's guidance. This compares to a non-GAAP EPS loss of $0.15 in the fourth quarter of calendar 2012 and earnings of $0.71 in the first quarter of calendar 2012. 

Earnings per share on a fully-diluted basis was a loss of $0.16 in the first quarter, compared to a loss of $1.34 for the fourth quarter of calendar 2012 and earnings of $0.65 for the first quarter of calendar 2012.

Cash, Backlog, Orders 

At the end of the first quarter, the balance sheet had cash and cash equivalents totaling $320.2 million and total debt of $259.6 million. During the quarter, operations consumed $54 million of cash. In addition, the company used $40 million of cash to pay down part of its term loan facility. At the end of the fourth quarter of calendar 2012, the company had $418.1 million of cash and cash equivalents and $297.0 million of total debt and $350.9 million of cash and cash equivalents and $75.0 million of total debt at the end of the first quarter of calendar 2012.

New orders during the first quarter were $16.6 million including $9.4 million of orders for DSS and $7.0 million for sapphire materials. During the first quarter the company decided to adjust its backlog downward by approximately $356 million reflecting the removal of ASF orders it had previously identified as at risk. While the orders have not been cancelled and the customers remain contractually obligated, the company has determined that these orders are unlikely to convert to sales in the foreseeable future and leaving them in reported backlog, in the company's view, is no longer a good indicator of the company's revenue potential.

As a result, as of March 30, 2013 the company's reported backlog was $851.0 million. This included $491.1 million in the polysilicon segment, $8.3 million in the PV segment and $351.6 million in the sapphire segment. Included in the total backlog was approximately $146.2 million of deferred revenue.

Management Commentary 

"In the face of continuing difficult conditions in our served solar and LED markets, our Q1 results came in slightly better than expected," said Tom Gutierrez, president and chief executive officer. "The actions we are taking to transform GT into a diversified, value-added equipment supplier are yielding results. We are confident that our initiatives in new markets as well as in new technologies that broaden our presence in our existing markets, will provide a path to resumed growth and cash generation in the years ahead." 

Business Outlook 

The company is reiterating the following guidance for fiscal year 2013, which ends December 31, 2013: revenue in the range of $500 to $600 million, non-GAAP gross margin in the range of 35% to 37% and non-GAAP EPS in the range of $0.25 to $0.45. In addition to the items typically excluded from non-GAAP, the company's Non-GAAP EPS and Non-GAAP gross margin guidance excludes restructuring charges, any potential DSS Purchase Order cancellation fees and any gain/loss associated with the disposition of the St. Louis facility.


ENF Profiles For Companies Mentioned in This Article

GT Advanced Technologies (Production Equipment): https://www.enfsolar.com/directory/equipment/2339
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