Wednesday, August 01, 2012

GT Advanced Technologies Inc. Announces Results for Quarter Ending June 30, 2012


NASHUA, N.H.--(BUSINESS WIRE)--GT Advanced Technologies Inc. (NASDAQ: GTAT) today reported results for the second quarter of calendar year 2012, which ended June 30, 2012. Effective April 16, 2012, the company changed its fiscal year-end to December 31. The second quarter of calendar 2012 is the first quarterly period of the company’s nine month transition period ending December 31, 2012.

Revenue for the second quarter of calendar 2012 exceeded the company’s previously issued guidance at $167.3 million, compared to $353.9 million in the first quarter of calendar 2012 and $231.1 million in the second quarter of calendar 2011. Revenue by business segment for the second quarter of calendar 2012 was $121.5 million in polysilicon, $9.4 million in photovoltaic (PV), and $36.3 million in the sapphire segment, which was primarily ASF™ equipment revenue.

Gross profit for the second quarter of calendar 2012 was $60.2 million, or 36.0 percent of revenue, compared to $152.3 million, or 43.0 percent of revenue in the first quarter of calendar 2012 and $113.4 million, or 49.1 percent of revenue for the second quarter of calendar 2011.

Operating margin for the second quarter of calendar 2012 was 14.7 percent of revenue, compared to 32.8 percent of revenue in the first quarter of calendar 2012 and 34 percent of revenue in the second quarter of calendar 2011.

In the second quarter of calendar 2012, the company had net income of $14.8 million, compared to $79.1 million in the first quarter of calendar 2012 and $52.1 million for the second quarter of calendar 2011.

Non-GAAP net income was $19.2 million in the second quarter of calendar 2012, compared to $83.9 million in the first quarter of calendar 2012 and $56.1 million for the second quarter of calendar 2011.

Earnings per share on a fully-diluted basis was $0.12 in the second quarter of calendar 2012, compared to $0.65 for the first quarter of calendar 2012 and $0.41 for the second quarter of calendar 2011.

Non-GAAP earnings per share on a fully-diluted basis was $0.16 in the second quarter of calendar 2012, compared to $0.69 for the first quarter of calendar 2012 and $0.44 for the second quarter of calendar 2011.

At the end of the second quarter of calendar 2012, cash and cash equivalents was $332.4 million and the company had $145 million of debt. This compares to $350.9 million of cash and cash equivalents at the end of the first quarter of calendar 2012 which included $75 million of debt and $473.4 million of cash and cash equivalents at the end of the second quarter of calendar 2011 which included $95.6 million of debt.

As of June 30, 2012, the company’s backlog was $1.6 billion. This included approximately $758.6 million in the polysilicon segment, $137.8 million in the PV segment and $697.5 million in the sapphire segment. Included in the total backlog was approximately $149.3 million of deferred revenue.

New orders for the second quarter of calendar 2012 were $13.8 million and included $0.4 million of polysilicon orders, $8.5 million of PV orders and $4.9 million in sapphire orders. The company had $31.9 million of negative adjustments to backlog related to the termination of a single ASF sapphire contract which the company had previously indicated it anticipated due to the customer’s failure to perform.

Management Commentary

“We are pleased with our performance in the June quarter as we exceeded expectations, a notable accomplishment given the continued headwinds in the solar and LED markets that we serve,” said Tom Gutierrez, president and chief executive officer. “Our PV and sapphire businesses performed in line with our expectations while our polysilicon business out-performed with an incremental $53 million of revenue recognized in the quarter. Our total backlog remains solid and our assessment of backlog risk remains unchanged from our analysis one quarter ago.

“We remain committed to investing in next generation technologies and product innovations in our core businesses to solidify our market leadership and develop new opportunities,” continued Gutierrez. “In addition, we continue to explore ways to further diversify the company’s portfolio into new high growth areas. During the quarter we added $70 million of debt in anticipation of several potential investments that are under discussion.”

Business Outlook

The company reiterated its revenue and earnings guidance for the 12-month period ending December 31, 2012 (“calendar year 2012”). For this period, the company continues to expect revenue in the range of $925 million to $975 million and non-GAAP earnings per share on a fully diluted basis in the range of $1.30 to $1.40. Please refer to the definition of non-GAAP net income below.

The company will provide additional details on its calendar 2012 guidance during its live webcasted conference call tomorrow morning. See details below.

Investor Financial Summary Document

A comprehensive summary of the company’s financial performance can be found on the Investor Relations section of its website in the “Featured Documents” section and the “Q2 CY12 Earnings Call” webcast page. To access: http://investor.gtsolar.com.

Conference Call, Webcast

Tomorrow morning, Thursday, August 2, 2012, at 8:00am ET the company will host a live conference call to discuss quarterly results and the company’s longer-term outlook with Tom Gutierrez, president and chief executive officer and Richard Gaynor, chief financial officer.

The call will be webcast live and can be accessed by logging on to the "Investors" section of GT Advanced Technologies’ website, http://investor.gtat.com/. No password is required to access the webcast. A slide presentation will accompany the call.

The live call can also be accessed by dialing 877.556.5921 for callers in the United States and Canada and 617.597.5474 for international callers. The telephone passcode is GTAT.

A replay of the call will be available through November 1, 2012. To access the replay, please go to http://investor.gtat.com/ and select the webcast replay link on the ‘Events and Presentations’ page. Or, please dial 888.286.8010 for callers in the United States and Canada, or 617 801.6888 for international callers. The telephone replay passcode is 40758279.

About GT Advanced Technologies Inc.

GT Advanced Technologies Inc. is a global provider of polysilicon production technology and sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets. The company's products and services allow its customers to optimize their manufacturing environments and lower their cost of ownership. For additional information about GT Advanced Technologies, please visit www.gtat.com.