Wednesday, October 31, 2012
GT Advanced Technologies Announces Reorganization and Steps to Streamline Operations, Including Approximate 25% Reduction in its Global Workforce
NASHUA, N.H.--(BUSINESS WIRE)--GT Advanced Technologies (NASDAQ: GTAT) today announced that it is streamlining worldwide operations to better align its cost structure with current market conditions and enhance its ability to pursue strategic growth initiatives, including the consolidation of existing business units into a single Crystal Growth Systems (CGS) group and cost reduction actions including an approximately 25 percent reduction of the company’s global workforce. When fully implemented, the workforce reduction is expected to reduce the company’s annualized expenses by approximately $13 million. GT expects to record restructuring charges associated with these actions in the amount of approximately $4.2 million in the December quarter.
The company also indicated that its revenue for the third quarter ending September 29, 2012 would be at the low end of its previously stated guidance range of $110 million to $140 million. The company will report its financial results for Q3CY12 after the close of the market on November 6th and will hold a webcasted conference call at 8:00am ET on November 7th. At that time the company will provide commentary on its reorganization, cost reduction actions and strategic initiatives. Please see the company’s website at http://investor.gtat.com for conference call details.
“It is becoming increasingly clear that some of our Asian customers are experiencing severe financial difficulties brought on by a number of economic and trade related challenges,” said Tom Gutierrez, president and chief executive officer. “We are not immune to these headwinds and we are taking actions to prepare for what is likely to be a challenging 2013 in our core markets by lowering our cost structure and at the same time improving our ability and flexibility to make strategic investments in R&D, next-generation technology and diversification initiatives that we believe will drive future growth and the creation of shareholder value.
“In the long term, we continue to expect renewed growth in the LED market as general lighting adoption accelerates and a turn-around in the solar industry driven in large part by the adoption of new technologies that provide critical cost reductions. We also remain optimistic about the opportunities in our sapphire business for emerging applications such as the mobile cover and touch screen markets.”
Under the new business structure, Dan Squiller has taken on the role of President of the company’s new CGS business group, reporting directly to Gutierrez. The CGS group combines the PV, Polysilicon and Sapphire business units, as well as worldwide operations. David Keck will assume the role of executive vice president and general manager of the PV and polysilicon unit and Cheryl Diuguid will continue to lead the sapphire business unit as executive vice president and general manager. David Gray, chief strategy officer, Vikram Singh, executive vice president of advanced systems development and R&D, and Jeff Ford, vice president and general manager of DSS business development, will report directly to Gutierrez to drive the company’s business development, diversification and next generation technology initiatives.
“It remains our strategy to invest through these challenging times,” said Gutierrez. “Combined with our healthy balance sheet with nearly $480 million of cash and cash equivalents*, the actions we announced today solidly position GT to execute on this growth strategy, laying the groundwork for us to emerge as a stronger, more diversified global technology leader.”
*as of September 29, 2012
About GT Advanced Technologies Inc.
GT Advanced Technologies Inc. is a diversified technology company with innovative crystal growth equipment and solutions for the global solar, LED and electronics industries. Our products accelerate the adoption of new advanced materials that improve performance and lower the cost of manufacturing. For additional information about GT Advanced Technologies, please visit www.gtat.com.