GT Advanced Technologies Inc. Announces Results for Quarter Ending September 29, 2012

  GT Advanced Technologies Inc. Announces Results for Quarter Ending September
  29, 2012

           Quarterly Revenue and Non-GAAP EPS Within Guidance Range

Business Wire

NASHUA, N.H. -- November 06, 2012

GT Advanced Technologies Inc. (NASDAQ: GTAT) today reported results for the
third quarter of calendar year 2012, which ended September 29, 2012.

Revenue for the third quarter of calendar 2012 came in at the low end of the
company’s previously issued guidance at $110.1 million, compared to $167.3
million in the second quarter of calendar 2012 and $217.7 million in the third
quarter of calendar 2011. Revenue by business segment for the third quarter of
calendar 2012 was $95.9 million in polysilicon, $1.6 million in photovoltaic
(PV), and $12.6 million in sapphire.

Gross profit for the third quarter of calendar 2012 was $35.0 million, or 31.8
percent of revenue, compared to $60.2 million, or 36.0 percent of revenue in
the second quarter of calendar 2012 and $95.1 million, or 43.7 percent of
revenue for the third quarter of calendar 2011.

Operating margin for the third quarter of calendar 2012 was 4.6 percent of
revenue, compared to 14.7 percent of revenue in the second quarter of calendar
2012 and 24.7 percent of revenue in the third quarter of calendar 2011.

In the third quarter of calendar 2012, the company had net income of $2.3
million, compared to $14.8 million in the second quarter of calendar 2012 and
$36.9 million for the third quarter of calendar 2011.

Non-GAAP net income was $0.7 million in the third quarter of calendar 2012,
compared to $19.3 million in the second quarter of calendar 2012 and $45.8
million for the third quarter of calendar 2011.

Earnings per share on a fully-diluted basis was $0.02 in the third quarter of
calendar 2012, compared to $0.12 for the second quarter of calendar 2012 and
$0.29 for the third quarter of calendar 2011.

Non-GAAP earnings per share on a fully diluted basis came in at the upper
range of guidance at $0.01 in the third quarter of calendar 2012, compared to
$0.16 for the second quarter of calendar 2012 and $0.35 for the third quarter
of calendar 2011.

At the end of the third quarter of calendar 2012, cash and cash equivalents
totaled $479.2 million and the company had $298.1 million of total debt. This
compares to $332.4 million of cash and cash equivalents at the end of the
second quarter of calendar 2012 which included $145 million of total debt and
$483.8 million of cash and cash equivalents at the end of the third quarter of
calendar 2011 which included $90.9 million of total debt.

As of September 29, 2012, the company’s backlog was $1.5 billion. This
included approximately $617.7 million in the polysilicon segment, $141.4
million in the PV segment and $717.6 million in the sapphire segment. Included
in the total backlog was approximately $93.2 million of deferred revenue.

New orders for the third quarter of calendar 2012 were $49.2 million and
included $11.1 million of polysilicon orders, $5.2 million of PV orders and
$33.0 million of sapphire orders. The company had $56.3 million of negative
adjustments to backlog primarily related to the termination of a polysilicon
contract with a startup Chinese company which GT had previously indicated was
at risk due to the customer’s failure to perform.

Management Commentary

“We are pleased that we remained profitable and achieved the upper end of our
EPS guidance in Q3 in spite of the softer demand environment in our core
markets, demonstrating the resilience of our business model,” said Tom
Gutierrez, president and chief executive officer.

“In the face of economic and trade related challenges impacting GT and its
customers, we have taken significant steps to lower our cost structure and to
improve our ability 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.

“It remains our strategy to invest through these challenging times and we are
positioned to do so with our healthy balance sheet which includes nearly $480
million of cash and cash equivalents,” said Gutierrez.

Conference Call, Webcast

Tomorrow morning, Wednesday, November 7, 2012, at 8:00am ET the company will
host a live conference call with Tom Gutierrez, president and chief executive
officer, and Richard Gaynor, chief financial officer, to discuss its third
quarter results.

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 617.213.8841. The telephone passcode is GTAT.

A replay of the call will be available through February 5, 2013. 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 617.801.6888 for
international callers. The telephone replay passcode is 78656309.

Business Outlook

Given current market volatility, the company will hold a separate conference
call in mid-December once it has completed an assessment of recent market and
economic developments. On that call the company will provide its guidance for
the December quarter and updated commentary on calendar 2013. Details will
follow.

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 “Q3 CY12 Earnings Call” webcast page. To access:
http://investor.gtat.com.

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.

GT Advanced Technologies Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
                                                              
                                                 September 29,   March 31,
                                                 2012            2012
                                                                 
Assets
Current assets:
Cash and cash equivalents                        $  479,219      $ 350,903
Accounts receivable, net                            11,453         65,676
Inventories                                         216,282        193,295
Deferred costs                                      36,154         91,740
Vendor advances                                     99,549         85,396
Deferred income taxes                               12,271         13,857
Refundable income taxes                             1,516          1,516
Prepaid expenses and other current assets          13,981        12,117    
Total current assets                                870,425        814,500
Property, plant and equipment, net                  111,833        99,982
Other assets                                        16,141         20,306
Intangible assets, net                              81,272         86,357
Deferred cost                                       4,394          9,293
Goodwill                                           102,152       102,152   
Total assets                                     $  1,186,217    $ 1,132,590 
Liabilities and stockholders’ equity
Current liabilities:
Current portion of long-term debt                $  9,063        $ 3,750
Accounts payable                                    43,693         34,323
Accrued expenses                                    30,551         37,074
Contingent consideration                            4,819          16,071
Customer deposits                                   251,601        334,098
Deferred revenue                                    80,366         165,149
Accrued income taxes                               1,685         37,620    
Total current liabilities                           421,778        628,085
Long-term debt                                      134,125        71,250
Convertible notes                                   154,946        -
Deferred income taxes                               35,871         38,918
Deferred revenue                                    12,787         31,010
Contingent consideration                            -              6,402
Other non-current liabilities                       711            547
Accrued income taxes                               25,465        24,824    
Total liabilities                                   785,683        801,036
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 10,000 shares authorized,          -              -
none issued and outstanding
Common stock, $0.01 par value; 500,000 shares
authorized,
118,938 and 118,331 shares issued and               1,189          1,183
outstanding
as of September 29, 2012 and March 31, 2012,
respectively
Additional paid-in capital                          183,073        131,563
Accumulated other comprehensive loss                176            (187      )
Retained earnings                                  216,096       198,995   
Total stockholders' equity                         400,534       331,554   
Total liabilities and stockholders' equity       $  1,186,217    $ 1,132,590 

GT Advanced Technologies Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                               
                                       Three Months Ended
                                       September 29, June 30,      October 1,
                                         2012       2012        2011    
                                                                   
Revenue                                $  110,061    $ 167,252     $ 217,691
Cost of revenue                          75,033     107,046     122,606 
Gross profit                              35,028       60,206        95,085
Operating expenses:
Research and development                  18,767       13,939        10,008
Selling and marketing                     3,123        3,827         7,114
General and administrative                15,428       15,133        19,582
Contingent consideration expense          (9,943  )    155           2,787
Amortization of intangible assets        2,538      2,547       1,760   
Total operating expenses                 29,913     35,601      41,251  
Income from operations                    5,115        24,605        53,834
Other income (expense):
Interest income                           27           6             136
Interest expense                          (1,620  )    (979    )     (1,842  )
Other, net                               (431    )   (485    )    151     
Income before income taxes                3,091        23,147        52,279
Provision for income taxes               747        8,390       15,364  
Net income                             $  2,344     $ 14,757     $ 36,915  
Net income per share:
Basic                                  $  0.02       $ 0.12        $ 0.29
Diluted                                $  0.02       $ 0.12        $ 0.29
Weighted-average number of shares
used in per share calculations:
Basic                                     118,769      118,444       126,734
Diluted                                   119,874      119,379       129,075

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities
and Exchange Commission, we are presenting the most directly comparable GAAP
financial measures and reconciling the non-GAAP financial metrics to the
comparable GAAP measures.

GT Advanced Technologies Inc.
Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)
                                                           
                            Three Months Ended
                            September 29,     June 30,          October 1,
                              2012            2012            2011     
                                                                
Non-GAAP Net Income &
Earnings per Share
                                                                
Net income                  $  2,344          $  14,757         $  36,915
                                                                
Non-GAAP adjustments:
                                                                
Amortization of acquired       2,538             2,547             1,760
intangible assets
Stock-based compensation       4,818             4,103             3,776
Third party acquisition        136               246               3,090
related expenses
Contingent consideration       (9,943   )        155               2,787
Non-cash portion of            342               238               843
interest expense
Income tax effect of          457             (2,710   )       (3,399   )
non-GAAP adjustments (1)
                                                                
Non-GAAP net income         $  692           $  19,336        $  45,772   
                                                                
Non-GAAP earnings per
diluted share ("Non-GAAP    $  0.01          $  0.16          $  0.35     
EPS")
                                                                
Diluted weighted average       119,874           119,379           129,075
shares outstanding
                                                                
                                                                
(1) The Company utilized the with and without method to determine the income
tax effect on non-GAAP adjustments.

Use of Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted
accounting principles in the United States of America (GAAP), GT Advanced
Technologies is providing additional financial metrics that are not prepared
in accordance with GAAP (non-GAAP). We believe that the inclusion of these
non-GAAP financial measures helps investors to gain a meaningful understanding
of our past performance and future prospects, consistent with how management
measures and forecasts company performance, especially when comparing such
results to previous periods or forecasts. Our management uses these non-GAAP
measures, in addition to GAAP financial measures, as the basis for measuring
our core operating performance and comparing our performance to prior periods
and to the performance of our competitors. Management also uses these measures
in its financial and operational decision-making.

We define "non-GAAP net income" as GAAP net income excluding share-based
compensation expense, amortization of acquired intangible assets, acquisition
and acquisition related expenses, contingent consideration, and the non-cash
portion of interest expense. We consider non-GAAP net income to be an
important indicator of our operational strength and performance of our
business because it eliminates the effects of events that are not part of the
Company's core operations.

We define "non-GAAP earnings per share on a fully-diluted basis" as our
non-GAAP net income divided by our weighted average shares outstanding on a
fully-diluted basis.

Forward-Looking Statements

Some of the information in this press release relate to future expectations,
plans and prospects for our business and industry that constitute
“forward-looking statements” for the purposes of the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995, including but not
limited to, the steps the Company has taken will lower its cost structure and
will improve its ability to make strategic investments in R&D, next-generation
technology and diversification initiatives and that the Company believes these
actions will drive future growth and the creation of shareholder value; it is
the Company’s strategy to invest through these challenging times and the
Company’s healthy balance sheet puts it in a position to invest in R&D,
next-generation technology and diversification initiatives through these
challenging times. These forward-looking statements are not a guarantee of
performance and are subject to a number of uncertainties and other factors,
many of which are outside the company’s control, which could cause actual
events to differ materially from those expressed or implied by the statements.
These factors may include the possibility that the company is unable to
recognize revenue on contracts in its order backlog. Although the company’s
backlog is based on signed purchase orders or other written contractual
commitments in effect as of the end of our fiscal quarter ended September 29,
2012, we cannot guarantee that our bookings or order backlog will result in
actual revenue in the originally anticipated period or at all, which could
reduce our revenue, profitability and liquidity. Other factors that may cause
actual events to differ materially from those expressed or implied by our
forward-looking statements include the impact of continued decreased demand
and/or excess capacity in the markets for the output of our solar and sapphire
equipment, general economic conditions and the tightening credit market for
having an adverse impact on demand for our products, the possibility that
changes in government incentives may reduce demand for solar products, which
would, in turn, reduce demand for our equipment, technological changes could
render existing products or technologies obsolete, the company may be unable
to protect its intellectual property rights, competition from other
manufacturers may increase, exchange rate fluctuations and conditions in the
credit markets and economy may reduce demand for the company’s products and
various other risks as outlined in GT Advanced Technologies Inc.’s filings
with the Securities and Exchange Commission, including the statements under
the heading “Risk Factors” in the company’s quarterly report on Form 10-Q for
the fiscal quarter ended June 30, 2012. Statements in this press release
should be evaluated in light of these important factors. The statements in
this press release represent GT Advanced Technologies Inc.’s expectations and
beliefs as of the date of this press release. GT Advanced Technologies Inc.
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. GT Advanced Technologies Inc. is under no
obligation to, and expressly disclaims any such obligation to, update or alter
its forward-looking statements, whether as a result of new information, future
events, or otherwise.

Contact:

GT Advanced Technologies Inc.
Media
Jeff Nestel-Patt, 603-204-2883
jeff.nestelpatt@gtat.com
or
Investors/Analysts
Ryan Blair, 603-681-3869
ryan.blair@gtat.com