GT Advanced Technologies Provides Q4 CY12 Guidance Range, CY13 Preliminary Outlook

  GT Advanced Technologies Provides Q4 CY12 Guidance Range, CY13 Preliminary
  Outlook

Business Wire

NASHUA, N.H. -- December 18, 2012

GT Advanced Technologies (NASDAQ: GTAT) today announced its guidance range for
the fourth quarter ending December 31, 2012 and provided its preliminary
outlook for fiscal year 2013 ending December 31, 2013.

For Q4CY12 and CY12 the company provided the following guidance:

  *Revenue in the range of $95 million to $102 million in Q4CY12; $726
    million to $733 million in CY12 with approximately 62% of CY12 revenue
    from polysilicon, 31% from sapphire, and 7% from PV
  *The company expects to take a charge of $80 million to $90 million related
    to the write down of the majority of its DSS inventory and other inventory
    related charges. Excluding the effect of this charge, gross margin is
    expected in the range of 34% to 36% in Q4CY12; 38% to 40% in CY12
  *The company is evaluating potential impairment related to goodwill,
    long-lived assets & other intangibles for the PV business that could
    impact Q4CY12. Excluding the impact of any such potential impairments, the
    company expects:

       *Operating expenses in the range of $49 million to $51 million in
         Q4CY12; $151 million to $153 million in CY12.
       *Research and development expenses in the range of $23 million to $25
         million in Q4CY12; $71 million to 73 million in CY12.

  *Capital expenditures in the range of $5 million to $7 million in Q4CY12;
    $41 million to $43 million in CY12
  *An effective tax rate of 39% for CY12, excluding the charges related to
    inventory and any potential impairment charges
  *Non-GAAP earnings per share on a fully-diluted basis from a loss of $0.05
    to a loss of $0.10 in Q4CY12; $0.77 to $0.82 in CY12. The non-GAAP EPS
    range is based on a diluted outstanding share count of 121 million shares
    for CY12 and excludes the impact related to the inventory charges and any
    potential impairment charges related to goodwill, long-lived assets or
    intangibles as well as restructuring charges, stock compensation expense,
    contingent consideration, non-cash interest expense, amortization of
    intangible assets and acquisition expenses
  *Balance sheet at the end of CY12 reflecting cash & cash equivalents of
    over $400 million and total debt of approximately $300 million
  *The company expects to end CY12 with a backlog of approximately $1.2
    billion. Based on current market conditions and uncertainty relative to
    the delivery timing of certain orders in backlog the company expects that
    approximately 25% of this backlog is at risk.

The company will report final Q4CY12 and CY12 results in February 2013.

For the company’s new fiscal year ending December 31, 2013, it provided the
following preliminary outlook:

  *Revenue in the range $500 million to $600 million with approximately 1%
    from the PV segment, 42% from polysilicon, and 57% from sapphire
  *Gross margin in the range of 35% to 37%
  *Operating expenses in the range of $152 million to $158 million, including
    $75 million to $80 million for R&D expenses
  *Capital expenditures in the range of $11 million to $13 million
  *Non-GAAP EPS on a fully-diluted basis in the range of $0.25 to $0.45 per
    share assuming a diluted outstanding share count of 124 million
  *Year-ending cash balance in the range of $225 million to $275 million

“Our outlook reflects the soft market conditions and very tight lending
environment in the solar and LED industries that we serve, as well as the
overall challenging macroeconomic environment. We have taken actions to size
our business in accordance with the environment and expect to remain
profitable in CY13,” said Tom Gutierrez, president and chief executive
officer. “While current market conditions are unlikely to improve over the
next twelve months, we remain confident about our long term future and we
expect to exit this downturn as a stronger more diversified company with
market leading positions in several growth industries.”

The company held a webcasted conference call earlier today to discuss its CY12
and CY13 outlook. A replay of the call can be accessed through March 11, 2013
at http://investor.gtat.com/ (Select ‘Events’) or by dialing 617.801.6888
(Passcode: 83589413.)

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.

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, the non-cash
portion of interest expense, restructuring costs and any other potential
impairments related to goodwill, intangible assets & long-lived assets.

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.

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.

Forward-Looking Statements

Certain of the information in this press release relate to the Company’s
future expectations, plans and prospects for its 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: financial guidance (including expected ranges of financial
results) related to the fourth quarter of calendar year 2012, calendar year
2012 and the fiscal year ending December 31, 2013 (including guidance (or
range of results) for each of these periods related to: revenue, percentage of
revenue attributable to the Company’s three business segments, gross margin
(which excludes the effect of charges for the the fourth quarter of calendar
year 2012 with respect to the gross margin for such quarter and the calendar
year 2012); the expected charge related to the write down of the majority of
its DSS inventory and other inventory related charges in the the fourth
quarter of calendar year 2012, the potential impairment related to goodwill,
long-lived assets & other intangibles for the PV business that could impact
the 2012 December quarter;anticipated expenses for the fourth quarter of
calendar year 2012 and for the full calendar year 2012 (excluding the impact
of potential impairments), including operating expenses, research and
development expenses, capital expenditures and effective tax rate; non-GAAP
earnings per share for the fourth quarter of calendar year 2012 and for the
full calendar year 2012; Company’s expected cash balance at December 31, 2012;
Company’s guidance (preliminary outlook) for fiscal year ending December 31,
2013, including expected revenue, percentage of revenue attributable to the
Company’s three business segments, gross margin, operating expenses (including
for research and development expenses), capital expenditures, non-GAAP
earnings per share and cash balance at December 31, 2013; expected year-ending
backlog, expected continued soft market conditions and very tight lending
environment in the solar and LED industries and the continued challenging
macroeconomic environment; the effect of actions aimed at sizing the business
to the environment; whether the Company is profitable in calendar year 2013;
Company does not expect current market conditions to improve over the next
twelve months; Company is targeting key areas of development including new
sapphire applications and next generation solar technology, as well as
diversification programs into silicon carbide and gallium nitride, which the
Company believes will contribute to the Company’s long term growth.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. 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 having
an adverse impact on demand for the Company’s 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 September 29, 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
Media
Jeff Nestel-Patt, 603-204-2883
jeff.nestelpatt@gtat.com
or
Investors/Analysts
Ryan Blair, 603-681-3869
ryan.blair@gtat.com
 
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