GT Advanced Technologies Inc. Announces Results for First Quarter Fiscal Year 2013

GT Advanced Technologies Inc. Announces Results for First Quarter Fiscal Year
2013

Revenue Performance in Line, Non-GAAP EPS Better Than Guidance

NASHUA, N.H., May 1, 2013 (GLOBE NEWSWIRE) -- GT Advanced Technologies Inc.
(Nasdaq:GTAT) 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. 

The company will provide additional guidance details on its webcasted
conference call.See below for details.

Conference Call, Webcast

Tomorrow morning, Thursday, May 2, 2013, 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 first
quarter FY2013 results and FY2013 outlook.

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/. A slide presentation will accompany the call. The
live call can also be accessed by dialing (631) 291-4543. No password is
required to access the webcast or call.

A replay of the call will be available. 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 (404) 537-3406. The telephone replay
will be available through May 16, 2013 and requires the passcode 36046256.

Investor Financial Summary Document

A comprehensive summary of the company's financial performance can be found on
the Investor Relations section of its website on the "Q1 FY13 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)
                                                                
                                                      March 30,  December 31,
                                                       2013       2012
                                                                
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                             $320,226 $418,095
Accounts receivable, net                              20,389    23,829
Inventories                                           150,742   133,286
Deferred costs                                        47,937    30,248
Vendor advances                                       9,907     32,440
Deferred income taxes                                 42,420    28,226
Refundable income taxes                               567       1,516
Prepaid expenses and other current assets             8,792     9,168
Total current assets                                   600,980   676,808
                                                                
Property, plant and equipment, net                    74,414    77,980
Other assets                                          87,198    86,920
Intangible assets, net                                88,061    90,516
Deferred cost                                         24,352    24,423
Goodwill                                              48,021    48,021
Total assets                                           $923,026 $1,004,668
                                                                
Liabilities and stockholders' equity                             
Current liabilities:                                             
Current portion of long-term debt                     $7,250   $7,250
Accounts payable                                      45,292    44,848
Accrued expenses                                      34,163    30,928
Contingent consideration                              4,901     4,901
Customer deposits                                     80,499    111,777
Deferred revenue                                      103,333   86,098
Accrued income taxes                                  6,319     21,716
Total current liabilities                              281,757   307,518
                                                                
Long-term debt                                        92,313    132,313
Convertible notes                                      160,044   157,440
Deferred income taxes                                 19,812    24,459
Customer deposits                                     64,384    71,340
Deferred revenue                                      42,848    35,848
Contingent consideration                              5,750     5,414
Other non-current liabilities                         2,466     2,323
Accrued income taxes                                  26,104    25,762
Total liabilities                                      695,478    762,417
                                                                
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, 119,397 and 119,293shares issued and      1,194     1,193
outstanding as of March 30, 2013 and December31,
2012, respectively
Additional paid-in capital                            187,541   183,565
Accumulated other comprehensiveincome (loss)         807       806
Retained earnings                                     38,006    56,687
Total stockholders' equity                             227,548   242,251
Total liabilities and stockholders' equity             $923,026 $1,004,668



GT Advanced Technologies Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                                  
                                             Three Months Ended
                                             March 30, December 31, March 31,
                                              2013      2012         2012
                                                                  
Revenue                                       $57,776   $102,333     $353,890
Cost of revenue                               44,161   143,491     201,562
Gross profit                                  13,615   (41,158)    152,328
Operating expenses:                                                
Research and development                      16,441   22,695      15,248
Selling and marketing                         3,286    5,458       2,707
General and administrative                    14,563   13,801      15,170
Contingent consideration (income) expense     336      296         527
Impairment of goodwill                        --      57,037      --
Restructuring charges and asset impairments   2,858    33,441      --
Amortization of intangible assets             2,455    2,534       2,546
Total operating expenses                      39,939   135,262     36,198
Income from operations                        (26,324) (176,420)   116,130
Other income (expense):                                            
Interest income                               94       131         17
Interest expense                              (7,480)  (5,957)     (799)
Other, net                                    190      (34)        (52)
Income before income taxes                    (33,520) (182,280)   115,296
Provision for income taxes                    (14,839) (22,871)    36,223
Net income                                    ($18,681) ($159,409)   $79,073
                                                                  
Net income per share:                                              
Basic                                         ($0.16)   ($1.34)      $0.66
Diluted                                       ($0.16)   ($1.34)      $0.65
                                                                  
Weighted-average number of shares used in per                      
share calculations:
Basic                                         119,348   119,109      119,407
Diluted                                       119,348   119,109      120,738

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
                                       March 30,   December 31,   March 31,
                                        2013        2012           2012
                                                                
Non-GAAP Gross Profit and Gross Margin                           
                                                                
Revenue                                 $57,776     $102,333       $353,890
Cost of revenue                         44,161      143,491        201,562
Gross profit                            13,615     (41,158)      152,328
                                                                
Non-GAAP adjustments:                                            
                                                                
Write-down of inventory, vendor         492        71,754        --
advances and PO cancellation fees
Accelerated depreciation for early      --        2,520         --
retirement of fixed assets
                                                                
Non-GAAP gross profit                   $14,107     $33,116        $152,328
                                                                
Non-GAAP gross margin                   24.4%       32.4%          43.0%
                                                                
                                                                
GT Advanced Technologies Inc.
Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)
                                                                
                                       Three Months Ended
                                       March 30,   December 31,   March 31,
                                        2013        2012           2012
                                                                
Non-GAAP Net Income & Earnings per                               
Share
                                                                
Net income                              ($18,681)   ($159,409)     $79,073
                                                                
Non-GAAP adjustments:                                            
                                                                
Amortization of acquired intangible     2,455      2,534         2,546
assets
Share-based compensation expense        4,423      2,084         4,171
Third party acquisition related         164        945           223
expenses
Write-down of inventory, vendor         492        71,754        --
advances and PO cancellation fees
Accelerated depreciation for early      1,000      2,520         --
retirement of fixed assets
Impairment of goodwill                  --        57,037        --
Restructuring charges and asset         2,858      33,441        --
impairments
Contingent consideration (income)       336        296           527
expense
Non-cash portion of interest expense    4,212      3,042         177
Income tax effect of non-GAAP           (6,188)    (32,354)      (742)
adjustments (1)
                                                                
Non-GAAP net income                     ($8,929)    ($18,110)      $85,975
                                                                
Non-GAAP earnings per diluted share     ($0.07)     ($0.15)        $0.71
("Non-GAAP EPS")
                                                                
Diluted weighted average shares         119,348     119,109        120,738
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 gross profit" as GAAP gross profit excluding the
write-down of inventory, vendor advances and PO cancellation fees, and the
accelerated depreciation for early retirement of fixed assets.We consider
non-GAAP gross profit 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 net income" as GAAP net income excluding share-based
compensation expense, amortization of acquired intangible assets, acquisition
and acquisition related expenses, contingent consideration, write-downs of
inventory, vendor advances and PO cancellation fees, goodwill impairment,
restructuring and asset impairment, accelerated depreciation for early
retirement of fixed assets, 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 relates 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, all statements under the caption "Business Outlook;" the company's
estimates for future periods (including for twelve month period ending
December 31, 2013) with respect to revenue, non-GAAP gross margin, and
non-GAAP fully diluted earnings per share; there are continuing difficult
conditions in our served solar and LED markets; the Company is taking actions
to transform GT into a diversified, value-added equipment supplier; the
Company is confident that its 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. 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 March 30, 2013, 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 markets 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 transition report on Form 10-K for the nine-month period ended
December 31, 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: Media
         Jeff Nestel-Patt
         jeff.nestelpatt@gtat.com
         603-204-2883
        
         Investors/Analysts
         Ryan Flaim
         Ryan.flaim@gtat.com
         603-681-3869

GT Advanced Technologies logo
 
Press spacebar to pause and continue. Press esc to stop.