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

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

Q2 Gross Margin, Non-GAAP EPS and Cash Exceed Guidance, Revenue in Line;
FY2013 Revenue and Non-GAAP EPS Guidance Reiterated

MERRIMACK, N.H., Aug. 5, 2013 (GLOBE NEWSWIRE) -- GT Advanced Technologies
Inc. (Nasdaq:GTAT) today reported results for the second quarter of fiscal
year 2013, which ended June 29, 2013.

                                                    
             Three-Months Ended                     Six-Months Ended
             June 29,     March 30,     June 30,     June 29,     June 30,
              2013         2013          2012         2013         2012
Revenue       $168.3       $57.8         $167.3       $226.1       $521.1
Gross Margin 34.8%        23.6%         36.0%        31.9%        40.8%
GAAP EPS      $0.10        ($0.16)       $0.12        ($0.06)      $0.78
Non-GAAP EPS  $0.15        ($0.07)       $0.16        $0.08        $0.88

Revenue for the second quarter came in at $168.3 million including $150.7
million in polysilicon, $11.4 million in photovoltaic (PV), and $6.2 million
in sapphire. This compares to revenue in the first quarter of $57.8 million
and $167.3 million in the second quarter of calendar 2012. Revenue for the
first six months of 2013 was $226.1 million compared to $521.1 million for the
first six months of 2012.

Gross profit for the second quarter was $58.6 million, or 34.8 percent of
revenue, above the company's guidance. This compares to $13.6 million, or 23.6
percent of revenue, in the first quarter and $60.2 million, or 36.0 percent of
revenue for the second quarter of calendar 2012. Gross profit for the first
six months of 2013 was $72.2 million, or 31.9 percent of revenue compared to
$212.5 million, or 40.8 percent of revenue, for the first six months of 2012.

Non-GAAP net income was $18.1 million in the second quarter, compared to a
non-GAAP net loss of $8.9 million in the first quarter and non-GAAP netincome
of $19.3 million for the second quarter of calendar 2012.Non-GAAP net income
for the first six months of 2013 was $9.2 million compared to $105.3 million
for the first six months of 2012.

Net income in the second quarter was $11.9 million, compared to a loss of
$18.7 million in the first quarter and a favorable $14.8 million for the
second quarter of calendar 2012. Net income for the first six months of 2013
was a loss of $6.7 million compared to a favorable $93.8 million for the first
six months of 2012.

Non-GAAP earnings per share on a fully-diluted basis was $0.15 in the second
quarter, which was better than the company's guidance.This compares to a
non-GAAP EPS loss of $0.07 in the first quarter and non-GAAP earnings of $0.16
in the second quarter of calendar 2012.Non-GAAP earnings per share for the
first six months of 2013 was $0.08 compared to $0.88 for the first six months
of 2012.

Earnings per share on a fully-diluted basis was $0.10 in the second quarter,
compared to a loss of $0.16 for the first quarter and earnings of $0.12 for
the second quarter of calendar 2012. Earnings per share for the first six
months of 2013 was a loss of $0.06 compared to earnings of $0.78 for the first
six months of 2012.

Cash, Backlog, Orders

At the end of the second quarter, the company had cash and cash equivalents on
its balance sheet totaling $294.7 million and total debt of $260.4 million
which included $97.7 million related to the company's credit facility and
$162.7 million related to the fair value of the company's convertible bonds.
During the quarter, operations consumed $21.7 million of cash. At the end of
the first quarter of calendar 2013, the company had $320.2 million of cash and
cash equivalents and $259.6 million of total debt. At the end of the second
quarter of calendar 2012, the company had $332.4 million of cash and cash
equivalents and $145 million of total debt.

New orders during the second quarter were approximately $14 million including
$6 million for DSS and $8 million for sapphire.

As of June 29, 2013 the company's reported backlog was $702 million. This
included $340 million in the polysilicon segment, $3 million in the PV segment
and $359 million in the sapphire segment, which included approximately $6
million of backlog acquired from Thermal Technology. Included in the total
backlog was approximately $68 million of deferred revenue.

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, 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 guidance excludes restructuring charges, asset
impairment charges, any potential DSS Purchase Order cancellation fees and any
gain/loss associated with the disposition of the company's facility in St.
Louis. 

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

Management Commentary

"We were pleased with our performance in the second quarter. Against the
backdrop of continuing challenges in our served markets, we delivered
on-target revenue and outperformed with earnings, gross margin and cash," said
Tom Gutierrez, president and chief executive officer. "We continue to believe
that our sapphire business will be the key driver for the balance of this year
and we are confident we will resume shipments of ASF units in the second half
of this year. This is based on recent positive developments in the LED market
combined with the progress we have made in developing opportunities for our
sapphire business in new markets outside of LED."

Conference Call, Webcast

Tomorrow morning, Tuesday, August 6, 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 second
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 webcast replay, which
will be available for 90-days, 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
August 13, 2013 and requires the passcode 20413204.

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 "Q2 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)
                                                                
                                                      June 29,   December 31,
                                                       2013       2012
                                                                
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                             $294,687 $418,095
Accounts receivable, net                              11,774    23,829
Inventories                                           119,635   133,286
Deferred costs                                        4,254     30,248
Vendor advances                                       7,322     32,440
Deferred income taxes                                 37,928    28,226
Refundable income taxes                               567       1,516
Prepaid expenses and other current assets             8,638     9,168
Total current assets                                   484,805   676,808
                                                                
Property, plant and equipment, net                    73,195    77,980
Other assets                                          83,826    86,920
Intangible assets, net                                101,894   90,516
Deferred cost                                         24,938    24,423
Goodwill                                              54,765    48,021
Total assets                                           $823,423 $1,004,668
Liabilities and stockholders' equity                             
Current liabilities:                                             
Current portion of long-term debt                     $7,250   $7,250
Accounts payable                                      16,421    44,848
Accrued expenses                                      37,448    30,928
Contingent consideration                              85        4,901
Customer deposits                                     57,042    111,777
Deferred revenue                                      19,551    86,098
Accrued income taxes                                  9,703     21,716
Total current liabilities                              147,500   307,518
                                                                
Long-term debt                                        90,500    132,313
Convertible notes                                      162,690   157,440
Deferred income taxes                                 20,221    24,459
Customer deposits                                     55,598    71,340
Deferred revenue                                      48,670    35,848
Contingent consideration                              12,467    5,414
Other non-current liabilities                         2,335     2,323
Accrued income taxes                                  26,466    25,762
Total liabilities                                      566,447   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, 123,450 and
119,293shares issued and outstanding as of June 29,  1,234     1,193
2013 and
December31, 2012, respectively
Additional paid-in capital                            204,789   183,565
Accumulated other comprehensive income (loss)         1,000     806
Retained earnings                                     49,953    56,687
Total stockholders' equity                             256,976   242,251
Total liabilities and stockholders' equity             $823,423 $1,004,668



GT Advanced Technologies Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                                 
                               Three Months Ended          Six Months Ended
                               June 29, March 30, June 30, June 29,  June 30,
                                2013     2013      2012     2013      2012
                                                                 
Revenue                         $168,330 $57,776   $167,252 $226,106  $521,142
Cost of revenue                 109,714 44,161   107,046 153,875  308,608
Gross profit                    58,616  13,615   60,206  72,231   212,534
Operating expenses:                                               
Research and development        18,523  16,441   13,939  34,964   29,187
Selling and marketing           4,088   3,286    3,827   7,374    6,534
General and administrative      16,517  14,563   15,133  31,080   30,303
Contingent consideration        (4,310) 336      155     (3,974)  682
(income) expense
Restructuring charges and asset --     2,858    --     2,858    --
impairments
Amortization of intangible      2,667   2,455    2,547   5,122    5,093
assets
Total operating expenses        37,485  39,939   35,601  77,424   71,799
Income from operations          21,131  (26,324) 24,605  (5,193)  140,735
Other income (expense):                                           
Interest income                 70      94       6       164      23
Interest expense                (6,526) (7,480)  (979)   (14,006) (1,778)
Other, net                      (179)   190      (485)   11       (537)
Income before income taxes      14,496  (33,520) 23,147  (19,024) 138,443
Provision for income taxes      2,549   (14,839) 8,390   (12,290) 44,613
Net income                      $11,947  ($18,681) $14,757  ($6,734)  $93,830
                                                                 
Net income per share:                                             
Basic                           $0.10    ($0.16)   $0.12    ($0.06)   $0.79
Diluted                         $0.10    ($0.16)   $0.12    ($0.06)   $0.78
Weighted-average number of
shares used in per share                                 
calculations:
Basic                           120,481 119,348   118,444  119,920  118,926
Diluted                         122,749 119,348   119,379  119,920  120,062

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.

Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)
                                                                 
                                Three Months Ended          Six Months Ended
                                June 29, March 30, June 30, June 29, June 30,
                                 2013     2013      2012     2013     2012
                                                                 
Non-GAAP Net Income & Earnings                                    
per Share
                                                                 
Net income                       $11,947  ($18,681) $14,757  ($6,734) $93,830
                                                                 
Non-GAAP adjustments:                                             
                                                                 
Amortization of acquired         2,667   2,455    2,547   5,122   5,093
intangible assets
Share-based compensation expense 4,905   4,423    4,103   9,328   8,274
Third party acquisition related  924     164      246     1,088   469
expenses
Write-down of inventory, vendor
advances and PO cancellation     45      492      --     537     --
fees
Accelerated depreciation for     1,536   1,000    --     2,536   --
early retirement of fixed assets
Restructuring charges and asset  --     2,858    --     2,858   --
impairments
Contingent consideration         (4,310) 336      155     (3,974) 682
(income) expense
Non-cash portion of interest     3,300   4,212    238     7,512   415
expense
Income tax effect of non-GAAP    (2,924) (6,188)  (2,710) (9,112) (3,452)
adjustments (1)
                                                                 
Non-GAAP net income              $18,090  ($8,929)  $19,336  $9,161   $105,311
                                                                 
Non-GAAP earnings per diluted    $0.15    ($0.07)   $0.16    $0.08    $0.88
share ("Non-GAAP EPS")
                                                                 
Diluted weighted average shares  122,749  119,348   119,379  121,321 120,062
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, write-downs of
inventory, vendor advances and PO cancellation fees, 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, gross margin, and non-GAAP fully
diluted earnings per share; the Company continues to believe that its sapphire
business will be the key driver for the balance of this year; the Company is
confident it will resume shipments of ASF units in the second half of this
year.. 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 these 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 June 29, 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 (polysilicon and photovoltaic) and sapphire equipment,
general economic conditions and the tightening credit markets having an
adverse impact on demand for our products, increased trade tensions between
the United States and China; the possibility that changes in government
incentives may reduce demand for solar products, which would, in turn, reduce
demand for our polysilicon and photovoltaic equipment, technological changes
could render existing products or technologies obsolete, the company may be
unable to protect its intellectual property rights or may be subject to
liability for violating intellectual property rights of another party,
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 quarter ended March 30, 2013. 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

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