GT Advanced Falls After Cutting ‘at Risk’ Backlog: Boston MoverJustin Doom
GT Advanced Technologies Inc., a U.S. supplier of manufacturing equipment for solar and energy-efficient lighting products, fell the most in two weeks after saying some customers may not honor purchase agreements.
GT Advanced retreated 4.9 percent to $3.67 at the close in New York, the most since April 15.
The company reported a backlog of $851 million, after eliminating $356 million in orders for sapphire furnaces that it determined “are unlikely to convert to sales in the foreseeable future,” Nashua, New Hampshire-based GT Advanced said in a statement yesterday after the close of regular trading.
While the customers haven’t canceled these orders and remain “contractually obligated,” GT Advanced said the sales are “at risk.” Its backlog is now about $352 million for sapphire furnaces, which are used to make light-emitting diodes.
“Leaving them in reported backlog, in the company’s view, is no longer a good indicator of the company’s revenue potential,” according to the statement.
“The hefty cut in backlog is a concern,” Pavel Molchanov, an analyst at Raymond James & Associates Inc. in Houston, wrote in a note to investors today. “This puts backlog below the $1 billion level, which management has previously targeted.”
The company also has backlogged orders for $491 million of systems that make polysilicon, the main raw ingredient in solar cells, and $8 million for photovoltaic production equipment.