For second-quarter 2012, GT Advanced Technologies Inc of Nashua, NH, USA (a provider of polysilicon production technology as well as sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets) has reported revenue of $167.3m, down 53% on $353.9m last quarter and 28% on $231.1m a year ago, but nevertheless exceeding guidance.
Revenue by business segment was $121.5m in polysilicon (down from $153.9m last quarter), $9.4m in photovoltaic (down from $34.4m last quarter), and $36.3m in sapphire (down from $168.6m last quarter), most of which was from advanced sapphire furnace (ASF) equipment revenue.
"We exceeded expectations, a notable accomplishment given the continued headwinds in the solar and LED markets that we serve," says president & CEO Tom Gutierrez. "Our PV and sapphire businesses performed in line with our expectations, while our polysilicon business out-performed," he adds.
Gross margin has fallen further, from 49.1% a year ago and 43% last quarter to 36%. On a non-GAAP basis, net income has correspondingly also fallen further, from $56.1m a year ago and $83.9m last quarter to $19.2m. During the quarter, cash and cash equivalents fell from $350.9m (including $75m of debt) to $332.4m (including $145m of debt).
New orders have fallen from $34.6m last quarter to $13.8m. This included $0.4m in polysilicon (down from $4.2m), $8.5m in PV (up from $6.9m) and $4.9m in sapphire (down from $23.5m). However, there were $31.9m of negative adjustments to backlog related to the termination of a single ASF sapphire contract due to the customer's failure to perform.
Including about $149.3m of deferred revenue, order backlog has fallen from $1.8bn to $1.6bn. This includes $758.6m in polysilicon (down from $879.7m), $137.8m in PV (down slightly from $138.7m) and $697.5m in sapphire (down from $760.9m). "Our total backlog remains solid and our assessment of backlog risk remains unchanged from our analysis one quarter ago," notes Gutierrez.
"We remain committed to investing in next-generation technologies and product innovations in our core businesses to solidify our market leadership and develop new opportunities," says Gutierrez. "In addition, we continue to explore ways to further diversify the company's portfolio into new high-growth areas. During the quarter we added $70m of debt in anticipation of several potential investments that are under discussion," he adds.
GT has reiterated its revenue and earnings guidance for calendar year 2012, i.e. revenue of $925-975m and non-GAAP earnings per fully diluted share of $1.30-1.40.
