(Source: Business Wire)
GT Solar International, Inc. (NASDAQ: SOLR) ("GT Solar"), a global provider of specialized equipment and technology for the solar power industry, today reported results for its first quarter of fiscal year 2010, which ended June 27, 2009.
Revenue for the first fiscal quarter totaled $71.8 million, compared with $57.1 million in the first quarter of fiscal year 2009. Revenue for the first fiscal quarter included $19.9 million in the PV segment and $51.9 million in the polysilicon segment.
Gross profit for the quarter totaled $35.0 million, or 49 percent of revenue, compared to $24.3 million, or 43 percent of revenue, for the first quarter of fiscal year 2009. Operating margin for the quarter was 21.7 percent, compared to 14 percent in the first quarter of fiscal 2009. The company had net income of $7.8 million in the first quarter of fiscal 2010 versus $5.1 million for the same quarter of fiscal 2009. Earnings per share in the first quarter on a fully-diluted basis were $0.05, versus $0.03 for the same quarter last year.
At quarter's end, the company's backlog was $1.12 billion, with $330 million in the PV segment and $785 million in the polysilicon segment. Net bookings for the quarter were $9.8 million.
Management Commentary
"We saw a number of positive developments in the first quarter including solid profitability, increases in our cash position and deferred revenue balance, new PV bookings and the acceptance of another GT turnkey wafer fabrication line," said Tom Zarrella, president and chief executive officer. "As planned, we completed shipment of a significant portion of the reactor-based backlog that is expected to be recognized as revenue in the second half of the year.
"The company is focused on improving operating efficiencies, maintaining cash and a strong balance sheet, strengthening customer relationships and ensuring that our R&D continues to advance GT Solar's technology leadership," said Zarrella. "We are confident that, with our cash management practices, lean cost structure, and flexible business model, we will be in a position to deliver enhanced earnings performance when the industry's growth returns."
Business Outlook
The company indicated today that it is on track with its guidance provided last quarter for fiscal year ending April 3, 2010, for revenue of $450 million to $550 million and fully-diluted earnings per share of $0.45 to $0.60.
Conference Call, Webcast
The company will host a live conference call and webcast at 5:00 p.m. Eastern Time today with Tom Zarrella, president and chief executive officer, and Rich Johnson, vice president of finance.
To listen to the conference call, callers in the United States and Canada may dial 1-888-396-2384. International callers may dial 1-617-847-8711. The conference call passcode is SOLR. A link to the live audio webcast of the company's earnings conference call may be found under ˜Events' at http://investor.gtsolar.com/.
A telephone replay will be available through November 4, 2009. To listen to the replay, callers in the United States and Canada may dial 1- 888-286-8010. International callers may dial 1- 617-801-6888. The replay passcode is 33310487.
About GT Solar International, Inc.
GT Solar International, Inc. (NASDAQ: SOLR) is a leading global provider of specialized manufacturing equipment and technology essential for the production of photovoltaic wafers, cells and modules and polysilicon utilized in the solar power industry. The company's principal products are directional solidification systems and chemical vapor deposition reactors and related equipment. For more information about GT Solar, please visit the company's website at www.gtsolar.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking in nature, including statements regarding the Company's future as a leading equipment and technology supplier for the global solar power industry, management's expectations about growth of solar power, the Company's new products and technologies and the Company's estimates for future periods with respect to revenue and earnings per share or other financial information. These statements are based on management's current expectations or beliefs. 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 as indicated above is based on signed purchase orders or other written contractual commitments in effect as of the end of our first fiscal quarter, 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 possibility that 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 Solar International, Inc.'s filings with the Securities and Exchange Commission, including the statements under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal 2009 filed on June 9, 2009. Statements in this press release should be evaluated in light of these important factors. GT Solar International, 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.
GT Solar International,Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) June 27,2009 March 28,2009 Assets Current assets: Cash and cash equivalents $ 161,414 $ 107,148 Accounts receivable, net 77,484 57,552 Inventories 80,026 103,476 Advances on inventory purchases 65,730 120,227 Deferred costs 230,257 174,961 Deferred income taxes 27,128 25,498 Refundable and prepaid income taxes 2,460 40,329 Prepaid expenses and other current assets 1,791 2,825 Total current assets 646,290 632,016 Property, plant and equipment, net 18,178 18,856 Intangible assets, net 5,577 6,368 Deferred cost 90,220 36,643 Advances on inventory purchases 11,389 -- Other assets 859 940 Goodwill 42,600 42,600 Total assets $ 815,113 $ 737,423 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 24,214 $ 50,832 Accrued expenses 13,720 15,695 Customer deposits 143,946 222,654 Deferred revenue 368,508 285,005 Accrued income taxes -- 158 Total current liabilities 550,388 574,344 Deferred income taxes 20,311 15,647 Deferred revenue 148,636 63,122 Other non-current liabilities 963 2,405 Total liabilities 720,298 655,518 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; 143,318 and 143,048 shares issued and outstanding as of June 27, 2009 and March 28, 2009 respectively 1,433 1,431 Additional paid-in capital 82,106 80,070 Accumulated other comprehensive loss (5,296 ) (8,389 ) Retained earnings 16,572 8,793 Total stockholders' equity 94,815 81,905 Total liabilities and stockholders' equity $ 815,113 $ 737,423 -------------------------------------------------------------------------------
GT Solar International,Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended June 27,2009 June 28,2008 Revenue $ 71,819 $ 57,082 Cost of revenue 36,854 32,785 Gross profit 34,965 24,297 Operating expenses: Research and development 6,399 3,816 Selling and marketing 3,867 3,784 General and administrative 8,329 7,775 Amortization of intangible assets 791 792 Total operating expenses 19,386 16,167 Income from operations 15,579 8,130 Other income (expense): Interest income 42 1,252 Interest expense (177 ) -- Interest component of forward foreign exchange contracts (639 ) 576 Other expense, net (2,363 ) (1,443 ) Income before income taxes 12,442 8,515 Provision for income taxes 4,663 3,373 Net income $ 7,779 $ 5,142 Income per share Basic $ 0.05 $ 0.04 Diluted $ 0.05 $ 0.03 Shares used to compute income per share Basic 143,116 142,290 Diluted 145,286 147,720 -------------------------------------------------------------------------------
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