North Coast Solar Stocks

November 9, 2009

GT Solar International, Inc. Reports Results for Second Quarter Fiscal Year 2010

Filed under: SOLR — Tags: , , , , — Jason @ 4:15 pm

Revenue of $104.2 million; net income of $9.4 million; EPS of $.06 and cash of $204 million

4:15 pm EST, Monday November 9, 2009

MERRIMACK, N.H.–(BUSINESS WIRE)–GT Solar International, Inc. (SOLR), a global provider of specialized production equipment, process technology and turnkey manufacturing services for the solar power industry, today reported results for its second quarter of fiscal year 2010, which ended September 26, 2009.

Revenue for the second fiscal quarter totaled $104.2 million, compared with $140.2 million in the second quarter of fiscal year 2009. Revenue for the second fiscal quarter included $62.4 million in the PV segment and $41.8 million in the polysilicon segment.

Gross profit for the quarter totaled $34.3 million, or 32.9 percent of revenue, compared to $61.4 million, or 43.8 percent of revenue, for the second quarter of fiscal year 2009. The company’s gross margin for the first half of fiscal 2010 was 39.3 percent. Operating margin for the quarter was 14.8 percent, compared to 30.8 percent in the second quarter of fiscal 2009. Operating margin for the first half of fiscal year 2010 was 17.6 percent. The company had net income of $9.4 million in the second quarter of fiscal 2010 versus $27.9 million for the same quarter of fiscal 2009. Earnings per share in the second quarter on a fully diluted basis were $0.06, versus $0.19 for the same quarter last year.

At quarter’s end, the company’s backlog was $1.03 billion, with $279 million in the PV segment and $752 million in the polysilicon segment. New orders for the quarter, net of de-bookings, were $20.1 million.

Management Commentary

“Our focus has been and continues to be on strengthening GT Solar’s competitive and technology leadership positions in the solar equipment industry,” said Tom Gutierrez, president and chief executive officer. “In fiscal year 2010 to date, we have posted solid financial results, maintained what we believe to be one of the industry’s strongest balance sheets with $204 million of cash and no debt, and we are continuing to significantly increase our investment in R&D.

“In the second quarter, we received new orders of $30.7 million including the first for our new SDR-400 reactor and for engineering services in our new silane business, as well as an order for our multi-crystalline furnaces from a new customer that has historically been a mono-crystalline wafer manufacturer,” continued Gutierrez. “We are also seeing continued evidence that our reputation for quality, performance and industry-leading efficiencies is providing strong differentiation in the marketplace.”

Business Outlook

The company indicated today that its previous guidance 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, remains unchanged. The company also indicated its overall gross margin for the year is expected to be comparable to its year to date gross margin of approximately 39 percent.

Conference Call, Webcast

The company will host a live conference call and webcast at 5:00 p.m. Eastern Time today with Tom Gutierrez, 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 1.800.510.9834. International callers may dial 1.617.614.3669. 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 January 8, 2010. 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 18866870.

GT Solar International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands except per share data)

(Unaudited)

September 26,
2009
March 28,
2009
Assets
Current assets:
Cash and cash equivalents $ 204,257 $ 107,148
Accounts receivable, net 24,325 57,552
Inventories 78,665 103,476
Advances on inventory purchases 50,897 120,227
Deferred costs 226,461 174,961
Deferred income taxes 27,164 25,498
Refundable and prepaid income taxes 677 40,329
Prepaid expenses and other current assets 1,724 2,825
Total current assets 614,170 632,016
Property, plant and equipment, net 17,895 18,856
Other assets 777 940
Intangible assets, net 4,786 6,368
Deferred cost 66,538 36,643
Advances on inventory purchases 15,040
Goodwill 42,600 42,600
Total assets $ 761,806 $ 737,423
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 13,400 $ 50,832
Accrued expenses 13,644 15,695
Customer deposits 135,434 222,654
Deferred revenue 364,232 285,005
Accrued income taxes 158
Total current liabilities 526,710 574,344
Deferred income taxes 20,577 15,647
Deferred revenue 107,290 63,122
Other non-current liabilities 965 2,405
Total liabilities 655,542 655,518
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, 10,000 shares authorized, none issued and outstanding
Common stock, $0.01 par value, 500,000 shares authorized; 143,382 and 143,048 shares
issued and outstanding as of September 26, 2009 and March 28, 2009 respectively
1,434 1,431
Additional paid-in capital 83,636 80,070
Accumulated other comprehensive loss (4,813 ) (8,389 )
Retained earnings 26,007 8,793
Total stockholders’ equity 106,264 81,905
Total liabilities and stockholders’ equity $ 761,806 $ 737,423
GT Solar International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended Six Months Ended
September 26,
2009
September 27,
2008
September 26,
2009
September 27,
2008
Revenue $ 104,193 $ 140,192 $ 176,012 $ 197,274
Cost of revenue 69,934 78,821 106,788 111,606
Gross profit 34,259 61,371 69,224 85,668
Operating expenses:
Research and development 4,637 4,049 11,036 7,865
Selling and marketing 3,158 5,044 7,025 8,828
General and administrative 10,237 8,348 18,566 16,124
Amortization of intangible assets 791 762 1,582 1,553
Total operating expenses 18,823 18,203 38,209 34,370
Income from operations 15,436 43,168 31,015 51,298
Interest income (expense):
Interest income 122 1,069 164 2,321
Interest expense (204) (67) (381) (67)
Interest component of forward foreign exchange contracts 1,368 (639) 1,944
Other income (expense), net 182 (1,657) (2,181) (3,099)
Income before income taxes 15,536 43,881 27,978 52,397
Provision for income taxes 6,101 15,939 10,764 19,312
Net income $ 9,435 $ 27,942 $ 17,214 $ 33,085
Income per share:
Basic $ 0.07 $ 0.20 $ 0.12 $ 0.23
Diluted $ 0.06 $ 0.19 $ 0.12 $ 0.23
Dividend paid per common share $ 0.632 $ 0.632
Weighted average number of common shares outstanding:
Basic 143,339 142,398 143,228 142,344
Diluted 145,198 145,075 145,265 145,119

Contact:

GT Solar International, Inc.
Media
Susan Vaillancourt, 603-589-3782
susan.vaillancourt@gtsolar.com
or
Investors/Analysts
Bob Blair, 603-681-3869
bob.blair@gtsolar.com
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