Boston, MA 05/27/2014 (wallstreetpr) – GT Advanced Technologies Inc (NASDAQ:GTAT) Showed a disappointing result during the first quarter of 2014 ended with increasing loss due to decreased revenue across segments.
Negative Earnings
Revenue during the quarter decreased to $22.5 million from $57.8 million in the first quarter 2013 (1Q2013) due to lower revenue recognized from polysilicon and sapphire materials. The growing contribution of $13.2 million from photovoltaic (PV) compensated the lower sales of $3.7 million from the polysilicon and $5.6 million from the sapphire segment.
The sapphire segment reported negative gross margin due to lower ASF revenue, which was partly offset by positive gross margin of PV (37%) and polysilicon (57%). So, the Company’s non-GAAP gross margin for the period was 8.5% versus 24.7% in 1Q2013.
Despite lower revenue, GT associated with 48% year over year increase in non-GAAP operating expenses that reduced the non-GAAP loss per share to $0.22 in the first quarter from $0.07 in 1Q2013.
Backlog And Orders
During the quarter, equipment orders booked were $29 million, which includes PV ($15 million) and Sapphire ($14 million). As a result, total backlogs of $609 million of equipment backlog that consists of ASF ($300 million), polysilicon ($296 million) and PV orders ($13 million). In addition, GT booked orders of $58 million for high temperature specialty furnaces that will reflect in the 2Q2014 backlog.
Cash received
As per the agreement with Apple, GT received $111 million related to the second prepayment during 1Q2014 and $103 million towards third prepayment, which is likely to recognize in the 2Q2014. So, as of now, the Company received total prepayments of ~$440 million out of $578 million that will help to finance the capital spending over the projects in Arizona
Despite $54 million cash used in operation and capital expenditures of $153 million, GT managed to report cash and cash equivalents of $407 million. So, including the cash of $111 million, GT’s total cash balances were $509 million as of March 29, 2014.
Outlook
GT Advanced Technologies Inc (NASDAQ:GTAT) expects positive growth across its business segments in the coming quarters. Therefore, the Company raised FY2014 guidance with revenue at a range of $600-$800 million with adjusted gross margin of 25% to 27%. The Company also expects positive earnings growth with adjusted diluted EPS of $0.02 to $0.18.
