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GT Advanced Technologies, Inc. (GTATQ)

- OTCPK - Limited
  • Oct. 8, 2014, 12:45 PM
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  • Oct. 8, 2014, 12:04 PM
    • Apple (NASDAQ:AAPL), remarking for the first time on GT Advanced's (GTAT +23.1%) bankruptcy filing: "We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps."
    • The remarks come ahead of tomorrow morning's bankruptcy hearing, which should provide details on the role Apple played in the filing. The WSJ has reported Apple decided to withhold a $139M prepayment due to GT's failure to meet technical milestones.
    • GT is currently trading around $1.50. Its market cap is at $153M.
    • Prior GT Advanced coverage
  • Oct. 8, 2014, 9:10 AM
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  • Oct. 7, 2014, 5:00 PM
    • A Manchester, NH court will host GT Advanced's (GTAT +51.2%) first bankruptcy hearing at 10AM ET on Thursday.
    • The hearing should provide details on the specific role Apple played in GT's Chap. 11 filing, and what claims Apple holds on GT's assets going forward. The WSJ has reported Apple held off on using sapphire cover glass for the iPhone 6 due to technical issues, and that the company is withholding a final $139M prepayment.
    • Yesterday: Street tries to make sense of GT Advanced's bankruptcy filing
  • Oct. 7, 2014, 1:44 PM
    • In the wake of GT Advanced's (GTAT +132.5%) bankruptcy filing, the WSJ reports Apple (AAPL -0.2%) chose not to use sapphire cover glass for the iPhone 6 following tests in which sapphire "proved brittle, cracking when phones were dropped from various heights and angles."
    • A September Time column noted this potential issue (among others). iPhone Gorilla Glass supplier Corning (GLW -1.1%) must be pleased to see the report.
    • The WSJ also reports (not surprisingly) Apple is withholding a final $139M prepayment to GT, which depended on operational targets being hit.
    • Susquehanna thinks Apple may take possession of the GT sapphire equipment at Apple's Mesa, AZ facility, given its prepayments ($440M to date) were "structured as secured debt." GT shares are rebounding today, but are still only at $1.85.
    • An App Store support page indicates 47% of iOS users are now on iOS 8, up just slightly from 46% as of Sep. 21. Bugs related to mobile connectivity (since fixed) and iCloud Drive could be slowing uptake, as might complaints about Wi-Fi speeds and battery life.
    • Digitimes, historically better at reporting on supply chain activity than new product features, reports Apple has two 12.9" iPad prototypes: One is a standard tablet, and the other a 2-in-1 device supporting both iOS and Mac OS.
    • Tim Cook famously panned the idea of an integrated tablet/PC. Moreover, iOS and Mac OS currently rely on different CPU architectures - the former uses ARM, and the latter x86.
    • Digitimes also reports Apple has boosted iPhone 6 Plus production relative to the iPhone 6, following strong 6 Plus demand. Fiksu's data still shows the iPhone 6 having a 3.8x usage edge over the supply-constrained 6 Plus. However, early Chinese registration data showed a nearly even split between the phones.
  • Oct. 7, 2014, 12:45 PM
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  • Oct. 6, 2014, 6:09 PM
    • "It seems abundantly clear that there was a fundamental, severe breakdown in the relationship between Apple (NASDAQ:AAPL) and GT," says Raymond James' Pavel Molchanov, taking stock of GT Advanced's (NASDAQ:GTAT) bombshell Chap. 11 announcement.
    • Molchanov, who downgraded GT to Underperform on Aug. 28, speculates Apple may have "unilaterally opted for a different sapphire supplier for purely business reasons," or that GT's Mesa, AZ plant may have "suffered serious technical defects and was unable to meet the agreed-upon obligations with Apple." He expects GT's equity will most likely prove worthless.
    • Gilford Securities Nimal Vallipuram thinks Apple may have requested "prepayment of some loans due to GTAT not meeting performance targets related to sapphire manufacturing." Nonetheless, he doesn't get why "the two companies did not restructure the agreement to buy some time for GTAT."
    • Matt Margolis: "It is evident now that GTAT did not meet the required metrics to receive the final prepayment from Apple. In addition, GTAT burned through $248m of cash during the past two months." Back in August, GT said it expected a final $139M prepayment from Apple by the end of October.
    • Shares closed today at $0.80. They're at $0.91 AH.
  • Oct. 6, 2014, 12:46 PM
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  • Oct. 6, 2014, 10:48 AM
    • After coming off a halt, GT Advanced (NASDAQ:GTAT) has fallen to $1.06 in response to news it's filing for Chap. 11 and seeking debtor-in-possession financing.
    • The company's market cap stands at $145.8M. Debt totaled $294.2M as of June 28.
  • Oct. 6, 2014, 10:17 AM
    • In a stunning announcement, GT Advanced (NASDAQ:GTAT) says it has "commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire."
    • GT had just $85M in cash as of Sep. 29, and is now seeking debtor-in-possession financing. It observes the Nasdaq "may temporarily halt trading in the company's stock pending the receipt of additional information on the company's financial condition."
    • No details have been given on what changes occurred to GT's relationship with Apple (if any) to bring about the filing.
    • Shares remain halted.
  • Oct. 6, 2014, 9:42 AM
  • Oct. 2, 2014, 1:32 PM
    • GT Advanced (NASDAQ:GTAT) has postponed a business update call originally set for this week to next week. "Further details" will be provided later.
    • Shares have spiked higher; they were down as much as 6% earlier today. An overnight Taiwanese media report stated the Apple Watch won't launch until February, and that supplies will be constrained by sapphire output.
    • 55.6M shares (41% of the float) was shorted as of Sep. 15. Many of those shorts have seen big gains over the last month.
  • Sep. 22, 2014, 7:24 PM
    • Re/code: "Based on conversations with people familiar with Apple’s (AAPL +0.1%) thinking: Apple won’t shutter the [Beats Music] streaming service. It may, however, modify it over time, and one of those changes could involved changing the Beats Music brand."
    • Re/code's report follows one from TechCrunch stating Apple is planning to shut down Beats Music and "sunset the Beats Music brand." Apple spokesman Tom Neumayr says TechCrunch's report is "not true," but doesn't elaborate.
    • Gene Munster estimates ~8M of the 10M+  iPhone 6 units Apple sold over the weekend wound up being purchased by consumers, with the remaining ~2M going into the channel. That implies 45% consumer sell-through growth over estimated first-weekend iPhone 5S sales of 5.5M.
    • Patently Apple notes Apple has filed a patent application for a new sapphire glass-strengthening process. The application relates to the use of coatings on a material such as sapphire.
    • GT Advanced (GTAT +1%), whose shares were hit hard by news that the iPhone 6 (unlike the Apple Watch) doesn't use sapphire cover glass, closed higher today. Last week, Time took a look at the technology challenges that may have led Apple to opt against using sapphire cover glass for the iPhone 6.
  • Sep. 10, 2014, 12:47 PM
  • Sep. 10, 2014, 9:15 AM
  • Sep. 10, 2014, 7:18 AM
    • Apple's not including sapphire display technology in either of the new iPhone 6 models, but having it for the Watch "is disappointing from both a timing and volume perspective for GTAT," says Goldman analyst Brian Lee, downgrading the stock to a Neutral, with price target cut to $14 from $20.
    • Removing 20M iPhone units from his model and replacing with 10M watches brings estimated 2014 revenues down to $497M from $634M, and EPS to $0.09 from $0.12.
    • Piper Jaffray downgrades to Neutral, with price target cut to $16 from $23.
    • Shares -10.9% premarket after yesterday's 12.9% slide.
    • Previously: Apple event kicked off, iPhone 6 introduced
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Company Description
GT Advanced Technologies is a leading diversified technology company producing advanced materials and innovative crystal growth equipment for the global electronics, solar and LED industries. Our technical innovations accelerate the use of advanced materials, enabling a new generation of... More