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GT Advanced Technologies, Inc. (GTATQ)

- OTCPK - Limited
  • Aug. 7, 2014, 5:19 PM
    • Though Rubicon (NASDAQ:RBCN) beat Q2 estimates, it's guiding for Q3 revenue of $8M-$12M and EPS of -$0.39 to -$0.44, far below a consensus of $16.3M and -$0.27.
    • The company says it's seeing "very little demand" in Q3 for 2" core sapphire wafers due to excess inventory among polishing clients. It also thinks "recent capacity additions in the sapphire market" related to mobile devices are "temporarily impacting" 2" demand. That's almost certainly a reference to GT Advanced (NASDAQ:GTAT) and its huge sapphire production efforts for Apple.
    • 2" demand is expected to improve in Q4. Rubicon also says it's upbeat about initial qualification of its PSS wafers at 3 new clients.
    • Q2 gross margin was -50.2% (a $7.3M gross loss on revenue of $14.5M). Rubicon notes 4" core wafer pricing rose 10% Q/Q amid strong LED market demand, but added "idle plant and development costs at our wafering facility continued to be a drag on earnings."
    • Q2 results, PR
    | 1 Comment
  • Aug. 4, 2014, 4:43 PM
    • GT Advanced (NASDAQ:GTAT) now expects full-year revenue to be in the lower half of a prior $600M-$800M range (consensus is at $666.8M). But it also expects EPS to be in a range of $0.12-$0.18, the high end of a prior $0.02-$0.18 and above a $0.03 consensus. GT attributes the EPS strength to mix changes and better-than-expected gross margin.
    • 2016 EPS guidance of $1.50 or more is reiterated. The company's Merlin and Hyperion tech platforms are expected to contribute to 2016 results.
    • Q2 gross margin was 25.2%, up from 8.5% in Q1 and better than expected in light of the margin pressure placed by the Apple (NASDAQ:AAPL) deal. GM was still down from 35% a year ago.
    • GT says the buildout of its Arizona facility (used to make sapphire for Apple) is "nearly complete," and that the company is starting the transition to volume production. GT received a $103M prepayment from Apple in Q2, and expects a final $139M prepayment by the end of October.
    • Equipment orders totaled $75M ($72M sapphire-related), up sharply from Q1's low $29M. Equipment backlog grew by $19M Q/Q to $628M ($333M sapphire, $292M polysilicon, $3M solar).
    • Q2 results, PR
    | 80 Comments
  • Aug. 4, 2014, 4:16 PM
    • GT Advanced Technologies (NASDAQ:GTAT): Q2 EPS of -$0.16 misses by $0.01.
    • Revenue of $58M (-65.5% Y/Y) misses by $5.94M.
    • Shares +2.6%.
    • Press Release
    | 14 Comments
  • Aug. 3, 2014, 5:35 PM
  • May. 7, 2014, 5:07 PM
    • GT Advanced (GTAT) is reiterating full-year guidance for revenue of $600M-$800M and EPS of $0.02-$0.18; the consensus is at $693.8M and $0.10.
    • Apple made an $111M prepayment in Q1 to help finance GT's sapphire-production efforts; GT has now received $440M of the $578M in prepayments it's eligible to receive.
    • With GT focused on the Apple ramp, equipment orders only totaled $29M ($15M solar, $14M sapphire). The company ended Q1 with an equipmentbacklog of $609M, up from $602.2M at the end of Q4.
    • Gross margin was just 8.5% (down from 24.7% a year ago) ahead of an expected 2H revenue surge (driven by Apple). R&D spend rose 50% Y/Y to $24.6M, and G&A spend 34% to $19.5M.
    • GTAT -2.3% AH. Q1 results, PR
    | 5 Comments
  • May. 7, 2014, 4:51 PM
    • GT Advanced Technologies (GTAT): Q1 EPS of -$0.22 in-line.
    • Revenue of $22.5M (-61.1% Y/Y) misses by $4.44M.
    • Shares -2.34% AH.
    • Press Release
    | 1 Comment
  • May. 6, 2014, 5:35 PM
  • Feb. 24, 2014, 12:53 PM
    • GT Advanced (GTAT +13.2%) is taking off after posting an EPS beat to go with a revenue miss, and reiterating its 2014 revenue and gross margin guidance ($600M-$800M and 25%-27%, respectively). EPS guidance of $0.02-$0.18 is in-line with a $0.09 consensus.
    • Likely helping: GT says its creation of a sapphire materials business (via the Apple deal) may allow it to "expand into other materials segments" once it's done ramping production at Apple's Mesa, AZ facility.
    • GT also says it's seeing strong interest in new LED, solar, industrial, and power electronics equipment products. "Meaningful revenue recognition" for those products is expected to start in early 2015.
    • The company ended Q4 with $539M in cash/equivalents and $283.9M in debt. It expects to end 2014 with $400M-$500M in cash. 2014 sales are set to be heavily back-end loaded - Q1 guidance is for revenue of $20M-$30M and EPS of -$0.20 to -$0.25, well below a consensus of $113M and -$0.08.
    • Q4 results, PR
    | Comment!
  • Feb. 24, 2014, 7:18 AM
    • GT Advanced Technologies, Inc. (GTAT): Q4 EPS of -$0.26 beats by $0.10.
    • Revenue of $32.6M (-68.1% Y/Y) misses by $4.78M.
    • Press Release
    | 2 Comments
  • Feb. 24, 2014, 12:05 AM
  • Feb. 23, 2014, 5:30 PM
  • Nov. 20, 2013, 9:22 AM
    • Ahead of CFO James Flaws' 1:45PM ET UBS conference talk (webcast),  Corning (GLW) reiterates it expects Q4 earnings to be down Q/Q due to both seasonality and "specific business factors," such as weakness in its optical fiber business. (PR)
    • As it is, Corning's Q4 EPS consensus is at $0.28, below reported Q3 EPS of $0.33.
    • Corning also states it expects Specialty Materials sales (inc. Gorilla Glass) to be down 20% Y/Y, something attributed to inventory builds a year ago. Corning previously guided for Specialty Materials sales to be flat Q/Q in Q4; that implied an 18% Y/Y drop. The company promises a subsequent return to growth, fueled by smartphone, tablet, and notebook demand.
    • In an effort to address worries about GT Advanced's (GTAT) big sapphire supply deal with Apple, Corning asserts it "continues to innovate with Apple to advance the state of the art with even tougher versions of [Gorilla Glass]," and that it continues to work on improving Gorilla Glass' durability and scratch-resistance (two key selling points for sapphire).
    • Shares -0.6% premarket.
    | 3 Comments
  • Nov. 5, 2013, 11:03 AM
    • GT Advanced (GTAT +23.4%) has caught four upgrades and soared to new 52-week highs after striking a huge sapphire supply deal Apple. Rubicon (RBCN +25.3%) is also flying higher. Corning (GLW -2.9%), meanwhile, is heading in the opposite direction as investors worry Apple (and perhaps also peers) will begin using sapphire instead of Gorilla Glass to cover smartphone/tablet displays.
    • The deal still has some skeptics; they point to the fact GT's sapphire materials sales to Apple are expected carry much lower gross margins than its traditional equipment sales, that Apple isn't providing any purchase commitments, and that exclusivity requirements stand to limit GT's sales to other mobile OEMs. But by and large, optimism about the opening of a major new market opportunity long targeted by GT is overshadowing these concerns.
    • Cantor is defending Corning, arguing sapphire will more likely be used in small form-factor Apple devices (an iWatch?) than in iPhone/iPad displays. Sterne Agee estimates Apple accounts for 10%-15% of Corning's phone-related sales.
    • GT's management refrained from providing additional details about Apple on the CC (transcript); Apple tends to demand heavy secrecy from suppliers. But they did strike an optimistic tone about sapphire pricing and furnace utilization rates among traditional clients, and predicted customers will likely " start taking delivery of backlog at a faster pace, as [GT's] capacity opens up again." GT also claimed to be making good progress in commercializing its Hyperion tech (set for a 2015 launch) for solar applications;
    • On the other hand, GT doesn't think the solar equipment market will "show significant opportunity" before 2015.
    | 3 Comments
  • Nov. 4, 2013, 5:11 PM
    • GT's (GTAT) big Q3 miss and even bigger 2013 guidance cut is due to the company dedicating the vast majority of its advanced sapphire furnace capacity to handle materials production for Apple rather than servicing other clients. Nonetheless, the company says it remains committed to addressing traditional markets.
    • Thanks to Apple, GT is now guiding for 2014 revenue of $600M-$800M, well above a $582.5M consensus. GT says its Apple materials sales are expected to carry a "substantially lower" gross margin than equipment sales (Apple is known for driving a hard bargain with suppliers). But the deal is still expected to be accretive to earnings starting in 2014. ~80% of GT's 2014 sales are expected to come from its sapphire business (involves sales to both Apple and others).
    • GT also notes the deal requires the company to maintain "a minimum level of capacity," and that the company "will be subject to certain exclusivity terms during the duration of the agreement" (i.e. some other sapphire firm will probably have to service Samsung).
    • GT has used $96M in cash to pay down a credit facility and terminate a credit agreement, moves deemed necessary for the Apple deal to proceed.
    • With GT focusing on Apple, Q3 orders only amounted to $7M, -50% Q/Q. Solar orders totaled $3M, and sapphire orders $4M. Backlog fell by $44M Q/Q to $658M.
    • Arizona's governor's office has issued a PR praising the deal, which will involve the construction of a plant in Mesa, AZ.
    • GT's Q3 results, the Apple deal
    | Comment!
  • Nov. 4, 2013, 4:20 PM
    • GT Advanced (GTAT): Q3 EPS of -$0.16 misses by $0.15.
    • Revenue of $40.3M (-76% Y/Y) misses by $52.2M.
    • Expects 2013 revenue of $290M-$320M and EPS of -$0.40 to -$0.50, below a consensus of $525.8M and $0.23.
    • Major long-term deal with Apple announced. Apple to make $578M prepayment.
    • Shares are halted. CC at 5PM ET. (PR)
    | Comment!
  • Nov. 4, 2013, 12:10 AM
GTATQ vs. ETF Alternatives
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