GT Advanced Technologies Inc. (Nashua, New Hampshire, US) has released results for the fourth quarter of 2012, reporting substantial write-downs and restructuring charges leading to an operating loss well in excess of revenues at USD 176 million.

GT reported only USD 6.5 million in Photovoltaic (PV) revenues, however, the company's Polysilicon division brought in USD 89.3 million during the quarter. Overall, company revenues fell 33% year-over-year to USD 102 million in the fourth quarter of 2012, in line with its guidance.

“Our Q4 results came in largely as expected as we continue to face challenging conditions in the solar and LED markets,” said Tom Gutierrez, president and chief executive officer.

“We have taken steps to resize the business and manage our balance sheet and believe 2013 will be a year during which we continue to strengthen our foundation and further diversify the business.”

Largest expenses goodwill impairment, write-downs

GT's expenses during the quarter included USD 57.0 million in goodwill impairment from its PV business and USD 71.8 million from the write-down of inventory and related charges, primarily related to its DSS inventory.

Restructuring a costly process

The company also reports USD 33.4 million in restructuring charges and asset impairments related to the closure of its pilot manufacturing facility in the US state of Missouri.

GT announced the completion of its restructuring in early January 2013, which included the shutdown of the Missouri facility and a shifting of resources to New Hampshire. The company previously estimated that the idling of the facility will save USD 15 million annually.

4Q expenses lead to 2012 losses

GT also reported USD 22.7 million in research and development expenses during the fourth quarter, in line with previous estimates.

Overall, GT reported a net loss of USD 159 million in the fourth quarter, bringing it to a loss of USD 63 million over the course of 2012. This is a rare occurrence for the otherwise profitable company, which has navigated the collapse of demand in the PV manufacturing industry better than many companies.

Large backlog, but collapse in new orders

GT maintains a backlog of USD 1.25 billion, including USD 529 million in its polysilicon segment and USD 3.3 million in its PV segment. Included in this backlog is USD 122 million of deferred revenue. However, the company reported only USD 6.5 million  in new orders in the fourth quarter of 2012.

Despite the slump in new orders, GT has maintained its USD 500 to 600 million revenue guidance for 2013, as well as a non-GAAP earnings per share estimate of USD 0.25 to 0.45.

2013-03-01 | Courtesy: GT Advanced Technologies | solarserver.com © Heindl Server GmbH

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