GT confirms guidance $600-800m for 2014. Reports 22 cent loss per share on $22.5m of revenue, which is largely in line with management’s guidance. Conference call scheduled for 8 AM tomorrow morning.
Revenue for the first quarter was $22.5 million including $13.2 million in photovoltaic (PV), $5.6 million for the sapphire segment and $3.7 million for the polysilicon segment. This compares to $32.6 million of revenue in the fourth quarter of calendar 2013 and $57.8 million of revenue in the first quarter of fiscal year 2013.
Non-GAAP gross profit for the first quarter was $1.9 million, or 8.5 percent of revenue, compared to $6.8 million, or 21.0 percent of revenue in the fourth quarter of calendar 2013 and $14.3 million, or 24.7 percent of revenue for the first quarter of calendar 2013.
During the first quarter, PV and polysilicon non-GAAP gross margins were 37% and 57%, respectively, largely in line with historical ranges. The sapphire segment had a negative gross margin during the first quarter, which reflected the impact of minimal ASF(R) revenues and the ongoing build-out of the company’s sapphire materials operation in Arizona.
During the quarter, the company incurred non-GAAP operating expenses of $43.4 million, consisting of $23.5 million in R&D and $19.9 million in SG&A.
Non-GAAP loss per share was $0.22 in the first quarter, which was in line with guidance. This compares to a non-GAAP loss per share of $0.22 in the fourth quarter of 2013 and non-GAAP loss per share of $0.07 in the first quarter of calendar 2013.
“Our results for the March quarter were in line with our expectations,” said Tom Gutierrez, president and chief executive officer. “We continue to expect that 2014 will be a transformational and significant year for GT as our sapphire materials business ramps up and we continue to execute on our strategy of investing in new technologies that will help drive growth in 2015 and beyond.
“With respect to our Arizona project, we have now received three of the four prepayments from Apple,” Gutierrez continued. “We continue to expect our sapphire segment to contribute meaningfully to revenue this year.
“In addition, the favorable dynamics in our served markets continue to drive renewed customer interest in our ASF(TM), Polysilicon, HiCz(TM), and DSS(TM) solutions. Beyond these product lines, we continue to make significant progress with new game-changing technologies such as our Merlin(TM) solar module metallization and interconnect solution, our Hyperion(TM) ion implanter and the recently announced initiatives to develop coating and bonding solutions.”
Cash, Backlog and Orders
The company ended the quarter with $509 million of cash, cash equivalents and restricted cash, compared to $593 million in December.
During the first quarter the company received its second prepayment from Apple in the amount of $111 million. Shortly after the end of the first quarter, the company received its third prepayment from Apple in the amount of $103 million, which is not reflected in the first quarter’s ending balance sheet. Inclusive of the third prepayment, the company has received approximately $440 million out of the $578 million total prepayments that it is eligible to receive under the agreement with Apple. The company expects that the total prepayments it receives from Apple will fully fund its capital outlays related to the project in Arizona.
Equipment orders booked during the quarter were $29 million, including $15 million in PV and $14 million in Sapphire. The company ended the quarter with $609 million of equipment backlog, consisting of $300 million of ASF(TM) orders, $296 million of polysilicon orders and $13 million related to PV equipment. Subsequent to the close of the quarter, the company booked a $58 million order for high temperature specialty furnaces, which will be reflected in the Q2 reported backlog.
GT reiterates the following guidance for fiscal year 2014, which ends December 31, 2014:
— Revenue in the range of $600 to $800 million,
— Non-GAAP gross margin in the range of 25% to 27%, and
— Fully diluted Non-GAAP earnings per share in the range of $.02 to $.18
Conference Call, Webcast
On Thursday, May 8, 2014, at 8:00am ET, the company will host a live conference call with Tom Gutierrez, president and chief executive officer, and Raja Bal, chief financial officer, to discuss its first quarter fiscal year 2014 results, general business update and outlook.