Archive for the ‘Thermal Technology’ Category

by Matt Margolis

refractory furnace

 

On April 7th, 2014 GT Advanced Technologies announced that it has received a $58.6m order high temperature refractory metal furnaces that are used for a variety of industrial purposes.  GT also indicated that the revenue associated with this order is expected to be booked in the 2H2014.  I was wondering just like everyone else where did this come and what was it for?  The highlight from the press release announcing the deal is below:

GT Advanced Technologies (GTAT) today announced that it has received $58.6 million in orders this quarter for high temperature refractory metal furnaces that are used for a variety of industrial purposes. These orders will be reflected in Q2 reportable backlog and GT expects to recognize revenue from these orders during the second half of 2014.

“Thermal Technologies, which was acquired by GT in 2013, developed the high temperature refractory furnace technology that will be deployed as part of these orders. It is expected that several other industrial products developed by Thermal Technologies, will be taken to market through our existing sales and service channel, adding to our diversification beyond our traditional markets,” said Tom Gutierrez, GT’s president and CEO.

According to the press release this $58.6m order was related to high temperature refractory furnace technology  that was developed by Thermal Technologies (who was acquired by GT in 2013).  So what are refractory metals?  According to wikipedia, they are a class of metals that are extraordinarily resistant to heat and wear.  The most common definition of refractory metals include niobium, molybdenum, tantalum, tungsten and rhenium which all share a melting point above 2000 °C .  I did well in my high school science classes but I don’t have a fond memory of these periodic table elements but needless to say they work great in refractory furnaces.

 

Refractory Metals Screenshot

GT’s refractory furnace sales most likely fell under under one of two categories; automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF).  Refractory furnaces do not need to be attended (unlike sapphire growth furnaces) and they rapidly heat and cool (unlike sapphire growth furnaces).  The APF and CPF furnaces are used to process high purity advanced ceramic materials.   Advanced ceramic materials include  include silicon carbide and tungsten carbide.    Silicon Carbide is currently sold in various forms including fiber, foam, power, monofilament and sheet.  Advanced materials are commonly found on crushing equipment for mining and also are used in medicine, electrical and electronics industries.   GT is already focused on the Silicon Carbide market and I believe this was GT’s first sizable furnace order that will be focused on melting and forming Silicon Carbide products.  It is also important to note that the Thermal Technology products and Silicon Carbide were completely left of GT’s March 14th Technology conference.  I believe there is an opportunity for GT to create even more shareholder value through the sale of its Thermal Technology equipment tool set.  Stay tuned to the Obscure Analyst for further updates on this hidden gem!

 

Automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF) provide fully automatic, unattended operation at temperatures to 2500°C. Parts processing is quickly cycled with rapid temperature ramp up (>100°C/min) and ramp down (up to 300°C/min). These systems may be configured as a hydrogen furnace and/or high vacuum furnace.  In addition to the main heating element, optional top and bottom trim heaters are available for excellent temperature uniformity throughout the entire hot zone.
Thermal Technology’s APF and CPF furnaces are used for processing high purity advanced ceramic materials which are susceptible to contamination in traditional graphite furnaces. These furnaces also process refractory metals under high vacuum conditions at elevated temperatures and can be supplied without high vacuum pumps for processing in inert or reducing gas atmospheres.

– See more at: http://www.thermaltechnology.com/production-furnace.html?id=100#sthash.pffbRuQi.dpuf

Automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF) provide fully automatic, unattended operation at temperatures to 2500°C. Parts processing is quickly cycled with rapid temperature ramp up (>100°C/min) and ramp down (up to 300°C/min). These systems may be configured as a hydrogen furnace and/or high vacuum furnace.  In addition to the main heating element, optional top and bottom trim heaters are available for excellent temperature uniformity throughout the entire hot zone.
Thermal Technology’s APF and CPF furnaces are used for processing high purity advanced ceramic materials which are susceptible to contamination in traditional graphite furnaces. These furnaces also process refractory metals under high vacuum conditions at elevated temperatures and can be supplied without high vacuum pumps for processing in inert or reducing gas atmospheres.

– See more at: http://www.thermaltechnology.com/production-furnace.html?id=100#sthash.pffbRuQi.dpuf

Automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF) provide fully automatic, unattended operation at temperatures to 2500°C. Parts processing is quickly cycled with rapid temperature ramp up (>100°C/min) and ramp down (up to 300°C/min). These systems may be configured as a hydrogen furnace and/or high vacuum furnace.  In addition to the main heating element, optional top and bottom trim heaters are available for excellent temperature uniformity throughout the entire hot zone.
Thermal Technology’s APF and CPF furnaces are used for processing high purity advanced ceramic materials which are susceptible to contamination in traditional graphite furnaces. These furnaces also process refractory metals under high vacuum conditions at elevated temperatures and can be supplied without high vacuum pumps for processing in inert or reducing gas atmospheres.

– See more at: http://www.thermaltechnology.com/production-furnace.html?id=100#sthash.pffbRuQi.dpuf

Automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF) provide fully automatic, unattended operation at temperatures to 2500°C. Parts processing is quickly cycled with rapid temperature ramp up (>100°C/min) and ramp down (up to 300°C/min). These systems may be configured as a hydrogen furnace and/or high vacuum furnace.  In addition to the main heating element, optional top and bottom trim heaters are available for excellent temperature uniformity throughout the entire hot zone.
Thermal Technology’s APF and CPF furnaces are used for processing high purity advanced ceramic materials which are susceptible to contamination in traditional graphite furnaces. These furnaces also process refractory metals under high vacuum conditions at elevated temperatures and can be supplied without high vacuum pumps for processing in inert or reducing gas atmospheres.

– See more at: http://www.thermaltechnology.com/production-furnace.html?id=100#sthash.pffbRuQi.dpuf

Automatic processing furnace systems (APF) and ceramic processing furnace systems (CPF) provide fully automatic, unattended operation at temperatures to 2500°C. Parts processing is quickly cycled with rapid temperature ramp up (>100°C/min) and ramp down (up to 300°C/min). These systems may be configured as a hydrogen furnace and/or high vacuum furnace.  In addition to the main heating element, optional top and bottom trim heaters are available for excellent temperature uniformity throughout the entire hot zone.
Thermal Technology’s APF and CPF furnaces are used for processing high purity advanced ceramic materials which are susceptible to contamination in traditional graphite furnaces. These furnaces also process refractory metals under high vacuum conditions at elevated temperatures and can be supplied without high vacuum pumps for processing in inert or reducing gas atmospheres.

– See more at: http://www.thermaltechnology.com/production-furnace.html?id=100#sthash.pffbRuQi.dpuf

Full Disclosure: I am long GTAT and will add additional shares once my April blog revenue arrives.

 

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