New Organization Sharpens Focus on Growth Opportunities
NASHUA, N.H.--(BUSINESS WIRE)--Oct. 31, 2012--
GT Advanced Technologies (NASDAQ: GTAT) today announced that it is
streamlining worldwide operations to better align its cost structure
with current market conditions and enhance its ability to pursue
strategic growth initiatives, including the consolidation of existing
business units into a single Crystal Growth Systems (CGS) group and cost
reduction actions including an approximately 25 percent reduction of the
company’s global workforce. When fully implemented, the workforce
reduction is expected to reduce the company’s annualized expenses by
approximately $13 million. GT expects to record restructuring charges
associated with these actions in the amount of approximately $4.2
million in the December quarter.
The company also indicated that its revenue for the third quarter ending
September 29, 2012 would be at the low end of its previously stated
guidance range of $110 million to $140 million. The company will report
its financial results for Q3CY12 after the close of the market on
November 6th and will hold a webcasted conference call at
8:00am ET on November 7th. At that time the company will
provide commentary on its reorganization, cost reduction actions and
strategic initiatives. Please see the company’s website at http://investor.gtat.com
for conference call details.
“It is becoming increasingly clear that some of our Asian customers are
experiencing severe financial difficulties brought on by a number of
economic and trade related challenges,” said Tom Gutierrez, president
and chief executive officer. “We are not immune to these headwinds and
we are taking actions to prepare for what is likely to be a challenging
2013 in our core markets by lowering our cost structure and at the same
time improving our ability and flexibility to make strategic investments
in R&D, next-generation technology and diversification initiatives that
we believe will drive future growth and the creation of shareholder
value.
“In the long term, we continue to expect renewed growth in the LED
market as general lighting adoption accelerates and a turn-around in the
solar industry driven in large part by the adoption of new technologies
that provide critical cost reductions. We also remain optimistic about
the opportunities in our sapphire business for emerging applications
such as the mobile cover and touch screen markets.”
Under the new business structure, Dan Squiller has taken on the role of
President of the company’s new CGS business group, reporting directly to
Gutierrez. The CGS group combines the PV, Polysilicon and Sapphire
business units, as well as worldwide operations. David Keck will assume
the role of executive vice president and general manager of the PV and
polysilicon unit and Cheryl Diuguid will continue to lead the sapphire
business unit as executive vice president and general manager. David
Gray, chief strategy officer, Vikram Singh, executive vice president of
advanced systems development and R&D, and Jeff Ford, vice president and
general manager of DSS business development, will report directly to
Gutierrez to drive the company’s business development, diversification
and next generation technology initiatives.
“It remains our strategy to invest through these challenging times,”
said Gutierrez. “Combined with our healthy balance sheet with nearly
$480 million of cash and cash equivalents*, the actions we announced
today solidly position GT to execute on this growth strategy, laying the
groundwork for us to emerge as a stronger, more diversified global
technology leader.”
*as of September 29, 2012
About GT Advanced Technologies Inc.
GT Advanced Technologies Inc. is a diversified technology company with
innovative crystal growth equipment and solutions for the global solar,
LED and electronics industries. Our products accelerate the adoption of
new advanced materials that improve performance and lower the cost of
manufacturing. For additional information about GT Advanced
Technologies, please visit www.gtat.com.
Forward-Looking Statements
Certain of the information in this press release relate to the
Company’s future expectations, plans and prospects for its business and
industry that constitute "forward-looking statements" for the purposes
of the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995, including but not limited to: the Company’s revenue
for the third quarter ending September 29, 2012 would be at the low end
of its previously stated guidance range of $110 million to $140 million;
the Company’s streamlining of its worldwide operations will enhance its
ability to pursue strategic growth initiatives; when fully implemented,
the workforce reduction is expected to reduce the Company’s annualized
expenses by approximately $13 million; GT expects to record
restructuring charges associated with these workforce reduction actions
in the amount of approximately $4.2 million in the quarter ended
December 31, 2012; 2013 will be challenging in the Company’s core
markets; the Company is attempting to improve its ability and
flexibility to make strategic investments in R&D, next-generation
technology and diversification initiatives that it believes will drive
future growth and the creation of shareholder value; in the long term,
the Company continues to expect renewed growth in the LED market as
general lighting adoption accelerates and a turn-around in the solar
industry driven in large part by the adoption of new technologies that
provide critical cost reductions; the Company remains optimistic about
the opportunities in its sapphire business for emerging applications
such as the mobile cover and touch screen markets; the Company intends
to engage in business development, diversification and invest in next
generation technology initiatives; the Company’s strategy continues to
be to invest through these challenging times; and the actions taken by
the Company (as described in this press release) solidly position GT to
execute on its growth strategy, laying the groundwork for the Company to
emerge as a stronger, more diversified global technology leader. These
forward-looking statements are not a guarantee of performance and are
subject to a number of uncertainties and other factors, many of which
are outside the Company's control, which could cause actual events to
differ materially from those expressed or implied by the statements.
Other factors that may cause actual events to differ materially from
those expressed or implied by our forward-looking statements include the
impact of continued decreased demand and/or excess capacity in the
markets for the output of our solar and sapphire equipment, general
economic conditions and the tightening credit market having an adverse
impact on demand for the Company’s products, the possibility that
changes in government incentives may reduce demand for solar products,
which would, in turn, reduce demand for our equipment, technological
changes could render existing products or technologies obsolete, the
Company may be unable to protect its intellectual property rights,
competition from other manufacturers may increase, exchange rate
fluctuations and conditions in the credit markets and economy may reduce
demand for the Company's products and various other risks as outlined in
GT Advanced Technologies Inc.'s filings with the Securities and Exchange
Commission, including the statements under the heading "Risk Factors" in
the company's quarterly report on Form 10-Q for the fiscal quarter ended
June 30, 2012. Statements in this press release should be evaluated in
light of these important factors. The statements in this press release
represent GT Advanced Technologies Inc.'s expectations and beliefs as of
the date of this press release. GT Advanced Technologies Inc.
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. GT Advanced Technologies Inc. is
under no obligation to, and expressly disclaims any such obligation to,
update or alter its forward-looking statements, whether as a result of
new information, future events, or otherwise.
Source: GT Advanced Technologies Inc.
GT Advanced Technologies
Media
Jeff Nestel-Patt,
603-204-2883
jeff.nestelpatt@gtat.com
or
Investors/Analysts
Ryan
Blair, 603-681-3869
ryan.blair@gtat.com
