Exhibit 99.1
| | | Innovative Photovoltaic
Manufacturing Solutions | |
GT SOLAR INTERNATIONAL, INC. REPORTS FISCAL YEAR 2009 FIRST QUARTER RESULTS
Highlights
· Revenue for the first quarter of fiscal year 2009 grew to $57.1 million, up 272% from the prior year first quarter revenue
· Gross margin for the quarter was 42.6%
· Net income for first quarter of fiscal year 2009 was $5.1 million, compared to a loss of $5.0 million for the prior year first quarter
· Earnings per share for first quarter of fiscal year 2009 was $0.03, compared to a loss of $0.04 for the same quarter of fiscal year 2008
· Company completed its initial public offering (“IPO”) and listing on NASDAQ on July 24th, 2008
MERRIMACK, N.H. — August 26, 2008 — GT Solar International, Inc. (NASDAQ: SOLR) (“GT Solar”) today reported results for its fiscal year 2009 first quarter ended June 28, 2008.
Revenues for the first quarter of fiscal year 2009 increased 272% to $57.1 million, from $15.4 million during the same quarter of fiscal year 2008. The increase resulted primarily from growth in revenue from the sale of the DSS 450, its recently introduced multi-crystalline product.
Gross profit increased to $24.3 million or 42.6% of sales, compared to $5.3 million, or 34.7% of revenue in the first quarter of 2008. GT Solar had net income of $5.1 million in the first quarter of fiscal year 2009 versus a net loss of $5.0 million for the same period of fiscal year 2008. Included in the results were $1.4 million in costs related to GT Solar’s IPO. Earnings per diluted share were $0.03 in first quarter of fiscal year 2009 versus a loss of $0.04 per diluted share for the same quarter a year earlier.
President and CEO Tom Zarrella noted, “We are pleased with the results for our first quarter of fiscal 2009 for several reasons. We were able to manage dynamic growth while achieving both gross and operating margins at record high levels. Additionally we increased our investment in R&D and approached completion of our previously announced factory expansion. Our backlog remains strong and we continue to see a robust order pipeline in both of our major product areas. Our balance sheet and cash flow provide us with more than ample capital to fuel our growth objectives.”
He continued, “Because we supply the global solar power industry with its core equipment and technology, GT Solar has a unique perspective on macro trends and developments. Given that perspective, we believe that the solar power industry is continuing to make additional progress in
lowering costs and bringing solar power closer to parity with more conventional energy sources. We therefore remain optimistic about GT Solar’s future and that of the industry as a whole.”
Additionally Company management provided guidance on future financial performance for the second quarter and for the full 2009 fiscal year. For the second quarter ending September 2009, management expects revenues in the range of $120-130 million, with earnings per share of between $0.12 - $0.15 fully diluted. For the current fiscal year ending March 2009, management expects revenues in the range of $600-$650 million, with earnings per share of between $0.70 -$0.75 fully diluted.
The Company will host a live conference call and web cast at 5:00 PM EDT today. Tom Zarrella, President and Chief Executive Officer, and Bob Woodbury, Chief Financial Officer, will host the call.
To listen to the conference call, callers in the United States and Canada may dial 877-419-6603. International callers may dial 719-325-4890. All callers should enter access code 1997486. A link to the live audio web cast of the Company’s earnings conference call may be found on the Company’s investor website under events and presentations at http://investor.gtsolar.com/.
About GT Solar International, Inc.
GT Solar International, Inc. (NASDAQ: SOLR) is a leading global provider of specialized manufacturing equipment and services essential for the production of photovoltaic wafers, cells and modules and polysilicon. The company’s principal products are directional solidification systems and chemical vapor deposition reactors and related equipment.
Forward-Looking Statement
Some of the statements in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. 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 our control, which could cause actual events to differ materially from those expressed or implied by the statements. These factors may include our inability to manage our expansion effectively, our dependence on a small number of customers and suppliers, our limited number of products, the possibility of product liability claims, our inability to protect our intellectual property rights, increased competition from other manufacturers of equipment for PV products, risks associated with doing business in foreign countries and various other risks as outlined in GT Solar International, Inc.’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. GT Solar International, 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.
Media Contact: | | Jessica Anderson Hill & Knowlton |
| | 212-885-0492 jessica.anderson@hillandknowlton.com |
(tables follow)
GT Solar International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| | June, 28
2008
ProForma(1) | | June 28,
2008 | | March 31,
2008 | |
| | | | | | | |
Assets | | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 22,209 | | $ | 112,209 | | $ | 54,839 | |
Restricted cash | | 132,507 | | 132,507 | | 164,028 | |
Accounts receivable, net | | 38,369 | | 38,369 | | 62,407 | |
Inventories | | 63,918 | | 63,918 | | 37,518 | |
Deferred costs | | 143,601 | | 143,601 | | 105,154 | |
Advances on inventory purchases | | 120,959 | | 120,959 | | 77,635 | |
Deferred income taxes | | 48,641 | | 48,641 | | 29,684 | |
Prepaid expenses and other current assets | | 5,766 | | 5,766 | | 6,625 | |
Total current assets | | 575,970 | | 665,970 | | 537,890 | |
Property, plant and equipment, net | | 13,915 | | 13,915 | | 10,433 | |
Other assets | | 78 | | 78 | | 74 | |
Intangible assets, net | | 8,232 | | 8,232 | | 9,024 | |
Goodwill | | 43,190 | | 43,190 | | 43,190 | |
Total assets | | $ | 641,385 | | $ | 731,385 | | $ | 600,611 | |
| | | | | | | |
Liabilities and stockholders’ equity | | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 49,969 | | $ | 49,969 | | $ | 37,992 | |
Accrued expenses | | 12,722 | | 12,722 | | 16,725 | |
Customer deposits | | 307,252 | | 307,252 | | 263,628 | |
Deferred revenue | | 234,782 | | 234,782 | | 164,190 | |
Accrued income taxes | | 22,780 | | 22,780 | | 22,316 | |
Total current liabilities | | 627,505 | | 627,505 | | 504,851 | |
Deferred income taxes | | 3,076 | | 3,076 | | 3,380 | |
Other non-current liabilities | | 1,004 | | 1,004 | | 739 | |
Total liabilities | | 631,585 | | 631,585 | | 508,970 | |
Commitments and contingencies | | — | | — | | — | |
Stockholders’ equity: | | | | | | | |
Common stock, $0.01 par value, 500,000 shares authorized; 142,390 and 142,375 shares issued and outstanding as of June 28, 2008 and March 31, 2008 respectively | | 1,424 | | 1,424 | | 1,424 | |
Additional paid-in capital | | 3,087 | | 77,129 | | 73,817 | |
Accumulated other comprehensive income | | 5,289 | | 5,289 | | 5,584 | |
Retained earnings | | — | | 15,958 | | 10,816 | |
Total stockholders’ equity | | 9,800 | | 99,800 | | 91,641 | |
Total liabilities and stockholders’ equity | | $ | 641,385 | | $ | 731,385 | | $ | 600,611 | |
| | | | | | | |
(1) Proforma reflects $90 million dividend paid to stockholders of record as of June 30, 2008
GT Solar International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
| | Three Months
Ended | | Three Months
Ended | |
| | June 28, 2008 | | June 30, 2007 | |
| | | | | |
Revenue | | $ | 57,082 | | $ | 15,356 | |
Cost of revenue | | 32,785 | | 10,034 | |
Gross profit | | 24,297 | | 5,322 | |
| | | | | |
Operating expenses: | | | | | |
Research and development | | 3,816 | | 1,084 | |
Selling and marketing | | 3,784 | | 2,917 | |
General and administrative | | 7,775 | | 4,423 | |
Amortization of intangible assets | | 792 | | 702 | |
Total operating expenses | | 16,167 | | 9,126 | |
| | | | | |
Income (loss) from operations | | 8,130 | | (3,804 | ) |
Other income (expense): | | | | | |
Interest income (expense), net | | 1,828 | | 1,042 | |
Other expense, net | | (1,443 | ) | (1,082 | ) |
Income (loss) before income taxes | | 8,515 | | (3,844 | ) |
| | | | | |
Provision for income taxes | | 3,373 | | 1,183 | |
Net income (loss) | | $ | 5,142 | | $ | (5,027 | ) |
| | | | | |
Income (loss) per share | | | | | |
Basic | | $ | 0.04 | | $ | (0.04 | ) |
Diluted | | $ | 0.03 | | $ | (0.04 | ) |
| | | | | |
Average Number of Common Shares Outstanding Used for Basic Earnings Per Share | | 142,290 | | 142,290 | |
| | | | | |
Dilutive Common Stock Options and Awards | | 5,430 | | — | |
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards | | 147,720 | | 142,290 | |
| | | | | |
Outstanding Common Stock Options and Awards Having No Dilutive Effect | | — | | 3,099 | |
| | | | | |
