GT Advanced Technologies Reiterates CY12 Revenue & Non-GAAP EPS Guidance

– Updates Outlook for September Quarter
– Cites Potential Impact of European Tariff Actions on CY13
– Provides New Business Update

GT Advanced Technologies today reiterated its guidance for the calendar year ending December 31, 2012, provided an updated view of the September quarter and commented on the possible impact in CY13 of potential import tariffs in European markets on photovoltaic modules and related components from China. The company also provided updates on new business opportunities in its polysilicon and sapphire businesses.

The company indicated it was on target to achieve its top and bottom line guidance for the calendar year ending December 31, 2012 with revenue in the range of $925 million to $975 million and non-gaap EPS in the range of $1.30 to $1.40.

The company also indicated that in the third calendar quarter ending September 29, 2012, revenue is now expected to be in the range of $110 million to $140 million and non-gaap EPS is expected to be in the range of negative 5 cents to positive 2 cents. The company continues to expect revenue and EPS to rebound to higher levels in the fourth quarter. These updates reflect an expected shift in timing of the delivery of approximately $50 million of contracted high-margin ASF™ business from the third to the fourth calendar quarter.

Potential Impact of Tariff Actions in Europe

Earlier this month, the European Commission announced an investigation into imports of PV modules and related components from China. While the outcome of this investigation is uncertain and may not be known for several months, if the EU implements substantial tariffs on PV products from China, this could have significant consequences for GT’s customers in China.

Although tariffs in Europe could potentially result in new PV-related business for GT if manufacturers add capacity and newer technology outside of China, in the interim GT’s PV business activity would likely remain depressed. It was recently reported that the Chinese government sent a delegation to Europe and is initiating dialogue that could lead to a negotiated settlement, but it is too early to determine if these efforts will succeed.

The company has yet to determine the possible effects that the European trade developments may have on its CY13 financial performance but it will monitor developments and work closely with its customers to assess the situation. If necessary, the company is prepared to use its flexible business model to take cost cutting actions, which could be significant, as it has done in the past during periods of soft demand.

The company intends to provide an updated view on CY13 on its next earnings call scheduled for early November.

New Business Opportunities Update

The company continues to advance its diversification efforts and new business initiatives outside of the PV segment. In its polysilicon business, the company continues to make progress in negotiations on several new projects in Southeast Asia and the Middle East. Initial engineering contracts may be signed by early CY2013 for one or more of these opportunities.


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