GT Solar International Posts Results for Fourth Quarter and Fiscal Year 2009

GT Solar International, Inc., a global provider of specialized equipment and technology for the solar power industry, has reported results for its fourth quarter and fiscal year 2009, which ended March 28.

In a release on May 12, the Company noted that revenue for the year totaled $541.0 million, up 122 percent over fiscal year 2008 revenue of $244.1 million, including $443.9 million in the photovoltaic ("PV") segment (directional solidification system furnaces, spare parts, related products and turnkey solutions) and $97.1 million in the polysilicon segment (chemical vapor deposition reactors and related products). Bookings for the year came in at $411.0 million and included $137.0 million in the PV segment and $274.0 million in the polysilicon segment.

Gross profit for the year increased to $214.7 million, or 40 percent of revenue, compared to $92.3 million, or 38 percent of revenue for fiscal year 2008. Operating margin was $143.5 million or 27 percent of revenue, up 206 percent from $46.9 million, or 19 percent of revenue for fiscal year 2008. The company had net income of $88.0 million for fiscal 2009, versus $36.1 million for the last fiscal year. Earnings per share for the fiscal year on a fully diluted basis were $0.61, up 144 percent from $0.25 last fiscal year.

Revenue for the fourth fiscal quarter totaled $138.5 million, compared with $132.2 million in the fourth quarter of fiscal year 2008. Revenue for the fourth fiscal quarter included $137.3 million in the PV segment and $1.2 million in the polysilicon segment.

Gross profit for the fourth quarter totaled $39.5 million, or 28 percent of revenue, compared to $55.7 million, or 42 percent of revenue, for the fourth quarter of fiscal year 2008. Included in the fourth quarter gross profit was an $11.3 million charge related to the company's cancellation of purchase orders with certain PV-related suppliers. Operating margin for the quarter was 15 percent, compared to 31 percent in the fourth quarter of fiscal 2008. The company had net income of $11.8 million in the fourth quarter of fiscal 2009 versus $28.5 million for the same quarter of fiscal 2008. Earnings per share in the fourth quarter on a fully diluted basis were $0.08, versus $0.20 for the same quarter last year. Fiscal year and fourth quarter 2009 earnings per share included the effect of the $0.05 per share charge mentioned above.

At quarter's end, the company's backlog was $1.18 billion, with $341 million in the PV segment and $836 million in the polysilicon segment.

Management Commentary

"Fiscal 2009 was a year of significant accomplishment for GT Solar in both our PV and polysilicon segments, as we grew revenue, maintained a healthy backlog, diversified our customer base, and advanced our leading technology position," said Tom Zarrella, president and chief executive officer. "We believe we are solidly positioned for the long term with a differentiated business model, highly variable cost structure and strong balance sheet.

"Against the backdrop of the macroeconomic downturn, we saw slower spending by customers in our PV equipment business in the second half of our fiscal year, a trend that is continuing in fiscal 2010. In our polysilicon business, we expect to ship a significant portion of our reactor-based backlog over the next few months and recognize revenue later in fiscal year 2010. We are encouraged that many of our polysilicon customers continue to execute their projects in anticipation of the promising long-term future growth of solar."

Business Outlook

The company is providing guidance for fiscal year ending April 3, 2010 for revenue of $450 million to $550 million and fully diluted earnings per share of $0.45 to $0.60. The company will provide additional detail on its outlook during today's webcasted conference call.

GT Solar International, Inc. is a global provider of specialized manufacturing equipment and technology essential for the production of photovoltaic wafers, cells and modules and polysilicon utilized in the solar power industry. The company's principal products are directional solidification systems and chemical vapor deposition reactors and related equipment.

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