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 6 th and will hold a webcasted conference call at 8:00am ET on November 7 th. 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.”