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GT Advanced Technologies Inc. (NASDAQ: GTAT) today reported results for the fourth quarter and calendar year 2012, which ended December 31, 2012.
“Our Q4 results came in largely as expected as we continue to face challenging conditions in the solar and LED markets,” said Tom Gutierrez, president and chief executive officer. “We have taken steps to resize the business and manage our balance sheet and believe 2013 will be a year during which we continue to strengthen our foundation and further diversify the business.
“We are positioned to continue making R&D investments in new technologies to enhance our product offerings and market position. Coupled with our leadership in currently served markets, we believe our participation in growth areas such as cover and touch screen sapphire applications, power electronics and next generation solar will provide a path to resumed growth and cash generation in the years ahead.”
Summary of Fourth Quarter Actions and Related Charges
In the fourth quarter of calendar 2012, the company took actions to better align the business with current and expected market conditions, as described in its December 18, 2012 conference call with the investment community. As a result the company recorded several one-time charges, which are described below and excluded from non-GAAP results.
The one-time charges included a cash-charge of $3.1 million for restructuring related to the workforce reduction announced in October and the idling of the company’s St. Louis pilot manufacturing facility as well as the following non-cash charges: $30.3 million of asset impairment charges related to the workforce reduction and idling of the St. Louis facility; $71.8 million for the write down of inventory and related charges, primarily related to DSS inventory as a result of prevailing poor PV market conditions; $57.0 million of charges related to the impairment of goodwill related to the PV business and $2.5 million of charges primarily related to certain sapphire materials assets acquired with the acquisition of the business which are now obsolete.
For a complete reconciliation of non-GAAP measures to measures presented in accordance with generally accepted accounting principles in the United States (“GAAP”), please see tables below.
As previously indicated, the company’s non-GAAP EPS guidance range issued on December 18, 2012 excluded the impact of goodwill impairment charges related to the PV business, restructuring and asset impairment charges related to the idling of the St. Louis facility and the related tax effect of these adjustments, which represented an additional $0.08 non-GAAP EPS loss. The adjusted non-GAAP EPS guidance range to account for these charges is a $0.13 loss to a $0.18 loss and the company’s Q4 non-GAAP earnings per share performance of a $0.15 loss is within this adjusted guidance range.