This post was published to Measured Approach at 1:14:42 PM 8/29/2010
Company Focus: GT Solar International, Inc.
GT Solar International, Inc. (Nasdaq: SOLR)is a provider of polysilicon production technology,and sapphire and silicon crystalline growth systems and materials for the solar, LED and otherspecialty markets. The Companys principal products are:*Chemical vapor deposition (CVD) reactors and related equipment used to producepolysilicon, the key raw material used in silicon-based solar wafers and cells; and*Directional solidification systems (DSS) furnaces and related equipment used to castmulticrystalline ingots by melting and cooling polisilicon in a precisely controlledprocess. These ingots are used to make photovoltaic (PV) wafers which are, in turn, usedto make solar cells.GT Solar recently acquired the privately-held Crystal Systems, Inc. Crystal Systems is acrystalline growth technology company that manufactures large area sapphire substrates usedin the LED, defense, medical and aerospace industries.GT Solars 1Q11 ended July 3, 2010. Revenue for this quarter totaled $135.2 million, comparedto $194.7 million in 4Q10, a 30.5% sequential decline and $71.8 million in 1Q10, an 88.3%increase. Revenue for the first quarter included $23.7 million in the polysilicon segment and$111.5 million in the photovoltaic (PV) segment. In the twelve month period ending July 2010,sales rose to $607.6 million from the FY10 total of $544.2 million, an 11.6% change. Theconsensus estimate of nine analysts following SOLR is for FY11 revenues to come in at $735.32million. Estimates range from $596.3 million to $782.7 million.The Company had net income of $16.5 million in 1Q11, as compared to $33.3 million in 4Q10and $7.8 million in 1Q10. Earnings per share in 1Q11 on a fully diluted basis were $0.11, versus$0.23 in 4Q10 and $0.05 in 1Q10. The consensus forecast for FY11 is $0.93. The estimates rangefrom $0.85 to $0.97. Analysts are revising their estimates both up and down.The balance sheet is strong with cash and short term investments totaling $276.5 million at theend of 1Q11. The Company reports no long term debt. Total liabilities are $545.5 million. GTSolar reports strong and growing free cash flow per share. As of 1Q11, GT Solar reportedtrailing twelve month FCF of $0.78/share as compared to $0.98/share in FY10 and $0.57 inFY09.The Company is consistent in generating gross profits. Since FY06, the gross margin has rangedfrom 37.8% to 40.2% with an average of 39.11%. Operating margins have improved from a lowof -44.0% in FY06 to 26.4% in FY10 and 25.6% for the twelve month period ending 7/10. Netmargins have also changed from a low of -46.6% in FY06 to 16.0$ in FY10 and 15.8% in thetrailing twelve months. The company does not pay a dividend.