QUOTE AND NEWS
TheStreet.com  Aug 20  Comment 
NEW YORK (TheStreet) --aGT Advanced Technologies fell Wednesday afteraCredit Agricoleadowngraded the stock to "underperform" from "outperform" and set a $19 price target. The stock has nearly tripled in value in the last year thanks largely...
StreetInsider.com  Aug 20  Comment 
The following is a list of notable articles to help get you through the lunch hour: Infineon (IFNNY) to Acquire International Rectifier (IRF) in $3B Deal -> Read this! 3-D Printers on Watch; Gartner Sees Consumer-Level Adoption at Least Five...
SeekingAlpha  Aug 20  Comment 
By Matt Margolis: Original Publication Date: July 24th, 2014 by Matt Margolis - Updates Added based on related news from August 11th, 2014 and August 13th, 2014. (Image Source) GT Advanced Technologies (NASDAQ:GTAT) provided some updates during...
TheStreet.com  Aug 18  Comment 
NEW YORK (TheStreet) --aGT Advanced Technologies GTAT was gaining 4.3% to $18.10 Monday following a report from The Guardianathat Apple's AAPL iPhone 6 is going into large-scale production this month. The new, larger iPhones will reportedly use...
SeekingAlpha  Aug 18  Comment 
By Hayden White: It was not that long ago that GT Advanced Technologies (NASDAQ:GTAT) operated exclusively in the solar space. In fact, up until August 2011, GTAT traded under the NASDAQ stock ticker symbol SOLR and was known as GT Solar...
TheStreet.com  Aug 11  Comment 
NEW YORK (TheStreet) -- GT Advanced Technologies was gaining 3.6% to $16.05 Monday after detailing the progress of its Merlin solar module metallization and interconnect technology. The company said that Merlin has met several PV industry...
SeekingAlpha  Aug 10  Comment 
ByIAEResearch: GT Advanced Technologies (NASDAQ:GTAT) took a steep fall at the start of July and the stock went below $14 from over $19.50 in a space of a month. However, at the end of July, the stock started to climb back up and the momentum has...
StreetInsider.com  Aug 6  Comment 
The following is a list of notable articles to help get you through the lunch hour: Zulily (ZU) Higher Into Q2 Print; RBC Sees Street Est. as 'Reasonable' -> Read this! Caesars Entertainment (CZR) Sees Relief Rally as Company and Bondholders...
Benzinga  Aug 5  Comment 
GT Advanced Technologies (NASDAQ: GTAT) moved higher on the Tuesday session, as it was up by 5.87 percent. The stock made its move based on a fairly strong quarter, along with a beat its Q2 Adj. Loss of $0.16/Share vs $0.14/Share Loss Est.,...
SeekingAlpha  Aug 5  Comment 
GT Advanced Technologies Inc (NASDAQ:GTAT) Q2 2014 Earnings Conference Call August 5, 2014 08:00 AM ET Executives Ryan Flaim - VP of IR Tom Gutierrez - President and CEO Raja Bal - CFO Analysts Brian Lee -...




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GT Advanced Technologies (GTAT on NASDAQ) produces and sells manufacturing equipment for the semiconductor and solar industries.

Business Overview

GT Advanced Technologies, makes manufacturing equipment for the silicon, solar industries and equipment and sapphire material for the LED lighting industry. Its principal products are[1]:

• Chemical vapor deposition (CVD) reactors and related equipment used to produce polysilicon, the key raw material used in silicon-based solar wafers and cells;

• Directional solidification (DSS) furnaces and related equipment used to cast multicrystalline silicon ingots by melting and cooling polysilicon in a precisely controlled process. These ingots are used to make photovoltaic (PV) wafers which are, in turn, used to make solar cells;

• Advanced sapphire furnaces (ASF) used to crystallize sapphire boules by melting and cooling aluminum oxide in a precisely controlled process. These sapphire boules are used to make sapphire wafers, the preferred substrate for manufacturing light emitting diode (LED) devices, and for use in other specialty markets; and

• Sapphire material is produced in GTAT's sapphire production facility and sold directly to customers. These materials are primarily used to make a variety of products such as epitaxial-ready wafers for the LED industry and other specialty markets.

The company went public on July 24, 2008, pulling $500 million from the IPO.[2] It acquired the third leg of its crystalline furnace-making offering, a LED sapphire maker, in July of 2010. [3]. The company changed its name from GT Solar International to GTAT Advanced Technologies on August 8, 2011[4]

Over 95% of the company's revenue comes from customers in Asia, like LDK Solar.[5]

Business and Financial Metrics[6]

In 2009, GTAT generated a net income of $87.3 million on revenues of $544.2 million. This represents a 0.8% decrease in net income on a 0.6% increase in revenues from 2008, when the company earned $88.0 million on $541.0 million in revenue.

Business Segments[7]

GTAT operates three business segments: Polysilicon, Photovoltaics and Sapphire for LED lighting.

Polysilicon (34.3% of revenue)

GTAT entered the polysilicon refining industry in 2005.[8]

Photovoltaics (65.7% of revenue)

GTAT's PV segment makes machinery that solar cell manufacturers use to turn polysilicon into solar panels. Its primary product is the directional solidification systems (DSS) unit, which converts polysilicon into multicrystalline ingots.[9]

IMAGE:SOLR-Segments2009.jpg[7]

Trends and Forces

GTAT's Success Depends on Demand for Solar Power, and for Greater Efficiency in Lighting

As the price of oil has skyrocketed and the average citizen has become more aware of his environment, there has been a strong push for the development of economic alternatives to petroleum, especially renewable sources of energy. The push for clean energy has benefited the solar industry.[10] With the expansion of the industry and increased investment, PV solar has made great strides in the last five years as panels have become more efficient and production costs have decreased. According to the Department of Energy’s Solar America Initiative, the hope is that with continued research and increased competition, PV solar power will become a competitive source of commercial electricity by 2015.[11]

As a source of renewable energy, solar has a wide appeal. It is a virtually limitless resource, and once installed, can produce electricity without emitting harmful pollution. In developed countries that see heavy air conditioner usage, peak electricity usage occurs during the hottest, sunniest days of the year - the same days when solar panels can produce the most energy. Solar comes with limitations, however, most notably the poor efficiency of PV modules, which is further reduced by the need to convert DC from solar cells into AC current. Moreover, solar is weather dependent and intermittent, requiring storage or back-up systems to supplement generation at night or on cloudy days. If solar energy overcomes these obstacles and its share of the energy market starts to grow, the industry's production capacity will increase, causing GTAT's market to grow.

A Shortage of Silicon Refining Capacity Dampens the Potential Growth of Solar Panel Production, Thereby Damping the Potential Growth of GT Solar

Silicon, a necessary input to most solar panels, is one of the most abundant elements on Earth; refined silicon, on the other hand, is in short supply. As solar power has increased in popularity, silicon producers, who previously catered only to the semiconductor market, experienced a surge in demand. Due to limited mining and refining capacity, they were unable to keep up with the increased demand. This created a "shortage" of refined silicon, and caused prices to soar.

A shortage of refined silicon is a double edged sword for GTAT. A continued shortage of refined silicon would prevent the solar industry from expanding production, thereby reducing demand for GTAT's photovoltaic manufacturing equipment - the only equipment that the company has made any revenue on. Furthermore, a silicon shortage increases costs to the solar industry. In the silicon PV industry, the cost of silicon accounts for approximately 45% of each module’s manufacturing cost.[12] This means that when silicon prices rise silicon PV manufacturers are forced to either absorb the extra cost or pass it on to consumers. Higher silicon prices mean higher solar panel prices, making solar less competitive with other, cheaper forms of energy.

Real brain power on diplsay. Thanks for that answer!

References

  1. GTAT 2011 10K, p. 5
  2. MarketWatch: "GT Solar raises $500 million in IPO, falls in debut"
  3. "GT Solar Acquires Sapphire Producer Crystal Systems"
  4. http://bit.ly/uvFPxB
  5. SeekingAlpha: "IPO Analysis: GT Solar - A Unique Player in the Solar Industry"
  6. SOLR 2009 10-K pg. 42  
  7. 7.0 7.1 SOLR 2009 10-K pg. 103  
  8. GT Solar Form S-1, Page 47
  9. GT Solar Form S-1, Page 47
  10. Industry Growth and Policy Progress on the Agenda at Solar 2008
  11. DOE’s Solar America Initiative Draft Pg 5
  12. Solar Buzz: Fast Solar Energy Facts
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