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GT SOLAR INTERNATIONAL, INC. (SOLR) filed Quarterly Report for the period ended 2011-10-01.
Gt Solar International Inc. has a market cap of $1.48 billion; its shares were traded at around $0 with a P/E ratio of 7.55 and P/S ratio of 1.65.
This is the annual revenues and earnings per share of SOLR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SOLR.
Highlight of Business Operations:
If a customer fails to perform its outstanding contractual obligations on a timely basis, and such failure continues after notice of breach and a cure period, we may terminate the contract. Our contracts generally do not contain cancellation provisions and in the event of a customer breach, the customer may be liable for contractual damages. During the six months ended October 1, 2011, we terminated or modified contracts resulting in a $26.8 million reduction in our order backlog (88% of the reduction was from 2 contracts). During the fiscal year ended April 2, 2011, we terminated or modified contracts resulting in a $10.7 million reduction in our order backlog (82% of the reduction was from 3 contracts). During the six months ended October 1, 2011, we recorded revenues of $29.1 million from terminated contracts and during the fiscal year ended April 2, 2011, we recorded revenues of $44.4 million from terminated contracts.Revenue from our PV business decreased 45% to $111.2 million for the three months ended October 1, 2011, as compared to $202.8 million for the three months ended October 2, 2010. For the six months ended October 1, 2011, revenue from our PV business decreased 1% to $309.8 million for the six months ended October 1, 2011, as compared to $314.2 million for the six months ended October 2, 2010. PV revenue is comprised of sales of our DSS furnaces, other equipment, services and ancillary parts and spares. The decrease in revenue attributable to our PV business is related to fewer DSS units on which revenue was recognized when compared to the prior year quarter. The principal reason was due to fewer DSS units shipped in the three and six months ended October 1, 2011, due to weaker demand which we believe is the result of excess capacity. The acquisition of Confluence Solar, Inc. did not contribute revenues for the period from August 24, 2011 to October 1, 2011.
Revenue from our polysilicon business increased 321% to $98.0 million for the three months ended October 1, 2011, as compared to $23.3 million for the three months ended October 2, 2010. For the six months ended October 1, 2011, revenue from our polysilicon business increased 159% to $121.9 million as compared to $47.0 million for the six months ended October 2, 2010. Polysilicon revenue for the three and six months ended October 1, 2011 substantially relates to contracts that were in our order backlog as of April 2, 2011. Revenue from the polysilicon business for both the three and six months ended October 1, 2011 included $14.1 million non-refundable deposits in connection with the exercise of our contractual termination rights under a polysilicon contract, and $12.9 million of previously deferred revenue related to units delivered, recognized upon such contract termination. There was no revenue from polysilicon contract terminations in the prior year's periods. Revenue in our polysilicon business is generally recognized upon acceptance of product unless acceptance is considered perfunctory. As a result, our polysilicon business tends to have a higher level of deferred revenue than our PV and sapphire businesses. Approximately 82% and 73% of our deferred revenue balance at October 1, 2011 and October 2, 2010, respectively, relates to our polysilicon business.
Our PV gross margins for the three and six months ended October 1, 2011 were 46% and 50%, respectively, as compared to 40% and 37% for the three and six months ended October 2, 2010, respectively. The increases were due to a favorable PV periodic costs and favorable product pricing to customers. Additionally, gross margins for the six months ended October 1, 2011 increased as compared to the six months ended October 2, 2010 because the six months ended October 2, 2010 included revenue from a terminated turnkey project that generated a gross margin of approximately 17%.
The increase in selling and marketing expenses of 47% to $13.3 million for the six months ended October 1, 2011, as compared to $9.0 million for the six months ended October 2, 2010 was primarily due to increases of $1.1 million in sales commissions, $2.0 million of additional expenses related to our sapphire business which was acquired on July 29, 2010, $0.3 million in trade show related expenses and $0.8 in other selling and marketing expenses. Selling and marketing expenses related to Confluence Solar were not material for the six months ended October 1, 2011.
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