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GT SOLAR INTERNATIONAL, INC. (SOLR) filed Quarterly Report for the period ended 2011-12-31.
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:
Revenue from our PV business decreased 86% to $34.4 million for the three months ended December 31, 2011, as compared to $239.9 million for the three months ended January 1, 2011. For the nine months ended December 31, 2011, revenue from our PV business decreased 38% to $344.2 million, as compared to $554.1 million for the nine months ended January 1, 2011. PV revenue is comprised of sales of our DSS furnaces, other equipment, services, as well as 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 same periods in the prior year. The principal reason for the decrease was fewer DSS units shipped in the three and nine months ended December 31, 2011, which we believe was due to weaker demand as a result of excess capacity in the PV market. The impact of the reduction in shipments was offset in part by the recognition of revenue related to units that were shipped in prior periods. The acquisition of Confluence Solar, Inc. did not contribute significant revenues for the period from August 24, 2011 (the date of acquisition) to December 31, 2011.Revenue from our polysilicon business increased 405% to $87.4 million for the three months ended December 31, 2011, as compared to $17.3 million for the three months ended January 1, 2011. For the nine months ended December 31, 2011, revenue from our polysilicon business increased 225% to $209.3 million as compared to $64.3 million for the nine months ended January 1, 2011. Polysilicon revenue for the three and nine months ended December 31, 2011 relates primarily to contracts that were in our order backlog as of April 2, 2011, for which the earnings process has been completed. Revenue from the polysilicon business for the nine months ended December 31, 2011 included $14.1 million of non-refundable deposits in connection with the exercise of our contractual termination rights under a polysilicon contract, and $12.9 million previously included in deferred revenue related to units delivered, recognized upon such contract termination. There was no revenue from polysilicon contract terminations for the same period in the prior year. 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 73% and 71% of our deferred revenue balance at December 31, 2011 and January 1, 2011, respectively, relates to our polysilicon business.
Selling and marketing expenses consist primarily of payroll and related costs, stock-based compensation expense and commissions for personnel engaged in marketing, sales and support functions, as well as advertising and promotional expenses. The decrease in selling and marketing expenses of 15% to $3.8 million for the three months ended December 31, 2011, as compared to $4.5 million for the three months ended January 1, 2011, was primarily due to decreases of $1.5 million in sales commissions offset in part by increases in payroll related costs of $0.5 million and a decrease in other selling and marketing expenses of $0.3 million. Sales commissions are accrued based on operational factors such as deposits, shipments and final acceptances received from customers rather than when revenue is recognized and thus may vary from quarter to quarter. Selling and marketing expenses related to Confluence Solar were not material for the three months ended December 31, 2011.
The increase in selling and marketing expenses of 26% to $17.1 million for the nine months ended December 31, 2011, as compared to $13.5 million for the nine months ended January 1, 2011 was primarily due to increases of $0.4 million in sales commissions, $1.3 million of payroll and related costs, $0.8 million in outside services costs, $0.3 million in trade show related expenses and $0.8 million in other selling and marketing related costs. Selling and marketing expenses related to Confluence Solar were not material for the nine months ended December 31, 2011.
For the nine months ended January 1, 2011, our cash provided by operations was $184.9 million. Our cash flow from operations was primarily driven by net income of $122.9 million, an increase in customer deposits of $45.7 million due to new orders in our PV and polysilicon businesses, an increase in deferred revenue less deferred costs of $32.0 million, as well as an increase in accounts payable and accrued expenses of $57.6 million. These items were partially offset by an increase in inventories and vendor advances of $51.5 million and an increase in accounts receivable of $46.2 million.
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