Photovoltaic manufacturing services provider GT Advanced Technologies Inc. (GTAT: Quote), said Wednesday it may post a loss in the third quarter, citing deferred shipments at its high-margin ASF business. Nonetheless, the company reaffirmed its outlook for the full year.
Additionally, the company said its business faces risks as potential import tariffs in European markets on photovoltaic modules and components from China could impact its customers.
Merrimack, New Hampshire-based GT Advanced Technologies provide equipment and services that support the solar and LED industries. It provides polysilicon production technology and crystalline ingot growth systems, as well as sapphire growth systems.
GT Advanced Technologies expects third quarter adjusted results to range between a loss of $0.05 per share and a profit of $0.02 per share. Revenues are expected between $110 million and $140 million.
The company said its guidance reflects an expected shift in timing of the delivery of about $50 million of contracted high-margin ASF business from the third to the fourth calendar quarter.
For the calendar year ending December 31, 2012, the company continues to expect adjusted earnings of $1.30 to $1.40 per share on revenues of $925 million to $975 million.
The company anticipates revenue and earnings to rebound to higher levels in the fourth quarter.
Earlier this month, the European Commission announced an investigation into imports of PV modules and related components from China. GT Advanced Technologies said that if the EU implements substantial tariffs on PV products from China, this could hurt its customers in China.
GT Advanced Technologies also asserted that in the event of soft business conditions, it may resort to significant cost cutting actions.
The company continues to advance its diversification efforts outside of the PV segment. In its polysilicon business, the company continues to make progress in negotiations on new projects in Southeast Asia and the Middle East.
GTAT is trading at $6.81, up 3.34%, on a volume of 4.0 million shares on the Nasdaq.
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by RTT Staff Writer
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