LED market downturn continued to expand GTAT brakes"

In the photovoltaic industry a historic recession, U.S. new energy equipment company GTAT (GT Advanced Technologies, referred to as "GTAT") had hope for the sapphire crystal growth furnace to dress up performance. But in the LED market downturn, sapphire manufacturers lack of sustained driving force to expand production capacity, GTAT weakness fade. In response to weak demand in the market, recently, GTAT official announced that due to weak demand in Asia, will lay off about 25%, and its third quarter revenue may be at the lowest level of expectations. As of March 31, 2012, GTAT has a total of 460 employees and contract workers in the United States, has a staff of 203 employees in asia. GTAT said it would lay off staff in the United States, the proportion of layoffs of about 20%, while the proportion of layoffs in Asia is about 30%. GTAT expects to save about $13 million a year by layoffs. In addition, the company plans to integrate existing business segments, photovoltaic, polysilicon and sapphire merged into a sector, named crystal growth system. Apparently, GTAT's high-speed train over the past year is slowing down to ensure a smooth ride through the winter. Market downturn caused by the deterioration of the financial situation of the first GTAT is the culprit of solar photovoltaic equipment business. Since the beginning of this year, the spread and deepening of the European debt crisis, especially in the United States and Europe for China's exports of photovoltaic products anti-dumping and countervailing duties, making the domestic photovoltaic industry moment into winter. This downturn in the downstream market is also rapidly conduction to the upstream equipment manufacturers. Data show that the third quarter of this year GTAT revenue of $110 million, down 58.16%, compared with the two quarter of $167 million 300 thousand declined slightly; a net profit of $2 million 300 thousand, compared to the third quarter of 2011 of $36 million 900 thousand, down 93.77%. And in the winter solar PV industry, this year the global sapphire substrate market is also experiencing a sustained downturn. Despite the recent backlight and lighting needs to warm the positive stimulus, but because the chip manufacturers strictly control the raw material inventory, coupled with the end of the LED industry will enter the traditional off-season, sapphire prices still can not see the opportunity callback. According to GTAT sapphire material and equipment department vice president and general manager of Cheryl Diuguid, the company's business in Asia accounted for 94%, 8 major customers are from Asia sapphire business, which Chinese customers accounted for 6. Reporters interviewed a number of previously purchased GTAT sapphire crystal furnace business, we generally said that the follow-up did not expand the production schedule for the time being. Jiangsu Jetion new materials Co., Ltd. is one of the GTAT customers, deputy general manager of the company Cai Jinrong said: this year can not easily expand production, the market is still very poor." Insiders said, "temporarily halt the troops and wait" has become the status quo "strategy of most domestic manufacturers" in the same sapphire substrate. Affected by this, GTAT sapphire crystal furnace orders also began to decline in the three quarter of 2011. Data show that in the 2 quarter of 2011, GTAT sapphire crystal furnace orders reached a record high of $776 million 800 thousand. Since then, the amount of orders all the way down, as of the 3 quarter of 2012, GTAT sapphire long crystal furnace orders have been falling for the third consecutive quarter of four. At the same time, GTAT sapphire crystal furnace only a handful of customers in the production stage, crystal products have not been widely used in the Chinese market. Reporter survey found that the use of several large epitaxial plant sapphire substrate is not more than 90% of the customers from GTAT. As a new entrant, GTAT long crystal furnace out of the crystal can get the main extension of the manufacturer's approval is still unknown. At the same time, the reporter in the network access to a signature "on the faint see copy of the blog from GTAT CEO in early 2012 released a speech, the words attracted our attention:" if our sapphire products is not accepted by the market, the company's blue gem business prospects will be very limited." "Although we believe that ASF has the advantage of sapphire growth furnace, but the market there are other competitors can also use this or that the growth process of sapphire, and competition for us, they may be cost-effective, can produce high quality large diameter cylinder. These competitors include industry veterans or LED prospects and attract new entrants." At the same time, other companies may also begin to supply sapphire growth furnace. If the competitor developed or purchased the same or better technology to produce high quality, large diameter sapphire material, or they provide the cost-effective, business, financial status and operating effect of us will suffer substantial negative impact." Order cancellation risk in July 2010, GTAT acquisition of the United States sapphire producer Crystal Systems, began to enter the LED industry, sapphire material and crystal furnace has become one of the main sources of new orders. As of July 2, 2011, the cumulative sum of GTAT sapphire crystal growth furnace and the system up to $952 million 500 thousand, including nearly 800 million U.S. dollars in the Chinese market gains sapphire crystal furnace orders. According to GTAT announced in the third quarter of this year, the company's backlog of orders continue to maintain. Data show that as of the end of the three quarter of this year, the backlog of orders is still up to $1 billion 500 million. Including $618 million polysilicon equipment, $141 million PV equipment and $718 million sapphire device. "Most of this year has been voted