GTAT Company Analysis
GT Advanced Technologies, Inc. (GTAT) Company Analysis
GT Advanced Technology Inc. Company Analysis
Overview:
GT Advanced Technology Inc. (NASDAQ: GTATQ) is a supplier of materials and equipment for the solar, light emitting diode (LED) and electronics industries, with a core focus in the Sapphire, Polysilicon, and Photovoltaic (PV) markets. Celebrating their 20th year in operation in 2013, the company’s monumental year was highlighted by a deal with Apple Inc., one of the largest manufacturers of consumer electronics. This agreement had a significant impact on the company’s operations as it resulted in a substantial investment into their newly formed sapphire operations business. Operating in highly-specialized markets, it is difficult to compile industry analysis on the company’s financial performance. For financial comparison purposes, GTAT’s 2013 financial results are compared with those of Applied Materials, Inc. (NASDAQ: AMAT), a company that also acts as a materials supplier in the solar and LED industries.
On Monday, October 6, 2014, GTAT filed for Chapter 11 Bankruptcy resulting from complications with their agreement with Apple, Inc. On Wednesday, October 8, 2014 the company was de-listed on the NASDAQ stock exchange, and the stock is currently being traded on the Over-the-Counter (OTC) markets. For commentary on the company’s position and future, an analysis will be performed on GTAT’s operational results since 2011 to determine if there were warning signs present that could have indicated potential problems for the company.
Response to 2013 Letter to the Shareholders:
In their annual letter to the shareholders, GT Advanced Technologies, Inc. Chief Executive Officer Tom Gutierrez begins by classifying 2013 as a ‘transitional year’. This tone and word choice suggests that the 2013 results may fail to meet investor expectations. Gutierrez continues to describe the 2013 operating year as one filled with
GT Advanced Technology Inc. Company Analysis
Overview:
GT Advanced Technology Inc. (NASDAQ: GTATQ) is a supplier of materials and equipment for the solar, light emitting diode (LED) and electronics industries, with a core focus in the Sapphire, Polysilicon, and Photovoltaic (PV) markets. Celebrating their 20th year in operation in 2013, the company’s monumental year was highlighted by a deal with Apple Inc., one of the largest manufacturers of consumer electronics. This agreement had a significant impact on the company’s operations as it resulted in a substantial investment into their newly formed sapphire operations business. Operating in highly-specialized markets, it is difficult to compile industry analysis on the company’s financial performance. For financial comparison purposes, GTAT’s 2013 financial results are compared with those of Applied Materials, Inc. (NASDAQ: AMAT), a company that also acts as a materials supplier in the solar and LED industries.
On Monday, October 6, 2014, GTAT filed for Chapter 11 Bankruptcy resulting from complications with their agreement with Apple, Inc. On Wednesday, October 8, 2014 the company was de-listed on the NASDAQ stock exchange, and the stock is currently being traded on the Over-the-Counter (OTC) markets. For commentary on the company’s position and future, an analysis will be performed on GTAT’s operational results since 2011 to determine if there were warning signs present that could have indicated potential problems for the company.
Response to 2013 Letter to the Shareholders:
In their annual letter to the shareholders, GT Advanced Technologies, Inc. Chief Executive Officer Tom Gutierrez begins by classifying 2013 as a ‘transitional year’. This tone and word choice suggests that the 2013 results may fail to meet investor expectations. Gutierrez continues to describe the 2013 operating year as one filled with
Cited: Applied Materials, Inc. (2014, November 3). Retrieved November 3, 2014, from Yahoo! Finance: https://finance.yahoo.com/q?s=AMAT GT Advanced Technologies, Inc. (2014, November 1). Retrieved November 1, 2014, from Yahoo! Finance: http://finance.yahoo.com/q?s=gtat U.S. Securities and Exchange Commission. (2014, November 1). Retrieved November 1, 2014, from U.S. Securities and Exchange Commission: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001394954&type=10-k&dateb=&owner=exclude&count=40 Ehrhardt, M. C., & Brigham, E. F. (2011). Corporate Finance: A Focused Approach. (4, Ed.) United States: South-Western.