Friday, November 7, 2008

GT Solar reports profit; top line rises 71%

Solar manufacturing equipment provider GT Solar International Inc. today reported 71 percent growth in its second quarter revenue with revenue of $140.2 million. The Merrimack, N.H.-based company also reported net income of $27.9 million, up from $17.1 million in the second quarter in fiscal 2008.

GT Solar, which sells specialized equipment for the solar power industry, said solid demand for its directional solidification system furnaces and related products led to an increase in its backlog with bookings for all products totalling $292 million for the quarter ending Sept. 27, which provided the company with cash deposits and letters of credit.

President and CEO Tom Zarrella cited the combination of strong revenue performance with growing operating and gross margins. GT Solar reported gross margins of 31 percent, up from 23 percent in the same quarter in fiscal 2008.

During the quarter, the company completed a 50,000-square-foot expansion of its DSS furnace manufacturing facility in Merrimack, increasing production capacity by 40 percent. Zarrella said the expansion meets the company’s DSS furnace manufacturing requirements for the foreseeable future.

In its photovoltaic segment, GT Solar said it shipped more than 200 DSS furnaces, and reported that it is beginning to assemble its next-generation DSS furnace prototypes. And in its polysilicon segment, the company announced that it has launched development of its 400 metric ton reactor, which is expected to allow customers to produce silicon faster and at lower reduced cost.

In October, GT Solar announced its first contract with a Taiwan-based customer, a $46.8 million deal with Top Green Energy Technologies Inc.