Photovoltaic and LED working lights equipment manufacturer GT Advanced Technologies recently announced that the company will lay off about 25% due to weak market demand in Asia, and its third-quarter revenue may be expected at a minimum level.
GT: expected Q3 revenue of 110 million-140 million U.S. dollars
Tom Gutierrez, Chief Executive Officer of the company said: the Asian Bank does not intend to apply for any new loans for the purchase of new equipment. If the banks stop mortgage, I am worried that this would be a problem.
GT Company will be held on November 6 to announce the latest earnings report last month. The company had expected its third-quarter revenue of between 110 million to 140 million U.S. dollars. After adjustment, the company expects a loss per share of about $ 0.05 earnings per share of $ 0.02.
Gutierrez refused to disclose more details about the third-quarter earnings, but he said, obviously, if there are any big surprises, then we would have announced it. According to foreign media reports, analysts on average expected earnings per share of $ 0.04 for the third quarter, on revenue of $ 125.4 million.
LED working lights overcapacity, GT plans to lay off
As of March 31st, GT company in the United States have a total of 460 employees and contract workers. In Asia, with 203 employees. Gutierrez said, the company will layoff the United States of America employee, and the cuts ratio is about 1/5, and the Asian region employee layoffs ratio is about 30%.
The company expects to save USD13,000,000 through layoffs, and the fourth quarter related to the reorganization of the expenditure of approximately USD4,200,000.
American analysts said, announced layoffs can be said to be expected, but this is not surprising. He said that, due to excess capacity, PV and LED panel light service are faced with the periodic problem.
In addition, GT, said the company will integrate the existing business units – PV, polysilicon and sapphire – into a single department, and named for the crystal growth systems department (crystal growth systems).
Since the PV of the company’s customers are struggling to cope with the problem of demand weakness and austerity. GT had to restructuring. As of the end of March, the company’s revenues reached $ 955.7 million, while the Asian market accounted for 95% of the company’s total revenue.