With the rising prices at the gas pumps, I decided to focus my attention to yet another alternative energy company.
Now, like many of you money doesn’t grow on trees for me, and I’m sure I speak for the majority when affirming my hate on the absurd prices of oil. What’s even more aggravating was a conversation I had with a friend of mine that showed up to my get together this past weekend. It was supposed to be a warm, relaxing afternoon day in the sun, free of politics. Then, the inevitable happened — We were engaging in a couple ramblings when the topic of oil pricing in America vs. The Middle East came up.
With a beer in one hand, and a hot dog in the other he proceeded to inform me: (Reader Beware: Those with low tolerance to North American gas prices may be susceptible to sleep deprivation, brain trauma and other symptoms alike) 
Did you know in Saudi Arabia we pay approx. $15 USD (Saudi riyal (SAR) conversion) to fill up the tank for an SUV? Now I don’t know about you, but losing sleep after this conversation was a forseeable consequence.
Anywho, lets get to the financials…
GT Solar International (SOLR) provides specialized manufacturing equipment and services for the solar energy industry.
All quotations are from the company’s most recent S-1 filing with links provided.
Business Overview (from prospectus)
We are a leading global provider of specialized manufacturing equipment and services essential for the production of photovoltaic, or PV, wafers, cells and modules and polysilicon. Our principal products are directional solidification systems, or DSS units, and chemical vapor deposition, or CVD, reactors and related equipment. DSS units are specialized furnaces used to melt polysilicon and cast multicrystalline ingots from which solar wafers are made. CVD reactors are used to react gases at high temperatures and pressures to produce polysilicon, the key raw material used in solar cells. Our customers include several of the world’s largest solar companies as well as companies in the chemical industry. The use of our products requires substantial technical know-how and most of our customers rely on us to design and optimize their production processes as well as train their employees in the use of our equipment.
Offering: 30.3 million shares at $15.50-$17.50 per share. All of the shares of common stock are being sold by the selling stockholder named in this prospectus. GT Solar Holdings, LLC will use the net proceeds it receives in connection with this offering to make a distribution to its shareholders. We will not receive any of the proceeds from the sale of shares in this offering, including from any exercise by the underwriters of their over-allotment option. We will pay the expenses of this offering, other than the underwriters’ discounts and commissions.
IPO Underwriters: Credit Suisse (CS), UBS Investment Bank (UBS)
Financial Highlights
Revenue from sales of DSS units increased 313% from $50,972 for the fiscal year ended March 31, 2021 to $210,728 for the fiscal year ended March 31, 2008,… cost of revenue increased 318% from $36,284,000 for the fiscal year ended March 31, 2021 to $151,709,000 for the fiscal year ended March 31, 2008…gross profit increased 287% from $23,835,000 for the fiscal year ended March 31, 2021 to $92,343,000 for the fiscal year ended March 31, 2008… R&D expenses were $3,810,000 for the fiscal year ended March 31, 2007, compared to $10,517,000 for the fiscal year ended March 31, 2008, an increase of 176%. … sales/marketing expenses increased 35% from $7,747,000 for the fiscal year ended March 31, 2021 to $10,452,000 for the fiscal year ended March 31, 2008… G&A expenses increased 103% from $10,562,000 for the fiscal year ended March 31, 2021 to $21,435,000 for the fiscal year ended March 31, 2008, an increase of 103%… for the fiscal year ended March 31, 2008, we recorded net income of $36,105,000 compared to a net loss of $(18,355,000) for the fiscal year ended March 31, 2007.
Competitors
… Principal competitors with respect to our polysilicon products are MSA Apparatusconstruction for Chemical Equipment Ltd, Poly Plant Project, Inc. and SolMic GmbH…uur CVD reactor product also faces indirect competition from established polysilicon producers who are increasing production capacity to meet the current polysilicon supply shortage in the solar grade market. Traditional manufacturers such as Hemlock Semiconductor Corporation, Wacker Chemie AG (WKCMF) , Tokuyama Corporation (TKYMF) , MEMC Electronic Materials, Inc. (WFR) , Mitsubishi Electric Corporation and Sumitomo Electric Industries Ltd. produce polysilicon primarily for the semiconductor industry. We believe our DSS unit is a market leading product. Our principal competitor with respect to this product is ALD Vacuum Technologies AG as well as a number of other smaller furnace manufacturers. Our strength in DSS units positions us favorably for sales of our turnkey wafer line. However, a number of competitors offer turnkey solutions for cell lines (including Centrotherm Elektrische Anlagen GmbH & Co. KG and Roth & Rau (RRAUF) ) and module lines. New entrants, including semiconductor equipment manufacturers, represent potential new sources of competition as these equipment makers attempt to capitalize on the strong projected industry growth. For example, Applied Materials, Inc. (AMAT) has entered the PV equipment industry.
With many of the more dominant Solar Power companies being rather highly priced (SPWR, LDK, FSLR), this company seems like a viable alternative to jump on during the current rough state of the economy. Look to get in on this diamond in the rough sometime soon, as I speculate this beauty will easily push the mid 20′s to low 30′s by start of 2009.
How do you see alternative energies panning out in the future?
I dont usually comment, but after reading through so much info I had to say thanks
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