GT Advanced Technologies Strikes Deal With Apple
GT Advanced Technologies Inc. shares soared in extended trading Monday after it struck a multi-year supply agreement with Apple Inc. for sapphire material.
GT will also own and operate the equipment to produce the material at an Apple facility in Arizona. It expects the Apple deal will add to its earnings per share in 2014.
The Merrimack, N.H., company expects a loss between 40 and 50 cents per share for this year, excluding one-time items, with revenue between $290 million and $320 million. That compares with its prior forecast of a loss of 25 to 45 cents per share on revenue between $500 and $600 million.
But GT expects its revenue for 2014 will rise to between $600 million and $800 million, with its sapphire segment comprising up to 80 percent of the year's revenue. Analysts were expecting $579.3 million.
In the quarter that ended on Sept. 28, GT posted a loss of $38.1 million, or 31 cents per share, compared with net income of $2.3 million, or 2 cents per share, in the same months last year. On an adjusted basis, it lost 16 cents per share versus earning a penny per share. Revenue fell 63 percent to $40.3 million.
Analysts polled by FactSet were anticipating a loss of 2 cents per share on revenue of $66.1 million.
Shares jumped 83 cents, or 9.9 percent, to $9.21 in after-hours trading.