Kicky : Results for Fourth Quarter and Fiscal Year 2013
....... Fourth Quarter and Full Year 2013 Financial Results
During 2013, the company made the strategic decision to forego ASF equipment sales while building out its new sapphire materials capacity. This decision has had, and will have, a clear negative impact on the company's fourth quarter and full year results for 2013 and near term future results.
Revenue for the fourth quarter came in at $32.6 million including $2.5 million in polysilicon, $11.3 million in photovoltaic (PV), and $18.8 million in sapphire. This compares to revenue in the third quarter of $40.3 million and $102.3 million in the fourth quarter of fiscal 2012. Revenue for the year ended December 31, 2013 was $299.0 million compared to $733.5 million for the year ended December 31, 2012.
At the end of the fourth quarter, the balance sheet had cash, cash equivalents and restricted cash of $593.0 million and debt of $283.9 million. This compares to $418.1 million of cash and cash equivalents at the end of the fourth quarter of calendar 2012 which included $297.0 million of total debt. During the fourth quarter, the company received the first of a series of prepayments under its multi-year sapphire material supply agreement with Apple. Additionally, the company completed a concurrent common stock and convertible debt offering in December 2013 that resulted in net proceeds of approximately $290.0 million. The company also paid off an outstanding term loan of $96.0 million.
As of December 31, 2013, the company's total backlog was $602.2 million comprised of equipment orders only. This included $298.7 million in the polysilicon segment, $11.3 million in the PV segment and $292.1 million in the sapphire segment. New orders during the fourth quarter of calendar 2013 were $23.8 million. The company adjusted backlog down by approximately $47.3 million during the quarter primarily related to an arrangement with an ASF customer that was modified. All orders for sapphire material have been and will continue to be excluded from backlog going forward.
On an annualized basis, during 2014, the company expects revenues to range from $600 million to $800 million, with approximately 15% of total revenues occurring in the first half of the year. The company expects that its sapphire segment will account for more than 80% of total revenue in 2014. The sapphire segment includes the company's equipment and materials businesses in the LED, industrial and consumer electronics markets.
During the first quarter of 2014, the company expects to generate revenues in the range of $20 million to $30 million with a non-GAAP loss per share of $0.20 to $0.25.
Consolidated gross margins for 2014 are expected to be in the range of 25% to 27%, reflecting lower margin material shipments during the year, inefficiencies related to the ramp up of the sapphire materials business and underutilization of the company's equipment operations.
The company expects that 2014 non-GAAP earnings per share will be in the range of $0.02 to $0.18. This assumes an average outstanding share count of 148 million shares.
The company's cash balance at year end is currently expected to be in the range of $400 million to $500 million.