Looks like a lot of the Apple sites are picking up the article and running with it. Should provide more awareness of GTAT and its potential.
Nice find. This is big news. Hyperion slicing flexible sapphire should be huge and this confirms that Apple is not just looking at sapphire for laminates. Cost and material savings, as well as potential to integrate into multiple form factors could make this the go to display cover for everything. Very big news!
Better yet, how is it for a cooking surface? If it's no stick - boy will we have a winner.
That was supposed to be a thumbs up. Thanks, you beat me to it. The CFO, Gaynor, cashed in some stock but he still owns a boatload. The only other non-tax related sale was a divorce settlement.
If they chose to produce and sell HiCz wafers using Hyperion I would think they'd own the market. They would have efficiencies matching Sunpower and be the only ones willing to sell to the Chinese panel producers. The fact that they would be extremely thin exfoliates and have no material waste would keep them relatively inexpensive. I think the product would find a huge market.
How sad is it that they've had this cutting edge product in HiCz that there is currently no market for. Waiting for overcapacity issues to resolve is painfully eating away at our cutting edge status and could jeopardize it if they wait too long. I do wonder if we would make out like bandits by producing ourselves. Both Twin Creeks and Confluence Solar were each going to sell wafers. Now that they've brought them together it may make even more sense than ever.
Banmate - Respectfully, in reading your past posts I have always gotten the distinct impression that you are completely out of your element in a high risk/reward company like GTAT. As you state, you look for value but what we have here is monster potential. If it keeps you up at night, perhaps its not right for you.
My guess is that it was structured that way so that Apple could protect itself from a higher cost/screen than GTAT promised them they could achieve. If cost to manufacture is higher than Apple expected, they can walk away. If GTAT can deliver at the price they promised then there's a sapphire party for years to come.
I believe Apple would have vetted these costs and has sufficient confidence in GTATs ability to achieve costs given that they coughed up a half billion to get it going.
I'm not positive what the original poster was referring to but I would assume it is GTAT's Hyperion 3. It's a game changer for multiple products.
and a bit more in case you need it...
WHEREAS, Apple has agreed, subject to certain conditions described below, to make a prepayment to GTAT up to Five Hundred Seventy Eight Million U.S. Dollars (US$578,000,000) (the “ Prepayment ”) as payment in advance for the purchase of Goods (as defined in the SOW) by Apple pursuant to the MDSA and SOW; and
Now, what word did you see, loan or prepayment?
Forget your press release - Here it is right out of the contract in the 10Q
THIS PREPAYMENT AGREEMENT #C56-13-03457, is entered into as of October 31, 2013 (this “ Agreement ”), between GTAT Corporation , a Delaware corporation having its principal place of business at 243 Daniel Webster Highway, Merrimack, NH 03054 (“ GTAT ” or “ Supplier ”) and Apple Inc. , a California corporation having its principal place of business at 1 Infinite Loop, Cupertino, California 95014, United States (“ Apple ”).
B) The $578M that Apple loaned GT is like you loaning someone $20
But you left out the important part, with their $20 you start a new business to sell them thousands of dollars worth of something.
If we are going to become a household name then we will need to have a proper brand name like GLW has with Gorilla Glass. I'm sure Apple will have an army of marketing types working on this one, but off the top of my head Gorilla Killa has a nice ring to it.
Complete speculation of course but noticed this in the Apple contract. We have to put our Hyperion exfoliates onto something, maybe even GG?
21.2. Apple may from time to time direct GTAT (or, at GTAT’s request, grant written authorization to GTAT) to procure certain materials or supplies from certain third-party vendors with whom Apple has established supply agreements (each, a “ Specified Vendor ”). In each such instance: (i) GTAT will negotiate and execute its own purchasing agreement with the Specified Vendor; (ii) for the quantities that are to be used to produce Goods under this Agreement, Apple will request the Specified Vendor to offer those materials or supplies to GTAT on terms no less favorable than the terms on which the Specified Vendor sells, or has agreed to sell, the same
materials or supplies to Apple; (iii) for all other quantities of such materials or supplies (that is, quantities that are not used to produce Goods under this Agreement), Apple will request, but need not require, that the Specified Vendor offer such materials or supplies to GTAT on the same terms; and (iv) Apple will not require the Specified Vendor to impose less favorable terms on GTAT for quantities of the materials or supplies that are not used to produce Goods under this Agreement.
... Then again, they could just be talking about the glue.
(pg 2 of 2)
In the past few months, GTAT has been in the midst of a slowdown considering the two of the three major sectors for which it fabricates and manufactures crystalline products were down. Whenever the poly-silicon and solar industry have passed through the wringer, GT Advanced has struggled too, give and take a few peaks during the previous year.
The one major industry in which GT Advanced has few competitors, the sapphire industry has kindled its new found growth. Growth demands funds and capital. And so GT Advanced found the answer through Convertible notes and shares.
Apple deal for Sapphire Glass redefines GTAT
In the first week of November 2013 Apple Inc made the much-awaited move, announcing its new deal with GT Advanced for sapphire coated surfaces for its display screens. The technology which currently GT Advanced and competitors such as Rubicon offer makes the display screens, scratch-resistant and durable.
In contrast, the Corning glass which Apple Inc (NASDAQ:AAPL) currently uses on its iPhones is prone to cracking into small smithereens at the slightest fall.
Apple had since indicated that Sapphire technology would be its logical replacement for the beleaguered display screen, which necessitated more often than not replacing the entire gadget at its store.
The deal, with GT Advanced will now mean that the Sapphire-display screen maker will run furnaces located at Apple’s facilities, functioning on pre-payments.
GT Advanced phenomenal stock price rises
GT Advanced Technologies Inc (NASDAQ:GTAT) has seen 52-week high of $10.75 and volume trades of 27,080,200. At current rates, the market capitalization is at 1.10 billion.
In the pipe-line for GTAT, which will also spell success is the LED industry. As the demand for LED products increases over drop in fluorescent bulbs, Advanced sapphire crystallization furnaces (ASF), Silicon Deposition Reactors (SDR) as well as photovoltaic (PV), GTAT has several growth opportunities...
GT Advanced Technologies Inc (NASDAQ:GTAT) Ups Stock-Convertible Offer
Dallas, Texas 12/06/2013 (Financialstrend) – GT Advanced Technologies Inc (NASDAQ:GTAT), the crystal component and equipment for several industries has just announced revisions to its stocks and debenture offers this season.
The original officially announcement of its convertible Senior notes, which are due by 2020 were $125 million, while the shares the company would offer was announced to be 12 million.
This initial offer however was quickly revised on Dec 5, 2013.
GT Advanced Technologies Inc (NASDAQ:GTAT) will now bring $190 million convertible notes, while the number of shares will remain at 12 million. The allocation permutations possible for underwriters now will be $24 million notes, followed by 1.29 million shares. As the current prices are 35% higher the conversion price stands at $12.11 for the notes, earning interest rate of 3%. For shares the pricing begins at $8.65, considering 4% drop in levels).
Debt offering to boost working cap
GT Advanced Technologies Inc (NASDAQ:GTAT) debt offer to investors will beef coffers for the crystalline raw material manufacturer believe experts. The accumulated wealth through convertible notes and shares will allow GT Advanced a much-needed band-width to look beyond itself and explore acquisition of other businesses and firms which would add to GTAT’s advancements in the future.
Why the debt offering?
GT Advanced Technologies Inc (NASDAQ:GTAT) has found new lease of life in the past month.
A sudden announcement of a future-forwarded deal with Apple Inc NASDAQ:AAPL) has meant that GT Advanced is in the news for all the good reasons.
Sapphire is a scarce resource and can be pretty expensive, securing a supplier that can meet the global demand will be Apple's main objective if this is the plan for the next generation device.