GT Solar International Inc.'s (SOLR) fiscal second-quarter profit declined 66% as the solar company posted lower revenue and margins after a year of surging growth.
Shares fell 5.4% to $5.24 in after-hours trading, even as results were in line with the company's target last week. At the close, the stock was up 92% this year.
The supplier of photovoltaic equipment had posted surging margins and revenue over the past year, as demand remains strong despite some near-term concerns about growth in the solar sector.
Last week, GT Solar named technology veteran Tom Gutierrez president and chief executive, succeeding Tom Zarrella, who served in those roles since 2007. It also reaffirmed its full-year targets.
For the quarter ended Sept. 26, GT Solar posted a profit of $9.4 million, or 6 cents a share, down from $27.9 million, or 19 cents a share, a year earlier. Revenue declined 26% to $104.2 million. GT Solar earns most of its revenue in Asia, with modest sales from Europe and North America.
Last week, the company said it expected earnings of 6 cents to 7 cents on revenue of $100 million to $105 million. The low end of the revenue target was more than $13 million higher than Wall Street's projections.
Gross margin slid to 32.9% from 43.8% on the sales slump.
Backlog decreased 8% during the quarter to $1.03 billion.
