Published: July 29, 2010
First Solar, Inc. Announces Second Quarter 2010 Financial Results
TEMPE, Ariz. - (BUSINESS WIRE) - First Solar, Inc. (Nasdaq: FSLR) today announced its financial results
for the second quarter ended June 26, 2010. Quarterly net sales were
$587.9 million, up 12% from $525.9 million in the second quarter of
2009, due to increased production volumes and systems revenue, partially
offset by a decline in pricing and lower euro exchange rates. Second
quarter 2010 net sales increased $19.9 million from the first quarter of
2010, primarily due to increased turnkey system sales.
Second quarter net income per fully diluted share was $1.84, down from
$2.11 in the second quarter of 2009 and down from $2.00 in the first
quarter of 2010. Year over year, the declines were primarily driven by
lower module average selling prices, and higher operating expenses that
were partially offset by increased module production and lower module
cost per watt. Quarter over quarter, the declines were primarily driven
by higher operating expenses.
PV module manufacturing cost was reduced to $0.76/watt, down $0.05 from
the prior quarter and 13% year over year. Annual throughput per line was
up 6% quarter over quarter to 59.0 MW. This increases announced or
operating capacity from 2.1 to 2.2 GW by 2012.
For 2010, First Solar forecasts net sales of $2.5 to $2.6 billion,
reflecting reallocation of module capacity from our systems business to
meet stronger module demand by our European customers. Earnings per
fully diluted share are increased to a projected range of $7.00 to $7.40
which includes a $0.20-$0.23 reduction for a foreign exchange assumption
change from $1.30/euro to $1.20/euro and $0.09-$0.10 per share dilution
for the completed acquisition of NextLight Renewable Power, LLC. Total
capital spending is projected to be $575 to $625 million. The company
expects to generate $575 to $625 million of operating cash flow. First
Solar has posted its Second Quarter Earnings Call Presentation, which
includes guidance for fiscal 2010 and additional details regarding the
key assumptions relating to this guidance, in the Investor section of
its website at www.firstsolar.com.
First Solar will discuss these results and outlook for fiscal 2010 in a
conference call scheduled for today at 4:30 p.m. ET. Investors may
access a live audio webcast of this conference call and the earnings
call presentation in the investors section of the Company's website at www.firstsolar.com.
An audio replay of the conference call will also be available
approximately two hours after the conclusion of the call. The audio
replay will remain available until Tuesday, August 3, 2010, at 7:30 p.m.
ET and can be accessed by dialing 888-203-1112 if you are calling from
within the United States or 719-457-0820 if you are calling from outside
the United States and entering the replay pass code 7770641. A replay of
the webcast will be available on the Investor section on the Company's
website approximately two hours after the conclusion of the call and
remain available for approximately 90 calendar days. If you are a
subscriber of FactSet or Thomson One, you can obtain a written
transcript within two hours.
About First Solar, Inc.
First Solar manufactures solar modules with an advanced semiconductor
technology and provides comprehensive photovoltaic (PV) system
solutions. The company is delivering an economically viable alternative
to fossil-fuel generation today. From raw material sourcing through
end-of-life collection and recycling, First Solar is focused on creating
cost-effective, renewable energy solutions that protect and enhance the
environment. For more information about First Solar, please visit http://www.firstsolar.com.
For First Solar Investors:
This release contains forward-looking statements which are made pursuant
to the safe harbor provisions of Section 21E of the Securities Exchange
Act of 1934. The forward-looking statements in this release do not
constitute guarantees of future performance. Those statements involve a
number of factors that could cause actual results to differ materially,
including risks associated with the company's business involving the
company's products, their development and distribution, economic and
competitive factors and the company's key strategic relationships and
other risks detailed in the company's filings with the Securities and
Exchange Commission. First Solar assumes no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein.
|
FIRST SOLAR, INC. AND SUBSIDIARIES
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 26,
2010
|
|
June 27,
2009
|
|
June 26,
2010
|
|
June 27,
2009
|
|
Net sales
|
|
$
|
587,854
|
|
|
$
|
525,876
|
|
|
$
|
1,155,815
|
|
|
$
|
944,084
|
|
|
Cost of sales
|
|
303,660
|
|
|
227,780
|
|
|
589,585
|
|
|
410,704
|
|
|
Gross profit
|
|
284,194
|
|
|
298,096
|
|
|
566,230
|
|
|
533,380
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
22,836
|
|
|
18,605
|
|
|
45,724
|
|
|
30,309
|
|
|
Selling, general and administrative
|
|
78,597
|
|
|
72,926
|
|
|
145,461
|
|
|
122,241
|
|
|
Production start-up
|
|
2,288
|
|
|
2,524
|
|
|
3,431
|
|
|
8,733
|
|
|
Total operating expenses
|
|
103,721
|
|
|
94,055
|
|
|
194,616
|
|
|
161,283
|
|
|
Operating income
|
|
180,473
|
|
|
204,041
|
|
|
371,614
|
|
|
372,097
|
|
|
Foreign currency (loss) gain
|
|
(2,625
|
)
|
|
239
|
|
|
(3,321
|
)
|
|
2,073
|
|
|
Interest income
|
|
3,035
|
|
|
1,948
|
|
|
8,683
|
|
|
4,051
|
|
|
Interest expense, net
|
|
(6
|
)
|
|
(3,827
|
)
|
|
(6
|
)
|
|
(4,762
|
)
|
|
Other expense, net
|
|
(439
|
)
|
|
(1,103
|
)
|
|
(1,173
|
)
|
|
(2,429
|
)
|
|
Income before income taxes
|
|
180,438
|
|
|
201,298
|
|
|
375,797
|
|
|
371,030
|
|
|
Income tax expense
|
|
21,395
|
|
|
20,719
|
|
|
44,409
|
|
|
25,856
|
|
|
Net income
|
|
$
|
159,043
|
|
|
$
|
180,579
|
|
|
$
|
331,388
|
|
|
$
|
345,174
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.87
|
|
|
$
|
2.16
|
|
|
$
|
3.91
|
|
|
$
|
4.17
|
|
|
Diluted
|
|
$
|
1.84
|
|
|
$
|
2.11
|
|
|
$
|
3.84
|
|
|
$
|
4.10
|
|
|
Weighted-average number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
84,852
|
|
|
83,723
|
|
|
84,679
|
|
|
82,704
|
|
|
Diluted
|
|
86,401
|
|
|
85,668
|
|
|
86,247
|
|
|
84,140
|
|
|
FIRST SOLAR, INC. AND SUBSIDIARIES
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except share data)
|
|
(Unaudited)
|
|
|
|
|
June 26,
2010
|
|
|
December 26,
2009
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
510,482
|
|
|
|
$
|
664,499
|
|
|
Marketable securities and investments
|
|
|
285,993
|
|
|
|
120,236
|
|
|
Accounts receivable trade, net
|
|
|
256,344
|
|
|
|
226,826
|
|
|
Accounts receivable, unbilled
|
|
|
105,333
|
|
|
|
58
|
|
|
Inventories
|
|
|
194,308
|
|
|
|
152,821
|
|
|
Project assets
|
|
|
109
|
|
|
|
1,081
|
|
|
Deferred tax asset, net
|
|
|
19,248
|
|
|
|
21,679
|
|
|
Prepaid expenses and other current assets
|
|
|
244,053
|
|
|
|
164,071
|
|
|
Total current assets
|
|
|
1,615,870
|
|
|
|
1,351,271
|
|
|
Property, plant and equipment, net
|
|
|
1,094,877
|
|
|
|
988,782
|
|
|
Project assets
|
|
|
140,065
|
|
|
|
131,415
|
|
|
Deferred tax asset, net
|
|
|
157,778
|
|
|
|
130,515
|
|
|
Marketable securities
|
|
|
164,017
|
|
|
|
329,608
|
|
|
Restricted cash and investments
|
|
|
81,103
|
|
|
|
36,494
|
|
|
Investment in related party
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Goodwill
|
|
|
286,515
|
|
|
|
286,515
|
|
|
Inventories
|
|
|
30,655
|
|
|
|
21,695
|
|
|
Other assets
|
|
|
35,435
|
|
|
|
48,217
|
|
|
Total assets
|
|
|
$
|
3,631,315
|
|
|
|
$
|
3,349,512
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
68,268
|
|
|
|
$
|
75,744
|
|
|
Income tax payable
|
|
|
28,552
|
|
|
|
8,740
|
|
|
Accrued expenses
|
|
|
183,889
|
|
|
|
193,277
|
|
|
Current portion of long-term debt
|
|
|
24,465
|
|
|
|
28,559
|
|
|
Other current liabilities
|
|
|
20,045
|
|
|
|
88,607
|
|
|
Total current liabilities
|
|
|
325,219
|
|
|
|
394,927
|
|
|
Accrued solar module collection and recycling liability
|
|
|
101,757
|
|
|
|
92,799
|
|
|
Long-term debt
|
|
|
114,168
|
|
|
|
146,399
|
|
|
Other liabilities
|
|
|
77,925
|
|
|
|
62,600
|
|
|
Total liabilities
|
|
|
619,069
|
|
|
|
696,725
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 85,546,131 and 85,208,199 shares issued and
outstanding at June 26, 2010 and December 26, 2009, respectively
|
|
|
86
|
|
|
|
85
|
|
|
Additional paid-in capital
|
|
|
1,694,607
|
|
|
|
1,658,091
|
|
|
Contingent consideration
|
|
|
1,607
|
|
|
|
2,844
|
|
|
Accumulated earnings
|
|
|
1,332,750
|
|
|
|
1,001,363
|
|
|
Accumulated other comprehensive loss
|
|
|
(16,804
|
)
|
|
|
(9,596
|
)
|
|
Total stockholders' equity
|
|
|
3,012,246
|
|
|
|
2,652,787
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
3,631,315
|
|
|
|
$
|
3,349,512
|
|
First Solar, Inc.
Jens Meyerhoff
CFO and President,
Utility Systems Business Group
602-414-9315
investor@firstsolar.com
Larry
Polizzotto
Vice President, Investor Relations
602-414-9315
lpolizzotto@firstsolar.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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