February 13, 2007

First Solar, Inc. Announces 2006 Fourth Quarter and Year-end Financial Results

Feb 13, 2007 (PrimeNewswire via COMTEX News Network) --



                Fourth Quarter Revenues of $52.7 Million and
                       $135.0 Million For Fiscal 2006
                Fourth Quarter Net Income of $8.0 Million
                     and $4.0 Million For Fiscal 2006

PHOENIX, Feb. 13, 2007 (PRIME NEWSWIRE) -- First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the fourth quarter and fiscal year, ended December 30, 2006. Quarterly revenues were $52.7 million, up from $40.8 million in the third quarter of fiscal 2006 and up from $13.6 million in the fourth quarter of fiscal 2005. Revenues for the fiscal year ended December 30, 2006 were $135.0 million, up from $48.1 million in fiscal year 2005. Net income for the fourth quarter of fiscal 2006 was $8.0 million or $0.11 per share on a fully diluted pro-forma basis, compared to net income of $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006 and a net loss of $7.2 million for the fourth quarter of fiscal 2005 or $(0.11) per share on a fully diluted pro-forma basis. Net income for fiscal 2006 was $4.0 million or $0.05 per share on a fully diluted pro-forma basis compared to a net loss of $6.5 million for fiscal 2005 or $(0.10) per share on a fully diluted pro-forma basis.

Pro forma earnings per share have been adjusted for the three months ended December 30, 2006, September 30, 2006 and December 31, 2005 and for the fiscal years ended December 30, 2006 and December 31, 2005, to give effect to the Company's initial public offering as of the beginning of fiscal 2005. The pro forma earnings per share reflect the issuance of the Company's common stock in its initial public offering. The Company believes the pro forma earnings per share presentation represents a meaningful basis for the comparison of its current results to results during fiscal periods occurring prior the Company's initial public offering.

On a GAAP fully diluted basis, net income for the fourth quarter of fiscal 2006 was $0.12 per share, compared to $0.07 per share for the third quarter of fiscal 2006. Net loss for the fourth quarter of 2005 was $(0.14) per share on a GAAP fully diluted basis. Also on a GAAP fully diluted basis, net income for fiscal 2006 was $0.07 per share compared to a net loss of $(0.13) per share for fiscal 2005.

"During the fourth quarter we recognized the full benefit of our Ohio expansion, resulting in 25MW of production at that plant during the quarter. The strong sequential increase in throughput reduced our manufacturing cost per watt to $1.25 for the fourth quarter, a 12% reduction from the third quarter of 2006. In addition, completion of our German manufacturing plant is on schedule, and the German plant will provide us with additional capacity to fulfill continued strong customer demand for our products," said Michael J. Ahearn, Chief Executive Officer of First Solar.

First Solar will discuss these results and expected results for fiscal 2007 in a conference call scheduled for today at 2:30 p.m. Mountain, or 4:30 p.m. EST. To participate in the conference call, please dial (800) 819-9193 or (913) 981-4911. The public is invited to listen to a live web cast of First Solar's conference call on the Investor section of the company's website at www.firstsolar.com. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until Friday, February 16, 2007 at 12:00 a.m. EST and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 4420579.

About First Solar:

First Solar, Inc. (Nasdaq:FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions, and peak time grid constraints.

The First Solar, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3052

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.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (In thousands, except per unit/share amounts)
                               (Unaudited)

                    Three Months Ended         Fiscal Years Ended
                 -------------------------  -------------------------
                 December 30, December 31,  December 30, December 31,
                    2006         2005           2006        2005
                 ------------ ------------  ------------ ------------


 Net sales        $  52,695    $  13,581     $ 134,974    $  48,063
 Cost of sales       27,080        9,811        80,730       31,483
                  ---------    ---------     ---------    ---------
 Gross profit        25,615        3,770        54,244       16,580
                  ---------    ---------     ---------    ---------

 Operating
  expenses:
   Research and
    development       1,649        1,462         6,361        2,372
   Selling,
    general,
    and admini-
    strative         10,950        6,991        33,348       15,825
   Production
    start-up          3,975        1,763        11,725        3,173
                  ---------    ---------     ---------    ---------

                     16,574       10,216        51,434       21,370
                  ---------    ---------     ---------    ---------

 Operating
  income (loss)       9,041       (6,446)        2,810       (4,790)

 Foreign
  currency gain
  (loss)              2,752         (663)        5,544       (1,715)
 Interest expense      (157)        (272)       (1,023)        (418)
 Other income
  (expense), net      1,427          177         1,849          372
                  ---------    ---------     ---------    ---------

 Income (loss)
  before income
  taxes              13,063       (7,204)        9,180       (6,551)
 Income tax
  expense             5,025           --         5,206           --
                  ---------    ---------     ---------    ---------

 Income (loss)
  before
  cumulative
  effect of
  change in
  accounting
  principle           8,038       (7,204)        3,974       (6,551)
 Cumulative
  effect of
  change in
  accounting
  for share-
  based
  compensation           --           --            --           89
                  ---------    ---------     ---------    ---------
 Net income
  (loss)          $   8,038    $  (7,204)    $   3,974    $  (6,462)
                  =========    =========     =========    =========

 Net income
  (loss) per
  membership
  unit/share

   Basic          $    0.13    $   (0.14)    $    0.07    $   (0.13)
   Diluted        $    0.12    $   (0.14)    $    0.07    $   (0.13)

 Weighted-
  average units/
  shares used to
  compute net
  income (loss)
  per unit/share

    Basic            63,968       49,916        56,310       48,846
                  =========    =========     =========    =========
    Diluted          66,324       49,916        58,255       48,846
                  =========    =========     =========    =========


                            FIRST SOLAR, INC.
                      CONSOLIDATED BALANCE SHEETS
                (In thousands, except share information)
                               (Unaudited)

                                         December 30,  December 31,
                                             2006          2005
                                         ------------   -----------
 ASSETS
 Current assets:
  Cash and cash equivalents               $308,092      $ 16,721
  Marketable securities                        323           312
  Accounts receivable, net                  27,966         1,098
  Inventories                               16,510         6,917

  Economic development funding
   receivable                               27,515            --
  Prepaid expenses and other
   current assets                            8,116         1,505
                                          --------      --------
    Total current assets                   388,522        26,553
  Property and equipment, net              178,868        73,778
  Restricted investments                     8,224         1,267
  Other noncurrent assets                    2,896           286
                                          --------      --------
    Total assets                          $578,510      $101,884
                                          ========      ========

 LIABILITIES AND MEMBERS'/STOCKHOLDERS' EQUITY
  Current liabilities:
  Short-term debt                         $  16,339     $     --

  Note payable to a related party                --       20,000
  Current portion of long-term
   debt                                       3,311          142
  Accounts payable and accrued
   expenses                                  32,083       13,771
  Other current liabilities                     340           --
                                          ---------     --------
    Total current liabilities                52,073       33,913
  Accrued recycling                           3,724          917

  Note payable to a related party                --        8,700
  Long-term debt                             61,047       19,881

  Other noncurrent liabilities                   --           79
                                          ---------     --------
    Total liabilities                       116,844       63,490
                                          ---------     --------
 Employee stock options on
  redeemable shares                          50,226       25,265

 Members'/stockholders' equity:

  Membership equity                              --      162,307
  Common stock, $0.001 par value
  per share; 242,500,000 shares
  authorized; 72,331,964 shares
  issued and outstanding at
  December 30, 2006                              72           --

  Additional paid in capital                555,749           --

  Accumulated deficit                      (145,403)    (149,377)
  Accumulated other comprehensive
   income                                     1,022          199
                                          ---------     --------
    Total member'/stockholders'
     equity                                 411,440       13,129
                                          ---------     --------
    Total liabilities and members/
     stockholders' equity                 $ 578,510     $ 101,884
                                          =========     =========



                                FIRST SOLAR, INC.
                      PRO FORMA vs. GAAP EARNINGS PER SHARE
                      (In thousands, except per share data)
                                   (Unaudited)

  A reconciliation  of the denominator used
   in calculating pro forma fully diluted
   earnings per share is as follows:

                                              Three Months Ended
                                      -------------------------------
                                       Dec. 31,   Sept. 30,  Dec. 30,
                                        2005        2006        2006
                                      --------    --------   --------

 Net income (loss)                    $ (7,204)   $  4,292   $  8,038
 Weighted-average shares
  outstanding, diluted                  49,916      57,956     66,324
 Adjustment to reflect the IPO
  shares as if they had
  been outstanding since the
  beginning of 2005                     16,193      16,193      8,363
 Pro forma weighted-average shares
  outstanding, diluted                  66,109      74,149     74,687

 Net income per share diluted
  as reported                         $  (0.14)   $   0.07   $   0.12
 Net income per share diluted
  pro forma                           $  (0.11)   $   0.06   $   0.11


                                            Fiscal Years Ended
                                         ------------------------
                                         Dec. 31,        Dec. 30,
                                           2005            2006
                                         --------        --------

 Net income (loss)                       $ (6,462)       $  3,974
 Weighted-average shares
  outstanding, diluted                     48,846          58,255
 Adjustment to reflect the IPO
  shares as if they had been
  outstanding since the beginning
  of 2005                                  16,193          14,236
 Pro forma weighted-average shares
  outstanding, diluted                     65,039          72,491

 Net income per share diluted
  as reported                            $  (0.13)       $   0.07
 Net income per share diluted
  pro forma                              $  (0.10)       $   0.05

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: First Solar, Inc.

First Solar, Inc.
          Jens Meyerhoff, Chief Financial Officer
          (602) 414-9315
          investor@firstsolar.com

          Sapphire Investor Relations, LLC
          Investor Relations
          Erica Mannion
          (212) 766-1800
          investor@firstsolar.com

(C) Copyright 2007 PrimeNewswire, Inc. All rights reserved.

News Provided by COMTEX


Close window | Back to top

Copyright 2017 First Solar, Inc.