August 4, 2011

First Solar Announces Second Quarter 2011 Financial Results

  • Net Sales $533 million
  • EPS $0.70 per fully diluted share
  • 2011 EPS guidance of $9.00 - $9.50 per fully diluted share

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the second quarter of 2011. Net sales were $533 million in the quarter, a decrease of $34.5 million from the first quarter of 2011, primarily due to lower average selling prices (ASPs) as solar photovoltaic (PV) policy uncertainties in Italy, Germany and France adversely impacted demand in the second quarter. Quarterly net sales decreased from $588 million in the second quarter of 2010, primarily due to lower ASPs and a decrease in revenue recognized by the systems business, partially offset by higher module volume.

Second quarter net income per fully diluted share was $0.70, down from $1.33 in the first quarter of 2011 and $1.84 in the second quarter of 2010. Quarter over quarter, the net income decrease was primarily driven by lower ASPs and a higher tax rate, partially offset by higher volume sold. Year over year, the net income decrease was principally driven by lower ASPs and increased investment in the Utilities Systems Business and research and development.

"First Solar continued to execute in the quarter despite a challenging European market, and our 2011 outlook remains solid due to our differentiated and resilient business model," said Rob Gillette, CEO of First Solar. "We expect stronger performance in the second half of 2011 as we build projects from our systems pipeline, develop promising new markets, execute our cost reduction roadmaps and continue to improve module efficiencies."

First Solar's updated 2011 guidance is as follows:

  • Net sales of $3.6 to $3.7 billion
  • Operating Income of $900 to $960 million
  • Effective tax rate 13% to 15%
  • Earnings per fully diluted share of $9.00 to $9.50
  • $35 to $40 million of manufacturing start-up expenses and $8 to $10 million of factory ramp costs
  • Total capital spending of $800 to $900 million
  • Operating cash flow of $500 to $600 million

First Solar will discuss these results and the outlook for 2011 in a conference call scheduled for today at 4:30 p.m. EDT. Investors may access a live audio webcast of this conference call and the earnings call presentation, which includes guidance for 2011 and additional details regarding the key assumptions relating to this guidance, 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 August 9, 2011 at 7:30 p.m. EDT 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 6647385. A replay of the webcast will be available on the Investor section of the Company's web site approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.

About First Solar, Inc.

First Solar manufactures solar modules with an advanced semiconductor technology, and is a premier provider of 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 value-driven renewable energy solutions that protect and enhance the environment. For more information about First Solar, please visit 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 30,
2011
  June 26,
2010
June 30,
2011
  June 26,
2010
Net sales $ 532,774 $ 587,854 $ 1,100,067 $ 1,155,815
Cost of sales 337,976   303,660   645,604   589,585  
Gross profit 194,798 284,194 454,463 566,230
Operating expenses:
Research and development 33,102 22,836 64,453 45,724
Selling, general and administrative 86,872 78,597 173,872 145,461
Production start-up 10,294   2,288   22,225   3,431  
Total operating expenses 130,268   103,721   260,550   194,616  
Operating income 64,530 180,473 193,913 371,614
Foreign currency gain (loss) 1,659 (2,625 ) 2,609 (3,321 )
Interest income 3,417 3,035 6,440 8,683
Interest expense, net (6 ) (6 )
Other income (expense), net 2,351   (439 ) 2,002   (1,173 )
Income before income taxes 71,957 180,438 204,964 375,797
Income tax expense 10,819   21,395   27,858   44,409  
Net income $ 61,138   $ 159,043   $ 177,106   $ 331,388  
Net income per share:
Basic $ 0.71   $ 1.87   $ 2.07   $ 3.91  
Diluted $ 0.70   $ 1.84   $ 2.03   $ 3.84  
Weighted-average number of shares used in per share calculations:
Basic 86,164   84,852   85,746   84,679  
Diluted 87,126   86,401   87,092   86,247  

FIRST SOLAR, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

       

 

June 30,
2011
December 31,
2010
ASSETS
Current assets:
Cash and cash equivalents $ 357,477 $ 765,689
Marketable securities and investments 106,966 167,889
Accounts receivable trade, net 541,977 305,537
Accounts receivable, unbilled 63,677 1,482
Inventories 322,995 195,863
Balance of systems parts 33,656 4,579
Project assets 145,379
Deferred tax assets, net 3,590 388
Prepaid expenses and other current assets 260,514   143,033  
Total current assets 1,836,231 1,584,460
Property, plant and equipment, net 1,727,993 1,430,789
Project assets 309,688 320,140
Deferred tax assets, net 268,243 259,236
Marketable securities 50,996 180,271
Restricted cash and investments 174,698 86,003
Goodwill 458,808 433,288
Inventories 42,713 42,728
Other assets 69,862   43,488  
Total assets $ 4,939,232   $ 4,380,403  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 189,875 $ 82,312
Income taxes payable 36,493 16,831
Accrued expenses 242,250 244,271
Current portion of long-term debt 28,334 26,587
Other current liabilities 94,917   99,676  
Total current liabilities 591,869 469,677
Accrued solar module collection and recycling liability 176,644 132,951
Long-term debt 332,492 210,804
Other liabilities 156,689   112,026  
Total liabilities 1,257,694   925,458  
Stockholders' equity:

Common stock, $0.001 par value per share; 500,000,000 shares authorized; 86,290,962 and
85,843,511 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively

86 86
Additional paid-in capital 1,878,429 1,815,420
Contingent consideration 1,118
Accumulated earnings 1,842,670 1,665,564
Accumulated other comprehensive loss (39,647 ) (27,243 )
Total stockholders' equity 3,681,538   3,454,945  
Total liabilities and stockholders' equity $ 4,939,232   $ 4,380,403  

First Solar, Inc.
Investors:
Mark Widmar
Chief Financial Officer
602-414-9315
Investor@firstsolar.com
or
Larry Polizzotto
Vice President Investor Relations
602-414-9315
LPolizzotto@firstsolar.com
or
Media:
First Solar—USA
Ted Meyer or Alan Bernheimer
602-414-9361
media@firstsolar.com
or
First Solar—Europe
Brandon Mitchener
+49 (0) 6131 1443-399
media-emea@firstsolar.com

Source: First Solar, Inc.

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