-
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.
News Provided by Acquire Media