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First Solar, Inc. Announces Second Quarter 2020 Financial Results

August 06, 2020
  • Net sales of $642 million
  • Net income per share of $0.35
  • Cash, restricted cash, and marketable securities of $1.6 billion, net cash of $1.2 billion
  • 0.8 GWDC of bookings since prior earnings call, including 0.5 GWDC of systems bookings
  • Strong Series 6 Production; fleet-wide capacity utilization of over 100% during May, June, and July
  • Maintain 2020 module production and capital expenditures guidance

TEMPE, Ariz., Aug. 06, 2020 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the second quarter ended June 30, 2020.

“We remain pleased with our operational performance with strong metrics across the board,” said Mark Widmar, CEO of First Solar. “Our COVID-19 response continues to center on balancing our top priority of safety with meeting our commitments to our customers. This approach, together with our associates’ dedication, and the strengths of our differentiated business model, enabled us to deliver solid financial results for the second quarter.”

Net sales for the second quarter were $642 million, an increase of $110 million from the prior quarter, primarily due to the sale of the American Kings project.

The Company reported second quarter net income per share of $0.35, compared to net income per share of $0.85 in the first quarter of 2020.

Cash, restricted cash, and marketable securities at the end of the second quarter totaled $1,642 million, an increase of $44 million from the prior quarter, primarily due to cash collections on systems projects in the United States and module segment operating cash flows. This was partially offset by capital expenditures during the quarter.

Full-Year 2020 Module Production, Operating Expenses, and Capital Expenditure Guidance

As of the date of this release, the Company and its financial results have not been materially impacted by COVID-19. However, given the significant uncertainties that remain regarding the severity and duration of the pandemic and its impact on the Company’s operations and financial results, as well as on energy and capital markets, the Company is continuing to provide limited guidance that it believes is largely within its control or within reasonable line of sight at this time.

  • Module production: 5.9 GWDC, including 5.7 GWDC of Series 6 and 0.2 GWDC of Series 4
  • Operating expenses: $345 to $365 million (including $45 to $55 million of start-up expenses)
  • Capital expenditures: $450 to $550 million

Conference Call Details

First Solar has scheduled a conference call for today, August 6, 2020 at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at

Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s second quarter financial results and financial outlook.

An audio replay of the conference call will be available through Thursday, August 13, 2020 and can be accessed by dialing +1 (800) 585-8367 if you are calling from within the United States or +1 (416) 621-4642 if you are calling from outside the United States and entering the replay passcode 6365007. A replay of the webcast will also be available on the Investors section of the Company’s website approximately five hours after the conclusion of the call and remain available for 90 days.

About First Solar, Inc.

First Solar is a leading global provider of comprehensive photovoltaic (“PV”) solar energy solutions, which use its advanced module and system technology. The Company's integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation today. From raw material sourcing through end-of-life module recycling, First Solar’s renewable energy systems protect and enhance the environment. For more information about First Solar, please visit

For First Solar Investors

This release contains forward-looking statements, which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: net sales, gross margin, operating expenses, operating income, earnings per share, loss per share, net cash balance, capital expenditures, shipments, bookings, production, products and our business and financial objectives for 2020. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to: the severity and duration of the COVID-19 pandemic, including its potential impact on our business, results of operations, and financial condition; structural imbalances in global supply and demand for PV solar modules; the market for renewable energy, including solar energy; our competitive position and other key competitive factors; reduction, elimination, or expiration of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; our ability to execute on our long-term strategic plans; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; interest rate fluctuations and both our and our customers’ ability to secure financing; the creditworthiness of our off-take counterparties and the ability of our off-take counterparties to fulfill their contractual obligations to us; the ability of our customers and counterparties to perform under their contracts with us; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; our ability to successfully develop and complete our systems business projects; our ability to convert existing production facilities to support new product lines, such as Series 6 module manufacturing; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects resulting from pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cyber-attacks or other breaches of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to attract and retain key executive officers and associates; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. You should carefully consider the risks and uncertainties described in these reports.


First Solar Investors

First Solar Media


(In thousands, except share data)

    June 30,
  December 31,
Current assets:        
Cash and cash equivalents   $ 1,052,700      $ 1,352,741   
Marketable securities (amortized cost of $494,000 and allowance for credit losses of $124 at June 30, 2020)   494,080      811,506   
Accounts receivable trade   291,018      476,425   
Less: allowance for credit losses   (3,334 )   (1,386 )
Accounts receivable trade, net   287,684      475,039   
Accounts receivable, unbilled and retainage   64,773      183,473   
Less: allowance for credit losses   (734 )   —   
Accounts receivable, unbilled and retainage, net   64,039      183,473   
Inventories   518,242      443,513   
Balance of systems parts   34,536      53,583   
Project assets   591      3,524   
Prepaid expenses and other current assets   279,304      276,455   
Total current assets   2,731,176      3,599,834   
Property, plant and equipment, net   2,324,413      2,181,149   
PV solar power systems, net   465,543      476,977   
Project assets   381,559      333,596   
Deferred tax assets, net   204,942      130,771   
Restricted marketable securities (amortized cost of $243,367 and allowance for credit losses of $0 at June 30, 2020)   253,236      223,785   
Goodwill   14,462      14,462   
Intangible assets, net   61,194      64,543   
Inventories   185,028      160,646   
Other assets   451,065      329,926   
Total assets   $ 7,072,618      $ 7,515,689   
Current liabilities:        
Accounts payable   $ 158,800      $ 218,081   
Income taxes payable   16,951      17,010   
Accrued expenses   310,649      351,260   
Current portion of long-term debt   77,029      17,510   
Deferred revenue   130,575      323,217   
Accrued litigation   19,000      363,000   
Other current liabilities   34,032      28,130   
Total current liabilities   747,036      1,318,208   
Accrued solar module collection and recycling liability   140,539      137,761   
Long-term debt   387,727      454,187   
Other liabilities   570,520      508,766   
Total liabilities   1,845,822      2,418,922   
Commitments and contingencies        
Stockholders’ equity:        
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 105,960,516 and 105,448,921 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively   106      105   
Additional paid-in capital   2,848,928      2,849,376   
Accumulated earnings   2,445,022      2,326,620   
Accumulated other comprehensive loss   (67,260 )   (79,334 )
Total stockholders’ equity   5,226,796      5,096,767   
Total liabilities and stockholders’ equity   $ 7,072,618      $ 7,515,689   


(In thousands, except per share amounts)

    Three Months Ended   Six Months Ended
    June 30,
  March 31,
  June 30,
  June 30,
  June 30,
Net sales   $ 642,411      $ 532,124      $ 584,956      $ 1,174,535      $ 1,116,934   
Cost of sales   504,951      441,786      507,774      946,737      1,039,640   
Gross profit   137,460      90,338      77,182      227,798      77,294   
Operating expenses:                    
Selling, general and administrative   51,770      58,587      50,934      110,357      96,286   
Research and development   22,483      25,613      24,395      48,096      46,272   
Production start-up   6,311      4,482      10,437      10,793      19,959   
Litigation loss   6,000      —      —      6,000      —   
Total operating expenses   86,564      88,682      85,766      175,246      162,517   
Operating income (loss)   50,896      1,656      (8,584 )   52,552      (85,223 )
Foreign currency (loss) income, net   (1,299 )   (398 )   1,726      (1,697 )   1,898   
Interest income   3,674      9,330      13,510      13,004      27,769   
Interest expense, net   (3,254 )   (6,789 )   (8,921 )   (10,043 )   (19,042 )
Other expense, net   (3,195 )   (2,222 )   (4,438 )   (5,417 )   (929 )
Income (loss) before taxes and equity in earnings   46,822      1,577      (6,707 )   48,399      (75,527 )
Income tax (expense) benefit   (10,214 )   89,215      (11,744 )   79,001      (10,350 )
Equity in earnings, net of tax   303      (88 )   (97 )   215      (270 )
Net income (loss)   $ 36,911      $ 90,704      $ (18,548 )   $ 127,615      $ (86,147 )
Net income (loss) per share:                    
Basic   $ 0.35      $ 0.86      $ (0.18 )   $ 1.21      $ (0.82 )
Diluted   $ 0.35      $ 0.85      $ (0.18 )   $ 1.20      $ (0.82 )
Weighted-average number of shares used in per share calculations:                    
Basic   105,927      105,595      105,369      105,761      105,208   
Diluted   106,473      106,386      105,369      106,429      105,208   



Source: First Solar, Inc.

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