First Solar, Inc. Announces Second Quarter 2010 Financial Results

Published on Thursday, 29 July 2010 16:24 Written by TradersHuddle Staff

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 MeyerhoffCFO and President, Utility Systems Business Group602-414-9315investor@firstsolar.comLarry PolizzottoVice President, Investor This e-mail address is being protected from spambots. You need JavaScript enabled to view it.