For second-quarter 2012,First Solar Inc of Tempe,AZ,USA-which manufactures thin-film photovoltaic modules based on cadmium telluride(CdTe)as well as providing engineering,procurement and construction(EPC)services–has reported net sales of$957m,up 92%on$497m last quarter and 80%on$532.8m a year ago.Growth was due mainly to an increase in the number and size of projects under construction meeting revenue recognition criteria during the quarter,including Antelope Valley Solar Ranch 1 in California and Silver State North in Nevada.
Fiscal Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Revenue$533m$1006m$660m$497m$957m
Despite market uncertainties,First Solar delivered strong performance in the quarter,"comments CEO Jim Hughes.Compared with net income of$61.1m($0.70 per fully diluted share)a year ago and a net loss of$449.4m($5.20 per fully diluted share)last quarter,First Solar has returned to net income of$111m($1.27 per fully diluted share).
However,this was impacted by pre-tax charges of$36m($0.39 per fully diluted share)consisting of(i)$23.7m(reducing earnings per share by$0.25)related to$19m of expenses for the restructuring announced on 17 April plus$4.7m of costs associated with the repayment of debt for the German manufacturing center;and(ii)$12.5m(reducing earnings per share by$0.14)related to costs in excess of normal warranty expense associated with remediation of a manufacturing excursion between June 2008 and June 2009.Excluding these charges,non-GAAP net income was$144.9m($1.65 per fully diluted share).During the quarter,cash and marketable securities fell from$750m to$744m.
Based on reductions in its ongoing cost structure related primarily to restructuring initiatives,First Solar is increasing its 2012 guidance for sales from$3.5-3.8bn to$3.6-3.9bn,and for earnings per fully diluted share from$4.00-4.50 to$4.20-4.70(excluding restructuring and impairment charges,and costs in excess of normal warranty expense).This comes after in May raising guidance from$3.75-4.25.
"We are confident we have the right long-term strategy and the right platform to enable long-term growth and value creation,"says Hughes."By executing our strategic roadmaps and completing our restructuring program we can achieve our targets of 2.6-3.0GW of sales in sustainable markets,earning a return on invested capital of 13-17%by 2016,"he believes.