First Solar, Inc. Announces 2009 Third Quarter Financial Results

Oct. 28, 2009 04:17 PM

First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the third quarter ended September 26, 2009. Quarterly revenues were $480.9 million and excluded the Sarnia project, which was over 65% completed at quarter end. Revenues were $525.9 million in the second quarter of fiscal 2009 and $348.7 million in the third quarter of fiscal 2008.

Revenues for the first nine months of fiscal 2009 were $1,424.9 million compared to $812.7 million for the first nine months of fiscal 2008.

Net income for the third quarter of fiscal 2009 was $153.3 million or $1.79 per share on a fully diluted basis, down from $180.6 million or $2.11 per share on a fully diluted basis for the second quarter of fiscal 2009 and up from $99.3 million or $1.20 per share on a fully diluted basis for the third quarter of fiscal 2008.

The Company has also posted its Earnings Call Presentation, which includes updated guidance for fiscal 2009 on the Company’s web site. The Company expects full year fiscal 2009 revenue at the updated guidance range of $1.975 to $2.025 billion, which is at the high end of the previously provided guidance range.

First Solar will discuss these results and outlook for fiscal 2009 in a conference call scheduled for today at 1:30 p.m. MST (4:30 p.m. EDT). Investors may access a live audio webcast of this conference call or the Earnings Call Presentation in the Investors section of the Company’s web site 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 Monday, November 2, 2009 at 11:59 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 access code 1744958. A replay of the webcast will be available on the Investor section on the Company’s Web site approximately two hours after the conclusion of the call and will remain available for 90 calendar days. If you are a subscriber of FactSet and Thomson One, you can obtain a written transcript within two hours.

About First Solar, Inc.

First Solar, Inc. (Nasdaq: FSLR) is changing the way the world is powered by creating truly sustainable solar energy solutions. First Solar manufactures solar modules with an advanced semiconductor technology and provides comprehensive PV system solutions. By constantly decreasing manufacturing costs, First Solar is creating an affordable and environmentally responsible alternative to fossil-fuel generation. First Solar modules are most effective when demand for traditional forms of energy is at its peak. First Solar set the benchmark for environmentally responsible product life cycle management by introducing the industry's first comprehensive, pre-funded collection and recycling program for solar modules. 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 www.firstsolar.com, or www.firstsolar.com/media to download photos.

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

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 26, 2009			September 27, 2008			September 26, 2009			September 27, 2008
Net sales	$	480,851		$	348,694		$	1,424,935		$	812,650
Cost of sales		235,858			153,251			646,562			368,183
Gross profit		244,993			195,443			778,373			444,467
Operating expenses:
Research and development		24,136			9,952			54,445			22,437
Selling, general and administrative		53,990			48,995			176,231			121,292
Production start-up		4,076			6,344			12,809			23,727
Total operating expenses		82,202			65,291			243,485			167,456
Operating income		162,791			130,152			534,888			277,011
Foreign currency gain (loss)		114			(1,889	)		2,187			(468	)
Interest income		2,398			5,323			6,449			16,931
Interest expense, net		(89	)		(127	)		(4,851	)		(131	)
Other expense, net		(247	)		(360	)		(2,676	)		(1,179	)
Income before income taxes		164,967			133,099			535,997			292,164
Income tax expense		11,623			33,830			37,479			76,605
Net income	$	153,344		$	99,269		$	498,518		$	215,559
Net income per share:
Basic	$	1.82		$	1.23		$	5.99		$	2.70
Diluted	$	1.79		$	1.20		$	5.88		$	2.63
Weighted-average number of shares used in per share calculations:
Basic		84,179			80,430			83,196			79,789
Diluted		85,892			82,436			84,724			82,016

FIRST SOLAR, INC. AND SUBSIDIARIES

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

	September 26, 2009			December 27, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	364,814		$	716,218
Marketable securities — current		158,847			76,042
Accounts receivable, net		348,965			61,703
Inventories — current		178,032			121,554
Project assets — current		58,017			—
Economic development funding receivable		—			668
Deferred tax asset, net — current		15,362			9,922
Prepaid expenses and other current assets		79,355			91,294
Total current assets		1,203,392			1,077,401
Property, plant and equipment, net		962,732			842,622
Project assets — noncurrent		102,692			—
Deferred tax asset, net — noncurrent		117,449			61,325
Marketable securities — noncurrent		306,415			29,559
Restricted cash and investments — noncurrent		37,173			30,059
Investment in related party		25,000			25,000
Goodwill		284,005			33,829
Inventories — noncurrent		11,434			—
Other assets — noncurrent		44,780			14,707
Total assets	$	3,095,072		$	2,114,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	72,338		$	46,251
Income tax payable		17,555			99,938
Accrued expenses		142,490			140,899
Current portion of long-term debt		29,169			34,951
Other liabilities — current		85,107			59,738
Total current liabilities		346,659			381,777
Accrued collection and recycling liabilities		76,932			35,238
Long-term debt		163,320			163,519
Other liabilities — noncurrent		48,987			20,926
Total liabilities		635,898			601,460
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 85,071,436 and 81,596,810 shares issued and outstanding at September 26, 2009 and December 27, 2008, respectively		85			82
Additional paid-in capital		1,632,911			1,176,156
Contingent consideration		2,844			—
Accumulated earnings		859,743			361,225
Accumulated other comprehensive loss		(36,409	)		(24,421	)
Total stockholders’ equity		2,459,174			1,513,042
Total liabilities and stockholders’ equity	$	3,095,072		$	2,114,502

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