PHOENIX, July 31, 2007 (PRIME NEWSWIRE) -- First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the second quarter ended June 30, 2007. Quarterly revenues were $77.2 million, up from $66.9 million in the first quarter of fiscal 2007 and up from $27.9 million in the second quarter of fiscal 2006.
Net income for the second quarter of fiscal 2007 was $44.4 million, or $0.58 per share on a fully diluted basis, compared to net income of $5.0 million, or $0.07 per share on a fully diluted basis for the first quarter of fiscal 2007 and a net loss of $2.5 million for the second quarter of fiscal 2006 or $(0.03) per share on a fully diluted pro-forma basis. Net income for the second quarter of fiscal 2007 includes a one time income tax benefit of $39.2 million, or $0.51 per share on a fully diluted basis, resulting from the reversal of valuation allowances against previously established U.S. deferred income tax assets. The reversal was based upon the Company's assessment of the future realization of its U.S. deferred income tax assets.
Pro-forma earnings per share for the three months ended July 1, 2006 have been adjusted to give effect to the Company's equity offerings during 2006, including its initial public offering, as if each occurred on January 1, 2006. The Company believes the pro-forma earnings per share presentation represents a meaningful basis for the comparison of its current results to results during fiscal periods occurring prior to the Company's initial public offering.
On a GAAP fully diluted basis, net income for the second quarter of fiscal 2007 was $0.58 per share, compared to $0.07 per share for the first quarter of fiscal 2007. Net loss for the second quarter of 2006 was $(0.05) per share on a GAAP fully diluted basis.
First Solar will discuss these results and expected results for fiscal 2007 in a conference call scheduled for today at 4:30 p.m. EDT. To participate in the conference call, please dial (800) 289-0544 or (913) 981-5533. Investors may also access a live audio web cast of this conference call on the Investors section of the Company's website at http://www.firstsolar.com. An audio replay of the web cast will be available approximately two hours after the conclusion of the call. The audio replay will remain available until Friday, August 3, 2007 at 11:59 p.m. EDT and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 5699645.
About First Solar:
First Solar, Inc. (Nasdaq:FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions, and peak time grid constraints.
The First Solar, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3052
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
------------------ ------------------
July 1, June 30, July 1, June 30,
2006 2007 2006 2007
-------- -------- -------- --------
Net sales $ 27,861 $ 77,223 $ 41,485 $144,172
Cost of sales 18,761 48,852 29,113 85,759
-------- -------- -------- --------
Gross profit 9,100 28,371 12,372 58,413
-------- -------- -------- --------
Operating expenses:
Research and development 1,536 3,763 3,055 6,821
Selling, general and
administrative 8,133 17,285 14,005 30,975
Production start up 4,062 1,523 6,641 9,997
-------- -------- -------- --------
Total operating
expenses 13,731 22,571 23,701 47,793
-------- -------- -------- --------
Operating income (loss) (4,631) 5,800 (11,329) 10,620
Foreign currency gain (loss) 2,190 21 3,090 (249)
Interest expense (285) (1,283) (708) (1,484)
Other income (expense), net 242 3,326 591 7,286
-------- -------- -------- --------
Income (loss) before
income taxes (2,484) 7,864 (8,356) 16,173
Income tax benefit 23 36,554 -- 33,273
-------- -------- -------- --------
Net income (loss) $ (2,461) $ 44,418 $ (8,356) $ 49,446
======== ======== ======== ========
Net income (loss) per share:
Basic $ (0.05) $ 0.61 $ (0.16) $ 0.68
======== ======== ======== ========
Diluted $ (0.05) $ 0.58 $ (0.16) $ 0.65
======== ======== ======== ========
Weighted-average number of
shares used in per share
calculations:
Basic 54,358 72,596 52,567 72,472
======== ======== ======== ========
Diluted 54,358 76,089 52,567 75,740
======== ======== ======== ========
FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
December 30, June 30,
2006 2007
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 308,092 $ 107,799
Short-term investments 323 207,208
Accounts receivable, net 27,123 13,736
Inventories 16,510 26,848
Economic development funding receivable 27,515 33,757
Deferred tax asset, net - current -- 4,816
Prepaid expenses and other current assets 8,959 29,923
--------- ---------
Total current assets 388,522 424,087
Property, plant and equipment, net 178,868 245,559
Restricted investments 8,224 14,023
Deferred tax asset, net - noncurrent -- 34,403
Other noncurrent assets 2,896 5,140
--------- ---------
Total assets $ 578,510 $ 723,212
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 16,339 $ 22,407
Current portion of long-term debt 3,311 3,327
Accounts payable and accrued expenses 32,083 51,394
Other current liabilities 340 15
--------- ---------
Total current liabilities 52,073 77,143
Accrued recycling 3,724 6,448
Long-term debt 61,047 96,477
Other noncurrent liabilities -- 1,134
--------- ---------
Total liabilities 116,844 181,202
Commitments and contingencies
Employee stock options on redeemable shares 50,226 60,706
Stockholders' equity:
Common stock, $0.001 par value per share;
500,000,000 shares authorized;
72,997,929 shares issued and outstanding
at June 30, 2007 72 73
Additional paid-in capital 555,749 575,047
Accumulated deficit (145,403) (96,013)
Accumulated other comprehensive income 1,022 2,197
--------- ---------
Total stockholders' equity 411,440 481,304
--------- ---------
Total liabilities and
stockholders' equity $ 578,510 $ 723,212
========= =========
FIRST SOLAR, INC.
PRO-FORMA vs. GAAP EARNINGS PER SHARE
(in thousands, except per share data)
A reconciliation of the denominator used in calculating pro-forma
fully diluted earnings per share is as follows:
Three Months Ended
-----------------------------------
July 1, March 31, June 30,
2006 2007 2007
-----------------------------------
(Unaudited)
Net income (loss) $ (2,461) $ 5,028 $ 44,418
Weighted-average shares
outstanding, diluted 54,358 75,392 76,089
Adjustment to reflect the
IPO shares as if they
had been outstanding
since the beginning of 2006 17,972 -- --
Pro-forma weighted-average
shares outstanding, diluted 72,330 75,392 76,089
Net income (loss) per share
diluted as reported $ (0.05) $ 0.07 $ 0.58
Net income (loss) per share
diluted pro-forma $ (0.03) $ 0.07 $ 0.58