PHOENIX, Nov. 7, 2007 (PRIME NEWSWIRE) -- First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the third quarter ended September 29, 2007. Quarterly revenues were $159.0 million, up from $77.2 million in the second quarter of fiscal 2007 and up from $40.8 million in the third quarter of fiscal 2006.
Net income for the third quarter of fiscal 2007 was $46.0 million or $0.58 per share on a fully diluted basis, compared to $44.4 million or $0.58 per share for the second quarter of fiscal 2007 and $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006.
Net income for the third and second quarters of fiscal 2007 include one time tax benefits of $7.5 million, or $0.09 per fully diluted share and $39.2 million, or $0.51 per fully diluted share, respectively, due to the reversal of valuation allowances against previously established deferred tax assets in Germany and the United States, respectively.
Pro-forma earnings per share for the three months ended September 30, 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.
"The third quarter of 2007 concludes another important milestone in our mission towards grid parity. We successfully completed the ramp of our German production facility well ahead of schedule, which afforded us with highly leveraged growth during the quarter and provided our customers with additional production volumes in a continued robust demand environment," said Mike Ahearn, chief executive officer and chairman of First Solar.
First Solar will discuss these results and expected results for fiscal 2007 and 2008 in a conference call scheduled for today at 4:30 p.m. ET. To participate in the conference call, please dial (888) 264-8952 or (913) 312-1278. Investors may also access a live audio web cast of this conference call in 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 Monday, November 12, 2007 at 11:59 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 6614343.
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 Nine Months Ended
-------------------- --------------------
Sept. 30, Sept. 29, Sept. 30, Sept. 29,
2006 2007 2006 2007
--------- --------- --------- ---------
Net sales $ 40,794 $ 159,007 $ 82,279 $ 303,179
Cost of sales 24,537 76,967 53,650 162,726
--------- --------- --------- ---------
Gross profit 16,257 82,040 28,629 140,453
--------- --------- --------- ---------
Operating expenses:
Research and development 1,657 3,854 4,712 10,675
Selling, general and
administrative 8,393 27,082 22,398 58,057
Production start-up 1,109 2,805 7,750 12,802
--------- --------- --------- ---------
Total operating expenses 11,159 33,741 34,860 81,534
--------- --------- --------- ---------
Operating income (loss) 5,098 48,299 (6,231) 58,919
Foreign currency gain
(loss) (298) 965 2,792 716
Interest income 312 5,298 893 13,199
Interest expense (158) (647) (866) (2,131)
Other expense, net (481) (266) (471) (881)
--------- --------- --------- ---------
Income (loss) before
income taxes 4,473 53,649 (3,883) 69,822
Income tax benefit
(expense) (181) (7,615) (181) 25,658
--------- --------- --------- ---------
Net income (loss) $ 4,292 $ 46,034 $ (4,064) $ 95,480
========= ========= ========= =========
Net income (loss) per
share:
Basic $ 0.08 $ 0.61 $ (0.08) $ 1.30
========= ========= ========= =========
Diluted $ 0.07 $ 0.58 $ (0.08) $ 1.24
========= ========= ========= =========
Weighted-average number
of shares used in per
share calculations:
Basic 56,137 75,666 53,757 73,537
========= ========= ========= =========
Diluted 57,956 79,088 53,757 76,856
========= ========= ========= =========
FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
December 30, September 29,
2006 2007
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 308,092 $ 117,153
Marketable securities 323 564,641
Accounts receivable, net 27,123 19,660
Inventories 16,510 31,887
Economic development funding receivable 27,515 34,323
Deferred tax asset, net - current -- 3,752
Prepaid expenses and other current
assets 8,959 24,369
------------ -------------
Total current assets 388,522 795,785
Property, plant and equipment, net 178,868 317,552
Restricted investments 8,224 14,458
Deferred tax asset, net - noncurrent -- 45,071
Other noncurrent assets 2,896 4,290
------------ -------------
Total assets $ 578,510 $ 1,177,156
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 16,339 $ 23,713
Current portion of long-term debt 3,311 9,900
Accounts payable and accrued expenses 32,083 69,465
Other current liabilities 340 9,111
------------ -------------
Total current liabilities 52,073 112,189
Accrued recycling 3,724 9,424
Long-term debt 61,047 72,484
Other noncurrent liabilities -- 2,240
------------ -------------
Total liabilities 116,844 196,337
Commitments and contingencies
Employee stock options on redeemable shares 50,226 --
Stockholders' equity:
Common stock, $0.001 par value per share;
500,000,000 shares authorized; 77,950,515
shares issued and outstanding at
September 29, 2007 72 78
Additional paid-in capital 555,749 1,026,856
Accumulated deficit (145,403) (49,979)
Accumulated other comprehensive income 1,022 3,864
------------ -------------
Total stockholders' equity 411,440 980,819
------------ -------------
Total liabilities and stockholders'
equity $ 578,510 $ 1,177,156
============ =============
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
--------------------------------------
September 30, June 30, September 29,
2006 2007 2007
--------------------------------------
(Unaudited)
Net income $ 4,292 $ 44,418 $ 46,034
Weighted-average shares
outstanding, diluted 57,956 76,089 79,088
Adjustment to reflect the
IPO shares as if they had
been outstanding since the
beginning of 2006 16,193 -- --
Pro-forma weighted-average
shares outstanding, diluted 74,149 76,089 79,088
Net income per share diluted
as reported $ 0.07 $ 0.58 $ 0.58
Net income per share diluted
pro-forma $ 0.06 $ 0.58 $ 0.58