Fourth Quarter Revenues of $52.7 Million and $135.0 Million For Fiscal 2006 Fourth Quarter Net Income of $8.0 Million and $4.0 Million For Fiscal 2006
PHOENIX, Feb. 13, 2007 (PRIME NEWSWIRE) -- First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the fourth quarter and fiscal year, ended December 30, 2006. Quarterly revenues were $52.7 million, up from $40.8 million in the third quarter of fiscal 2006 and up from $13.6 million in the fourth quarter of fiscal 2005. Revenues for the fiscal year ended December 30, 2006 were $135.0 million, up from $48.1 million in fiscal year 2005. Net income for the fourth quarter of fiscal 2006 was $8.0 million or $0.11 per share on a fully diluted pro-forma basis, compared to net income of $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006 and a net loss of $7.2 million for the fourth quarter of fiscal 2005 or $(0.11) per share on a fully diluted pro-forma basis. Net income for fiscal 2006 was $4.0 million or $0.05 per share on a fully diluted pro-forma basis compared to a net loss of $6.5 million for fiscal 2005 or $(0.10) per share on a fully diluted pro-forma basis.
Pro forma earnings per share have been adjusted for the three months ended December 30, 2006, September 30, 2006 and December 31, 2005 and for the fiscal years ended December 30, 2006 and December 31, 2005, to give effect to the Company's initial public offering as of the beginning of fiscal 2005. The pro forma earnings per share reflect the issuance of the Company's common stock in its initial public offering. 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 the Company's initial public offering.
On a GAAP fully diluted basis, net income for the fourth quarter of fiscal 2006 was $0.12 per share, compared to $0.07 per share for the third quarter of fiscal 2006. Net loss for the fourth quarter of 2005 was $(0.14) per share on a GAAP fully diluted basis. Also on a GAAP fully diluted basis, net income for fiscal 2006 was $0.07 per share compared to a net loss of $(0.13) per share for fiscal 2005.
"During the fourth quarter we recognized the full benefit of our Ohio expansion, resulting in 25MW of production at that plant during the quarter. The strong sequential increase in throughput reduced our manufacturing cost per watt to $1.25 for the fourth quarter, a 12% reduction from the third quarter of 2006. In addition, completion of our German manufacturing plant is on schedule, and the German plant will provide us with additional capacity to fulfill continued strong customer demand for our products," said Michael J. Ahearn, Chief Executive Officer of First Solar.
First Solar will discuss these results and expected results for fiscal 2007 in a conference call scheduled for today at 2:30 p.m. Mountain, or 4:30 p.m. EST. To participate in the conference call, please dial (800) 819-9193 or (913) 981-4911. The public is invited to listen to a live web cast of First Solar's conference call on the Investor section of the company's website at www.firstsolar.com. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until Friday, February 16, 2007 at 12:00 a.m. EST and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 4420579.
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.primezone.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. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per unit/share amounts) (Unaudited) Three Months Ended Fiscal Years Ended ------------------------- ------------------------- December 30, December 31, December 30, December 31, 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Net sales $ 52,695 $ 13,581 $ 134,974 $ 48,063 Cost of sales 27,080 9,811 80,730 31,483 --------- --------- --------- --------- Gross profit 25,615 3,770 54,244 16,580 --------- --------- --------- --------- Operating expenses: Research and development 1,649 1,462 6,361 2,372 Selling, general, and admini- strative 10,950 6,991 33,348 15,825 Production start-up 3,975 1,763 11,725 3,173 --------- --------- --------- --------- 16,574 10,216 51,434 21,370 --------- --------- --------- --------- Operating income (loss) 9,041 (6,446) 2,810 (4,790) Foreign currency gain (loss) 2,752 (663) 5,544 (1,715) Interest expense (157) (272) (1,023) (418) Other income (expense), net 1,427 177 1,849 372 --------- --------- --------- --------- Income (loss) before income taxes 13,063 (7,204) 9,180 (6,551) Income tax expense 5,025 -- 5,206 -- --------- --------- --------- --------- Income (loss) before cumulative effect of change in accounting principle 8,038 (7,204) 3,974 (6,551) Cumulative effect of change in accounting for share- based compensation -- -- -- 89 --------- --------- --------- --------- Net income (loss) $ 8,038 $ (7,204) $ 3,974 $ (6,462) ========= ========= ========= ========= Net income (loss) per membership unit/share Basic $ 0.13 $ (0.14) $ 0.07 $ (0.13) Diluted $ 0.12 $ (0.14) $ 0.07 $ (0.13) Weighted- average units/ shares used to compute net income (loss) per unit/share Basic 63,968 49,916 56,310 48,846 ========= ========= ========= ========= Diluted 66,324 49,916 58,255 48,846 ========= ========= ========= ========= FIRST SOLAR, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share information) (Unaudited) December 30, December 31, 2006 2005 ------------ ----------- ASSETS Current assets: Cash and cash equivalents $308,092 $ 16,721 Marketable securities 323 312 Accounts receivable, net 27,966 1,098 Inventories 16,510 6,917 Economic development funding receivable 27,515 -- Prepaid expenses and other current assets 8,116 1,505 -------- -------- Total current assets 388,522 26,553 Property and equipment, net 178,868 73,778 Restricted investments 8,224 1,267 Other noncurrent assets 2,896 286 -------- -------- Total assets $578,510 $101,884 ======== ======== LIABILITIES AND MEMBERS'/STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 16,339 $ -- Note payable to a related party -- 20,000 Current portion of long-term debt 3,311 142 Accounts payable and accrued expenses 32,083 13,771 Other current liabilities 340 -- --------- -------- Total current liabilities 52,073 33,913 Accrued recycling 3,724 917 Note payable to a related party -- 8,700 Long-term debt 61,047 19,881 Other noncurrent liabilities -- 79 --------- -------- Total liabilities 116,844 63,490 --------- -------- Employee stock options on redeemable shares 50,226 25,265 Members'/stockholders' equity: Membership equity -- 162,307 Common stock, $0.001 par value per share; 242,500,000 shares authorized; 72,331,964 shares issued and outstanding at December 30, 2006 72 -- Additional paid in capital 555,749 -- Accumulated deficit (145,403) (149,377) Accumulated other comprehensive income 1,022 199 --------- -------- Total member'/stockholders' equity 411,440 13,129 --------- -------- Total liabilities and members/ stockholders' equity $ 578,510 $ 101,884 ========= ========= FIRST SOLAR, INC. PRO FORMA vs. GAAP EARNINGS PER SHARE (In thousands, except per share data) (Unaudited) A reconciliation of the denominator used in calculating pro forma fully diluted earnings per share is as follows: Three Months Ended ------------------------------- Dec. 31, Sept. 30, Dec. 30, 2005 2006 2006 -------- -------- -------- Net income (loss) $ (7,204) $ 4,292 $ 8,038 Weighted-average shares outstanding, diluted 49,916 57,956 66,324 Adjustment to reflect the IPO shares as if they had been outstanding since the beginning of 2005 16,193 16,193 8,363 Pro forma weighted-average shares outstanding, diluted 66,109 74,149 74,687 Net income per share diluted as reported $ (0.14) $ 0.07 $ 0.12 Net income per share diluted pro forma $ (0.11) $ 0.06 $ 0.11 Fiscal Years Ended ------------------------ Dec. 31, Dec. 30, 2005 2006 -------- -------- Net income (loss) $ (6,462) $ 3,974 Weighted-average shares outstanding, diluted 48,846 58,255 Adjustment to reflect the IPO shares as if they had been outstanding since the beginning of 2005 16,193 14,236 Pro forma weighted-average shares outstanding, diluted 65,039 72,491 Net income per share diluted as reported $ (0.13) $ 0.07 Net income per share diluted pro forma $ (0.10) $ 0.05