First Solar, Inc. Announces 2007 Third Quarter Financial Results
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
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CONTACT: First Solar, Inc. Jens Meyerhoff, Chief Financial Officer (602) 414-9300 investor@firstsolar.com Sapphire Investor Relations, LLC Investor Relations Erica Mannion, (212) 766-1800 investor@firstsolar.com