First Solar, Inc. Announces 2Q 2012 Financial Results

First Solar, Inc. announced financial results for the second quarter of 2012. Net sales were $957 million in the quarter, an increase of $460 million from the first quarter of 2012 and $425 million from the second quarter of 2011. The increases were primarily due to an increase in the number and size of projects under construction meeting revenue recognition criteria during the quarter, including Antelope Valley Solar Ranch 1 in California and Silver State North in Nevada.

The company reported second quarter net income of $1.27 per fully diluted share, compared to a net loss of $5.20 per fully diluted share in the first quarter of 2012 and net income of $0.70 per fully diluted share in the second quarter of 2011. The second quarter of 2012 was impacted by pre-tax charges of $36 million (reducing EPS by $0.39), relating to restructuring and certain costs in excess of normal warranty.

Cash and marketable securities at the end of the second quarter were $744 million, down from $750 million at the end of the first quarter of 2012.

Based on reductions in First Solar’s ongoing cost structure primarily related to our restructuring initiatives, the company is increasing 2012 guidance as follows:
• Net sales of $3.6 billion to $3.9 billion, compared to prior guidance of $3.5 billion to $3.8 billion.
• Earnings per fully diluted share to $4.20-$4.70, compared to prior guidance of $4.00-$4.50, in each case excluding restructuring and impairment charges and certain costs in excess of normal warranty expense.

“Despite market uncertainties, First Solar delivered strong performance in the quarter,” said Jim Hughes, CEO. “Looking forward, we are confident we have the right long-term strategy and the right platform to enable long-term growth and value creation. We believe that by executing our strategic roadmaps and completing our restructuring program we can achieve our targets of 2.6 to 3.0 GW of sales in sustainable markets, earning a return on invested capital of 13% to 17% by 2016.”