EX-99.1 2 p74135exv99w1.htm EX-99.1 exv99w1
 

Exhibit 99.1
(FIRST SOLAR LOGO)
     
News Release
   
 
   
Contacts:
   
First Solar, Inc.
  Sapphire Investor Relations, LLC
Jens Meyerhoff
  Erica Mannion
Chief Financial Officer
  Investor Relations
(602) 414 -9300
  (212) 766 -1800
investor@firstsolar.com
  investor@firstsolar.com
First Solar, Inc. Announces 2007 Second Quarter Financial Results
PHOENIX, AZ — July 31, 2007 — 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.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. 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