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