First Solar Announce Board Change And 2Q Results

First Solar  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. 

The company also announced the election of its CEO, James Hughes, to its board of directors. Hughes was appointed CEO in May, succeeding Mike Ahearn, First Solar's founder and Chairman, who had been serving as interim CEO since Oct. 2011. Hughes, who joined First Solar in March 2012 as Chief Commercial Officer, has nearly 20 years of experience in the global energy industry. Before joining First Solar, he served as the CEO of AEI, which owned and operated power distribution, conventional and renewable power generation, natural gas transportation and natural gas distribution businesses in 19 countries. Prior to that, he was President and Chief Operating Officer for Prisma Energy. 

Hughes earned a juris doctor from the University of Texas at Austin School of Law, a Certificate of Completion in international business law from Queen Mary's College, University of London, and a bachelor's degree in business administration from Southern Methodist University.

As previously reported on a Current Report on Form 8-K/A filed with the Securities and Exchange Commission on December 29, 2011, First Solar entered into an employment agreement (the "Employment Agreement") with Michael J. Ahearn, the Company's Chairman of the Board of Directors, in connection with Mr. Ahearn's appointment as interim Chief Executive Officer effective October 25, 2011.  As previously reported on a Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 4, 2012, James A. Hughes succeeded Mr. Ahearn as Chief Executive Officer effective May 3, 2012.  Effective July 30, 2012, Mr. Ahearn resigned as an employee of the Company and the Employment Agreement terminated.  Effective July 31, 2012, Mr. Ahearn shall receive non-associate director compensation for his service as Chairman of the Board.  Such compensation consists of: (i) annual cash compensation of $150,000 (payable quarterly in four equal installments), and (ii) annual equity compensation in the form of a $200,000 stock grant (granted quarterly in four equal installments).