News Article
First Solar Returns To Profit In Q4 2012
CdTe panel manufacturer First Solar has announced financial results for the quarter and year ended December 31st. 2012.
Net sales were a record $1.1 billion in the quarter, an increase of $236 million from the third quarter of 2012 and $415 million from the fourth quarter of 2011. The increase in net sales from the third quarter of 2012 was primarily due to increased revenue recognition for the Topaz project, and an increase in third-party module sales.
The company reported fourth quarter GAAP net income per fully diluted share of $1.74, compared to $1.00 in the third quarter of 2012 and a loss of $4.78 in the fourth quarter of 2011, which included $454 million in pre-tax goodwill impairment and restructuring charges. The fourth quarter of 2012 was impacted by pre-tax charges of $25 million (reducing EPS by $0.30), relating to previously announced restructuring actions.
Net sales for 2012 were $3.4 billion, up 22 percent from 2011.
First Solar reported a full-year GAAP loss of $1.11 per share for 2012, including the impact of pre-tax charges of $529 million (reducing EPS by $5.99), relating to previously announced restructuring actions and costs in excess of normal warranty.
Cash and Marketable Securities at the end of 2012 were $1 billion, up from $717 million at the end of the third quarter of 2012. Cash flows from operations were $328 million in the fourth quarter, and $762 million for the full-year 2012.
Q1 2013 Outlook
The company expects net sales to be in the range $650 to $750 million and a gross margin of 25 to 27 percent. First Solar also an OPEX of $90 to $100 million, an operating income of $70 to $100 million and a tax rate between 11 and 13 percent. EPS of $0.70 to $0.90 per fully diluted share, a cash flow from operations of up to $100 million and a CAPEX of $80 to $100 million are also anticipated.
"Despite a very challenging market environment, we continued to make meaningful progress in all critical value drivers for the company," says Jim Hughes, CEO of First Solar. "We exceeded our module and balance-of-systems cost reduction targets for 2012, as announced in December 2011, further increased module efficiency and field performance, and achieved several key objectives in our strategy to develop and service new sustainable energy markets. We expect the market will remain turbulent for some time to come, but we have seen some evidence of improvement and believe we have the right strategy in place to retain our industry leadership by providing the best value for our customers."
