News Article
First Solar Announce Positive First Quarter Results
First Solar has announced financial results for the first quarter of 2013.
Net sales were $755 million in the quarter, a decrease of $320 million from the fourth quarter of 2012 and up $258 million from the first quarter of 2012.
The firm says decrease in net sales from the fourth quarter of 2012 was primarily due to less revenue recognition from its systems business projects primarily related to the Topaz project.
The increase over the first quarter of 2012 was mainly due to higher sales volumes for third-party module sales and an increase in revenue from systems projects.
The company reported first quarter net income per fully diluted share of $0.66, compared to $1.74 in the fourth quarter of 2012 and a loss of $5.20 in the first quarter of 2012, which included $444 million in pre-tax restructuring charges and costs in excess of normal warranty.
The first quarter of 2013 was impacted by pre-tax restructuring charges of $2 million (reducing EPS by $0.03), compared to $25 million (reducing EPS by $0.30) in the fourth quarter of 2012. In both cases the pre-tax charges related to previously announced restructuring actions.
The sequential decrease in earnings was primarily due to higher revenue recognition for Topaz in the fourth quarter of 2012.
Also, temporary construction delays at the AVSR project, and pre-planned lower manufacturing utilisation as the company accelerated efforts to upgrade production lines to enable the firm to achieve near term targets on its module cost and efficiency improvement roadmaps made an impact.
Cash and Marketable Securities at the end of the first quarter were approximately $1 billion, essentially unchanged compared to the end of the fourth quarter of 2012, and an increase of $262 million over the first quarter of 2012. Cash flows from operations were $66 million in the first quarter, compared to $328 million for the fourth quarter of 2012.
The firm also maintained its full year 2013 financial guidance.