10-KPeriod: FY2015

FIRST SOLAR, INC. Annual Report, Year Ended Dec 31, 2015

Filed February 24, 2016For Securities:FSLR

Summary

First Solar, Inc. (FSLR) reported strong financial performance in its 2015 10-K filing, with net sales increasing by 6% to $3.6 billion, driven by higher revenue from module plus transactions and several large project sales. The company's gross profit margin also improved to 25.7%, attributed to better manufacturing utilization and reduced recycling obligations. First Solar continues to strengthen its position as a global leader in photovoltaic (PV) solar energy solutions, emphasizing its vertically integrated business model and advanced thin-film technology (CdTe modules). The company is strategically focused on utility-scale projects in key geographic markets, aiming to compete directly with fossil fuels on cost. First Solar's "Vision 2020" long-term strategic plan highlights investments in R&D to further lower costs and improve module efficiency, with average module conversion efficiency reaching 15.6% in 2015. The company maintains a robust project pipeline, particularly in the United States, and is expanding its international presence in the Americas, Asia, the Middle East, and Africa.

Financial Highlights

55 data points
Beta

Revenue

$4.11B

27.5% Gross Margin

Net Income

$593.41M

14.4% Net Margin

EPS (Diluted)

$5.83

Total Assets

$7.32B

Cash & Equivalents

$1.13B

Free Cash Flow

-$491.65M

Financial Statements
Beta
Revenue$4.11B
Cost of Revenue$2.98B
Gross Profit$1.13B
R&D Expenses$130.59M
SG&A Expenses$255.19M
Operating Expenses$402.60M
Operating Income$730.16M
Interest Expense$6.97M
Net Income$593.41M
EPS (Basic)$5.88
EPS (Diluted)$5.83
Shares Outstanding (Basic)100.89M
Shares Outstanding (Diluted)101.81M

Key Highlights

  • 1Net sales increased by 6% to $3.6 billion in 2015, driven by module plus transactions and large project sales.
  • 2Gross profit margin improved to 25.7% in 2015, benefiting from increased manufacturing utilization and reduced recycling obligations.
  • 3First Solar maintains its leadership in thin-film PV technology, with average module conversion efficiency improving to 15.6% in 2015.
  • 4The company is executing its 'Vision 2020' strategy, focusing on utility-scale projects in key global markets to compete on cost with traditional energy sources.
  • 5First Solar has a substantial advanced-stage project pipeline, particularly in the United States, indicating future revenue potential.
  • 6The company is expanding its global footprint, with operations and sales increasing in markets across the Americas, Asia, the Middle East, and Africa.

Frequently Asked Questions

First Solar's primary technology is advanced thin-film semiconductor technology, specifically Cadmium Telluride (CdTe) modules. Its key competitive advantages stem from its vertically integrated business model, which allows for cost control across the value chain, continuous R&D for module and system innovations, and a focus on delivering utility-scale solar energy solutions that are cost-competitive with conventional energy sources.

In 2015, First Solar reported a 6% increase in net sales to $3.6 billion, supported by higher revenue from module plus transactions and significant project sales. The company also saw an improvement in its gross profit margin to 25.7%, driven by better manufacturing facility utilization and lower recycling obligations.

First Solar's long-term strategy, 'Vision 2020,' is centered on providing utility-scale PV solar energy solutions in key geographic markets where solar power can compete economically with fossil fuels. This involves prioritizing market opportunities, allocating resources globally, and continuing to drive down the total installed cost of solar energy through innovation in module technology and system design.

While First Solar operates globally, the United States was its largest market in 2015, accounting for 87% of net sales. The company is also actively developing its business in other key regions including the Americas (Chile, Brazil, Mexico), Europe, the Middle East (UAE, Egypt, Jordan), Africa (South Africa), and the Asia-Pacific region (Australia, Japan, India).