01—Abstract
Summary
Summary of the 10-K filed February 24, 2016. Cited figures are marked; the original filing is the authoritative source.
First Solar, Inc. (FSLR) reported strong financial performance in its 2015 10-K filing, with net sales increasing by 6% to $3.6 billiona, driven by higher revenue from module plus transactions and several large project sales.
The company's gross profit margin also improved to 25.7%b, 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%c 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.
02—Key points
Key Highlights
- Net sales increased by 6% to $3.6 billion in 2015, driven by module plus transactions and large project sales.
- Gross profit margin improved to 25.7% in 2015, benefiting from increased manufacturing utilization and reduced recycling obligations.
- First Solar maintains its leadership in thin-film PV technology, with average module conversion efficiency improving to 15.6% in 2015.
- The company is executing its 'Vision 2020' strategy, focusing on utility-scale projects in key global markets to compete on cost with traditional energy sources.
- First Solar has a substantial advanced-stage project pipeline, particularly in the United States, indicating future revenue potential.
- The company is expanding its global footprint, with operations and sales increasing in markets across the Americas, Asia, the Middle East, and Africa.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, First Solar, Inc. kept $0.14.
- Revenue$4.11B100.0%
- Cost of revenue−$2.98B72.5%
- Gross profit$1.13B27.5%
- Operating costs−$402.6M9.8%
- Operating income$730.2M17.8%
- Interest, other & tax−$136.8M3.3%
- Net income$593.4M14.4%
Where FY2015 revenue went
$4.11B- Cost of revenue: $2.98B, 72% of revenue
- Net income: $593.4M, 14% of revenue
- R&D: $130.6M, 3.2% of revenue
- SG&A: $255.2M, 6.2% of revenue
- Interest, other & tax: $136.8M, 3.3% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 24, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $4.11B$3.39B | +21.3% |
| Cost of Revenue | $2.98B$2.57B | +16.1% |
| Gross Profit | $1.13B$824.94M | +37.3% |
| R&D Expenses | $130.59M$143.97M | −9.3% |
| SG&A Expenses | $255.19M$253.83M | +0.5% |
| Operating Expenses | $402.60M$402.94M | −0.1% |
| Operating Income | $730.16M$422.00M | +73.0% |
| Interest Expense | $6.97M$1.98M | +251.9% |
| Net Income | $593.41M$395.96M | +49.9% |
| EPS (Basic) | $5.88$3.96 | +48.5% |
| EPS (Diluted) | $5.83$3.90 | +49.5% |
| Shares Outstanding (Basic) | 100.89M100.05M | +0.8% |
| Shares Outstanding (Diluted) | 101.81M101.64M | +0.2% |
05—Questions
Frequently Asked Questions
What is First Solar's primary technology and competitive advantage?
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.
How did First Solar perform financially in 2015?
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.
What is First Solar's long-term strategic focus?
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.
What geographical markets are most important for First Solar?
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).
06—Continue