Summary
First Solar, Inc. (FSLR) reported solid revenue growth for the six months ended June 26, 2010, with net sales increasing by 22% year-over-year to $1.16 billion. This growth was driven by a 32% increase in the volume of solar modules sold, fueled by strong demand in Germany and expanded manufacturing capacity. The company's average module selling price decreased by 16%, reflecting competitive pressures and a customer rebate program, but gross profit still saw a 6% increase due to improved manufacturing efficiency and cost reductions. Operationally, the company continues to focus on reducing manufacturing costs per watt, which declined by 11% year-over-year. While the components segment remains the primary profit driver, the systems segment experienced significant growth, with net sales increasing substantially from $4.35 million to $125.61 million year-over-year. The company ended the period with a strong liquidity position, holding $960.5 million in cash, cash equivalents, and marketable securities, which is expected to be sufficient for its operational and capital expenditure needs for at least the next 12 months.
Financial Highlights
56 data points| Revenue | $587.85M |
| Cost of Revenue | $303.66M |
| Gross Profit | $284.19M |
| R&D Expenses | $22.84M |
| SG&A Expenses | $78.60M |
| Operating Expenses | $103.72M |
| Operating Income | $180.47M |
| Interest Expense | $6K |
| Net Income | $159.04M |
| EPS (Basic) | $1.87 |
| EPS (Diluted) | $1.84 |
| Shares Outstanding (Basic) | 84.85M |
| Shares Outstanding (Diluted) | 86.40M |
Key Highlights
- 1Net sales increased 22% to $1.16 billion for the six months ended June 26, 2010, driven by higher module volume and systems business growth.
- 2Gross profit increased 6% to $566.2 million, despite a 16% decrease in average module selling price, due to improved manufacturing efficiency.
- 3Average manufacturing cost per watt decreased by 11% to $0.79 for the six months ended June 26, 2010.
- 4The Systems segment saw substantial growth, with net sales rising to $125.6 million for the six months ended June 26, 2010, compared to $4.4 million in the prior year.
- 5The company maintained a strong liquidity position with $960.5 million in cash, cash equivalents, and marketable securities as of June 26, 2010.
- 6Significant investments were made in property, plant, and equipment, totaling $239.5 million for the six months ended June 26, 2010, to support manufacturing expansion.
- 7The company is actively managing foreign currency exposure through derivative instruments, with notable gains recognized in other comprehensive income.