Summary
First Solar, Inc. (FSLR) reported a notable decrease in net sales for the three months ended June 30, 2013, down 46% year-over-year to $519.8 million, largely driven by a significant decline in its systems business. Despite lower revenues, the company saw an improvement in its gross profit margin, which rose to 27.0% from 25.5% in the prior year's comparable period. This margin expansion was primarily attributed to a more favorable project mix in the systems segment and reduced remediation costs in the components segment. For the six months ended June 30, 2013, net sales also decreased by 12% to $1.27 billion. However, the components business showed a 21% increase in net sales, driven by higher module volumes sold, though offset by a 22% decrease in average selling prices. The company's financial performance was significantly impacted by restructuring charges, particularly in the prior year, which are now substantially concluded. Looking ahead, First Solar is focused on executing its Long Term Strategic Plan (LTSP) to transition towards sustainable markets and is continuing to invest in research and development to enhance module efficiency.
Financial Highlights
56 data points| Revenue | $519.76M |
| Cost of Revenue | $379.66M |
| Gross Profit | $140.10M |
| R&D Expenses | $30.96M |
| SG&A Expenses | $66.27M |
| Operating Expenses | $101.00M |
| Operating Income | $39.10M |
| Interest Expense | $875K |
| Net Income | $33.60M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 89.20M |
| Shares Outstanding (Diluted) | 91.14M |
Key Highlights
- 1Net sales for the three months ended June 30, 2013, decreased by 46% to $519.8 million compared to the prior year period, largely due to a 51% drop in systems segment sales.
- 2Gross profit margin improved to 27.0% for the three months ended June 30, 2013, from 25.5% in the prior year, driven by a better project mix and lower remediation costs.
- 3For the six months ended June 30, 2013, net sales decreased by 12% to $1.27 billion, with a significant 27% decline in the systems segment offset by a 21% increase in the components segment.
- 4Components segment net sales increased 21% year-over-year for the first six months of 2013, driven by a 56% increase in volume, though tempered by a 22% decrease in average selling prices.
- 5Restructuring expenses significantly decreased to $2.4 million for the three months and $4.7 million for the six months ended June 30, 2013, compared to $19.0 million and $420.1 million, respectively, in the prior year periods, reflecting the near completion of restructuring initiatives.
- 6The company raised $428.2 million in net proceeds from an equity offering in June 2013.
- 7First Solar acquired TetraSun, Inc. in April 2013 for its crystalline silicon technology, and subsequently acquired GE's cadmium telluride PV intellectual property assets in August 2013.