01—Abstract
Summary
Summary of the 10-Q/A filed November 20, 2015. Cited figures are marked; the original filing is the authoritative source.
This filing pertains to Item 4, "Controls and Procedures," and Item 6, "Exhibits," of First Solar, Inc.'s (FSLR) Amendment No. 1 to its Quarterly Report on Form 10-Q/A, filed on November 20, 2015.
The core of Item 4 focuses on management's assessment of the effectiveness of the company's disclosure controls and procedures, as well as its internal control over financial reporting. Management, including the CEO and CFO, concluded that these controls were effective as of March 31, 2015, ensuring that required financial information is properly recorded, processed, summarized, and reported within mandated timeframes. Furthermore, the report indicates no material changes in internal control over financial reporting occurred during the three months ended March 31, 2015.
The filing also highlights the inherent limitations of any control system, emphasizing that while designed for effectiveness, they provide reasonable, not absolute, assurance against errors or fraud. This statement is standard but important for investors to understand the context of control effectiveness.
02—Key points
Key Highlights
- Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of March 31, 2015.
- No material changes in internal control over financial reporting were identified during the three months ended March 31, 2015.
- The effectiveness of controls is assessed to ensure timely and accurate disclosure of required information.
- Management's evaluation confirms that information is properly recorded, processed, summarized, and reported.
- The filing explicitly states that control systems provide reasonable, not absolute, assurance.
- The certifications of the CEO and CFO, required by the Exchange Act, are attached as exhibits.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2015, First Solar, Inc. lost $0.13.
- Revenue$469.2M100.0%
- Cost of revenue−$430.2M91.7%
- Gross profit$39.0M8.3%
- Operating costs−$109.1M23.3%
- Operating income−$70.1M14.9%
- Interest, other & tax$9.2M2.0%
- Net income−$60.9M13.0%
04—Financials
Financial Highlights
Figures from 10-Q/AQ1 FY2015filed November 20, 2015Financial Statements
Q1 FY2015 against Q1 FY2014
| Line item | Q1 FY2015Q1 FY2014 | Change |
|---|---|---|
| Revenue | $469.21M$950.16M | −50.6% |
| Cost of Revenue | $430.23M$713.45M | −39.7% |
| Gross Profit | $38.98M$236.71M | −83.5% |
| R&D Expenses | $34.76M$38.77M | −10.4% |
| SG&A Expenses | $67.69M$58.66M | +15.4% |
| Operating Expenses | $109.09M$97.44M | +12.0% |
| Operating Income | -$70.11M$139.27M | −150.3% |
| Interest Expense | $194K$410K | −52.7% |
| Net Income | -$60.92M$112.01M | −154.4% |
| EPS (Basic) | $-0.61$1.12 | −154.5% |
| EPS (Diluted) | $-0.61$1.10 | −155.5% |
| Shares Outstanding (Basic) | 100.38M99.59M | +0.8% |
| Shares Outstanding (Diluted) | 100.38M101.82M | −1.4% |
05—Questions
Frequently Asked Questions
What is the main purpose of Item 4 in this filing?
Item 4 of the filing details management's evaluation of the effectiveness of First Solar's disclosure controls and procedures, and its internal control over financial reporting as of March 31, 2015. It aims to assure investors that the company has systems in place to ensure accurate and timely financial reporting.
Were there any issues found with First Solar's internal controls during the period?
Based on management's evaluation, there were no changes in internal control over financial reporting during the three months ended March 31, 2015, that materially affected or are likely to materially affect the company's internal control over financial reporting. The disclosure controls and procedures were also deemed effective.
What does the company mean by 'reasonable, not absolute, assurance' regarding controls?
This statement acknowledges that while controls are designed to be effective, they have inherent limitations. They cannot guarantee the detection of all errors or instances of fraud. Factors like human error, judgment, and potential circumvention mean that controls provide a high degree of confidence but not a perfect guarantee.
06—Continue