Exhibit 99.1
News Release
Contacts: | ||
| First Solar, Inc. | Sapphire Investor Relations, LLC | |
| Jens Meyerhoff | Erica Mannion | |
| Chief Financial Officer | Investor Relations | |
| (602) 414- 9315 | (212) 766 -1800 | |
| investor@firstsolar.com | investor@firstsolar.com |
First Solar, Inc. Announces 2006 Fourth Quarter and Year-end Financial Results
| • | Fourth quarter revenues of $52.7 million and $135.0 million for fiscal 2006 | ||
| • | Fourth quarter net income of $8.0 million and $4.0 million for fiscal 2006 |
PHOENIX, AZ — February 13, 2007— First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the fourth quarter and fiscal year, ended December 30, 2006. Quarterly revenues were $52.7 million, up from $40.8 million in the third quarter of fiscal 2006 and up from $13.6 million in the fourth quarter of fiscal 2005. Revenues for the fiscal year ended December 30, 2006 were $135.0 million, up from $48.1 million in fiscal year 2005.
Net income for the fourth quarter of fiscal 2006 was $8.0 million or $0.11 per share on a fully diluted pro-forma basis, compared to net income of $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006 and a net loss of $7.2 million for the fourth quarter of fiscal 2005 or $(0.11) per share on a fully diluted pro-forma basis. Net income for fiscal 2006 was $4.0 million or $0.05 per share on a fully diluted pro-forma basis compared to a net loss of $6.5 million for fiscal 2005 or $(0.10) per share on a fully diluted pro-forma basis.
Pro forma earnings per share have been adjusted for the three months ended December 30, 2006, September 30, 2006 and December 31, 2005 and for the fiscal years ended December 30, 2006 and December 31, 2005, to give effect to the Company’s initial public offering as of the beginning of fiscal 2005. The pro forma earnings per share reflect the issuance of the Company’s common stock in its initial public offering. The Company believes the pro forma earnings per share presentation represents a meaningful basis for the comparison of its current results to results during fiscal periods occurring prior the Company’s initial public offering.
On a GAAP fully diluted basis, net income for the fourth quarter of fiscal 2006 was $0.12 per share, compared to $0.07 per share for the third quarter of fiscal 2006. Net loss for the fourth quarter of 2005 was $(0.14) per share on a GAAP fully diluted basis. Also on a GAAP fully diluted basis, net income for fiscal 2006 was $0.07 per share compared to a net loss of $(0.13) per share for fiscal 2005.
“During the fourth quarter we recognized the full benefit of our Ohio expansion, resulting in 25MW of production at that plant during the quarter. The strong sequential increase in throughput reduced our manufacturing cost per watt to $1.25 for the fourth quarter, a 12% reduction from the third quarter of 2006. In addition, completion of our German manufacturing plant is on schedule, and the German plant will provide us with additional capacity to fulfill continued strong customer demand for our products,” said Michael J. Ahearn, Chief Executive Officer of First Solar.
First Solar will discuss these results and expected results for fiscal 2007 in a conference call scheduled for today at 2:30 p.m. Mountain, or 4:30 p.m. EST. To participate in the conference call, please dial (800) 819-9193 or (913) 981-4911. The public is invited to listen to a live web cast of First Solar’s conference call on the Investor section of the company’s website atwww.firstsolar.com. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until Friday, February 16, 2007 at 12:00 a.m. EST and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 4420579.
About First Solar:
First Solar, Inc. (Nasdaq: FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions, and peak time grid constraints.
First Solar, Inc. (Nasdaq: FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions, and peak time grid constraints.
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The First Solar, Inc. logo is available athttp://www.primezone.com/newsroom/prs/?pkgid=3052
For First Solar Investors:
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with the company’s business involving the company’s products, their development and distribution, economic and competitive factors and the company’s key strategic relationships, and other risks detailed in the company’s filings with the Securities and Exchange Commission. First Solar assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
FIRST SOLAR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit/share amounts)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit/share amounts)
(Unaudited)
| Three Months Ended | Fiscal Years Ended | |||||||||||||||
| December | December | December | December | |||||||||||||
| 30, 2006 | 31, 2005 | 30, 2006 | 31, 2005 | |||||||||||||
| Net sales | $ | 52,695 | $ | 13,581 | $ | 134,974 | $ | 48,063 | ||||||||
| Cost of sales | 27,080 | 9,811 | 80,730 | 31,483 | ||||||||||||
| Gross profit | 25,615 | 3,770 | 54,244 | 16,580 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,649 | 1,462 | 6,361 | 2,372 | ||||||||||||
| Selling, general, and administrative | 10,950 | 6,991 | 33,348 | 15,825 | ||||||||||||
| Production start-up | 3,975 | 1,763 | 11,725 | 3,173 | ||||||||||||
| 16,574 | 10,216 | 51,434 | 21,370 | |||||||||||||
| Operating income (loss) | 9,041 | (6,446 | ) | 2,810 | (4,790 | ) | ||||||||||
| Foreign currency gain (loss) | 2,752 | (663 | ) | 5,544 | (1,715 | ) | ||||||||||
| Interest expense | (157 | ) | (272 | ) | (1,023 | ) | (418 | ) | ||||||||
| Other income (expense), net | 1,427 | 177 | 1,849 | 372 | ||||||||||||
| Income (loss) before income taxes | 13,063 | (7,204 | ) | 9,180 | (6,551 | ) | ||||||||||
| Income tax expense | 5,025 | — | 5,206 | — | ||||||||||||
| Income (loss) before cumulative effect of change in accounting principle | 8,038 | (7,204 | ) | 3,974 | (6,551 | ) | ||||||||||
| Cumulative effect of change in accounting for share-based compensation | — | — | — | 89 | ||||||||||||
| Net income (loss) | $ | 8,038 | $ | (7,204 | ) | $ | 3,974 | $ | (6,462 | ) | ||||||
| Net income (loss) per membership unit/share | ||||||||||||||||
| Basic | $ | 0.13 | $ | (0.14 | ) | $ | 0.07 | $ | (0.13 | ) | ||||||
| Diluted | $ | 0.12 | $ | (0.14 | ) | $ | 0.07 | $ | (0.13 | ) | ||||||
| Weighted-average units/shares used to compute net income (loss) per unit/share | ||||||||||||||||
| Basic | 63,968 | 49,916 | 56,310 | 48,846 | ||||||||||||
| Diluted | 66,324 | 49,916 | 58,255 | 48,846 | ||||||||||||
FIRST SOLAR, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
| December 30, | December 31, | |||||||
| 2006 | 2005 | |||||||
ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 308,092 | $ | 16,721 | ||||
| Marketable securities | 323 | 312 | ||||||
| Accounts receivable, net | 27,966 | 1,098 | ||||||
| Inventories | 16,510 | 6,917 | ||||||
| Economic development funding receivable | 27,515 | — | ||||||
| Prepaid expenses and other current assets | 8,116 | 1,505 | ||||||
| Total current assets | 388,522 | 26,553 | ||||||
| Property and equipment, net | 178,868 | 73,778 | ||||||
| Restricted investments | 8,224 | 1,267 | ||||||
| Other noncurrent assets | 2,896 | 286 | ||||||
| Total assets | $ | 578,510 | $ | 101,884 | ||||
LIABILITIES AND MEMBERS’/STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | 16,339 | $ | — | ||||
| Note payable to a related party | — | 20,000 | ||||||
| Current portion of long-term debt | 3,311 | 142 | ||||||
| Accounts payable and accrued expenses | 32,083 | 13,771 | ||||||
| Other current liabilities | 340 | — | ||||||
| Total current liabilities | 52,073 | 33,913 | ||||||
| Accrued recycling | 3,724 | 917 | ||||||
| Note payable to a related party | — | 8,700 | ||||||
| Long-term debt | 61,047 | 19,881 | ||||||
| Other noncurrent liabilities | — | 79 | ||||||
| Total liabilities | 116,844 | 63,490 | ||||||
| Employee stock options on redeemable shares | 50,226 | 25,265 | ||||||
| Members’/stockholders’ equity: | ||||||||
| Membership equity | — | 162,307 | ||||||
| Common stock, $0.001 par value per share; 242,500,000 shares authorized; 72,331,964 shares issued and outstanding at December 30, 2006 | 72 | — | ||||||
| Additional paid in capital | 555,749 | — | ||||||
| Accumulated deficit | (145,403 | ) | (149,377 | ) | ||||
| Accumulated other comprehensive income | 1,022 | 199 | ||||||
| Total member’/stockholders’ equity | 411,440 | 13,129 | ||||||
| Total liabilities and members/stockholders’ equity | $ | 578,510 | $ | 101,884 | ||||
FIRST SOLAR, INC.
PRO FORMA vs. GAAP EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
PRO FORMA vs. GAAP EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
A reconciliation of the denominator used in calculating pro forma fully diluted earnings per share is as follows:
| Three Months Ended | Fiscal Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 30, | December 31, | December 30, | ||||||||||||||||
| 2005 | 2006 | 2006 | 2005 | 2006 | ||||||||||||||||
| Net income (loss) | $ | (7,204 | ) | $ | 4,292 | $ | 8,038 | $ | (6,462 | ) | $ | 3,974 | ||||||||
| Weighted-average shares outstanding, diluted | 49,916 | 57,956 | 66,324 | 48,846 | 58,255 | |||||||||||||||
| Adjustment to reflect the IPO shares as if they had been outstanding since the beginning of 2005 | 16,193 | 16,193 | 8,363 | 16,193 | 14,236 | |||||||||||||||
| Pro forma weighted-average shares outstanding, diluted | 66,109 | 74,149 | 74,687 | 65,039 | 72,491 | |||||||||||||||
Net income per share diluted as reported | $ | (0.14 | ) | $ | 0.07 | $ | 0.12 | $ | (0.13 | ) | $ | 0.07 | ||||||||
Net income per share diluted pro forma | $ | (0.11 | ) | $ | 0.06 | $ | 0.11 | $ | (0.10 | ) | $ | 0.05 | ||||||||