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 |
FOR IMMEDIATE RELEASE
First Solar, Inc. Announces 2007 First Quarter Financial Results
| • | First quarter revenues of $66.9 million | ||
| • | First quarter net income of $5.0 million |
PHOENIX, AZ — May 3, 2007— First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the first quarter ended March 31, 2007. Quarterly revenues were $66.9 million, up from $52.7 million in the fourth quarter of fiscal 2006 and up from $13.6 million in the first quarter of fiscal 2006.
Net income for the first quarter of fiscal 2007 was $5.0 million or $0.07 per share on a fully diluted basis, compared to net income of $8.0 million or $0.11 per share on a fully diluted pro-forma basis for the fourth quarter of fiscal 2006 and a net loss of $5.9 million for the first quarter of fiscal 2006 or $(0.08) per share on a fully diluted pro-forma basis.
Pro-forma earnings per share for the three months ended December 30, 2006 and April 1, 2006 have been adjusted to give effect to the Company’s equity offerings during 2006, including its initial public offering, as if each occurred on January 1, 2006. 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 to the Company’s initial public offering.
On a GAAP fully diluted basis, net income for the first quarter of fiscal 2007 was $0.07 per share, compared to $0.12 per share for the fourth quarter of fiscal 2006. Net loss for the first quarter of 2006 was $(0.12) per share on a GAAP fully diluted basis.
“During the first quarter we benefited from continued solid execution providing for both sequential revenue and throughput growth, while readying ourselves for the production ramp at our German plant”, said Mike 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 4:30 p.m. EDT. To participate in the conference call, please dial (800) 817-4887 or (913) 981-4913. Investors may also access a live audio web cast of this conference call on the Investors section of the Company’s website athttp://www.firstsolar.com. A replay of the web cast will be available approximately two hours after the conclusion of the call and remain available for three months. An audio replay of the conference call will also be available approximately two hours after the conclusion of the call. The audio replay will remain available until Tuesday, May 8, 2007 at 12:00 a.m EDT and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 9848426.
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.
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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 share amounts)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | April 1, | |||||||
| 2007 | 2006 | |||||||
| Net sales | $ | 66,949 | $ | 13,624 | ||||
| Cost of sales | 36,907 | 10,352 | ||||||
| Gross profit | 30,042 | 3,272 | ||||||
| Operating expenses: | ||||||||
| Research and development | 3,058 | 1,519 | ||||||
| Selling, general, and administrative | 13,690 | 5,872 | ||||||
| Production start-up | 8,474 | 2,579 | ||||||
| 25,222 | 9,970 | |||||||
| Operating income (loss) | 4,820 | (6,698 | ) | |||||
| Foreign currency gain (loss) | (270 | ) | 900 | |||||
| Interest expense | (201 | ) | (423 | ) | ||||
| Other income (expense), net | 3,960 | 349 | ||||||
| Income (loss) before income taxes | 8,309 | (5,872 | ) | |||||
| Income tax expense | 3,281 | 23 | ||||||
| Net income (loss) | $ | 5,028 | $ | (5,895 | ) | |||
| Net income (loss) per share | ||||||||
| Basic | $ | 0.07 | $ | (0.12 | ) | |||
| Diluted | $ | 0.07 | $ | (0.12 | ) | |||
| Weighted-average shares used to compute net income (loss) per share | ||||||||
| Basic | 72,347 | 50,777 | ||||||
| Diluted | 75,392 | 50,777 | ||||||
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
(In thousands, except share information)
(Unaudited)
| March 31, | December 30, | |||||||
| 2007 | 2006 | |||||||
ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 325,012 | $ | 308,092 | ||||
| Short-term investments | 326 | 323 | ||||||
| Accounts receivable, net | 7,844 | 27,966 | ||||||
| Inventories | 15,023 | 16,510 | ||||||
| Economic development funding receivable | 34,947 | 27,515 | ||||||
| Prepaid expenses and other current assets | 4,337 | 8,116 | ||||||
| Total current assets | 387,489 | 388,522 | ||||||
| Property and equipment, net | 220,918 | 178,868 | ||||||
| Restricted investments | 8,313 | 8,224 | ||||||
| Other noncurrent assets | 2,043 | 2,896 | ||||||
| Total assets | $ | 618,763 | $ | 578,510 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | 20,556 | $ | 16,339 | ||||
| Current portion of long-term debt | 3,319 | 3,311 | ||||||
| Accounts payable and accrued expenses | 44,319 | 32,083 | ||||||
| Other current liabilities | — | 340 | ||||||
| Total current liabilities | 68,194 | 52,073 | ||||||
| Accrued recycling | 4,989 | 3,724 | ||||||
| Long-term debt | 71,955 | 61,047 | ||||||
| Other noncurrent liabilities | 310 | — | ||||||
| Total liabilities | 145,448 | 116,844 | ||||||
| Employee stock options on redeemable shares | 91,097 | 50,226 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value per share; 500,000,000 shares authorized; 72,364,135 shares issued and outstanding at March 31, 2007 | 72 | 72 | ||||||
| Additional paid in capital | 521,375 | 555,749 | ||||||
| Accumulated deficit | (140,431 | ) | (145,403 | ) | ||||
| Accumulated other comprehensive income | 1,202 | 1,022 | ||||||
| Total stockholders’ equity | 382,218 | 411,440 | ||||||
| Total liabilities and stockholders’ equity | $ | 618,763 | $ | 578,510 | ||||
FIRST SOLAR, INC.
PRO-FORMA vs. GAAP EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
(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 | ||||||||||||
| April 1, | December 30, | March 31, | ||||||||||
| 2006 | 2006 | 2007 | ||||||||||
| Net income (loss) | $ | (5,895 | ) | $ | 8,038 | $ | 5,028 | |||||
| Weighted-average shares outstanding, diluted as reported | 50,777 | 66,324 | 75,392 | |||||||||
| Adjustment to reflect the IPO shares and other equity offerings as if they had been outstanding since the beginning of 2006 | 24,161 | 8,363 | — | |||||||||
| Pro-forma weighted-average shares outstanding, diluted | 74,938 | 74,687 | 75,392 | |||||||||
Net income per share diluted as reported | $ | (0.12 | ) | $ | 0.12 | $ | 0.07 | |||||
Net income per share diluted pro-forma | $ | (0.08 | ) | $ | 0.11 | $ | 0.07 | |||||