First Solar (FSLR) 8-K First Solar, Inc. Announces 2007 Third Quarter Financial Results

Exhibit 99.1

News Release
Contacts:
First Solar, Inc.	Sapphire Investor Relations, LLC
Jens Meyerhoff	Erica Mannion
Chief Financial Officer	Investor Relations
(602) 414-9300	(212) 766-1800
investor@firstsolar.com	investor@firstsolar.com

First Solar, Inc. Announces 2007 Third Quarter Financial Results

PHOENIX, AZ — November 7, 2007— First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the third quarter ended September 29, 2007. Quarterly revenues were $159.0 million, up from $77.2 million in the second quarter of fiscal 2007 and up from $40.8 million in the third quarter of fiscal 2006.

Net income for the third quarter of fiscal 2007 was $46.0 million or $0.58 per share on a fully diluted basis, compared to $44.4 million or $0.58 per share for the second quarter of fiscal 2007 and $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006.

Net income for the third and second quarters of fiscal 2007 include one time tax benefits of $7.5 million, or $0.09 per fully diluted share and $39.2 million, or $0.51 per fully diluted share, respectively, due to the reversal of valuation allowances against previously established deferred tax assets in Germany and the United States, respectively.

Pro-forma earnings per share for the three months ended September 30, 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.

“The third quarter of 2007 concludes another important milestone in our mission towards grid parity. We successfully completed the ramp of our German production facility well ahead of schedule, which afforded us with highly leveraged growth during the quarter and provided our

customers with additional production volumes in a continued robust demand environment,” said Mike Ahearn, chief executive officer and chairman of First Solar.

First Solar will discuss these results and expected results for fiscal 2007 and 2008 in a conference call scheduled for today at 4:30 p.m. ET. To participate in the conference call, please dial (888) 264-8952 or (913) 312-1278. Investors may also access a live audio web cast of this conference call in the Investors section of the Company’s website athttp://www.firstsolar.com. An audio replay of the web cast will be available approximately two hours after the conclusion of the call. The audio replay will remain available until Monday, November 12, 2007 at 11:59 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 6614343.

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. AND SUBSIDIARIES

 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 

	Three Months Ended						Nine Months Ended
	September 30,			September 29,			September 30,			September 29,
	2006			2007			2006			2007
Net sales	$	40,794		$	159,007		$	82,279		$	303,179
Cost of sales		24,537			76,967			53,650			162,726
Gross profit		16,257			82,040			28,629			140,453
Operating expenses:
Research and development		1,657			3,854			4,712			10,675
Selling, general and administrative		8,393			27,082			22,398			58,057
Production start-up		1,109			2,805			7,750			12,802
Total operating expenses		11,159			33,741			34,860			81,534
Operating income (loss)		5,098			48,299			(6,231	)		58,919
Foreign currency gain (loss)		(298	)		965			2,792			716
Interest income		312			5,298			893			13,199
Interest expense		(158	)		(647	)		(866	)		(2,131	)
Other expense, net		(481	)		(266	)		(471	)		(881	)
Income (loss) before income taxes		4,473			53,649			(3,883	)		69,822
Income tax benefit (expense)		(181	)		(7,615	)		(181	)		25,658
Net income (loss)	$	4,292		$	46,034		$	(4,064	)	$	95,480
Net income (loss) per share:
Basic	$	0.08		$	0.61		$	(0.08	)	$	1.30
Diluted	$	0.07		$	0.58		$	(0.08	)	$	1.24
Weighted-average number of shares used in per share calculations:
Basic		56,137			75,666			53,757			73,537
Diluted		57,956			79,088			53,757			76,856

FIRST SOLAR, INC. AND SUBSIDIARIES

 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
 

	December 30,			September 29,
	2006			2007
ASSETS
Current assets:
Cash and cash equivalents	$	308,092		$	117,153
Marketable securities		323			564,641
Accounts receivable, net		27,123			19,660
Inventories		16,510			31,887
Economic development funding receivable		27,515			34,323
Deferred tax asset, net — current		—			3,752
Prepaid expenses and other current assets		8,959			24,369
Total current assets		388,522			795,785
Property, plant and equipment, net		178,868			317,552
Restricted investments		8,224			14,458
Deferred tax asset, net — noncurrent		—			45,071
Other noncurrent assets		2,896			4,290
Total assets	$	578,510		$	1,177,156
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	16,339		$	23,713
Current portion of long-term debt		3,311			9,900
Accounts payable and accrued expenses		32,083			69,465
Other current liabilities		340			9,111
Total current liabilities		52,073			112,189
Accrued recycling		3,724			9,424
Long-term debt		61,047			72,484
Other noncurrent liabilities		—			2,240
Total liabilities		116,844			196,337
Commitments and contingencies
Employee stock options on redeemable shares		50,226			—
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 77,950,515 shares issued and outstanding at September 29, 2007		72			78
Additional paid-in capital		555,749			1,026,856
Accumulated deficit		(145,403	)		(49,979	)
Accumulated other comprehensive income		1,022			3,864
Total stockholders’ equity		411,440			980,819
Total liabilities and stockholders’ equity	$	578,510		$	1,177,156

FIRST SOLAR, INC.
PRO-FORMA vs. GAAP EARNINGS PER SHARE
(in thousands, except per share data)

A reconciliation of the denominator used in calculating pro-forma fully diluted earnings per share is as follows:

	Three Months Ended
	September 30,		June 30,		September 29,
	2006		2007		2007
	(Unaudited)
Net income	$	4,292	$	44,418	$	46,034
Weighted-average shares outstanding, diluted		57,956		76,089		79,088
Adjustment to reflect the IPO shares as if they had been outstanding since the beginning of 2006		16,193		—		—
Pro-forma weighted-average shares outstanding, diluted		74,149		76,089		79,088
Net income per share diluted as reported	$	0.07	$	0.58	$	0.58
Net income per share diluted pro-forma	$	0.06	$	0.58	$	0.58