First Solar (FSLR) 8-K First Solar, Inc. Announces 2008 Second Quarter Financial Results

Exhibit 99.1

News Release
Contacts:
First Solar, Inc.
Jens Meyerhoff	Larry Polizzotto
Chief Financial Officer	Vice President, Investor Relations
(602) 414 - 9315	(602) 414 - 9315
investor@firstsolar.com	lpolizzotto@firstsolar.com

First Solar, Inc. Announces 2008 Second Quarter Financial Results

Tempe, AZ — July 30, 2008— First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the second quarter ended June 28, 2008. Quarterly revenues were $267.0 million, up from $196.9 million in the first quarter of fiscal 2008 and up from $77.2 million in the second quarter of fiscal 2007.

Net income for the second quarter of fiscal 2008 was $69.7 million or $0.85 per share on a fully diluted basis, compared to net income of $46.6 million or $0.57 per share on a fully diluted basis for the first quarter of fiscal 2008. Net income for the second quarter of fiscal 2007 was $44.4 million or $0.58 per share on a fully diluted basis, which included a one-time income tax benefit of $39.2 million that resulted from the reversal of valuation allowances against previously established U.S. deferred income tax assets.

First Solar will discuss these results and expected results for fiscal 2008 in a conference call scheduled for today at 1:30 p.m. PDT (4:30 p.m. EDT). Investors may 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 conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until August 1, 2008 at 8:59 p.m. PDT (11:59 p.m. EDT) and can be accessed by dialing 888-266-2081 or 703-925-2533 and entering access ID number 1255716.

 About First Solar, Inc.

First Solar, Inc. (Nasdaq: FSLR) manufactures solar modules with an advanced thin film semiconductor technology and provides comprehensive photovoltaic (PV) solutions that significantly reduce solar electricity costs. By enabling clean, renewable electricity at competitive prices, First Solar provides an economic and environmentally responsible alternative to peaking fossil-fuel electric generation. First Solar PV power plants operate with no water, air emissions or waste stream. First Solar set the benchmark for environmentally responsible product life cycle management by introducing the industry’s first comprehensive collection and recycling program for solar modules. From raw material sourcing through end-of-life collection and recycling, First Solar is focused on creating cost-effective renewable energy solutions that protect and enhance the environment.

For First Solar Investors:

This press release contains forward-looking statements based on current information and expectations and are subject to uncertainties and changes in circumstances and do not constitute guarantees of future performance. The statements involve a number of factors that could cause actual results to differ materially from those statements, including the risks as described in the company’s most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. First Solar assumes no obligation to update any forward-looking information contained in this press release 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						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
	2008			2007			2008			2007
Net sales	$	267,041		$	77,223		$	463,956		$	144,172
Cost of sales		122,341			48,852			214,932			85,759
Gross profit		144,700			28,371			249,024			58,413
Operating expenses:
Research and development		7,725			3,763			12,485			6,821
Selling, general and administrative		43,626			17,285			72,297			30,975
Production start-up		4,622			1,523			17,383			9,997
Total operating expenses		55,973			22,571			102,165			47,793
Operating income		88,727			5,800			146,859			10,620
Foreign currency gain (loss)		647			21			1,421			(249	)
Interest income		4,923			3,773			11,608			7,900
Interest expense, net		—			(1,283	)		(4	)		(1,484	)
Other income (expense), net		(441	)		(447	)		(819	)		(614	)
Income before income taxes		93,856			7,864			159,065			16,173
Income tax benefit (expense)		(24,185	)		36,554			(42,775	)		33,273
Net income	$	69,671		$	44,418		$	116,290		$	49,446
Net income per share:
Basic	$	0.87		$	0.61		$	1.46		$	0.68
Diluted	$	0.85		$	0.58		$	1.42		$	0.65
Weighted-average number of shares used in per share calculations:
Basic		79,877			72,596			79,468			72,472
Diluted		82,004			76,089			81,806			75,740

FIRST SOLAR, INC. AND SUBSIDIARIES

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

	June 28,			December 29,
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	511,244		$	404,264
Marketable securities — current		121,760			232,686
Accounts receivable, net		49,994			18,165
Inventories		106,902			40,204
Deferred project costs		1,407			2,643
Economic development funding receivable		897			35,877
Deferred tax asset, net — current		14,184			3,890
Prepaid expenses and other current assets		32,185			64,780
Total current assets		838,573			802,509
Property, plant and equipment, net		674,268			430,104
Deferred tax asset, net — noncurrent		55,279			51,811
Marketable securities — noncurrent		28,208			32,713
Restricted investments		29,950			14,695
Goodwill		33,829			33,449
Other assets — noncurrent		15,023			6,031
Total assets	$	1,675,130		$	1,371,312
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	42,483		$	26,441
Income tax payable		51,197			24,487
Accrued expenses		120,526			81,438
Short-term debt		—			24,473
Current portion of long-term debt		24,629			14,836
Other current liabilities		40,414			14,803
Total current liabilities		279,249			186,478
Accrued collection and recycling liabilities		23,567			13,079
Long-term debt		108,547			68,856
Other liabilities — noncurrent		13,166			5,632
Total liabilities		424,529			274,045
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 80,037,993 and 78,575,211 shares issued and outstanding at June 28, 2008 and December 29, 2007, respectively		80			79
Additional paid-in capital		1,127,247			1,079,775
Accumulated earnings		129,185			12,895
Accumulated other comprehensive income (loss)		(5,911	)		4,518
Total stockholders’ equity		1,250,601			1,097,267
Total liabilities and stockholders’ equity	$	1,675,130		$	1,371,312