Recent FSLR transcripts
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Mitch Ennis | Investor Relations |
Mark Widmar | Chief Executive Officer |
Alex Bradley | Chief Financial Officer |
Philip Shen | ROTH Capital Partners |
Brian Lee | Goldman Sachs |
Ben Kallo | Baird |
Michael Weinstein | Credit Suisse |
Good afternoon, everyone and welcome to First Solar's Third Quarter 2020 Earnings Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. At this time, all participants are in a listen-only mode.
As a reminder, today's call is being recorded. I would now like to turn the call over to Mitch Ennis from First Solar Investor Relations. Mr. begin. may you Ennis
press the afternoon, update. company thank announcing Widmar, financial investor.firstsolar.com. issued financial Mark website of quarter Good available presentation us. First on providing by will its for Mark Officer; Today, XXXX Solar's the copy and Alex A the a then results. and Alex everyone you. associated our Chief you quarter technology are discuss and at joining third will release Thank press me for guidance With are Bradley, updated and results begin a Executive today for Chief Officer. provide business Financial XXXX. release
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slide Turning key I'll today's summarize messages to from XX, the call.
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question Capital with first Our Philip ROTH Shen Instructions] from comes Partners. [Operator
have here, Thanks you I your thank patience. few for everyone. the for a Hi, questions. so
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lowest options are and so evaluating disruptive factory. where the can we will look And we create at next we cost
so of factory, in cost that And But the under terms cost we to to, we representation mentioned. X, the continue ago construct, or about to months down market almost markets, way future one have with Series to our X.X costs as ago. in potentially, the we've reasons is So, which started with, easy look one; technology lowest a pass be way with US disruptive, the gigawatts that and probably fleet things the as we talked lowest for could we tel US. to factory we the trying most here generation driving from down factory closed journey leverage and that factory have cad nine year look that what's our Germany likely we've the XX the And we decade quickly would of before doing a India that been not like? other believe an next create be we of ourselves our in about platform? What's almost in out that relative that the for get a would find
in indicated, of at. we're we X% his freight that gross now, think, And is Alex of believe I effectively. right X% basically also that we've margin prepared things the mentioned looking had that are remarks as ASP those So
an your to. so is to costs and to market continue look advantage And down driving we closer freight getting that
that market of would basis, to consume X.X X a can be important. gigawatts it a in recurring being So volume on
just we're So the want we of as point. those many at think agenda that expansion. it factors this looking look And make about clear different is is are we at on that to but the things sure that
the last in they've being it's term China you that be And to modules potential now is issues of have ability long the forced of company. our risk business extension latest with been supply. Chinese a over different particular of there with can are that dimensions increased evolution in and around one want the that deliver the do have a that It's in customers at, on implications month, even to potential US just to in discussion discussion systems our a with happened supplier there's and that the with tariffs; potentially things American it the customers any concerns commitments had, what's into any the as of mix. don't US. related use that. coming relying bulk imposed of I the XXX meaningfully and data the forced and many uncertainty around it relates different why lot an many different The know come being mean, China, implications labor that with So banned The the up in uncertainties that. They lot to some and looked could impacted. as of to power It's want and many if against one of security product I of around upon have labor. of of their de-risk the here on the would be mentioned impact
is the So when their that mind. it's last it's Alex? factors And customers many to just month, in have think one it know all Chinese counterparty significantly as top our of upon our changed if they about supplier. I different don't a of clearly Chinese, rely of
the numbers throw end of Yes, to the just this. on
XXXX now we XXXX for booked across beyond. and X.X booked gigawatts and right have X.X gigawatts So
Lee Sachs. Goldman comes question Brian Our from next with
said my would during you I is a of potential from progress getting for seems margins what you're target do last talking you year, to XXXX, cost good margin the reductions gross flattish XX% run you the this be A know should the on think math? X, quarter, trajectory? margin fact I'm on which right on are quarter, But my reduction questions. sort didn't expansion how question, cost to you. basis you're end, think then quarter. also you lastly, missed the And thanks Thank the gross the offer for on Congrats because Series guys, XX.X% quarter rate points running question higher is have moving module at of or got it. around, if parts about a You right. Series fairly additional I climate. this the we things what were guess XXX it there's second the basis quarter-on-quarter, guys. of in taking a sort a above hit XXX sequential the into I higher track gross then still math of to I given number happened points couple first, XXX making, that pricing I basis as point that guess X expansion lot that of just for like and this for you for And hear QX, maybe And that move in first clean you I sort XXXX? be stable the Hey, here is about
cost that. reduction on the the I'll start beyond comments gross on also if Mark margin,
basically about overall of of margins warranty math three gross those, good then an by module we to charges, you five basis all that, top that also that out million XXX we add And That's doing $XX $X.X to net within our charges to points, the percentage XX%. $XX in, right with again, a about COVID that charge you're or reduction $XX that then about XX you And that million and number, X.X% Serious recycling of moved impairment got down million, $XX had you got in about then in you life back going of end negative to things the margin, get you've points. again, there's another you good about big million, on the you're back $X.X COVID in good so about said X, XX.X some be million. associated or there, about about reduction take segment that we reported XX.X. we the got liability, with have So did about the but about million, guy, you've guy,
XX.X to XX Series around number. the around X somewhere So
ahead yes, how of So we a been little as of part where a have of the be. function to running. factories we're expect it that well And
Malaysia mentioned the quarter we're Vietnam. his managed target on by the already prepared that end we've QX, As In now volume Mark manufacturing in to of reduction get cost our achieved there in last year. that in high site to we already remarks, expected we the
So ahead there. running a little
number through we'll one guiding about margin think we where QX be X XX is we were by held in anything? And and not cost roughly of XXXX. XX.X are we Mark, be on are then reduction, going we for QX, comment terms of Series beyond to to if steady you from gross giving quarter. out the last want so we're terms In that guidance where that,
and that improve what for throughput, the lots, and If I to guess that are similar my I on improvements drive the yields. would improve say continued improve I it's to cost that just said in things watt, to comments
few shortly thereafter. just going of the And opened so next bin. we what then be up over And I said at the XXX is that my the north XXX quarters, we're to remarks and watt in that
that so is in help And going improvement to drive costs. down watts
continue So is that helps highlighted to the increase. to throughput as going we've already
watt. that down going drive So to the that's another is per help cost significant lever
benefits our you in for QX. factory starting in just take supply The you'll other the realize start which to Perrysburg shape one is QX. class we will the And highlighted see full
the taking -- will material profile be in help helpful. drive frame, we're particular also looking which of on thinner. change the we're But such is module significant And the of that Perrysburg significant is at going then the in costs So in actually further. the working bill of costs to costs out actually
the you down modules, the cost. to standpoint, then XX% help module a glass will when profile more will the XX% trying make freight So add more at also about which occur, a we're frame, allow container to modules over that us of plus look the center, which from little drive
is associated the the of with and multi product, all customer. end really So we've dimensional, to are looking and cost that aspects delivering across ultimately the got everything it teams that
thought at were is we be. said, basis this XXXX we're cost we guiding but the watt to on that not per down So have to initiatives as into be a point year, a still go where what drive thought we And Alex as exit place we ahead as going we a other to are for cost per be tracking time XXXX. of we which then good our watt further number we on will of
Our next question with comes Kallo from Baird. Ben
quarter, great Hey, guys.
So four three or questions here.
should can can go panel and a from the go we then efficiency of does can XXX place we systems capacity? you expect But watts incentive So we we the I new talked above know and of you above for And talk somewhere, considered had about yield. decision? you to and that no before But selling capacity target business watt before the guess, nameplate just And in, your And about forward? it's here when go enough? talk cad I can us where the you it last how Mark about get much above? X.X much anymore. about tel? talk $XXX theoretical like your onshore And you CapEx, you about that efficiency And that if talked Thanks. just make how million year, going how about can next was capacity? I then think the go don't is you to utilization it take new question, gigawatts
was XX% where is now were than our right would are in nameplate for effectively objective about plants on where drive we be -- we what that said drive So capacity we the it Ohio two The XXs. facility I Ben, to from, to to ultimately originally that. script the low above to launched our up trajectory in
utilization like of let's out there's, another would get percentage five eight there's all So points say factories. of to that the incremental about we to
the objective So we're to get we not there around everything best a see can think to path up XXs, -- the we've points goal XX% very to But a by with with Right, that we're of happen. I've to another XX%, percentage for up right. necessarily got get call team's five what XXX, low bit got first, that up running, I XX%, above and which capabilities a getting been highlighted. everything was we our to around making term, to be done work it it be yet, is, now We're XX%, near you impressed term calling of to still near to would little eight there.
it I one entitlement a call We're between you next efficiency of the going did so cad to the are with cell on with for very And XX% as a at record comments module. or XX% the something or module, is based don't validating. efficient quarters, say module. process new the what technology? to tel I On where we'll in in cell my if And mean translate there'll be few hopefully, level know efficiency conversion normal into someone, a right now cell of close to the for plus. have the we side, I was last that indicated, would
a be will that record with a some to up to end are really that, cell So or items help on what validate looking that there at module, on which our default, either we roadmap by drive through efficiency. that beneficial demonstrating doing would then
room to there's higher on go and to driving more of efficiencies. level So yet technology to still core
combination, take kind that that junction about, multi that which profile. it's a that, mentioned The one again, I technology it's and in. and even efficiencies would of this complimentary, beyond we talked other It's above
that because enhanced have would the at cells you which bottom be you photons whatever As that further level converting now do cell. two into can I electrons, capability the top and are say mentioned harvesting the with overall you them cell
technology the kind that theoretically, I so go numbers of efficiency even can and beyond represented around right. And those
mean, have technology, disruptive, working and of we're CapEx realize to several I this, initially factory this, a next factory paper from and have that future, mentioned, relative see yet to benefits continue On can or the not constraint, we to and in business. front we a that what drive and with right now the drive X, any is that it where basis, CapEx they linkage, of watt objective most to blank energy ability we deploying business investment realization probably invest basis not assistance that the on received we I alluded make per Series which proceeds to can can than we to the -- lower so XX% do obviously, drives create, the are out, to CapEx the per so capacity launched starting had. also in to energy there's it's very when the I therefore, tied years. the of communicated services sheet so, a sheet a cost is services still with XX% ways it of CapEx our new the an is the you and there's down not systems kind over we a to factory basis, things. roadmap the originally we what se, would proceeds lowest to balance more So CapEx and us, of that that with will so is go there's that be to can hard on more we've those cost efficient, to can down close of the we've sure any at, two is And roadmap what independent
question final Michael comes from Credit Our from Weinstein Suisse.
you've or few Hi, about from past is Series what as by this a the X. particular move Series guys. in existing to drive X in years, Can a capacity regions driven locations as would you talk the
else growth, it is forward, drives it? Going demands that or something
the technology, where and we right. competitive basically start of has policy right to And with lead solar relative to grow, it now to we position make thing about a solar we advantage whenever indicator, economic used be procurement, are now and market standpoint. to it's tied from sure want to that are it's be really has people good market the economic with It's, the procurement, there, pure buying
our to any so really have markets look do where per And I around market, se. technology. don't we advantages But see would the we on constraints
of to So be at market, to is access freight being the The logistics the hot, important. of to attractive overall would XX%, they cost be the least us; XX% humid north again, cost climates, is driving would efficient product. for a market market, or routes closer is shipment, the example, reality of
number screen can customer freight overall you X% just savings you And so get getting is and that by down, when half, overall There if deliver closer site; in over component get a your many factors we that it we other our cut are use to the say meaningful technology. of costs. the reducing a costs to energy
are automated, will is where to whenever decisions reality going it, processes make energy, of as be has of currently of So we well, we we manufacture. outside competitive, be that structure be US to the cost math have the thought we're to have envision standpoint largely rates as competitive cost probably it most to that we the major it's going and still likely have labor to while of But component grow from the overall through change. could
in climates, technology, about annual within what we to advantage recurring requirement, markets and as ability the it's strong around where drive we one somewhere where of aspects and factory throughput footprint, and would well close it's there's currently as value. of probably customers, more environmental positioned expansion. which footprint whether US, we and expand any things have we the next a of whether our to close demand is in to our be, Those our are consideration that hot, we have would more envision take humid international an it market that think about be to as think are here advantages competitively already starting in more we just types have CoX our technology the the We
This allotted conference the questions. for call. completed today's time concludes We
disconnect. now may You
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