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News Article

First Solar profits down due to low prices

Year over year, the net income decrease was primarily driven by reduced average selling prices and higher expenses, partially offset by increased module production and lower module cost per watt.

First Solar has announced its financial results for the first quarter of 2011.

 



Net sales were $567 million in the quarter, a decrease of $42.5 million from the fourth quarter of 2010, due to the allocation of modules to our systems projects in order to meet the project contractual delivery schedules, seven fewer production days, and a full quarter impact of the pricing change implemented in December of 2010. Quarterly net sales decreased slightly from $568 million in the first quarter of 2010, primarily due to lower average selling prices.

First quarter net income per fully diluted share was $1.33, down from $1.80 in the fourth quarter of 2010 and $2.00 in the first quarter of 2010. Quarter over quarter, the net income decrease was primarily driven by lower net sales and gross margin. Year over year, the net income decrease was primarily driven by reduced average selling prices and higher expenses, partially offset by increased module production and lower module cost per watt.

"Despite European market uncertainties, First Solar has good visibility into our demand for 2011," said Rob Gillette, CEO of First Solar. "We continue to execute our cost roadmaps, invest in new module capacity, build our project pipeline and develop promising new markets around the world."

First Solar has updated its 2011 guidance and expects net sales of $3.7 to $3.8 billion with an operating income of $900 to $970 million. Earnings per fully diluted share are expected to be $9.25 to $9.75. Manufacturing start-up expenses are anticipated to be $50 to $60 million and $10 to $15 million factory ramp costs. Total capital spending is anticipated to be $1.0 to $1.1 billion and operating cash flow, $0.8 to $1.0 billion.

First Solar discussed these results and the outlook for 2011 in a conference call.  An audio replay of the conference call will remain available until Sunday, May 8, 2011 at 7:30 p.m. EDT and can be accessed by dialling 888-203-1112 ( from within the United States) or  719-457-0820 (from outside the United States) and entering the replay pass code 3266707.

A replay of the webcast will be available on the investor relations section at www.firstsolar.com and will remain available for 90 calendar days.
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