First Solar Q1 net sales decreased $539 million
Staff writer ▼ | May 5, 2015
First Solar announced financial results for the first quarter of 2015. Net sales were $469 million in the quarter, a decrease of $539 million from Q4 2014.Article continues below
The sequential decrease in net sales resulted from retaining projects which would otherwise have generated revenue in anticipation of the Company's announced plans to pursue a YieldCo.
In addition, delays on multiple projects in the current quarter, a higher mix of module only sales and the sale of the SolarGen 2 project in the prior quarter contributed to the lower revenue.
The Company reported a first quarter GAAP loss per fully diluted share of ($0.62), compared to earnings of $1.89 in the prior quarter. The decrease in net income compared to the prior quarter was due to lower revenue, the mix of systems projects under construction and a higher proportion of module only and module plus sales.
Cash and marketable securities at the end of the first quarter were approximately $1.5 billion, a decrease of approximately $507 million compared to the prior quarter.
Cash flows used in operations were $418 million in the first quarter. The decrease in cash and marketable securities during the quarter was due also to the increase in project construction on balance sheet in preparation for a YieldCo launch.
"As anticipated, the first quarter was a transitional period as we executed on our plans to form 8point3 Energy Partners," said Jim Hughes, CEO of First Solar.
"We continue to enhance the overall strength of our business with our lead line now running at 16.3% efficiency and our announced strategic alliance with Caterpillar." ■ What to read next
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