First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first quarter of 2014. Net sales were $950 million in the quarter, an increase of $182 million from the fourth quarter of 2013. The sequential increase in net sales is primarily attributable to achieving revenue recognition on our Campo Verde project.
The Company reported first quarter GAAP net income per fully diluted share of $1.10, compared to $0.64 in the prior quarter. The increase in net income compared to the prior quarter was primarily due to higher net sales, project cost improvements, and lower restructuring and asset impairment charges.
Cash and Marketable Securities at the end of the first quarter were approximately $1.4 billion, a decrease of approximately $385 million compared to the end of the fourth quarter of 2013. Cash flows used in operations were $318 million in the first quarter. The use of cash in the quarter is primarily related to ongoing construction of projects which have not yet been sold.
Based on the results of the first quarter the Company is increasing full-year 2014 guidance as follows:
- Gross Margin percentage of 17-18%, compared to prior guidance of 16-18%
- Operating Income of $290 to $340 million, compared to prior guidance of $270 to $320 million
- Earnings per fully diluted share guidance of $2.40 to $2.80, compared to prior guidance of $2.20 to $2.60
- Operating cash flow guidance of $300 - $500 million, compared to prior guidance of $250 – $450 million
“In the first quarter we demonstrated significant progress towards achieving the financial and operational targets we outlined at our recent Analyst Day,” said Jim Hughes, CEO of First Solar. “We delivered strong earnings in the first quarter and are increasing our financial guidance for the year based on these results. We have also made significant progress in new bookings and continue to execute on our technology roadmap.”