August 5, 2014 - First Solar, Inc. today announced financial results for the second quarter of 2014. Net sales were $544 million in the quarter, a decrease of $406 million from the first quarter of 2014. The sequential decrease in net sales is primarily attributable to achieving revenue recognition on our Campo Verde project in the prior quarter and project delays in the second quarter which resulted in the deferral of some revenue recognition to the second half of the year.
The Company reported a second quarter GAAP earnings per fully diluted share of $0.04, compared to earnings of $1.10 in the prior quarter. The decrease in net income compared to the prior quarter was due to the aforementioned Campo Verde project sale in the first quarter and project delays, partially offset by lower operating expenses.
Cash and Marketable Securities at the end of the second quarter were approximately $1.3 billion, a decrease of approximately $30 million compared to the prior quarter. Cash flows from operations were $118 million in the second quarter.
The company also maintained its full year 2014 earnings per share guidance of $2.40 to $2.80 and operating cash flow guidance of $300 to $500 million. This guidance is highly dependent on, among other factors, the construction progress and sales process related to certain utility scale power plants. Any changes in expected timing of these activities would defer earnings and operating cash flow to subsequent fiscal periods and result in a substantial impact on these guidance targets.
First Solar also announced a new record cell efficiency of 21.0%, which improves upon the prior record of 20.4% announced earlier this year. This new record represents a milestone as CdTe cell efficiency now exceeds the world records for both multi-crystalline silicon and CIGS thin film technologies.
"While project delays in Q2 resulted in deferring some earnings to later in the year we remain on track to our financial targets for the year and reaffirm our full-year 2014 EPS and operating cash flow guidance," said Jim Hughes, CEO of First Solar. "In addition I am proud of the execution by the organization as demonstrated by a new record cell efficiency and new bookings of over 800MWdc."