11.18.16
First Solar, Inc. announced an acceleration of Series 6 production into 2018, with approximately 3 gigawatts of production expected in 2019. Over the course of 2017 and 2018 the company’s existing production facilities will be converted to Series 6 production and the current Series 4 product will be phased out. As a result of the change in roadmap, the company will cancel its Series 5 product.
“The acceleration of the Series 6 roadmap is an important development for First Solar,” said Mark Widmar, CEO of First Solar. “Although the decision to accelerate our Series 6 roadmap requires a restructuring of our current operations, we expect the transition to Series 6 will enable us to maximize the intrinsic cost advantage of CdTe thin-film technology versus crystalline silicon. Recent steep module pricing declines require us to evaluate all components of our cost structure and streamline our business model to best position the company for long-term success.”
The company will reduce its workforce at its manufacturing facilities both domestically and internationally as a result of the transition from Series 4 to Series 6 production. Additional reductions in administrative and other staff are also planned.
Resulting from the transition to Series 6 from Series 4 and other competitive factors, the company expects to incur restructuring and asset impairment charges of $500 million to $700 million, which includes a cash impact of $70 to $100 million.
The company also provided full year 2017 financial guidance. Forecasted net sales for 2017 are $2.5 to $2.6 billion, with solar power systems net sales expected to comprise 70% to 75% of the total net sales and third party module sales the remainder. GAAP earnings per share is forecasted to be between ($0.10) and $0.45, with non-GAAP EPS of breakeven to $0.50 per share. The ending net cash balance is projected in the range of $1.4 billion to $1.6 billion.
“The acceleration of the Series 6 roadmap is an important development for First Solar,” said Mark Widmar, CEO of First Solar. “Although the decision to accelerate our Series 6 roadmap requires a restructuring of our current operations, we expect the transition to Series 6 will enable us to maximize the intrinsic cost advantage of CdTe thin-film technology versus crystalline silicon. Recent steep module pricing declines require us to evaluate all components of our cost structure and streamline our business model to best position the company for long-term success.”
The company will reduce its workforce at its manufacturing facilities both domestically and internationally as a result of the transition from Series 4 to Series 6 production. Additional reductions in administrative and other staff are also planned.
Resulting from the transition to Series 6 from Series 4 and other competitive factors, the company expects to incur restructuring and asset impairment charges of $500 million to $700 million, which includes a cash impact of $70 to $100 million.
The company also provided full year 2017 financial guidance. Forecasted net sales for 2017 are $2.5 to $2.6 billion, with solar power systems net sales expected to comprise 70% to 75% of the total net sales and third party module sales the remainder. GAAP earnings per share is forecasted to be between ($0.10) and $0.45, with non-GAAP EPS of breakeven to $0.50 per share. The ending net cash balance is projected in the range of $1.4 billion to $1.6 billion.