First Solar (Nasdaq: FSLR) reported 1Q09 profit on Wednesday that far out-paced Wall Street expectations.
The company, which makes cadmium telluride solar panels, has not
suffered the same decline in profit margins as many silicon-based solar
companies.
Despite a slight decline in revenue from the previous quarter, the
company increased its margin to 56.3% from 53.9% and raised net income
to $164.6 million, up from $132.8 million in 4Q08.
Quarterly revenues were $418.2 million, down from $433.7 million in 4Q08 and up from $196.9 million in 1Q08.
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Per-share earnings for the quarter were $1.99, significantly
higher than the $1.51 expeced, on average, by Wall Street analysts. The
company's shares surged 9.4% in extended trade, according to Reuters.
CEO Search
First Solar also announced that it has initiated a process to recruit
its next CEO to succeed Michael Ahearn. Upon selection of a new CEO,
Ahearn will continue to serve in the full-time position of executive
chairman. In this role Ahearn will focus his efforts on the development
of public policies needed for the global transition to low-carbon
energy infrastructures, the company said in a release.
"We are rapidly reaching the point where the evolution of the
energy industry will be constrained not by technology or product costs,
but rather by policies, programs and institutions that cannot adapt
rapidly to the innovations that are occurring in clean energy," said
Ahearn. "Given First Solar's leadership position in the industry, I
believe we are in a unique position to make a valuable contribution to
those policy discussions. This will require virtually full-time focus
from the very top of the organization."
In March, First Solar acquired the project pipeline of OptiSolar for $400 million.
Earlier this month, First Solar domestic rival SunPower posted an unexpected quarterly net loss.
