GlobeNewswire Inc | Oct 27, 2020 04:05PM EDT

October 27, 2020

-- Net sales of $928 million -- Net income per share of $1.45 -- Cash, restricted cash, and marketable securities of $1.7 billion, net cash of $1.4 billion -- 1.6 GWDC of bookings since prior earnings call -- Strong fleet-wide production with capacity utilization averaging over 100% at all factories -- Reinstate financial guidance for the fourth quarter 2020

TEMPE, Ariz., Oct. 27, 2020 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the third quarter ended September30, 2020.

We delivered strong financial results for the third quarter, said Mark Widmar, CEO of First Solar. The dedication we continue to witness from our associates enabled us to expand module segment gross margin, close the sales of our Ishikawa, Miyagi, and Anamizu projects in Japan, and increase earnings per share quarter-over-quarter. This result reflects the strengths of our competitively advantaged CdTe modules and vertically integrated manufacturing process.

Net sales for the third quarter were $928 million, an increase of $285 million from the prior quarter, primarily due to international project sales, and an increase in the volume of modules sold to third parties.

Net income per share for the third quarter was $1.45, compared to net income per share of $0.35 in the second quarter of 2020.

Cash, restricted cash, and marketable securities at the end of the third quarter totaled $1,671 million, an increase of $29 million from the prior quarter, primarily due to cash inflows from international project sales and module segment operating cash flows. This was partially offset by capital expenditures and loan repayments associated with international project sales.

Fourth Quarter 2020 Financial Guidance

The Company previously withdrew its full-year 2020 guidance on May 7, 2020 given the significant uncertainties regarding the severity and duration of the COVID-19 pandemic and its impact on the Companys operations and financial results, as well as on energy and capital markets. As of the date of this release, the Company and its financial results have not been materially impacted by COVID-19. The Company today is reinstating financial guidance for the fourth quarter 2020 and providing implied full-year 2020 guidance based on its financial results through the third quarter 2020 and reinstated guidance for the fourth quarter 2020. The fourth quarter 2020 and implied full-year 2020 guidance are as follows:

Fourth Quarter 2020 Implied Full Year 2020Net Sales $540M to $790M $2.6B to $2.9BGross Margin % (1) 26.5% to 27.0% 25%Operating Expenses (2) $90M to $95M $351M to $356MOperating Income (3) $50M to $120M $310M to $380MEarnings per Share $1.00 to $1.50 $3.65 to $4.15Net Cash Balance (4) $1.2B to $1.3B -Capital Expenditures $123M to $223M $450M to $550MShipments 1.8GW to 2.0GW 5.5GW to 5.7GW

(1) Includes $5 million of ramp costs for FY20;(2) Includes $15 million of plant start-up expense for Q420 and $39 million for FY20;(3) Includes $44 million of ramp costs and plant start-up expense for FY20 and $27 million of Series 4 shutdown and other severance costs for FY20;(4) Defined as cash, cash equivalents, marketable securities, and restricted cash less expected debt at the end of 2020.

Conference Call Details

First Solar has scheduled a conference call for today, October27, 2020 at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com.

Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solars third quarter financial results and financial outlook.

An audio replay of the conference call will be available through Tuesday, November 10, 2020 and can be accessed by dialing +1 (800) 585-8367 if you are calling from within the United States or +1 (416) 621-4642 if you are calling from outside the United States and entering the replay passcode 3369808. A replay of the webcast will also be available on the Investors section of the Companys website approximately five hours after the conclusion of the call and remain available for 90 days.

About First Solar, Inc.

First Solar is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions, which use its advanced module and system technology. The Company's integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation today. From raw material sourcing through end-of-life module recycling, First Solars renewable energy systems protect and enhance the environment. For more information about First Solar, please visit www.firstsolar.com.

For First Solar Investors

This release contains forward-looking statements, which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: our financial guidance for the fourth quarter 2020 and implied full-year 2020 guidance, net sales, gross margin, operating expenses, operating income, earnings per share, loss per share, net cash balance, capital expenditures, shipments, bookings, production, products and our business and financial objectives for 2020. These forward-looking statements are often characterized by the use of words such as estimate, expect, anticipate, project, plan, intend, seek, believe, forecast, foresee, likely, may, should, goal, target, might, will, could, predict, continue, and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to: the severity and duration of the COVID-19 pandemic, including its potential impact on our business, results of operations, and financial condition; structural imbalances in global supply and demand for PV solar modules; the market for renewable energy, including solar energy; our competitive position and other key competitive factors; reduction, elimination, or expiration of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; our ability to execute on our long-term strategic plans; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; interest rate fluctuations and both our and our customers ability to secure financing; the creditworthiness of our off-take counterparties and the ability of our off-take counterparties to fulfill their contractual obligations to us; the ability of our customers and counterparties to perform under their contracts with us; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; our ability to successfully develop and complete our systems business projects; our ability to convert existing production facilities to support new product lines, such as Series 6 module manufacturing; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (CdTe) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects resulting from pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cyber-attacks or other breaches of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to attract and retain key executive officers and associates; and the matters discussed under the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. You should carefully consider the risks and uncertainties described in these reports.

Contacts

First Solar Investorsinvestor@firstsolar.com

First Solar Mediamedia@firstsolar.com

FIRST SOLAR, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share data)(Unaudited)

September 30, December 31, 2020 2019ASSETS Current assets: Cash and cash equivalents $ 1,277,054 $ 1,352,741 Marketable securities (amortized cost of$353,413 and allowance for credit losses of $48 353,819 811,506 at September30,2020)Accounts receivable trade 221,196 476,425 Less: allowance for credit losses (2,413 ) (1,386 )Accounts receivable trade, net 218,783 475,039 Accounts receivable, unbilled and retainage 89,368 183,473 Less: allowance for credit losses (919 ) ? Accounts receivable, unbilled and retainage, 88,449 183,473 netInventories 567,785 443,513 Balance of systems parts 34,280 53,583 Project assets 1,222 3,524 Assets held for sale 35,009 ? Prepaid expenses and other current assets 224,092 276,455 Total current assets 2,800,493 3,599,834 Property, plant and equipment, net 2,386,591 2,181,149 PV solar power systems, net 257,400 476,977 Project assets 362,777 333,596 Deferred tax assets, net 210,340 130,771 Restricted marketable securities (amortizedcost of $245,351 and allowance for credit 261,507 223,785 losses of $0 at September30,2020)Goodwill 14,462 14,462 Intangible assets, net 58,469 64,543 Inventories 197,520 160,646 Other assets 435,658 329,926 Total assets $ 6,985,217 $ 7,515,689 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 153,925 $ 218,081 Income taxes payable 32,172 17,010 Accrued expenses 298,133 351,260 Current portion of long-term debt 40,412 17,510 Deferred revenue 115,592 323,217 Accrued litigation ? 363,000 Liabilities held for sale 12,721 ? Other current liabilities 78,136 28,130 Total current liabilities 731,091 1,318,208 Accrued solar module collection and recycling 125,594 137,761 liabilityLong-term debt 220,456 454,187 Other liabilities 511,963 508,766 Total liabilities 1,589,104 2,418,922 Commitments and contingencies Stockholders? equity: Common stock, $0.001 par value per share;500,000,000 shares authorized; 105,974,984 and105,448,921 shares issued and outstanding at 106 105 September 30, 2020 and December 31, 2019,respectivelyAdditional paid-in capital 2,855,645 2,849,376 Accumulated earnings 2,600,059 2,326,620 Accumulated other comprehensive loss (59,697 ) (79,334 )Total stockholders? equity 5,396,113 5,096,767 Total liabilities and stockholders? equity $ 6,985,217 $ 7,515,689

FIRST SOLAR, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(Unaudited)

Three Months Ended Nine Months Ended September June 30, September September 30, September 30, 30, 2020 30, 2020 2019 2020 2019Net sales $ 927,565 $ 642,411 $ 546,806 $ 2,102,100 $ 1,663,740 Cost of sales 634,550 504,951 408,443 1,581,287 1,448,083 Gross profit 293,015 137,460 138,363 520,813 215,657 Operating expenses:Selling, generaland 49,861 51,770 53,542 160,218 149,828 administrativeResearch and 22,972 22,483 24,912 71,068 71,184 developmentProduction 13,019 6,311 18,605 23,812 38,564 start-upLitigation loss ? 6,000 ? 6,000 ? Total operating 85,852 86,564 97,059 261,098 259,576 expensesOperating income 207,163 50,896 41,304 259,715 (43,919 )(loss)Foreign currency(loss) income, (1,852 ) (1,299 ) 1,209 (3,549 ) 3,107 netInterest income 2,109 3,674 11,454 15,113 39,223 Interest (10,975 ) (3,254 ) (4,976 ) (21,018 ) (24,018 )expense, netOther expense, (3,236 ) (3,195 ) (3,399 ) (8,653 ) (4,328 )netIncome (loss)before taxes and 193,209 46,822 45,592 241,608 (29,935 )equity inearningsIncome tax(expense) (38,107 ) (10,214 ) (15,035 ) 40,894 (25,385 )benefitEquity inearnings, net of (65 ) 303 65 150 (205 )taxNet income $ 155,037 $ 36,911 $ 30,622 $ 282,652 $ (55,525 )(loss) Net income(loss) per share:Basic $ 1.46 $ 0.35 $ 0.29 $ 2.67 $ (0.53 )Diluted $ 1.45 $ 0.35 $ 0.29 $ 2.65 $ (0.53 )Weighted-averagenumber of sharesused in per sharecalculations:Basic 105,967 105,927 105,397 105,830 105,272 Diluted 106,751 106,473 106,227 106,537 105,272