First Solar has reported net sales of $950 million in the first quarter of 2014, 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, First Solar said.
First quarter GAAP net income per fully diluted share was $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, a statement from the company said.
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.
For the entire FY 2014, the company expects gross margin percent of 17-18%, compared to prior guidance of 16-18%. Operating income is expected to be in the range of $290 to $340 million, compared to prior guidance of $270 to $320 million.
Operating cash flow guidance is set at $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.”