First Solar announced its financial results for the second quarter of 2014. Its net profit rapidly dropped 86% to US$4.5 million from 2Q13’s US$33.6 million. This may be resulted from project delays.
According to the press release regarding the 2Q14 financial results, net sales were $544 million in the quarter, a decrease of $406 million from 1Q14. The sequential decrease in net sales is primarily attributable to achieving revenue recognition on the 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 quarterly revenue was US$544 million, slightly increased 5% QoQ. The GAAP earnings per fully diluted share was US$0.04, rapidly decrease from the earnings of US$1.10 in the 1Q14. The gross margin dropped from 27% in the previous quarter to 17% due to the 19% growth of sale cost.
First Solar attributes the lost to project delays during the second quarter and maintains its original guidance for the full year 2014. Jim Hughes, CEO of First Solar, stated: “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.”
At the same time, the company also demonstrates the highest record of CdTe thin film PV cells, hitting 21% conversion efficiency.