(Adds CEO comment, details, background, share)
Aug 5 First Solar Inc, the biggest
solar panel maker in the United States, reported a
lower-than-expected quarterly profit, sending its shares down 5
percent in extended trade.
The company cut its full-year production forecast to 1.8-1.9
gigawatts (GW) from 1.9-2.0 GW.
"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," First Solar CEO Jim Hughes said in a statement.
The company said it expected full-year operating expenses to
rise to $380 million-$395 million from $365 million-$385
First Solar, in an attempt to boost margins, has been
building solar plants for big U.S. power companies rather than
supplying only solar panels.
The company, which is sacrificing near-term revenue to
ensure a long-term profit, has said it plans to keep some of
those projects rather than sell them outright to ensure stable
cash flow and lower its cost of financing new projects.
Net income fell 86 percent to $4.5 million, or 4 cents per
share, in the second quarter ended June 30, from $33.6 million,
or 37 cents per share, a year earlier.
The Tempe, Arizona-based company's revenue rose 4.7 percent
to $544.4 million.
The average analyst estimate was for a profit of 37 cents
per share on revenue of $795.9 million, according to Thomson
First Solar's shares closed at $63.66 on the Nasdaq on
Tuesday. The stock has gained more than 16 percent this year.
(Reporting By Tanvi Mehta and Shubhankar Chakravorty in
Bangalore; Editing by Sriraj Kalluvila)