Silicon manufacturer MEMC Electronic Materials Inc. (WFR)) announced that profits more than doubled for the Q4 as compared to a year earlier – sales jumped 40%, thanks to increase pressure from the solar industry.
For the fourth quarter, earnings were almost $129 million (56 cents per share), compared with $50.2 million (22 cents per share) a year earlier.
Revenue was $420.5 million, up 39% from a year earlier, and gross margin was 48.3%.
“Introduction of solar wafers has enabled opportunities for faster growth at equivalent or better profit levels,” CEO Nabeel Gareeb said.
The company said that while demand from the semiconductor industry is mixed – some companies have inventory issues, compounded by seasonal factors – demand from the solar industry continues to rise.
Management said inventories levels are at a historical low because of this demand, which they do not believe will lighten until 2008 at the earliest.
The company expects that Q1 will be the low point in demand from the semiconductor industry, and expects to slow sales to the solar sector to meet that wafer demand.
The company forecasts $440 million for Q1 07, ahead of analyst estimates of $424.7 million. For 2007, MEMC forecasts revenue of $1.9 billion and pro forma EPS of “a little over $3” a share, beating Street consensus of $1.84 billion and $2.55 a share.
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