First quarter reports are beginnig to come in, and solar companies SunPower Corporation (Nasdaq: SPWRA) and MEMC (NYSE: WFR) both struggled as demand for solar withered.
SunPower yesterday reported an unexpected quarterly net loss and cut its full-year guidance for 2009, causing shares to fall 7% in extended trading, according to Reuters.
MEMC reported a slight profit, despite a 57% decrease in sales. The company’s shares dropped 2% after hours.
SunPower’s revenue for 1Q09 was $214 million, compared to revenues of $401 million in 4Q08 and $274 million in 1Q08.
The company’s net loss was $2.5 million, or $0.06 per share, compared with a net profit of $14.7 million, or $0.15 per share, a year ago.
Revenue is expected to be between $1.3 billion and $1.7 billion for the full year, SunPower said. The company’s previous forecast called for revenue of $1.6 billion to $2 billion.
"The first quarter of 2009 was the most challenging quarter we’ve seen since SunPower went public in 2005," Chief Executive Tom Werner said.
MEMC Details
MEMC, which makes silicon wafers for solar cell production, reported 1Q09 net sales of $214.0 million, which represents a decrease of 49.7% from 4Q08 net sales of $425.7 million, and a decrease of 57.3% from 1Q08 net sales of $501.4 million.
Gross profit in the quarter was $19.7 million, or 9.2% of net sales, compared to $193.0 million, or 45.3% of net sales, in 4Q08 and $259.3 million, or 51.7% of net sales, in 1Q08.
"Our first quarter results reflect a continuation of what has been an unprecedented reduction in demand in the semiconductor and solar industries," said Ahmad Chatila, MEMC’s President and CEO.
He went on to say the company has cut staff and has other cost saving measures available. He said the company is in a "strong financial position with $1.3 billion in cash and investments and essentially no debt."
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