MEMC Electronic Materials (NYSE: WFR) made a slight profit in 2Q10, following a loss in the previous quarter.
Net income for 2Q10 was $13.8 million, or
$0.06 per share, compared to a net loss of $9.6 million, or $0.04 per
share, in 1Q10 and a net income of $1.4 million, or
$0.01 per share a year ago.
Results in the 2010 second
quarter include a non-cash benefit of $15.5 million, or $0.07 per share,
resulting from the closure of the 2006 and 2007 IRS audits, and a
non-cash $6.8 million loss, or $0.03 per share, associated with the
valuation adjustment of Suntech warrants.
Net sales for the quarter were $448.3 million, up 2.4% from $437.7 million in 1Q10 and up 58.5% from $282.9 million in 2Q09.
Second quarter 2010 results include $30.7 million from the SunEdison business that was acquired in November 2009.
Gross profit in the quarter was $76.9 million or 17.2% of net sales, an increase of 29.7% from $59.3 million in 1Q10 and 120.3% from $34.9 million in the 2009 second quarter.
The company reported an operating profit of $3.3 million for the quarter, compared to an operating loss of $15.3 million in 1Q10 and an operating loss of $23.1 million in 2Q09
Results in the 2010 second quarter included an insurance recovery of $11.9 million related to lost profits resulting from the 2008 Hurricane Ike disruption at a Pasadena, Texas facility.
Solar Materials sales for 2Q10 were $168.0 million, an increase of 6.5% from 1Q10 net sales of $157.7 million and an increase of 22.4% from 2Q09 net sales of $137.3 million. The sequential increase was the result of higher pricing on relatively flat volumes. The year-over-year increase was primarily driven by significantly higher wafer volumes, partially offset by a decline in pricing.
During the quarter, MEMC announced the acquisition of Solaicx, a CCZ solar ingot technology company. This acquisition closed on July 1, and will be consolidated as part of the Solar Materials segment.
SunEdison sales for the second quarter were $30.7 million and operating loss was $4.4 million, compared to sales of $60.7 million and operating profit of $6.8 million in 1Q10. The sequential decrease in sales was a result of lower direct sales in the second quarter.
During the second quarter of 2010 SunEdison interconnected 3.8 megawatts (MW). As of the end of the quarter, SunEdison had 111.5 MW of projects under construction that are expected to be completed during the second half of 2010.
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