MEMC sees solar revenues rise


Boosted by its solar energy system sales, and lower solar wafer pricing and volume, MEMC’s Solar Energy business has seen Q2 GAAP revenues increase sequentially by 90 percent and annually by 22 percent, to reach $575.7 million (MEMC GAAP revenue: $808.4 million).

Overall, the company says GAAP sales worth 144 MW were recognized, compared to 47 MW in Q1 2012, and 23 MW in Q2 2011. Q2 2012 non-GAAP revenue, on the other hand, reached $700.7 million, compared to $307.8 million in Q1 2012, and $504.3 million in Q2 2011.

Solar GAAP operating income also saw growth on Q1 2012, from $-10.5 million to $27.7 million. Operating income was still considerably down on the previous year, however, which achieved $80.8 million (MEMC GAAP operating income: $0.7 million). Meanwhile, non-GAAP operating income reached $77.5 million in Q2 2012, compared to a loss of $14.7 million in Q1 2012, and an income of $96.3 million in Q2 2011.

"The year-over-year decline was driven by the LTA resolution and weaker solar wafer profits, partially offset by higher solar project profits. The sequential increase was driven by higher solar wafer and solar project margins," explained MEMC in a statement released.

In terms of Q2 2012 GAAP net loss, the company’s solar business recorded a loss of $61.3 million, up from the $92 million lost in Q1 2012, but still down on the income of $47.3 million achieved in Q2 2011 (MEMC GAAP net loss: $61.3 million). Non-GAAP figures saw it achieve a net income of $32.9 million in Q2 2012, compared to a loss of $59.4 million in Q1 and an income of $66.2 million in Q2 2011.

Q2 2012 GAAP solar gross margin saw a similar sequential growth trajectory, having increased from 10 percent in Q1 2012, to reach 13.2 percent, but decreased from the 24.3 percent achieved in Q2 2011 (MEMC GAAP gross margin: 13.2 percent). Looking at its non-GAAP figures, Q2 2012 gross margin reached 16.7 percent, up from 10 percent in Q1 2012, and down from 25.2 percent in Q2 2011.

Overall, SunEdison’s photovoltaic project pipeline was described as "flat" at 2.9 GW in comparison to Q1 2012, but up from 2.5 GW on the previous year. In Q2, it interconnected 24 projects worth 87 MW, of which 56 MW were direct sales projects and 31 MW were sale-leaseback projects.

While MEMC declined to provide specific revenue and earnings guidance, it predicts that non-GAAP sales for its solar energy systems will reach between 40 and 60 MW in Q3 2012, and over 400 MW for the full year. Meanwhile, it expects average solar system pricing to be greater than $3.50/watt.