Overall, MEMC recorded a positive Q3 2012, when compared to its previous years results, despite the fact it saw sales declining sequentially. "The benefits of our strategy are becoming clear as we face difficult market conditions in both of the industries we serve," stated CEO, Ahmad Chatila, who added, "We are also beginning to see the benefits of a leaner organization which should better position us for increasingly challenging markets in the near-term."
In comparison to the US$808.4 million reaped in Q2 2012, MEMC recorded sales of $601.6 million in Q3 slightly up from the $516.2 million in Q3 2011. Of this, solar energy sales fell to $361.3 million, down from $575.7 million in Q2, but up from $247.8 million in Q3 2011.
"The year-over-year GAAP revenue increase was driven by higher solar project and solar module sales, as well as the $37.1 million of revenue from the Conergy agreement termination, partially offset by lower solar wafer sales," it said in a statement released.
Under this segment, 48 MW worth of solar projects were recognized, compared to 144 MW in Q2 and just 3 MW in Q3 2011. Meanwhile, solar projects grid connected in Q3 reached 47 MW across 18 projects, and consisted of 39 MW of direct sale projects and 8 MW of sale-leaseback projects.
MEMCs solar business ended Q3 with a solar project pipeline worth 2.9 GW, of which 117 MW are under construction.
Meanwhile, the company reaped a Q3 net income of $37 million, compared to a net loss of $77.2 million in Q2 and a loss of $94.4 million in Q3 2011. Of this, solar accounted for $75.8 million, compared to an income of $11.7 million in Q2 and a loss of $94.9 million in Q3 2011.
Q3 further saw an operating income of $58.9 million, compared to a loss of $15.3 million in Q2 and a loss of $103.8 million in Q3 2011. Of this, solar energy posted an income $75.8 million, compared to $11.7 million in Q2 and a loss of $94.9 million in Q3 2011.
Proceeding cautiously, MEMC expects a non-GAAP sales volume of between 90 to 120 MW of solar energy systems in Q4, and that average pricing for these systems will be above $3.50/watt. It declined to issue any further guidance.