SunEdison Inc (NYSE:SUNE) Gets $185m Funding
SunEdison Inc (NYSE:SUNE) has posted a better-than-expected third quarter earnings for 2013. The company’s third quarter GAAP revenue was $611.5 million. For the third quarter, the net loss was recorded at $108 million, or $0.47 loss per share, versus $37 million profit, or $0.16 per share announced during the same quarter in 2012.
The company’s Solar Energy segment revenue was up. The third quarter sales included $22.0 million, which was recognized from the termination of a supply deal with Gintech. SunEdison’s Solar Energy segment saw GAAP revenue fall on year-over-year basis with solar projects totaling 42 MW, compared to 48 MW in the same period of 2012. The Solar Energy system accounted for 65% of non-GAAP total revenue.
On the other hand, SunEdison semiconductor materials segment revenue declined both sequentially and year over year due to lower volume and prices. Also, declining Japanese Yen was a “significant” challenge, the company said. Revenues from this division accounted for 35% for total non-GAAP revenues.
SunEdison’s non-GAAP gross margins were down by 9.5% year-over-year primarily due to a lower revenue base. Also, lower pricing also negatively impacted margins. The company’s operating loss for the quarter was $45.8 million, which was down from year-ago quarter’s operating profit of $85.2 million.
“I am pleased with our third quarter performance, and encouraged by the improved execution our solar and semiconductor teams have demonstrated despite numerous challenges,” commented Ahmad Chatila, Chief Executive Officer. “Relative to last quarter, our Solar Energy segment generated improved results and grew our solar project pipeline and backlog. I am very encouraged by the near-term trends in our solar project business. In Semiconductor Materials, a continued soft market remains our primary challenge, but our position remains as strong as ever.”
At the end of the third quarter, SunEdison had cash, cash equivalents and restricted cash of $757.4 million, which was up from $482.1 million in the previous quarter. The company used $102.6 million cash in operations during Q3, 2013.
For the fourth quarter, the company targets to achieve the Semiconductor Materials revenue between $220 million and $230 million, while in a range of $920-$930 million for full year 2013. On the other hand, Solar energy systems total non-GAAP sales volume is targeted to be in a range of 234-264 MW for the next quarter as well as 405-435 MW for 2013.
Additionally, Overseas Private Investment Corporation announced $185 million in “foreign debt” funding for SunEdison’s South African affiliate. This calculates to 75% of the R2.4 billion project cost for its Boshof Solar Park Project in South Africa.
However, rival First Solar, Inc. (NASDAQ:FSLR) reported an impressive third quarter profit, which more than doubled during the quarter. First Solar aims to earn a profit of $4.25-$4.50 per share on revenues of $3.4-$3.6 billion.