First Solar, Inc. (FSLR)

NetscribeSemiCdr (24.96) Submitted: 3/13/07 7:03 AM : Start Price: $57.59 FSLR Score: 202.62

First Solar, Inc. engages in the design and manufacture of solar modules through its proprietary thin film semiconductor technology. The company's solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. The company sells its products to solar project developers and system integrators in Germany.


The company tripled its revenue to $135 million in 2006 as compared to 2005 which shows the rising strong market demand for the company’s products. Increasing demand made the company to enhance its capacity; the company tripled its production volume to 60 megawatts during 2006. This increase in the production volume has further boosted the company’s position as the largest solar module manufacturers in the US and the largest thin film manufacturer in the world.


First Solar has also entered into long-term contracts with selected customers during 2006, totaling approximately to 1.5 gigawatts over the year’s 2007 to 2012 equating to approximately to $2.6 billion at an assumed exchange rate of $1.20 per Euro. These contracts have established First Solar as a market leader in large scale TV systems and provide multi-year demand visibility enabling it to continue to aggressively expand production capacity.


The company outperforms the industry on cost and margin, which gives it a competitive advantage over its peers in the market. Along with this the rapid growth rate of the solar industry and the thin-film sector is expected to help the company grow better as it has the advantage of being the market leader in the sector. Additionally with long-terms contracts through 2012 under its belt there is no looking back for the company in the future.

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