FirstSolar (FSLR) and SunEdison (SUNE) published their 2Q15 earnings on August 4 and August 6, respectively. The results starkly contrasted with each other. While FirstSolar reported a multifold increase in its net income in 2Q15, SunEdison’s net losses increased multifold. The market reacted to the numbers with similar divergence.
We believe that looking at both these companies together will add more value to our analysis and to our readers. In this series, we’ll look at both companies’ 2Q15 financial and operational performance on a comparative basis.
Headquartered in Tempe, Arizona, FirstSolar is the industry leader in the design and manufacturing of thin-film solar photovoltaics. The company operates under two business segments:
- Components segment
- Systems segment
Under the components segment, the company designs, manufactures, and sells solar photovoltaic modules. While FirstSolar is a leader in thin-film technology, it has recently entered into higher-efficiency crystalline solar cell manufacturing. The company manufactures its products in Perrysburg, Ohio, and Kulim, Malaysia.
Under the Systems segment, FirstSolar provides a host of services such as solar power plant design, construction services, and plant maintenance as well as financing services. This segment has been the key driving factor behind the company’s growth in recent years and it accounts for over 60% of the company’s total revenues.