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ABOUT MEMC
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MEMC, based in St. Peters, Missouri, is a global leader in the manufacture and sale of wafers and related products to the semiconductor and solar industries. MEMC’s products are the building blocks for the $1 trillion electronics and the $35 billion solar cell and module markets. Through its SunEdison subsidiary, MEMC is also a developer of solar power projects and is a leading solar energy services provider. MEMC, which was founded in 1959, employs approximately 7,500 people worldwide and recorded sales of $2.2 billion in 2010. MEMC’s stock is traded on the New York Stock Exchange under the symbol WFR.
MEMC operates three business units: Semiconductor Materials, Solar Materials and Solar Energy.
POSITIONED TO LEAD
Wafer Market Leader
- Integrated polysilicon, semiconductor wafer and solar wafer provider
- Established and growing customer relationships in over 30 countries around the world
Technology Leadership
- Extensive intellectual property portfolio with more than 770 worldwide patents and 430 applications on file
- First large-volume manufacturer of Fluidized Bed or “granular” polysilicon
Operational Expertise
- Competitive cost structure with further improvements targeted
- Global manufacturing, sales and service footprint makes MEMC a “local” supplier to our customers
Diversified Markets
- One of only four major suppliers of semiconductor wafers and a proven supplier to the solar industry
- Balanced market position provides stability and growth
New Opportunities
- Acquired in 2009, SunEdison’s downstream leadership in solar project development accelerates growth
- Acquired in 2010, Solaicx’s proprietary process and equipment provides entry into fast-growing, adjacent monocrystalline solar market
GLOBAL SALES AND MANUFACTURING
DRIVING SUSTAINED ACHIEVEMENT AT MEMC
- MEMC’s MISSION is to provide the highest-value products and services to customers in the semiconductor and solar industries through exceptional quality, technology, and service.
- VALUES are the foundation of the company. They define MEMC and how work is done, and they never change. The company’s decisions are grounded in these values, and they guide relationships with customers, suppliers, shareholders, the community, and employees. The people of MEMC live these values every day: Integrity, teamwork, diversity, and performance.
- MEMC’s CULTURE is what makes the company unique. It’s how MEMC chooses to operate the business. It is a combination of MEMC’s vision and philosophy of retaining, promoting, and attracting the right people, operating in a way that directly reflects the company’s core values, and putting customers first. The MEMC culture is: customer-driven, externally focused, innovative, lean, and characterized by the belief that challenges equal opportunity.
| MEMC Reports Second Quarter 2012 Results |
ST. PETERS, Mo., Aug. 8, 2012 /PRNewswire/ – MEMC Electronic Materials, Inc. (NYSE: WFR) announced financial results for the second quarter of 2012 that reflected improvement in the company’s Semiconductor Materials business and improved operational execution in its Solar Energy business. Revenue in the second quarter of 2012 increased sequentially and year-over-year on improving conditions and operational execution in the company’s semiconductor business, and stronger execution in a difficult environment in its solar energy business. Revenue in the company’s Semiconductor Materials business grew sequentially driven by higher volume but declined year-over-year due to price erosion and lower volume. Solar Energy revenue rose sequentially and year over year on higher solar project sales. For the second quarter of 2012, SunEdison recognized non-GAAP revenue on 169 MW of solar energy systems sales, compared to 49 MW in the 2012 first quarter and 28 MW in the 2011 second quarter. Despite these increased solar energy systems sales, SunEdison’s project pipeline remained flat at 2.9 GW. “Our improved results were driven by better performance in both our Semiconductor Materials and Solar Energy segments. We sold several large European solar projects despite highly uncertain market conditions, and we experienced stronger semiconductor wafer demand. As a result, our financial position strengthened,” said MEMC’s Chief Executive Officer Ahmad Chatila. “For the second half of the year, we remain committed to driving a healthier balance sheet and stronger returns for our stakeholders.” Revenue Non-GAAP revenue for the quarter was $933.4 million, a 20% increase compared to the 2011 second quarter and a 78% increase compared to the 2012 first quarter. Second quarter 2011 non-GAAP revenue included $149.4 million resulting from the LTA resolution. The year-over-year increase was driven by higher Solar Energy revenue, partially offset by lower Semiconductor Materials revenue, while the sequential increase was driven by strong growth in both the Semiconductor Materials and Solar Energy segments. Non-GAAP revenue for the 2012 second quarter includes $125.0 million related to real estate and sale-leaseback transactions that will be recognized in earnings under GAAP in the future, primarily beyond 2012. See the financial statement tables at the end of this press release for a reconciliation of all GAAP to non-GAAP financial measures included herein. Gross Margin Net Income (Loss) Non-GAAP net income for the 2012 second quarter was $32.9 million, or $0.14 per share, compared to non-GAAP net income of $66.2 million, or $0.29 per share, in the 2011 second quarter and non-GAAP net loss in the 2012 first quarter of $59.4 million, or ($0.26) per share. Second quarter 2011 GAAP and non-GAAP net income was positively impacted by $64.5 million, reflecting an after tax benefit of $132.6 million related to the LTA resolution, partially offset by $68.1 millionin various other charges. Non-GAAP net income includes the company’s customary adjustments related to its SunEdison project development business. See the financial statement tables at the end of this press release for a reconciliation of all GAAP to non-GAAP financial measures included herein. Cash Flow Capital expenditures were $36.3 million in the 2012 second quarter, down from $102.7 million in the 2011 second quarter and $40.0 million in the 2012 first quarter. For the remainder of 2012, capital spending is expected to remain at or below the current quarterly rate and will be largely targeted for the Semiconductor Materials segment. Construction of solar energy systems of $58.7 million in the 2012 second quarter included solar energy systems currently classified as owned and carried as fixed assets. The majority of these projects are expected to become sale-leaseback transactions in which the assets are financed with non-recourse debt. Projects expected to result in direct sales are classified as solar energy systems held for development and sale, thus impacting operating cash flows as noted above. MEMC ended the 2012 second quarter with cash and cash equivalents of $448.6 million, an increase of $68.0 million from the prior quarter, driven primarily by improved operational performance and completed solar energy system financings. Unrestricted cash and unused corporate revolver capacity was $719.1 million at the end of the 2012 second quarter, as compared to $636.9 million at the end of the 2012 first quarter. The company continues to implement programs to manage its liquidity and capital resources and expects to maintain adequate liquidity during 2012. A non-recourse construction facility for North American projects has been recently amended, which amendment included decreasing the total capacity to $110 million, against which approximately $66 million was drawn at quarter end, with the balance of $44 million available for draws at June 30, 2012. Following is additional detail on second quarter 2012 results by segment. Semiconductor Materials Segment operating loss was $4.3 million, compared to operating profit of $3.4 million in the 2011 second quarter and an operating loss of $12.5 million in the 2012 first quarter. The year-over-year decline was driven primarily by lower sales, plant utilization and pricing, and the sequential improvement was driven by productivity gains and cost improvements, partially offset by lower prices. Solar Energy Segment GAAP operating income was $27.7 million, compared to operating income of $80.8 million in the 2011 second quarter and operating loss of $10.5 million in the 2012 first quarter. Second quarter 2011 segment operating income was favorably impacted by a $75.6 million net benefit which was comprised of the $149.4 million LTA resolution, partially offset by various other charges of $73.8 million. Segment non-GAAP revenue for the 2012 second quarter was $700.7 million, compared to $504.3 million in the 2011 second quarter and $307.8 million in the 2012 first quarter. Solar Energy non-GAAP revenue in the 2011 second quarter included a $149.4 million benefit related to the LTA resolution. Second quarter 2012 non-GAAP revenue also included net adjustments of $125.0 million related to direct sale and sale-leaseback transactions. Solar projects representing 169 MW were recognized under segment non-GAAP revenue, of which 155 MW were direct sales and 14 MW were sale-leaseback transactions. Solar projects interconnected during the 2012 second quarter were 87 MW in 24 projects, comprised of 56 MW of direct sales projects and 31 MW of sale-leaseback projects. Second quarter 2012 segment non-GAAP operating income was $77.5 million, compared to non-GAAP operating income of $96.3 million in the 2011 second quarter and non-GAAP operating loss of $14.7 million in the 2012 first quarter. 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. Solar Energy ended the 2012 second quarter with a pipeline of 2.9 GW, flat compared to the prior quarter and up from 2.5 GW a year ago. A solar project is classified as “pipeline” where SunEdison has a signed or awarded PPA or other energy off-take agreement or has achieved each of the following three items: site control, an identified interconnection point with an estimate of the interconnection costs, and an executed energy off-take agreement or the determination that there is a reasonable likelihood that an energy off-take agreement will be signed. There can be no assurance that all pipeline projects will convert to revenue because in the ordinary course of our development business some fall-out is typical and certain projects will not be built. As of June 30, 2012, 104 MW of the pipeline was under construction. “Under construction” refers to projects within pipeline, in various stages of completion, which are not yet operational. Corporate/Other Outlook For the third quarter 2012:
For the full year 2012:
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