First Quarter Highlights:
Shipments increased 448% compared to the first quarter in the prior year period.
Revenue increased 248% to $17.7 million compared to $5.1 million in the first quarter of the prior year.
The first quarter 2010 gross profit increased to positive $1.9 million, compared to negative $2.3 million in the first quarter in the prior year period.
Total module shipments increased 448% in the first fiscal quarter 2010, compared to the first fiscal quarter of the prior year. Revenue increased 248% to $17.7 million compared to $5.1 million in the first fiscal quarter of the prior year.
Revenue for fiscal 2010 first quarter was comprised of approximately $15.3 million in solar modules sales, of which more than 95% were sold to Europe and Australia, and $2.4 million in solar cell sales. The increase in revenue was due to increased sales orders from new and existing customers as a result of heightened efforts by the Company’s sales and marketing team. Specifically, during the last quarter of fiscal year 2009, the Company acquired a 10MW contract from a new customer in Europe, contributing to the increased sales volume.
The first fiscal quarter 2010 gross profit increased to positive $1.9 million, compared to negative $2.3 million in the first quarter in the prior year period. First quarter 2010 gross margin was positive at 11% of total sales compared to negative 46% of total sales in the prior year period. The improvement in gross profit margin was primarily due to cost restructuring and the Company’s ability to increase the manufacture efficiency of its solar cells. Additionally, the Company secured high quality raw materials with favorable credit terms as well as promoted a lean production process and filtered out unqualified products.
Total operating expenses for the fiscal 2010 first quarter were $2.3 million, or 13% of total net sales, which included a $0.6 million non-cash stock compensation credit related to the restructuring of the management team. Excluding these non-cash items, the operating expense for the fiscal 2010 first quarter was $1.7 million, or 10% of total net sales.
This is to be compared with the 2009 first quarter total operating expense of $3.2 million, or 63% of total sales, which included $1.4 million of non-cash stock compensation charges related to the hiring and retention of key executives and $0.3 million of non-cash charges for loss on debt extinguishment. The increase in operating expenses in the fiscal 2010 first quarter compared to fiscal 2009 first quarter was primarily due to increase shipping rates and volume...
| 
