MEMC Electronic Materials Earnings: Loss Worsens, Falls Short of Estimates

S&P 500 (NYSE:SPY) component MEMC Electronic Materials Inc. (NYSE:WFR) reported its results for the first quarter. Memc Electronic Material manufactures and sells silicon wafers that are used primarily in semiconductor and solar energy technologies.

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MEMC Electronic Materials Earnings Cheat Sheet for the First Quarter

Results: Loss widened to $92 million (40 cents per diluted share) from $4.5 million (loss of 2 cents per share) in the same quarter a year earlier.

Revenue: Fell 29.4% to $519.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MEMC Electronic Materials Inc. reported an adjusted net loss of 26 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 15 cents per share. It beat the average revenue estimate of $496.4 million.

Quoting Management: “We believe the 2012 first quarter represented a turning point for our Semiconductor Materials business,” said MEMC’s Chief Executive Officer Ahmad Chatila. “Already in the second quarter, we are seeing improved order volumes and firming pricing. Although solar markets remain challenging, we are restructuring our business to lower costs and improve our competitive position. Our restructuring activities remain on track, and we remain committed to driving improved results while maintaining a focus on cash flow generation and liquidity.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with a loss of 9 cents versus a mean estimate of a loss of 14 cents per share.

Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 15.6% to $717.8 million from the year-earlier quarter.

Cost of sales dropped to $462.5 million, down 25.6% from the year-earlier quarter. Last quarter, cost of sales was 89.1% of revenue versus 84.5% a year earlier.

The average estimate for the fiscal year is 15 cents per share, down from 33 cents ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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