MEMC Electronic Materials Inc., which makes wafers for solar panels, said Wednesday that its second-quarter profit climbed, helped by a boost in revenue from the resolution of a wafer supply agreement with Suntech Power Holdings Co.
For the quarter that ended June 30, MEMC earned $47.3 million, or 21 cents per share. This compares with $13.8 million, or 6 cents per share, in the year-ago quarter.
Excluding one-time items, MEMC earned 29 cents per share. Analysts polled by FactSet expected 4 cents per share.
Revenue rose 66 percent to $745.6 million, well above the $665.9 million analysts were anticipating, due to $149.5 million in revenue that stemmed from the company resolving a wafer supply agreement with Suntech.
Revenue from semiconductor materials rose 10 percent to $275.3 million. Due to the Suntech revenue, solar materials revenue rose 92 percent to $323.1 million. The company’s solar energy revenue from its SunEdison business more than quadrupled to $147.2 million.
In a statement, MEMC CEO Ahmad Chatila said the company’s results show its “resilience” despite slower sales and lower pricing for solar wafers and the disruption caused by the March earthquake in Japan.
Citing weaker demand in the semiconductor market, Suntech lowered its outlook for the full year, saying it now expects adjusted net income of 80 cents to $1 per share on $2.7 billion to $3.0 billion in revenue.
Analysts expect adjusted net income of 90 cents per share on $3.28 billion in revenue.
MEMC shares rose 13 cents in extended trading to $7.12. The stock finished regular trading down 3 cents at $6.99.
