UPDATE 1-First Solar cuts 2013 outlook, buys GE solar technology
Aug 6 (Reuters) - First Solar on Tuesday reported second-quarter earnings and revenue that were sharply lower than expectations and slashed its outlook for the year due to construction delays for a large project and a decision to sell two projects only after they are finished.
The company's shares slid 5 percent in extended trade.
First Solar also said it is acquiring the intellectual property of General Electric Co's cadmium telluride solar technology and entering into a partnership with the company that will raise operating costs this year. It will issue 1.75 million shares to GE as part of the deal.
Finally, the company said it would acquire a 1.5 gigawatt pipeline of projects in the United States and Mexico from developer Element Power. Terms were not disclosed.
Net income fell 70 percent to $33.6 million, or 37 cents per share, in the second quarter from $111 million, or $1.27 per share, a year ago.
Excluding items, the company earned 39 cents a share, below analysts' average estimate of 52 cents a share, according to Thomson Reuters I/B/E/S.
Revenue fell 46 percent to $520 million. Analysts were expecting $721.08 million in revenue.
During the quarter, First Solar raised $427.7 million from a secondary offering of 9.75 million shares of its common stock.
The Tempe, Arizona company lowered its 2013 sales outlook to between $3.6 billion and $3.8 billion. It had previously expected sales of $3.8 billion to $4 billion.
Its earnings per share forecast, excluding the equity offering and issuance of shares to GE, was lowered to between $3.75 and $4.25. It had previously expected earnings of $4 to $4.50 a share.
Including the share sale and issuance, First Solar expects to earn between $3.50 and $4.00 a share for the year.
First Solar shares fell to $44.33 after closing at $46.75 on the Nasdaq.