First Solar Acquires GE's PrimeStar Solar IP, Misses Q2 Revenue and Lowers Guidance

First Solar Acquires GE’s PrimeStar Solar IP, Misses Q2 Revenue and Lowers Guidance

First Solar partnering with GE in solar modules, inverters, research and ?

Eric Wesoff August 06, 2013

Eric Wesoff

Editor-at-Large
Greentech Media

Eric Wesoff is Editor-at-Large at Greentech Media. Prior to joining GTM, Eric Wesoff founded Sage Marketing Partners in 2000 to provide sales and marketing-consulting services to venture-capital firms and their portfolio companies in the alternative energy and telecommunications sectors. Mr. Wesoff has become a well-known, respected authority and speaker in these fields.

His expertise covers solar power, fuel cells, biofuels and advanced batteries. His strengths are in market research and analysis, business development and due diligence for investors. He frequently consults for energy startups and Silicon Valley's premier venture capitalists.

First Solar, a vertically integrated solar power plant developer, missed Q2 revenue estimates by $201.3 million while posting revenues of $519.8 million, as announced in this afternoon's earnings call.

The company lowered its 2013 guidance and also announced that it has acquired the IP of what was once PrimeStar Solar, the cadmium telluride solar panel manufacturer acquired by General Electric in 2011.

GE (NYSE: GE), with 34 gigawatts of renewable power projects around the globe, is now one of First Solar's top ten investors, having received 1.75 million shares of First Solar common stock as part of this deal. GE will be buying GE-branded First Solar modules for potential deployment in hybrid wind and solar installations. GE and First Solar also aim to partner on inverters and basic research in addition to cadmium telluride module development.

GE held the CdTe efficiency record for a brief period of time -- until First Solar reclaimed the title. GE uses a close space sublimation (CSS) process for its CdTe, while First Solar uses a vapor transport deposition (VTD) process.

GE's last comment to Greentech Media on this topic, about a year ago, insisted on its commitment to solar and manufacturing in its Aurora, Colorado facility.

Here are the revised guidance numbers:

Some of this softening in guidance is about the timing and fashion in which revenue is recognized for solar projects and the extent to which projects are held to completion.

First Solar also announced the acquisition of Element Power's 1.5-gigawatt pipeline of U.S. and Mexico development projects.

First Solar noted that a new back-contact technology increased efficiency and lowered long-term degradation. Current module cost is $0.67 per watt.