MEMC plunges into loss in Q3 2011

Nov 3, 2011 - US silicon wafer maker MEMC Electronic Materials Inc (NYSE:WFR) turned to a third-quarter net loss of USD 94.4 million (EUR 69m) from a net profit of USD 17.6 million as it wrote down the value of its solar materials business.

The result included a USD-56.4-million non-cash goodwill impairment charge related to the unit.

Loss per share stood at USD 0.41, compared with earnings per share of USD 0.08.

Operating loss came in at USD 103.8 million from a profit of USD 9.9 million as operating expenses increased.

Revenue rose 3% on the year to USD 516.2 million, driven by an increase in the solar energy segment to USD 48.4 million from USD 21.5 million. Semiconductor materials sales rose to USD 268.4 million from USD 261.1 million, while revenue in the solar materials segment dropped 10% to USD 199.4 million due to lower solar wafer prices.

During the quarter, solar power unit SunEdison interconnected 85 MW of projects, including 49 MW direct sales projects, 35 MW of sale-leaseback projects and 1 MW of debt-financed projects.

Cash flow from operations at September 30 increased to USD 187.7 million from USD 52.3 million in the same period last year.

(USD 1 = EUR 0.731)

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