SunWorks Inc (SUNWQ)

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First Solar Profit Slips With Power Plants Held on Balance Sheet
http://www.bloomberg.com/news/articles/2016-02-23/first-solar-profit-slips-with-power-plants-held-on-balance-sheet
First Solar Inc. reported a lower profit in the fourth quarter as the largest developer of utility-sized solar farms continued to invest in new projects while holding off on selling other ones.

Net income fell to $164.1 million, or $1.60 a share, from $193 million, or $1.90 a share, a year earlier, Tempe, Arizona-based First Solar said in a statement Tuesday after the close of regular trading. That was more than double 76-cent average of 11 analysts’ estimates compiled by Bloomberg. Sales slipped to $942 million from $1 billion a year earlier.

First Solar expects to produce as much as 3 gigawatts of its cadmium-telluride thin-film panels this year, affirming its December forecast.

The company shifted its strategy last year, and typically retains power plants on its balance sheet until it can sell them to a joint venture it formedlast year with SunPower Corp. First Solar previously focused on selling these projects to third parties, and the change affects when it may recognize some revenue. That also makes it tough for analysts to determine what to expect from quarter to quarter.

“It is always difficult to predict specific timing of revenue recognition on key projects being constructed or completed during each quarter,” Sven Eenmaa, an analyst with Stifel Nicolaus & Co., wrote in a research note Monday.

The joint venture, 8point3 Energy Partners LP, sold shares through an initial public offering in June. It was created to buy and operate power plants and in January announced its first such deal, for 22 megawatts of solar systems that SunPower is developing at school sites in California.

(First Solar scheduled a conference call to discuss results at 4:30 p.m. in New York. Access on the company website at http://investor.firstsolar.com)