Sunedison Inc. (NYSE:SUNE): 1Q14 Revenue Increased, Net Loss Widened


Dallas, Texas 05/15/2014 (FINANCIALSTRENDS) – Sunedison Inc. (NYSE:SUNE) is a developer, manufacturer and marketer of silicon wafers mainly to the semiconductor industry. The company mainly operates in two business areas: Semiconductor Materials and Solar Energy. Last week on May 8, 2014, the company reported its 1Q14 results which analysts at Zacks regarded as “dismal” results. The company reported significant increase in its revenue on a year over year basis; however, higher operating expenses severely impacted its bottom line performance.

Investment analysts at Zacks considers a possibility of higher margins in coming quarters from Sunedison’s recent partnerships as well as strategic cost saving initiatives. Moreover, the semiconductor business IPO and increasing demand for solar energy business are also expected to benefit the company.

1Q14 Highlights:

Sunedison Inc. (NYSE:SUNE) reported 1Q14 loss at $0.25 per share, significantly missing the Zacks Consensus Estimate of a loss of $0.15 per share. On non-GAAP basis, 1Q14 loss widened from a loss of $0.16 per share reported for 1Q13. Adjusted revenues on non-GAAP basis increased to $577.6 million for 1Q14, 33.9% above 1Q13 revenues, however considerably short of $641.0 million in revenues expected by the Zacks Consensus Estimate. The increase in revenues was largely attributed to increase solar projects sales which increased 86.8% on a year over year basis which was partially offset by 11.3% year over year decrease in company’s semiconductor materials sales.

Sunedison Inc. (NYSE:SUNE)’s gross margins declined to 3.8% during 1Q14 as compared to 9.7% in 1Q13. Non-GAAP operating loss widened to $103.6 million during 1Q14 from $41.4 million reported during 1Q13. Non-GAAP net loss increased to $64.2 million during 1Q14, significantly up from $35.5 million ($0.16 per share) reported during 1Q13. The company reported cash of $526.6 million at the end of 1Q14 as compared to $643.6 million at the end of previous quarter.

Stock Update:

Sunedison’s stock closed at $18.07 on Wednesday, losing 0.28% from its previous close.

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