MEMC swings to loss in 3Q on charges

ST. PETERS, Mo. (AP) ? MEMC Electronic Materials Inc., which makes wafers for solar panels, reported on Wednesday that it slid to a loss in the third quarter due to charges related a write-off of goodwill.

The results missed Wall Street expectations and MEMC issued fourth-quarter guidance that was also below views. Its shares tumbled almost 12 percent in aftermarket trading.

MEMC reported a loss of $94.4 million, or 41 cents a share, for the three months ended Sept. 30. That compares with net income of $17.6 million, or 8 cents a share, in the same quarter last year.

The latest results included a non-cash charge of $56.4 million, or 25 cents a share, to reflect the write-off of good will related to the company’s solar materials segment.

Excluding special items, MEMC earned 3 cents a share, the company said.

Analysts had expected earnings of 8 cents a share, according to FactSet.

Revenue grew 3 percent to $516.2 million from $503.1 million a year earlier, propelled by higher semiconductor wafer pricing, a 20 percent jump in solar wafer volume and sharply higher solar energy system sales. Analysts had forecast $768.6 million in revenue.

Revenue for MEMC’s semiconductor materials business rose 3 percent versus a year earlier to $268.4 million. Solar materials revenue totaled $199.4 million, a 10 percent drop from the third quarter last year, due to wafer price declines.

The company expects to post fourth-quarter adjusted net income in a range of breakeven to 20 cents a share. Analysts had been forecasting 30 cents a share. The company cited “the downturn in the solar upstream supply chain and the softening of semiconductor demand” for its outlook.

MEMC’s shares tumbled 68 cents to $5.10 in aftermarket trading following the release of the earnings report.