Q1 2024 First Solar Inc Earnings Call

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Unknown Executive: Good afternoon, everyone, and welcome to First Solar's first quarter 2024 earnings call. This call is being webcast live on the investor section of First Solar's website at investors.firstsolar.com. At this time, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the call over to Richard Romero from First Solar Investor Relations. Richard, you may begin.

Good afternoon, everyone and welcome to your first one was the first quarter of 2024 earnings call. This call is being webcast live on the investors section of first solar website at investors that first solar dot com at this time all participants are in a listen only mode. As a reminder, today's call is being recorded I would now like to turn the call over to Richard.

Richard: Romero from first solar Investor Relations Richard you may begin.

Richard Romero: Good afternoon, and thank you for joining us. Today the company issued a press release announcing its first quarter 2024 financial results. A copy of the press release and associated presentation are available on our website at Investor. firstsolar.com. With me today are Mark Widmar, Chief Executive Officer, and Alex Bradley, Chief Financial Officer.

Richard Romero: Good afternoon, and thank you for joining us.

Richard Romero: Today, the company issued a press release announcing its first quarter 2024 financial results.

Richard Romero: A copy of the press release and associated presentation are.

Richard Romero: Available on our website at Investor.

Richard Romero: First solar Dot com.

Richard Romero: With me today are Mark Widmar, Chief Executive Officer, and Alex Bradley Chief Financial Officer.

Mark R. Widmar: Mark will provide business strategy and policy updates.

Alex will discuss our bookings pipeline quarterly financial results and provide updated guidance.

Mark R. Widmar: Following their remarks, we'll open the call for questions.

Mark R. Widmar: Please note. This call will include forward looking statements that include risks and uncertainties.

Mark R. Widmar: That could cause actual results to differ materially from management's current expectations.

Mark R. Widmar: We encourage you to review the Safe Harbor statements contained in today's press release and presentation for a more complete description.

Richard Romero: Mark will provide business, strategy, and policy updates. Alex will discuss our bookings, pipeline, quarterly financial results, and provide updated guidance. Following their remarks, we will open the call for questions. Please note this call will include forward-looking statements that include risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statements contained in today's press release and presentation for a more complete description. It is now my pleasure to introduce Mark Widmar, Chief Executive Officer.

Mark R. Widmar: It is now my pleasure to introduce Mark Widmar, Chief Executive Officer.

Mark R. Widmar: Good afternoon, and thank you for joining us today. We are pleased with our start to 2024 with good operating performance, selective year-to-date bookings at 2.7 gigawatts with an ASV over 31 cents per watt excluding adjusters or 32.7 cents per watt assuming the realization of technology adjusters and solid financial performance. We're also pleased with the foundations to enable our long-term goal of exiting this decade in a stronger position than we entered it, from increasing production of our Most Advantaged Series 7 module to expanding our manufacturing footprint.

Mark R. Widmar: Good afternoon, and thank you for joining US today, we are pleased with our start to 2024 with good operating performance selective year to date bookings of $2 seven gigawatts with an ASC over 31 cents per watt, excluding the adjusters or $32.07 per watt, assuming the utilization of technology.

Adjusters and solid financial performance.

Mark R. Widmar: Also please.

Mark R. Widmar: Developing foundations to enable our long term goal of exiting this decade in a stronger position than we entered it.

Mark R. Widmar: From increasing production of our most advantaged series seven module to expanding our manufacturing footprint.

Mark R. Widmar: Through the building of an R&D innovation center and perovskite development line that is expected to enable the development of the next generation of disruptive solar technology, we are focused on a future of differentiation and sustainable growth. But while we continue to play the long game, we must acknowledge the current environment in the solar manufacturing industry, which remains in a state of heightened volatility driven by intentional structure overcapacity in China. As we previously said, our ability to play this long game is a direct result of our differentiated technology and business model.

Mark R. Widmar: To the building of an R&D innovation center in Perovskite development line that is expected to enable development of the next generation of disruptive solar technology, we are focused on the future of differentiation and sustainable growth.

Mark R. Widmar: So while we continue to play the long game, we must acknowledge the current environment in the solar manufacturing industry, which remains in a state of heightened volatility driven by intentional structure overcapacity in China.

Mark R. Widmar: As we've previously said our ability to play this long game as a direct result of argument shaded technology and business model.

Mark R. Widmar: From a technological perspective, the contrast is clear between our unique proprietary cadmium telluride semiconductor technology and highly commoditized crystalline silicon modules. This difference has become increasingly apparent in light of the recently announced disputes concerning the alleged infringement of Top Gun cell technology and intellectual property rights, which cast doubts on numerous crystalline silicon producers having the freedom to legally manufacture and sell this technology.

Mark R. Widmar: From a technological perspective. The contrast is clear between our unique proprietary gallium tolerate semiconductor technology.

Mark R. Widmar: And highly commoditized crystalline silicon modules.

Mark R. Widmar: This difference has become increasingly apparent in light of the recently announced disputes.

Mark R. Widmar: Turning to alleged infringement of top cancer technology, and intellectual property rights, which cast outs on numerous crystalline silicon producers, having the freedom to legally manufacture and sell this technology.

Mark R. Widmar: From a business model and growth perspective, we are once again reminded of the value of our balanced approach to growth, liquidity, and profitability. According to reports, large Chinese solar companies have warned of potential quality and reliability issues as manufacturers cut corners and the impact of the current oversupply environment and associated financial stress on R&D and innovation.

Mark R. Widmar: From a business model and growth perspective.

Mark R. Widmar: Once again reminded of the value of our balanced approach to growth liquidity and profitability.

Mark R. Widmar: According to reporting large Chinese solar companies have warned a potential quality and reliability issues as manufacturers cut corners, and the impact of the current oversupply environment and associated financial stress on R&D and innovation.

Mark R. Widmar: By contrast, we continue to invest. We are on track to commission our R&D Innovation Center and a perovskite development line in Ohio in the second half of this year, representing a combined investment of nearly half a billion dollars. And we continue to optimize our products for energy efficiency and cost. In the face of overcapacity, the average large Chinese solar manufacturing facility reportedly had a record low capacity utilization rate of 23% in February of this year.

Mark R. Widmar: Contrast, we continue to invest.

Mark R. Widmar: We're on track to Commission, our R&D Innovation Center, and our Perovskite development line in Ohio in the second half of this year.

Mark R. Widmar: Representing a combined investment of nearly half a billion dollars and we continue to optimize our products for energy efficiency and cost.

Mark R. Widmar: In the face of overcapacity, the average large Chinese solar manufacturing facility reportedly had a record low capacity utilization rate of 23% in February of this year.

Mark R. Widmar: In contrast, supported by our large contracted backlog, our facilities were operating near nameplate capacity in the first quarter of this year. The Chinese solar industry is engaged in a race to the bottom, with irrationally low market prices distorting pricing that has caused even Chinese companies to call for intervention by the Chinese government to manage the pricing environment and stem the financial hardship this is causing.

Mark R. Widmar: In contrast, supported by our large contracted backlog our facilities were operating near nameplate capacity in the first quarter of this year.

Mark R. Widmar: The Chinese solar industry is engaged in a race to the bottom with.

Mark R. Widmar: With irrationally low market distorting pricing that has caused even Chinese companies to call for intervention by the Chinese government to manage the pricing environment instead of the financial hardship this is causing them.

Mark R. Widmar: By contrast, we remain focused on a highly selective approach to forward contracting that provides optionality and healthy ASPs. However, we are not immune to the broader ramifications of the Chinese solar business model. However, we continue to focus on our points of differentiation, which aim to provide some resiliency in light of current industry challenges. We're also focused on policy and trade drivers that can counter anti-competitive and abusive market behavior. There should be no doubt that we invite competition and free trade.

Mark R. Widmar: By contrast, we remain focused on a highly selective approach to forward contracting that provides optionality and healthy asps.

Mark R. Widmar: We are not immune to the broader ramifications of the Chinese solar business model. However, we continue to focus on our points of differentiation, which aimed to provide some resiliency in light of current industry challenges.

Mark R. Widmar: We're also focused on policy and trade drivers that can counter anti competitive and abuse of market behaviors there.

Mark R. Widmar: There should be no doubt, we invite competition and free trade.

Mark R. Widmar: All we continue to seek is that competition and trade are practiced on a fair and level playing field. We believe this approach will help us to drive growth. Navigate Industry Volatility and Deliver Enduring Shareholder Value. On slide three, I will share some highlights from the first quarter. From a commercial perspective, we continued our selective approach to building backlog underpinned by our cumulatively oversold position through 2026. Since our last earnings call approximately nine weeks ago,

Mark R. Widmar: While we continue to seek is that the competition in trade our practice on a fair and level playing field.

Mark R. Widmar: We believe this approach will help us to drive growth.

Advocate industry volatility and deliver enduring shareholder value.

Mark R. Widmar: On slide three I will share some highlights from the first quarter.

Mark R. Widmar: From a commercial perspective, we continued our selective approach to building backlog underpinned by our cumulatively oversold position through 2026.

Mark R. Widmar: Since our last earnings call approximately nine weeks ago.

Mark R. Widmar: We have booked 854 megawatts with an ASP of 30.1 cents per watt, excluding adjusters where applicable. This brings our year-to-date net bookings to 2.7 gigawatts, with an average ASP of 31.3 cents per watt, excluding the adjusters, or 32.7 cents per watt, assuming the realization of technology adjustments.

We have booked 854 megawatts with an ASP of $30 one per watt, excluding adjusters where applicable.

Mark R. Widmar: This brings our year to date net bookings to two seven gigawatts with an average ASP of 31 three per watt, excluding adjusters or 32 seven per watt, assuming the realization of technology Adjustors.

Mark R. Widmar: Our total contracted backlog now stands at 78.3 gigawatts, with orders stretching through 2030. From a manufacturing perspective, we are pleased with our solid Q1 performance, including producing a record 3.6 gigawatts of modules. As a result of our relentless focus on manufacturing, From a technology perspective, we are pleased with our Cura module field test and have completed the UL and IEC certification processes. We continue to anticipate launching CURE at our lead line factory in Ohio in Q4 of this year.

Mark R. Widmar: Our total contracted backlog now stands at 78, three gigawatts with order stretching through 2030.

Mark R. Widmar: From a manufacturing perspective, we are pleased with our solid Q1 performance.

Mark R. Widmar: Including producing a record three six gigawatts of modules.

Mark R. Widmar: As a result of our relentless focus on manufacturing excellence.

Mark R. Widmar: From a technology perspective, we are pleased with our carrier module field test and have completed the UL and IAC certification process.

Mark R. Widmar: We continue to anticipate launching cure at our lead line factory in Ohio in Q4 this year.

Mark R. Widmar: In parallel to preparing for launch, we continue to make progress on technical solutions that could enable accelerating CURES replication across our factories at a lower CapEx than assumed at a recent analyst day. Alex will provide a comprehensive overview of our first quarter 2024 financial results. I would like to highlight our ability to deliver strong performance in a market challenged by Chinese oversupply, which, in our view, validates our approach to long-term forward contracts. This led to first quarter earnings per diluted share of $2.20 and a quarter and net cash balance of $1.4 billion.

Mark R. Widmar: In parallel to preparing for large we continue to make progress on technical solutions that could enable accelerating cures replication across our factories.

Mark R. Widmar: At a lower Capex and assumed at our recent analyst day.

Mark R. Widmar: But Alex will provide a comprehensive overview of our first quarter 2024 financial results I would like to highlight our ability to deliver strong performance and a market challenge by Chinese oversupply, which in our view validates our approach to long term forward contracting.

Mark R. Widmar: This led to first quarter earnings per diluted share of $2 20.

Mark R. Widmar: And our quarter end net cash balance of $1 4 billion.

Mark R. Widmar: Moving to slide four, our growth plans remain on track. The expansion of our Perrysburg, Ohio manufacturing footprint is expected to be completed, and commercial shipments are expected to begin before the end of the second quarter. Construction activity at our new facility in Alabama is complete, and the first tools are now being installed in preparation for the expected start of commercial shipments in the second half of this year. Our new Louisiana facility is also on track with a start of commercial operations expected in late 2025.

Moving to slide four our growth plans remain on track.

Mark R. Widmar: The expansion of our Perrysburg, Ohio manufacturing footprint is expected to be completed and commercial shipments are expected to begin before the end of the second quarter.

Construction activity at our new facility in Alabama is complete and the first tools are now being installed in preparation for the expected start of commercial shipments in the second half of this year.

Mark R. Widmar: Our new Louisiana facility is also on track with the start and commercial operations expected in late 2025.

Mark R. Widmar: Internationally, our India facility is continuing to ramp up. And we're proud that the first Indian-made Series 7 modules have been deployed in the field. We therefore expect to exit 2024 with over 21 gigawatts of global nameplate capacity and 2026 with over 25 gigawatts of nameplate capacity. All of this capacity is available to serve the U.S. market, with over half of our capacity physically located in the U.S. Additionally, we are on track to commission the previously mentioned R&D projects in Ohio in the second half of this year, which will comprise a perovskite development line and a new R&D innovation center at our Perrysburg campus.

Mark R. Widmar: Internationally, our India facility is continuing to ramp.

Mark R. Widmar: And we're proud that the first Indian made series seven modules have been deployed in the field.

Mark R. Widmar: We therefore expect to exit 2024 with over 21 Gigawatts of global nameplate capacity.

Mark R. Widmar: 2026 with over 25 Gigawatts of nameplate capacity.

Mark R. Widmar: All of this capacity is available to serve the U S market with over half of our capacity physically located in the U S.

Mark R. Widmar: Additionally, we are on track to commission. The previously mentioned R&D projects in Ohio in the second half of this year, which will comprise a prostate development line.

Mark R. Widmar: Our new R&D innovation center at our Perrysburg campus.

Mark R. Widmar: The Innovation Center features a high-tech CAD-TEL pilot line, which we expect will accelerate our development activities and bring capabilities for full-size prototyping of thin film and tandem PV modules. At our analyst day in September 2023, we talked about the need to create a disruptive, transformative technology platform that balances energy efficiency and cost. We believe that these investments in R&D will help accelerate our cycles of innovation, optimize our technology roadmap, and reinforce our position of strength through technological leadership. I'll now turn the call over to Alex to discuss our bookings, pipeline, and finances.

Mark R. Widmar: Innovation Center features a high Tech CAD Tel pilot line, which we expect will accelerate our development activities and bring capabilities for full size prototyping of thin film in tandem PV modules.

At our analyst day in September 2023, we talked about the need to create a disruptive transform technology platform that balances energy efficiency and costs.

Mark R. Widmar: We believe that these investments in R&D will help accelerate our cycles of innovation optimize our technology roadmap and reinforce our position of strength through technology leadership.

Mark R. Widmar: I'll now turn the call over to Alex to discuss our bookings pipeline and financials.

Alexander R. Bradley: Thanks Mark.

Alexander R. Bradley: Beginning on slide five, as of December 31, 2023, our contracted backlog totaled 78.3 gigawatts, with an aggregate value of $23.3 billion. Through March 31, 2024, we entered into an additional 2.7 gigawatts of contracts and recognized 2.7 gigawatts of volume sold, resulting in a total backlog of 78.3 gigawatts with an aggregate value of $23.4 billion, which implies an ASP of As we previously stated, given our diminished available supply, the long-dated time frame into which we're now selling.

Alexander R. Bradley: On slide five as of December 31, 2023, our contracted backlog totaled $78 three gigawatts with an aggregate value of $23 3 billion.

Alexander R. Bradley: Through March 31, 2024, we entered into an additional two seven gigawatts of contracts and recognized $2 seven gigawatts of volume sold resulting in a total backlog of $78 three gigawatts with an aggregate value of $23 4 billion, which implies an ASP of approximately $29 nine per watt excluding adjustments.

Alexander R. Bradley: As we previously stated given our diminished available supply the long dated timeframe into which we're now selling the.

Alexander R. Bradley: The need to align customer project visibility with our balanced approach to ASPs, payment security, and other key contractual terms, and uncertainty related to the policy environment and the upcoming U.S. election cycle. We expect to take advantage of our position of strength in our contracted backlog and be highly selective in our approach to new bookings this year. We will continue to contract with customers who prioritize long-term relationships and appropriately value our point of differentiation.

Alexander R. Bradley: The need to align customer project visibility with our balanced approach to asps payment.

Payment security and other key contractual terms.

Alexander R. Bradley: And uncertainty related to the policy environment in the upcoming U S election cycle.

Alexander R. Bradley: We expect to take advantage of our position of strength in our contracted backlog and be highly selective on our approach to new bookings this year.

Alexander R. Bradley: We will continue to forward contract with customers, who prioritize long term relationships and appropriately value our points of differentiation.

Alexander R. Bradley: A substantial portion of our overall backlog includes the opportunity to increase the base ASP through the application of adjustments if we are able to realize achievements within our current technology roadmap as of the expected timing of delivery for the product. At the end of the first quarter, we had approximately 40.2 gigawatts of contracted volume with these adjusters, which if fully realized, could result in additional revenue of up to approximately 0.5 billion or approximately one cent per watt, the majority of which will be recognized between 2025 and 2027.

Alexander R. Bradley: The substantial portion of our overall backlog includes the opportunity to increase the base Asps.

Alexander R. Bradley: Through the application of adjusted if we are able to realize achievements within our current technology roadmap as of the expected timing of delivery for the product.

Alexander R. Bradley: At the end of the first quarter, we had approximately 42 gigawatts of contracted volume with these adjusters, which.

Alexander R. Bradley: Which is fully realized could result in additional revenue of up to approximately <unk> 5 billion or approximately <unk> <unk> per watt the majority of which will be recognized between 2025 and 2027.

Alexander R. Bradley: This amount does not include potential adjustments, which are generally applicable to the total contracted backlog, both the ultimate module being delivered to the customer, which may adjust the ASP under the sales contract upward or downward, and for increases in sales rates or applicable aluminum or steel commodity price changes. As reflected on slide six, our total pipeline of potential bookings remains strong, with booking opportunities of 72.8 gigawatts, an increase of approximately 6.3 gigawatts in the previous quarter.

Alexander R. Bradley: This amount does not include potential adjustments, which are generally applicable to the total contracted backlog both the ultimate module being delivered to the customer which may adjust the ASP and a sales contract upward or downwards and.

Alexander R. Bradley: And so increases in sales rate or applicable aluminum or steel commodity price changes.

Alexander R. Bradley: As reflected on slide six our total pipeline of potential bookings remained strong with bookings opportunities of 72, eight gigawatts an increase of approximately $6 three gigawatts in the previous quarter.

Alexander R. Bradley: A mid to late stage bookings opportunity decreased by approximately 2.6 gigawatts to 29.4 gigawatts, which now includes 25.8 gigawatts in North America and 3.3 gigawatts in India. Included within our mid to late stage pipeline are 3.7 gigawatts of opportunities that are contracted subject to conditions, which includes one gigawatt in India. As a reminder, signed contracts in India will not be recognized as bookings until We're seeing meaningful increases in demand expectations driven in part by data center load growth. According to McKinsey, U.S. data center power consumption is expected to reach 35 gigawatts annually by 2030.

Alexander R. Bradley: Our mid to late stage bookings opportunities decreased by approximately $2 six gigawatts to 29 four gigawatts.

Alexander R. Bradley: And now includes 25 eight Gigawatts in North America, and three three Gigawatts in India.

Alexander R. Bradley: Included within our mid to late stage pipeline, our three seven gigawatts of opportunities that are contracted subject to conditions.

Alexander R. Bradley: Which includes one gigawatt in India.

Alexander R. Bradley: As a reminder, signed contracts in India will not be recognized as bookings until we have received full security against the offtake.

Alexander R. Bradley: We're seeing meaningful increases in demand expectations, driven in part by data center load growth.

Alexander R. Bradley: According to Mckinsey U S data center power consumption is expected to reach 75 gigawatts annually by 2030 much of this growth supplied by renewable energy given that the Hyperscale is like Apple Google.

Alexander R. Bradley: Much of this growth is supplied by renewable energy, given that hyperscalers like Apple, Google, NASA, and Microsoft are committed to 24-7 use of carbon-free energy. We believe that First Solar is strongly positioned to supply this emerging sector, given our advantage technology and more sustainable products. Slide 7 will cover our financial results for the first quarter. Net sales in the first quarter were $794 million, a decrease of $365 million compared to the fourth quarter.

Alexander R. Bradley: And Microsoft.

Alexander R. Bradley: Submit it to $24 seven use of carbon free energy.

We believe the first dollar is strongly positioned to supply this emerging sector, given our advantaged technology and more sustainable product.

Alexander R. Bradley: Slide seven I'll cover our financial results for the first quarter.

Alexander R. Bradley: The decrease in net sales was driven by an expected historical seasonal reduction in the Q1 volume and module sold. Gross margin was 44% in the first quarter compared to 43% in the fourth quarter of 2023. This increase is primarily driven by a higher mix of modules sold from our U.S. factories, which qualify as a Section 45x tax credit, partially offset by higher warehousing and logistics costs in India and the US. SG&A R&D and production startup expenses totaled $104 million in the first quarter, a decrease of approximately $7 million compared to the prior quarter.

Net sales in the first quarter was $794 million, a decrease of $365 million compared to the fourth quarter.

Alexander R. Bradley: Decrease in net sales was driven by an expected historical seasonal reduction in the Q1 volume of module sold.

Alexander R. Bradley: Gross margin was 44% in the first quarter compared to 43% in the fourth quarter of 2023.

Alexander R. Bradley: This increase was primarily driven by a higher mix of module sold from our U S factories, which qualifies the section 45 ex tax credits.

Alexander R. Bradley: Firstly offset by higher warehousing and logistics costs in India and the U S.

Alexander R. Bradley: SG&A R&D and production startup expenses totaled $104 million in the fourth first quarter, a decrease of approximately $7 million compared to the prior quarter.

Alexander R. Bradley: This decrease was primarily due to lower professional fees as we incurred certain costs to facilitate the sale of our 2023 Section 45X credits during the prior, Low Incentive Compensation, and receipt of an R&D grant at our factories in Ohio. These reductions were partially offset by higher production start-up expenses for our Alabama factory and Ohio manufacturing footprint expansions, as well as the reversal of certain credit losses in the prior quarter due to improved collections for our accounts receivable.

Alexander R. Bradley: This decrease was primarily due to lower professional fees as we incurred certain costs to facilitate the sale of our 2023 section 45 X credits during the prior quarter lower incentive compensation and the receipt of an R&D grants at our factories in Ohio.

Alexander R. Bradley: These reductions were partially offset by higher production startup expenses for Bama factory in Ohio manufacturing footprint expansions.

Alexander R. Bradley: What is the reversal of certain credit losses in the prior quarter. She has improved collections of our accounts receivable.

Alexander R. Bradley: Our first quarter operating income was $243 million, which included depreciation, amortization, and accretion of $91 million, ramped costs of $12 million, production startup expenses of $15 million, and Share Based Compensation Expense of $7. The increase in other income and expense was primarily driven by the prior quarter impairment of our strategic investment in cubic feet. Recorded tax expenses of 19 million in the first quarter compared to 27 million in the fourth quarter. The decrease in tax expense was largely driven by excess tax benefits associated with share-based compensation awards and lower pre-tax income.

Alexander R. Bradley: Yes.

Alexander R. Bradley: Our first quarter operating income was 243 million, which included depreciation amortization and accretion of $91 million ramp cost of $12 million production startup expense of $15 million and share based compensation expense $7 million.

Alexander R. Bradley: The increase in other income and expense was primarily driven by the prior quarter impairment, while strategic investment in cubic PB.

Alexander R. Bradley: We recorded tax expense of $19 million in the first quarter at $27 million in the fourth quarter.

Alexander R. Bradley: The decrease in tax expense was largely driven by excess tax benefits associated with share based compensation awards and lower pretax income.

Alexander R. Bradley: The combination of the aforementioned items led to first quarter earnings for the loser's share of $2.20. Next, turn to slide 8 to discuss select balance sheet items and summary cash flow. Our cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities ended the quarter at $2 billion compared to $2.1 billion at the end of the prior quarter. This decrease is primarily attributable to capital expenditures associated with our new U.S. factories in Alabama and Louisiana and our Ohio capacity expenses, partially offset by operating cash flows from our module segment.

Combination of the aforementioned items led to first quarter earnings per diluted share of $2 20.

Alexander R. Bradley: Total debt at the end of the third quarter was $620 million, an increase of $60 million from the third quarter as a result of additional working capital facilities to support the ramp-up of our new India plan. Our net cash position decreased by approximately $0.2 billion to $1.4 billion as a result of the aforementioned factors. Cash flows from operations were $268 million in the first quarter, and capital expenditures were $413 million during the period.

Alexander R. Bradley: Yes.

Alexander R. Bradley: Next turn to slide eight to discuss select balance sheet items and summary cash flow information.

Alexander R. Bradley: Our cash cash equivalents restricted cash restricted cash equivalents in marketable securities ended the quarter at 2 billion compared to $2 1 billion at the end of the prior quarter.

This decrease was primarily attributable to capital expenditures associated with our new U S factories in Alabama, and Louisiana, and our Ohio capacity expansion.

Alexander R. Bradley: Partially offset by operating cash flows from our module segment.

Alexander R. Bradley: Okay.

Alexander R. Bradley: Total debt at the end of the first quarter was $620 million, an increase of $60 million from the fourth quarter as a result of additional working capital facilities support the ramp of our new India plant.

Alexander R. Bradley: Our net cash position decreased by approximately <unk> 2 billion to $1 4 billion as a result of the aforementioned factors.

Alexander R. Bradley: Cash flows from operations with $268 million in the first quarter.

Alexander R. Bradley: Capital expenditures were $413 million during the period.

Alexander R. Bradley: Continuing on slide nine, our full year 2024 volume sold and P&L guidance is unchanged from our previous earnings and guidance call in late February. We're increasing our capital expenditures forecast by 0.1 billion with the intention of accelerating the cure conversion at our Vietnam facilities, as well as at our third Perrysburg facility, with a view to advancing global fleet replication by more than one year from our assumptions and our recent analysis, which could drive incremental upside to the current estimate of additional revenue realizable through the technology adjusters referenced earlier in the call. Our year-end 2024 net cash balance guidance range has been revised due to four factors.

Alexander R. Bradley: Continuing on slide nine our full year 2020 for volumes sold and P&L guidance is unchanged from our previous earnings guidance call in late February.

We are increasing our capital expenditure forecast by not $1 billion with the intention of accelerating the <unk> conversion that are Vietnam facilities as well as at our third perrysburg facility.

Alexander R. Bradley: And with a view to advancing global fleet replication by more than one year from our assumptions at our recent analyst day.

Alexander R. Bradley: Which could drive incremental upside to the current estimate additional revenue realizable through technology to justice referenced earlier in the call.

Alexander R. Bradley: Our year end 2024, net cash balance guidance range has been revised to four factors.

Alexander R. Bradley: A Selective Accommodation of Customer Schedule Shift Requests, Potential sale by a customer of a U.S. project development portfolio, a strategic approach to new bookings, and higher capital. Firstly, as noted in our previous call, we have seen some requests from customers to shift delivery volume timing out as a function of project development delays. We continue to work with our customers to optimize delivery schedules for their contracted volumes to the extent we are able to accommodate them.

Alexander R. Bradley: Our selective accommodation of customer schedule shift requests.

Alexander R. Bradley: Potential sale by a customer of our U S project development portfolio.

Alexander R. Bradley: Our strategic approach to new bookings and higher Capex.

Alexander R. Bradley: Firstly as noted on our previous call. We have seen some requests from customers to shift delivery volume timing out is a function of project development delays.

Alexander R. Bradley: We continue to work with our customers to optimize delivery schedules for their contracted volumes to the extent, we are able to accommodate.

Alexander R. Bradley: Secondly, consistent with reports that some energy project developers are coming under investor pressure to pursue returns commensurate with those currently prevalent in fossil project development, and who may therefore be examining their Renewable Procurement position. We have indications that a customer is expecting to sell their US solar development portfolio. We understand that the potential purchase of these assets is a First Solar customer with an existing module framework agreement.

Alexander R. Bradley: Secondly, consistent with reports that some LNG project developers are coming under investor pressure to pursue returns commensurate with those currently prevalent in fossil project development.

Alexander R. Bradley: It may therefore be examining their renewable procurement positions we.

Alexander R. Bradley: We have indications that a customer is expecting to sell the U S solar development portfolio.

Alexander R. Bradley: We understand that the potential touched with these assets the first solar customer with an existing module framework agreement.

Alexander R. Bradley: We expect that the development timelines for the projects within this portfolio will be delayed, including as a result of the sale, pushing construction schedules out of 2024. Additionally, because the potential purchaser of these assets is an existing customer, with a framework agreement covering the revised construction schedule, and a portion of our backlog with the selling customer is among our limited contracts with a termination for convenience rights. We expect that this right will be exercised in connection with this portfolio sale.

Alexander R. Bradley: We expect that the development timelines for the projects within this portfolio will be delayed including as a result of the sales process pushing construction schedules out of 2024.

Alexander R. Bradley: Because the potential touch or these assets and existing customer with a framework agreement covering the revised construction schedules.

Alexander R. Bradley: And a portion of our backlog the selling customer is among unlimited contracts with a termination for convenience right. We expect that this right will be exercised in connection with this portfolio sale.

Alexander R. Bradley: As discussed on previous earnings calls, if this termination for Kenean's right is exercised, we will be owed a termination payment. We look to reallocate or resell these modules, between selectively accommodating customer timing optimization requests and the expected termination for convenience by the aforementioned portfolio selling developer customer.

As discussed on previous earnings calls if this termination for convenience is exercise we will be owed a termination payment.

Alexander R. Bradley: We'd look to reallocate or re sell these modules.

Alexander R. Bradley: Between selectively accommodating customer timing optimization requests and the expected termination for convenience by the aforementioned portfolio selling develop a customer we can.

Alexander R. Bradley: We now expect a greater concentration of shipments and sold volume in the second half of the year to be in Q4 versus Q3. As a result of this back-ending of deliveries, we expect the timing of some cash collection, previously assumed in Q4 of 2024, to now occur in Q1 of 2025. Thirdly, relating to the revision of our year-end 2024 net cash balance guidance range, as a function of our highly selective approach to bookings, we're forecasting a reduction in assumed cash deposits associated with new bookings in 2024.

Alexander R. Bradley: And now expect a greater concentration of the shipments and solid volume in the second half of the year to be in Q4 versus Q3.

Alexander R. Bradley: As a result of this back ending of deliveries, we expect the timing of some cash collection previously assumed in Q4 of 2024 to now occur in Q1 of 2025.

Alexander R. Bradley: Thirdly relating to the revision of our year end 2024, net cash balance guidance range as a function of a highly selective approach to bookings we're forecasting a reduction in assumed cash deposits associated with new bookings in 2024.

Alexander R. Bradley: And fourthly, as previously mentioned, we're forecasting higher CAPEX associated with our intention to accelerate cure conversion at our Vietnam facility and our third ferry spoke facility. So taken together, the combination of higher year-end accounts receivable balance due to accommodating customer timing optimization requests, the Expanded Termination for Convenience by the aforementioned Portfolio Selling Developer Customer, and reduced deposits from new bookings due to our highly selective approach to bookings.

Alexander R. Bradley: Unfortunately, as previously mentioned, we are forecasting higher capex associated with our intention to accelerate <unk> conversion that I'll Vietnam.

Alexander R. Bradley: Both facilities.

Alexander R. Bradley: So taken together.

Alexander R. Bradley: Combination of high year end accounts receivable balance.

Alexander R. Bradley: Accommodating customer timing optimization requests there.

Alexander R. Bradley: Spanned a termination for convenience by the aforementioned portfolio selling develop a customer.

Alexander R. Bradley: And reduce deposits from new bookings due to a highly selective approach to bookings.

Alexander R. Bradley: As well as the increased CapEx due to secure conversion in Vietnam and Perrysburg, results in an updated year-end 2024 net cash balance guide of 600 to 900 million. From an earnings cadence perspective, we expect our net sales and cost-to-sales profile, excluding the benefits of Section 45x tax credits, to be approximately 35% to 40% in the first half of the year. 60-65% in the second half. We forecast Section 45x tax credits of approximately $400 million in the first half of the year and approximately $620 million in the second half.

Alexander R. Bradley: As well as the increased Capex.

Alexander R. Bradley: Conversion.

Alexander R. Bradley: Vietnam in Perrysburg resulted in an updated year end 2024, net cash balanced guide of $600 million to $900 million.

Alexander R. Bradley: Okay.

Alexander R. Bradley: From an earnings cadence perspective, we expect our net sales and cost of sales profile, excluding the benefit section 45 ex tax credits.

Alexander R. Bradley: Approximately 35% to 40% in the first half of the year.

Alexander R. Bradley: And 60% to 65% in the second half of the year.

Alexander R. Bradley: We forecast section 40, <unk> tax credits of approximately $400 million in the first half of the year approximately $620 million in the second half of the year.

Alexander R. Bradley: With an operating expense profile roughly evenly split across the year, this results in a forecasted earnings per diluted share profile of approximately 35-40% in the first half of the year and 60-65% in the second half of the year. Now, I'm going to call Mark to provide an update on POS.

Alexander R. Bradley: When operating expense profile roughly evenly split across the year. This results in a forecasted earnings per diluted share profile, approximately 35% to 40% in the first half of the year and 60% to 65% in the second half of the year.

Alexander R. Bradley: Now hand, the call back to Mark to provide an update on path.

Mark R. Widmar: Turning to slide 10. As we have stated in the past, we believe the Inflation Reduction Act represents America's first durable solar industrial strategy, and if implemented with a whole-of-government commitment to on-shoring, together with strong and consistent enforcement of trade laws, it also has the potential to dismantle China's dominant influence over solar manufacturing value chains. Quite simply, the IRA provides a viable pathway for the U.S. to secure a supply of critical clean energy technologies, enabling America's energy independence while capturing the value of our economy and creating well-paying enduring jobs. At the same time,

Alexander R. Bradley: Okay.

Mark R. Widmar: Turning to slide 10.

Mark R. Widmar: As we've stated in the past we believe the inflation reduction Act represents America's first durable solar industrial strategy.

Mark R. Widmar: If implemented with a whole of government commitment to onshoring together with strong and consistent enforcement of trade laws. It also has the potential to dismantle China's dominated influence over solar manufacturing value chain.

Mark R. Widmar: Quite simply the IRA pays a viable pathway for the U S to secure supply of critical clean energy technologies.

Mark R. Widmar: Enabling Americas energy independence, while capturing the value of our economy, and creating well paying enduring jobs.

Mark R. Widmar: Yes.

Mark R. Widmar: At the same time.

Mark R. Widmar: And also, as previously stated, while we were not the only American solar manufacturer to come into existence at the end of the last century, the grim reality is that, as a consequence of China's strategic objective to dominate the solar industry, we are the only one of scale to remain today. For the IRA to achieve one of its intended purposes, which is to spur U.S. manufacturing to the scale required to support the country's energy independence and climate goals, we must ensure that more companies that are aligned with U.S. ambitions and are committed to fair competition and innovation can scale, compete, and prosper. The purpose of the IRA will not be achieved under current unsustainable market conditions.

Mark R. Widmar: And also as previously stated.

Mark R. Widmar: While we are not the only American solar manufacturer to come in existence at the end of the last century, a grim reality is that as a consequence of China's strategic objective to dominate the solar industry. We are the only one is scale to remain today.

Mark R. Widmar: For the Ara to achieve one of its intended purposes, which is to spur U S manufacturing to the scale required to support the country's energy independence and climate goals, we must ensure that more companies that are aligned with U S ambitions and are committed to fair competition and innovation and scale.

Mark R. Widmar: Pete and prosper.

Mark R. Widmar: The purpose of the IRA will not be achieved under current unsustainable market conditions.

Mark R. Widmar: The relentlessness of the Chinese subsidization and dumping strategy has caused a significant collapse in selling and model pricing and threatens the viability of many manufacturers who may never be able to get off the ground or have the ability to finance and start up the growth of their operation. Given this unfortunate reality, together with our role as a market leader and the Western Hemisphere's largest solar module manufacturer, we have joined an alliance of seven solar manufacturing companies, comprising the American Alliance for Solar Manufacturing Trade, which last week filed a set of anti-dumping and contravening duty petitions with the U.S. International Trade Commission and U.S. Department of Commerce to investigate unfair trade practices from factories in four Belt and Road Initiative countries in Southeast

Mark R. Widmar: Listen this is the Chinese subsidization and dumping strategy has caused a significant collapse in cell and module pricing and threatens the viability of many manufacturers doing never be able to get off the ground or have the ability to finance and startup.

Mark R. Widmar: The growth of their operations.

Mark R. Widmar: Given this unfortunate reality together with our role as a market leader in the Western Hemisphere is largest solar module manufacturer. We have joined an alliance of seven solar manufacturing companies comprising the American Alliance for solar manufacturing Trade Committee with.

Mark R. Widmar: With last week filed a set of antidumping and countervailing duty petitions with the U S International Trade Commission and U S Department of Commerce to investigate unfair trade practices from factories and for belt and road initiative countries in Southeast Asia, Cambodia, Malaysia, Thailand and Vietnam.

Mark R. Widmar: Cambodia, Malaysia, Thailand, and Vietnam that are injuring the U.S. solar industry. This action takes place against a backdrop of growing momentum, part of the current US administration, to broadly address structural overcapacity across a range of industries in China. The administration's leadership in tackling this wide-ranging issue is remarkable, and in the past few weeks, we have heard senior members of the administration, including Treasury Secretary Janet Yellen and White House Climate Advisor John Podesta, state in no uncertain terms that the President intends to act to level the playing field for American manufacturing.

Mark R. Widmar: Now that our injuring the U S solar industry.

Mark R. Widmar: This action takes place against the backdrop of growing momentum on part of current U S administration to broadly address structural overcapacity across a range of industries in China.

Mark R. Widmar: The administrations leadership in tackling this wide region issue is remarkable and in the past few weeks, we have heard senior members of the administration, including Treasury Secretary, Janet Yellen, and White House climate adviser job Bethesda state in no uncertain terms that the president tends to act to level that.

Mark R. Widmar: <unk> filled for American manufacturing.

Mark R. Widmar: We welcome the actions focused on solar supply chains, including the reported potential withdrawal of the Section 201 bifacial exemption and the pending expiration of the moratorium on tariffs related to NSR convention findings. These are clear actions that deliver on the president's intent.

Mark R. Widmar: We welcome the actions focused on solar supply chain, including the reported potential withdraw of the section 201 bi facial exemption and.

Mark R. Widmar: And the pending exploration on the moratorium on tariffs related to NSF convention findings.

Mark R. Widmar: These are clear actions that deliver on the President's intent.

Mark R. Widmar: The context of our decision to support the petition starts with China's role in the global solar market and that country's long history of egregious subsidies and dumping of models at prices believed to be below their cost. The creation of structural overcapacity, Engagement in circumvention of measures designed to address these factors, and other unfair trade practices have intentionally distorted markets around the globe, causing a significant decline in solar prices and denying international competitors access to a level playing field, as Secretary Yellen herself has recently said.

Mark R. Widmar: The context of our decision to support the petition starts with China's role in the global solar market.

Mark R. Widmar: That country's long history of egregious subsidies dumping of modules at prices believed to be below their cost.

Mark R. Widmar: Creation of structural overcapacity.

Mark R. Widmar: Engagement and circumvention of measures designed to address these factors and other unfair trade practices.

Mark R. Widmar: <unk> intentionally distorted markets around the globe.

Mark R. Widmar: Using the significant decline in solar prices.

Mark R. Widmar: And denying international competitors access to a level Plainfield.

Mark R. Widmar: As Secretary Yellen herself has recently said.

Mark R. Widmar: China's overcapacity distorts global prices and production patterns and hurts American firms and workers. China ended 2023 with more than twice the solar manufacturing capacity that was deployed worldwide last year, and it had record low factory capacity utilization rates in the first quarter of 2024. And despite these market distorting factors, China is still expected to add 500 to 600 gigawatts of new capacity this year, with China expected to exit 2024 with sufficient capacity to meet global demand through 2032.

Mark R. Widmar: China's overcapacity distorts global prices and production patterns and hurts Americans firms and workers.

Mark R. Widmar: China ended 2023 with more than twice the solar manufacturing capacity that was deployed worldwide last year.

Mark R. Widmar: Had record low factory capacity utilization rates in the first quarter of 2024.

Mark R. Widmar: And despite these market distorting factors.

Mark R. Widmar: We'll expect it to add 500 to 600 gigawatts of new capacity this year.

Mark R. Widmar: With China expected to exit 2024 with sufficient capacity to meet global demand through 2032. It appears that the overcapacity is not a miscalculation, but an intentional feature of the Chinese government strategy to dominate clean energy supply chains.

Mark R. Widmar: It appears that the overcapacity is not a miscalculation but an intentional feature of the Chinese government's strategy to dominate clean energy supply. Notably, the four Southeast Asian countries in question account for 75% of U.S. solar imports in 2023 and were responsible for an approximately 140% increase in exports to the U.S. in the 18 months following the passage of the IRA, compared to the 18 months preceding August of 2022. While the current environment, if allowed to persist, will provide a short-term pricing benefit to developers, allowing these practices to continue denies non-Chinese solar manufacturers the opportunity to scale and compete on a level playing field, while multiplying installers and developers' exposure to the risk of over-concentrated supply chains.

Mark R. Widmar: Notably the four southeast Asian countries and question account for 75% of U S solar imports in 2023.

Mark R. Widmar: And we are responsible for an approximately 140% increase in exports to the U S and the 18 months following the passage of the IAA compared to the 18 months preceding August of 2022.

Mark R. Widmar: While the current environment if allowed to persist we will provide a short term pricing benefit to developers.

Mark R. Widmar: Allowing these practices to continue denies non Chinese solar manufacturers the opportunities to scale and compete on a level playing field.

Mark R. Widmar: Multiplying installers and developers exposure to the risk of over concentrated supply chains.

Mark R. Widmar: A word about the impact of the potential tariffs resulting from this case on module prices. While some may choose to reference triple-figure tariff rates and claim that these types of rates will cause severe disruption in achieving our deployment goals, the reality is far different. Currently, Chinese AD and CVD rates range from 15 to 50% for most cooperating companies. Secondly, projects should not be affected as historical model pricing has already been baked into project economics. Finally, from a supply standpoint, there is, contrary to the view expressed by some industry participants, more than sufficient product available to service current and anticipated U.S. demand, assuming the recombination of currently warehoused modules.

Mark R. Widmar: A word about the impact on the potential tariffs, resulting from this case on module pricing.

Mark R. Widmar: While some may choose to reference triple figure tariff rates and claim that these types of rates will cause severe disruption in achieving our deployment goals. The reality is far different.

Mark R. Widmar: Currently shine.

Mark R. Widmar: Chinese and CVD rates range from 15% to 50% for most cooperating companies.

Mark R. Widmar: Secondly projects should not be affected as historical module pricing has already been baked into those project economics.

Mark R. Widmar: Finally from a supply standpoint.

Mark R. Widmar: There is contrary to the view expressed by some industry participants more than sufficient product available to service current and anticipated U S demand.

Mark R. Widmar: Through a combination of currently warehouse modules.

Mark R. Widmar: Fairly Traded Imports, and the capacity of Western manufacturers such as First Solar. As noted earlier, we expect to exit 2024 with over 21 gigawatts and 2026 with over 25 gigawatts of global nameplate capacity, all of which is available to serve the US market. Time and again, we have heard about the detrimental effects of enforcing trade laws on the books on deployment. And yet, time and again, we see annual records set for solar deployment in this country.

Mark R. Widmar: Fairly traded imports.

Mark R. Widmar: And the capacity of western manufacturers, such as first solar.

Mark R. Widmar: As noted earlier, we expect to exit 2024 with over 21 Gigawatts in 2026 with over 25 Gigawatts of global nameplate capacity all of which is available to serve the U S market.

Mark R. Widmar: Time, and again, we have heard about the detrimental effects of enforcing trade laws on the books on deployment.

Mark R. Widmar: And yes, it time and again, we see annual records set for solar deployment in this country.

Mark R. Widmar: In our view, the real risk for U.S. solar deployment comes from the long-term detrimental effects of allowing China's unfair trade practices to continue, which could result in a decimated domestic solar manufacturing base, exceeding all pricing power, and complete control of supply chain distribution to a highly adversarial nation. This represents a strategic risk to developers of solar assets. The clean energy transition and U.S. energy independence and economic prosperity. US energy independence isn't just about producing electricity at home.

Mark R. Widmar: In our view the real risk for U S. Solar deployment comes from our long term detrimental effects of allowing China's unfair trade practices to continue.

Mark R. Widmar: Which could result in a decimated domestic solar manufacturing base seeding.

Mark R. Widmar: Exceeding our pricing power and a complete control of.

Supply chain distribution to a highly adversarial nation.

This represents a strategic risk to developers of solar assets.

Mark R. Widmar: Clean energy transition.

Mark R. Widmar: In the U S energy independence and economic prosperity.

Mark R. Widmar: U S energy independence isn't just about producing electricity at home it.

Mark R. Widmar: It's about having the supply chain and R&D for future advancement at our nation's disposal as well. Historic, once-in-a-lifetime policies like the IRA, while transformative of our country's energy transition and our industry, are not enough to deliver independence due to China's unfair trade practices. We believe the IRA must work in conjunction with strong and effective trade measures that level the playing field for investments it catalyzes. We must think of government policy in terms of a three-legged stool. The first leg is industrial.

Mark R. Widmar: It's about having the supply chain and R&D for future advancement at our nation's disposal as well.

Mark R. Widmar: Historic once in a lifetime policies like the IRA.

Mark R. Widmar: While transformative of our country's energy transition in our industry are not enough to deliver independence due to China's unfair trade practices.

Mark R. Widmar: We believe the IRA must work in conjunction with strong and effective trade measures the level of playing field for investments it catalyzes.

We must think of government policy in terms of a three legged stool.

Mark R. Widmar: The first leg is industrial.

Mark R. Widmar: In the U.S., demand continues to grow, but the domestic content bonus enhances this growth by creating a crucial parallel demand side driver to incentivize purchasing the output of these American factories. Through the introduction of a bonus to the investment or production tax credit accessed by solar generation asset owners if projects procure domestically made content, including solar panels. The third leg is a level playing field that addresses anti-competitive market distorting behavior such as dumping and circumvention.

Mark R. Widmar: In the U S demand continues to grow.

Mark R. Widmar: But the domestic content bonus enhances this growth by creating a crucial parallel demand side driver to incentivize purchasing the output of these American factories through.

Mark R. Widmar: Through the introduction of a bonus to the investment or production tax credit.

Mark R. Widmar: Accessed by solar generation asset owners, if projects procured domestically made content, including solar panels.

Mark R. Widmar: The third leg is a level playing field that addresses anti competitive market distorting behavior, such as dumping and circumvention.

Mark R. Widmar: Well, industrial policies such as IRA have the power to incentivize domestic investors and significantly grow this industry; the ability of those investments to endure is enabled by a corresponding trade policy. This level playing field ensures that domestic manufacturing investment, Incentivized by American taxpayer dollars, is incubated as they scale. Take away any one of the legs, and you render the whole apparatus unusable; that's no further than Europe.

Mark R. Widmar: While industrial policies, such as IRA has the power to incentivize domestic investment.

Mark R. Widmar: Significantly growing this industry the ability of those investments to endure is enabled by a corresponding trade policy.

Mark R. Widmar: This level playing field ensures that domestic manufacturing investments.

Mark R. Widmar: Incentivized by American taxpayer dollars are incubated as they scale.

Mark R. Widmar: Takeaway any one of the legs and you render the whole apparatus unusable.

Mark R. Widmar: No further than Europe.

Mark R. Widmar: This is one example of an unsustainable environment for clean energy manufacturing, not just in solar but wind as well, due to the lack of effective trade measures to support policies that seek to incentivize the growth of a domestic supply chain production base. There can be no doubt that trade policy is intrinsic to the efforts to build a resilient American solar value chain, and we believe this view has bipartisan support. This dynamic goes well beyond being just a risk to our company. It threatens the viability of all aspiring U.S.-based manufacturers who may never be able to finance the startup or growth of their operations. Our support for the petition is founded on the thesis that we believe.

Mark R. Widmar: As but one example of an unsustainable environment for clean energy manufacturing not just in solar but wind as well.

Mark R. Widmar: Due to the lack of effective trade measures to support policies that seek to incentivize the growth of a domestic supply chain production base.

Mark R. Widmar: There can be no doubt that trade policy is intrinsic to the efforts to build a resilient American solar value chain and we believe this view has bipartisan support.

Mark R. Widmar: This dynamic goes well beyond being just a risk to our company.

Mark R. Widmar: It threatens to the viability of all aspiring U S based manufacturers, who may never be able to finance the startup of growth of their operations.

Mark R. Widmar: Our support for their petition is founded on the thesis that we believe.

Mark R. Widmar: A level playing field, one that allows manufacturers to compete on the basis of their own merits, is essential for driving American innovation and competitiveness, promoting quality, and enabling technological diversification that enhances developer choices. We also believe that everyone benefits from a thriving, resilient domestic manufacturing industry. Enabled by a level playing field and free of dependency on China, apart from the positive impact of domestic investment, job creation, and economic value, which is reflected in the economic impact study commissioned by us and conducted by the University of Louisiana at Lafayette that was released in February, domestic manufacturing also insulates developers and their pipelines against the risk of disruption resulting from global supply chain issues or potential geopolitical crises.

Mark R. Widmar: A level playing field one that allows manufacturers to compete on the basis that our own merits is essential for deriving American innovation and competitive promoting quality and enabling technology diversification that enhances developer choices.

Mark R. Widmar: We also believe that everyone benefits from a thriving resilient domestic manufacturing industry.

Mark R. Widmar: Enabled by a level, playing field and frio dependency on China.

Mark R. Widmar: Apart from the positive impact on domestic investment job creation and economic value, which is reflected in the economic impact study commissioned by US and conducted by the University of Louisiana Lafayette that was released in February domestic.

Mark R. Widmar: Manufacturing also insulates developers and their pipelines against the risk of disruption, resulting from global supply chain issues or potential geopolitical crisis.

Mark R. Widmar: As validated by our customers and our order book, the domestic manufacturing supply chain builds resiliency into development pipelines, providing certainty of pricing and supply, and ensuring continuity even in the face of widespread international supply chain disruption. Again, I want to be clear.

Mark R. Widmar: As validated by our customers and our order book domestic manufacturing supply chain build resiliency into development pipelines.

Mark R. Widmar: Writing certainty of pricing and supply and.

Mark R. Widmar: And ensuring continuity even in the face of widespread international supply chain disruption.

Mark R. Widmar: We invite competition and free trade. All we seek is that competition and trade are fair, enabled by a level playing field where all companies can compete on the basis of their own merits. This petition is about enforcing the rule of law and holding rule breakers to account, enabling a level playing field for domestic manufacturing, and Supporting the Efforts to Scale the American Solar Value Chain. Importers of solar panels from manufacturers. Players playing by the rules and operating in compliance with U.S. trade laws have little to fear from this petition and any potential investigation.

Speaker Change: Again, I want to be clear, we invite competition and free trade.

Speaker Change: We seek is that the competition in trade is fair enabled by a level playing field, where all companies can compete on the basis of their own merits.

Speaker Change: This petition is about enforcing the rule of law and holding rule breakers to account.

Speaker Change: Enabling a level playing field for domestic manufacturing and supporting the efforts to scale American solar value chain.

Speaker Change: Orders of solar panels from manufacturers claim.

Speaker Change: Playing by the rules and operating in compliance with U S trade laws.

Speaker Change: Have little to fear from this petition and any potential investigation.

Mark R. Widmar: Internationally, oversupply and dumping of modules at prices below cost also adversely impacts the Indian and European markets, both of which are seeing record levels of imports and low prices. Referring to my earlier comments about thinking of policy as a three-legged stool,

Speaker Change: Internationally oversupply and dumping of modules at prices below cost also adversely impacts the Indian and European markets, both of which are seeking are seeing record levels of imports and low pricing.

Speaker Change: Referring to my earlier comments about thinking of policy as a three legged stool.

Mark R. Widmar: The principle also applies to India, which offers supply-side drivers in the form of production-linked incentive programs, deployment targets that offer demand drivers, and non-tariff barriers such as the Approved List of Module and Manufacturers, or ALMM. We are pleased that the government has decided to revive the mandate of its ALM program, and First Solar was added to this list on April 29.

Speaker Change: <unk> will also applies to India, which offers supply side drivers in the form of production linked incentive programs.

Speaker Change: Deployment targets that offer demand drivers.

Speaker Change: The non tariff barriers such as the approved list of module and manufacturers or all of them.

Speaker Change: We are pleased that the government has decided to revive that mandate of its <unk> program and first solar was added to this list on April 29.

Mark R. Widmar: We believe that enforcing this vital non-tariff barrier will support the effort to level the playing field for domestic manufacturers, especially if combined with a similar program focused on cell manufacturers that could materialize as more domestic cell capacity comes online in the country. However, we remain concerned about the level of dumping in India and its potential to undermine the country's manufacturing ambitions. While ALMM applies to fully assembled modules, it does not safeguard the market against the dumping of solar cells or other upstream components, which undermine efforts to scale vertically integrated domestic manufacturing in the country.

Speaker Change: We believe that enforcing this vital non tariff barrier will support the effort to level the playing field for domestic manufacturers, especially if combined with a similar program focused on cell manufacturers that could materialize as more domestic sell capacity comes online in the country.

Speaker Change: However, we remain concerned about the level of dumping in India and its potential to undermine the country's manufacturing ambitions.

Speaker Change: Wow.

Speaker Change: Applies to fully assembled modules it does not safeguard the market against the dumping of solar cells or other upstream components, which undermined efforts to scale vertically integrated domestic manufacturing in the country.

Mark R. Widmar: With this in mind, we are seeking an investigation into the dumping of solar cells in the Indian market. We believe that investigation is necessary to unfair market distorting behavior that denies domestic manufacturers in India a level playing field on which to compete as the industry scales. Finally, moving to Europe, which lags the U.S. and India in its response to dumping and consequently continues to deepen its near-total dependency on Chinese-made solar panels.

Speaker Change: With this in mind, we are seeking an investigation into the dumping of solar cells.

Speaker Change: The India market we.

Speaker Change: We believe that investigation is necessary to unfair market distorting behaviour.

Speaker Change: That's a nice domestic manufacturers in India, a level, playing field on which to compete as the industry scales.

Speaker Change: Finally, moving to Europe, which lags the U S and India and its response to dumping.

Speaker Change: And consequently continues to deepen as near total dependency on Chinese made solar panels.

Mark R. Widmar: While Europe currently appears to not have the political will to consider trade barriers that could address dumping, we are encouraged by decisions to use the EU's foreign subsidies regulations to investigate potentially illegal subsidies to Chinese solar and wind manufacturing. We continue to monitor developments in Europe and engage with stakeholders there as we seek out opportunities to advocate for a level playing field in that market. To conclude, Alex will now summarize the key messages from today's call on slide 11.

Speaker Change: While Europe currently appears to not have the political will to consider trade barriers that could address dumping. We are encouraged by decisions to use they use foreign subsidies regulations to investigate potentially illegal subsidies to Chinese solar and wind manufacturers we continue.

Speaker Change: To monitor developments in Europe, and engage with stakeholders there as we seek out opportunities to advocate for a level playing field in that market.

Speaker Change: To conclude Alex will now summarize the key messages from today's call on slide 11.

Alexander R. Bradley: Demand continues to be robust with 2.7 gigawatts of net bookings year-to-date with an ASP of 31.3 cents per watt or adjusted, leading to a resilient contracted backlog of 78.3 gigawatts. Continued focus on manufacturing technology excellence resulted in a record quality production of 3.6 gigawatts. And our Alabama and Louisiana factories and our R&D Innovation Center, Brodsky Development Line, remain on schedule. We continue to anticipate launching Cure at our lead line factory in Ohio in Q4 of this year.

Speaker Change: Demand continues to be robust with two seven gigawatts of net bookings year to date with an ASP of $31 three per watt before adjusted.

Speaker Change: Leading to a resilient contracted backlog of 78 three gigawatts.

Speaker Change: Our continued focus on manufacturing technology excellence resulted in a record quarterly production of three six gigawatts.

Speaker Change: And our Alabama, and Louisiana factories, and R&D Innovation Center Barovsky development line remain on schedule.

Speaker Change: We continue to anticipate launching cure at our lead line factory in Ohio in Q4 of this year and.

Alexander R. Bradley: In addition, we're increasing CapEx by $0.1 billion this year to accelerate cure conversion at our Vietnam facilities, as well as at our third Perrysburg facility, with a view to advancing global fleet replication by more than one year from our assumptions in our recent analyst days. Financially, we earned $2.20 per diluted share, and we ended the quarter with a gross cash balance of $2 billion, or $1.4 billion net of debt. Maintaining our full year 2024 volume sold and P&L guidance, including forecasted full year earnings per diluted share of $13 to $14.

Speaker Change: In addition, we're increasing capex by <unk> 1 billion this year to accelerate conversion at our Vietnam facilities as well as it offset perrysburg facility.

Speaker Change: The use of advancing global fleet replication by more than one year from our assumptions at our recent analyst day.

Speaker Change: Financially, we earned $2 20 per diluted share.

Speaker Change: Ended the quarter with a gross cash balance of $2 billion, a $1 4 billion net of debt.

Speaker Change: Maintaining our full year 2020 for volume sold and P&L guidance, including forecasted full year earnings per share.

Speaker Change: <unk> share of 13% to $14.

Unknown Executive: And with this, we conclude our prepared remarks and open the call for questions. And everyone, just a reminder, it is star number one. If you have a question, we'll go first to Mark Strauss, J.P. Morgan. Great. Thank you very much for taking our questions and for giving us all the color. Obviously, there is a lot going on right now. Mark, I wanted to

Speaker Change: And with this we conclude our prepared remarks and open the call for questions operator.

Unknown Executive: And everyone, just a reminder, it is star number one. If you have a question, we'll go first to Mark Strauss, J.P. Morgan.

Speaker Change: And everyone. Just a reminder, it is star one if you have a question. We will go first to Mark Chao J P. Morgan.

Mark Chao: Great. Thank you very much for taking our questions and I appreciate all the color obviously, a lot going on right now.

Mark Chao: Mark I wanted to start with your comments on India. So good to see you are added to the list.

Mark Chao: I know, it's still somewhat early but can you just talk about what youre seeing as far as pricing in that market since the <unk>.

Mark Chao: <unk> went back into effect.

Speaker Change: And how are you waiting.

Speaker Change: Shipments to that market versus.

Speaker Change: Potentially shipping back to the U S.

Unknown Executive: Yeah, all right. Thanks, Mark.

Speaker Change: Alright, Thanks Mark.

Speaker Change: Since the.

Speaker Change: Element has gone back into place, we are seeing pricing move up in the market.

Mark R. Widmar: Look, since the ALM has gone back into place, you know, we are seeing pricing move up in the market. You know, again, ASPs generally in India are much lower than what we see here in the U.S., but they have moved up 5 or 10 percent from where we saw them before the ALM, so they are moving in the right direction in that regard. I do think that with some of the other initiatives that we have in place, and especially as we move forward towards the latter half of this year, I think we could see even firm pricing as we exit this year and into next year, which is encouraging.

Speaker Change: Again.

Speaker Change: Generally in India are much lower than what we see here in the U S. But they have moved up.

Speaker Change: 5% or 10% from from where we saw them before the LMS, So moving moving in the right direction in that regard.

Speaker Change: I do think that with some of the other initiatives that we have in place and especially as we move forward towards the latter half of this year I think we could see.

Speaker Change: From a pricing as we exit this year going into into next year, which is encouraging in the interim we are shipping a lot of product into the U S. So.

Mark R. Widmar: In the interim, we are shipping a lot of product into the U.S., so this year we'll produce about 2.6 gigawatts of product in India, and we'll be shipping about a gigawatt, maybe slightly north of that, into the U.S. market. And really, most of the first-half shipments that we'll see, really into Q3 even, are going to be from India to the U.S. It's also, like I said in our prepared remarks, as we scale up to, you know, 25, 26 gigawatts from a global fleet standpoint, all that product is really available to address and serve the needs of our U.S. customers.

Speaker Change: This year will produce about two six gigawatts of product and in India, and we will be shipping about a gigawatt, maybe slightly north of that into the U S market and really most of the first half shipments that we will see a really into Q3 even.

Speaker Change: We're going to be from India into the U S market at this point in time, so that continues to be an option for us. It's also like I said in our prepared remarks, as we scale up too.

Speaker Change: $25 26, Gigawatts up from a global fleet standpoint, all of that product is really available to us to address and serve the needs of our U S customers.

Speaker Change: We will continue to figure out what's the right optimal allocation in terms of how much dates to the India domestic market and what confidence in the U S. But I do see pricing dynamics, improving in India since the LMS would put back in place.

Mark R. Widmar: You know, we'll continue to figure out what's the right optimal allocation in terms of how much stays in the Indian domestic market and what comes into the U.S., but I do see pricing dynamics improving in India since the LM has been put back in place.

Unknown Executive: The next question is from Andrew Percoco, Morgan Stanley.

Speaker Change: The next question is Andrew Takako Morgan Stanley.

Unknown Executive: Thanks so much for taking my question. So I guess, I mean, over the last few quarters, you guys have been highlighting that you expect bookings growth to slow, but I guess I'm just curious, now that you've got some headlines around the potential removal of the bifacial exemption, the new ADCBD petition, and Yellen's commentary on China, wouldn't that be an accelerant for bookings? You know, I get that you guys want to be selected because of your capacity position, but just curious about your updated thoughts on what you're seeing and expecting for bookings for the remainder of the year now that policy seems to be moving in your favor, and you've also got growing demand for clean energy and some of the AI data center markets that you guys alluded to earlier in the call. Thank you. Yeah, so, um...

Speaker Change: Alright, thanks, so much for taking my question.

Andrew Salvatore Percoco: So I guess I mean over the last few quarters you guys have been highlighting that you expect bookings growth to slow.

Speaker Change: Yes, I'm just curious now that you've got some headlines around the potential removal of the bifacial exemption in your <unk>.

Speaker Change: Shang and Yellen is commentary on China, I mean, it shouldnt be an accelerant for bookings and I get that you guys want to be selective because of your capacity position.

Andrew Salvatore Percoco: Curious on your updated thoughts on what Youre seeing and expecting for bookings for the remainder of the year.

Andrew Salvatore Percoco: Now that policy seems to be moving in your favor and you've also got growing demand for clean energy and some of the AI data center markets that you guys had alluded to earlier in the call. Thank you.

Mark R. Widmar: Yeah, so, you know, what I would say right now, just, you know, conversations with our commercial team and our chief commercial officer, clearly, pricing in the market has changed. As soon as there was an indication, really, it started to increase, three four cents since the beginning of April and then we continue to see a little bit more momentum now that the petition has has been announced and some of the other statements that have been made by the current administration which are all very very supportive and constructive so we are seeing more activity more engagement you know we're encouraged you know we have taken our assumption around bookings down a little bit we did that largely with with a lens of being conservative of waiting to see and exactly what we're starting to see and the momentum is starting to pivot back in a more constructive way and we'll see how that how that pans out but but a lot of engagement a lot of customer meetings I'll be actually meeting with a number of customers next week as well with our commercial team and we'll get a better pulse at that point time but I'd say that the the sentiment clearly has changed over the last three four weeks

Andrew Salvatore Percoco: Yes.

Speaker Change: What I would say right now just.

Speaker Change: Conversations with our commercial team and our Chief commercial officer, clearly pricing in the market.

Speaker Change: It has changed as soon as there was an indication really it's starting to increase.

Speaker Change: Three or four.

Speaker Change: Since the beginning of <unk>.

Speaker Change: April.

Speaker Change: And then we continue to see a little bit more momentum now that the petition has been announced and some of the other statements that have been made by the current administration, which are very very supportive and constructive.

Speaker Change: So we are seeing more.

Speaker Change: Activity more engagement.

Speaker Change: Yes.

Speaker Change: We're encouraged we have taken our assumption.

Andrew Salvatore Percoco: Bookings down a little bit.

Andrew Salvatore Percoco: We did that largely with.

Andrew Salvatore Percoco: With a lens of being conservative of waiting to see exactly what we're starting to see and the momentum is starting to pivot back in a more constructive way and we'll see how that how that pans out, but but a lot of engagement a lot of customer meetings.

Andrew Salvatore Percoco: Meeting with a number of customers next week as well with our commercial team and we will get a better pulse at that point in time, but I would say that the sentiment clearly has changed over the last three or four weeks.

Unknown Executive: And up next is Philip Shen, from Roth MKM.

Andrew Salvatore Percoco: And net net is Philip Shen Roth and Pam.

Unknown Executive: Hey guys, thanks for taking the time to answer my questions. The first one is related to the termination of the convenience clause. Can you talk about how much of a buffer you guys might have to meet your guide even if all the terminations for convenience clauses in 24 and 5 are exercised? And then, secondarily, as it relates to pricing for future bookings. Have you already started to see the benefits of the recently filed Southeast Asia PDCVD petitions? My sense is that pricing has already maybe started to move. Just curious if maybe you saw that in some of the bookings you recently announced.

Speaker Change: Hey, guys. Thanks for taking my questions first one is related to the termination of convenience clause can.

Speaker Change: Can you talk about how much of a buffer you guys might have to me your guide.

Speaker Change: Even if all of the terminations for can meet or termination for convenience clauses in 'twenty four and five are exercised.

Speaker Change: And then secondarily.

Speaker Change: As it relates to pricing for future bookings.

Speaker Change: Have you already started to see the benefits.

Speaker Change: The recently filed.

Speaker Change: Southeast Asia 80, CVD positions.

Speaker Change: My sense is pricing has already maybe you started to move just curious if maybe you saw that in some of the bookings.

Speaker Change: We announced and then finally as it relates to technology.

Unknown Executive: And then finally, as it relates to technology, we recently wrote about a Japanese startup that announced their record perovskite and SIGS lab efficiency of close to 27%. Can you give us an update on your Tandem technology research and specifically... When do you think you can make a definitive decision on the next-gen technology so that the commercialization path can be realized? Because our understanding is that it might take three full years. So you kind of need to maybe lock it in today in order to commercialize it in the next three years. So thank you for taking the questions.

Speaker Change: We recently wrote about Japanese startup that announced they record perovskite cigs.

Speaker Change: <unk>.

Speaker Change: Lab efficiency of close to 27%.

Speaker Change: Can you give us an update on your tandem technology research and.

Speaker Change: Specifically.

Speaker Change: When do you think you can make.

Speaker Change: Finished a decision on the Nextgen technology, so that the commercialization path.

Speaker Change: Can be realized because our understanding is that it might take three four years. So you kind of need to maybe lock it in today in order to commercialize in the next three years. So thank you for taking the questions really appreciate it.

Alexander R. Bradley: Yeah, so I'll take the termination for convenience and hand it over to Mark. We haven't given a specific number related to this year, but if you notice in the guide, we're maintaining our volume sold guide at 15.6 to 16.3. So we're working under the assumption that if this volume were to be terminated, which has not happened yet, we've just been having discussions with a customer who has indicated that given the likely sale of their portfolio and the likely buyer being someone who already has volume from us, and given the timeframe of those deals pushing out a little bit, that they are likely to, if those all happen, then they would be likely to exercise that termination for convenience right.

Speaker Change: So I will say incentives for convenience I'll hand, it over to Mark we haven't given a specific number related to this year.

Mark: Note in the guide we are maintaining our volume sold guide at 15, 6% to 16, three so we're working under the assumption that if.

Mark: This volume would be terminated which has not happened yet we've just been having discussions with the customer has indicated that given the likely sale of that portfolio and the likely buyer being someone who already has volume from us and given the timeframe of those deals pushing out a little bit.

Speaker Change: <unk> likely to if that will happen then they would be likely to exercise that as I mentioned the convenience right now that's a customer that we have a larger order book with they've already taken delivery of over 50% of the volume.

Alexander R. Bradley: But that's a customer that we have a larger order book with. They've already taken delivery of over 50% of the volume under that order. They will continue to take delivery of some of the remaining, a little bit under 50%, but they will likely, if those events transpire, terminate a portion of that backlog. Now, as I said, we will look to either reallocate to others or resell that volume, but one of the reasons you're seeing the cash guide come down a little bit is that, just given we're already into Q2, if we reallocate or So even though we're maintaining that guide, and we think we'll be able to do that this year, it might impact the timing of the cash.

Speaker Change: For that quarter. They will continue to take delivery of some of the remaining little bit under 50%, but they will likely if those events transpire I made a portion of.

Speaker Change: Of that backlog now as I said, we will look to reallocate to other you sell that volume, but it is one of the reasons you're seeing the cash guide come down a little bit just given we're already into Q2, if we reallocate will resell now is likely not going to be until late Q3 early in Q4, our best before we move that volume.

Speaker Change: To someone else.

Speaker Change: So even though we're maintaining that guide and we think we'll be able to do that this year might impact the timing of the cash but in general what we're seeing is right now the guide hasn't changed what we're seeing this year. We think is manageable with that range that we've given.

Mark R. Widmar: Yeah, and then on the... On the pricing side, yeah, so I, as someone that's made the statement on to one of the earlier questions as well, we clearly are seeing the benefit of market pricing being clearly firmed up and is moving up. If you look at just what we booked this last quarter, before any of the adjusters, it's 30 cents.

Speaker Change: Yes, and then on the.

Speaker Change: On the pricing side yet.

Speaker Change: Some of that's made this statement on one of the earlier questions as well.

Speaker Change: We clearly are seeing the benefit as the market pricing is clearly firmed up and is moving up if you look at just what we booked this last quarter.

Speaker Change: For any of the adjusters is 30.

Mark R. Widmar: If you look at the graph that's in the presentation slide, you can see that really none of that happened in April. So all that was really bookings that happened in the first quarter, which is really before any of the indications of this case started to get into the marketplace. So none of that really is reflected yet. And none of that impacted the Q1 bookings that we just reported.

Speaker Change: If you look at the graph that's in the presentation slide you can see that really none of that happened in April. So all of that was really bookings that happened in the first quarter, which which is really before any of the.

Speaker Change: Indications of this case started to get into the marketplace.

Speaker Change: So none of that really is reflected yet.

Speaker Change: So none of that impacted the Q1 bookings that we just reported but we are seeing movement into the market where pricing is firmed up moving up.

Mark R. Widmar: But we are seeing movement into the market where pricing is firmed up, and prices are moving up, and people are obviously looking to move quicker than they would otherwise because of the various uncertainties and trying to figure out the implications to an extent for their development pipeline and projects that they're looking to build out over the next several years. And also knowing that the order book is already tight with First Solar, and we're still supply constrained in the grand scheme of things. As it relates to Tandem technology, we continue to move and progress on that along a couple of different paths. One is our ThinFILM SIGs Tandem product.

Speaker Change: And people, obviously looking too.

Speaker Change: Move quicker than they would have otherwise.

Speaker Change: Because of the various uncertainties and trying to figure out.

Speaker Change: The implications to the extent of further development pipeline and projects that theyre looking to to build out over the next several years and also knowing that the order book is already tight with first solar and.

Speaker Change: We are somewhat still supply constrained in the Grand scheme of things as it relates to the tandem technology.

Speaker Change: Continue to move in.

Speaker Change: Progress that from a couple of different paths one is our <unk>.

Speaker Change: Thin film.

Mark R. Widmar: The other is continuing to work on ThinFILM Crystalline technology and then still advancing work on perovskites. And that's kind of alluded to in our comments about Next Generation Innovative Disruptive Technology and the advantages of our R&D Innovation Center that is just starting up here by the end of this quarter and beginning of next quarter. And then there's our perovskite pipeline. Between the two of them, it's almost a half-million-dollar investment that we've made since we announced those decisions over a year ago.

Speaker Change: Tandem product the others continuing to work on a thin film crystalline technology, and then still advancing work on Prost guys kind of alluded to in our comments about next generation innovative disruptive technology and the advantages of our R&D innovation Center that is just it will be.

Speaker Change: Starting up here by the end of this quarter beginning of next quarter and then our Prost guide pipe.

Speaker Change: Pipeline between the two of them $1 $5 billion investment.

Speaker Change: That we've made.

Speaker Change: Since we announce those decisions over a year ago.

Mark R. Widmar: What I'd like to do right now is – I think those investments and getting those up and running are going to be clearly operational and informative in terms of understanding where we are with our technology as we produce full-size modules and then validate them in terms of their reliability. It's one thing to produce a record cell or even a module.

Speaker Change: What I'd like to do right now is I think those those <unk>.

Speaker Change: Investments in getting those up and running they're going to be currently operational.

Speaker Change: Informative of understanding of where we are with our technology as we produce full sized models and then validate them in terms of their reliability.

Speaker Change: It's one thing to produce a record sell or.

Mark R. Widmar: The other question is how will it endure and stand up to the elements in terms of the conditions that we need from a reliability standpoint. No different than some of the reporting that's coming out, and we've been hearing about this over the last six months with TopCon. TopCon, when you look at some of the field performance and reliability that we're seeing right now, is significantly challenged in not hitting a performance level that would be anywhere close to acceptable to the market and nowhere close to its prior technological perk.

Speaker Change: Even a module or the other is how it will endure and standup to the elements in terms of the conditions that we need to from a reliability standpoint, and no different than some of the reporting that's coming out and we've been hearing about this over the last six months with top gun.

Speaker Change: Top gun and when you look at some of the field performance and reliability.

Speaker Change: We're seeing right now is significantly.

Speaker Change: Challenged and not hitting a performance level that would be anywhere close to acceptable to the market and nowhere close to its prior technology PERC. So we've got to be very careful and mindful. It's not just working within the labs has also been producing it at scale and then getting it into the field and testing and getting comfortable with long term reliability and viability.

Mark R. Widmar: We've got to be very careful and mindful. It's not just working within the labs. It's also then producing it at scale and then getting it into the field for testing and getting comfortable with long-term reliability and viability. I don't have a specific indication of the timeline. What I would say, Phil, is we're making good progress. I think some of the R&D Innovation Center and the Perovskite pipeline that we're working on right now and that will be up and running will have much better insights in terms of where we are in commercialization and time to market as we exit this year.

Speaker Change: So I don't have a specific indication of timeline or what I would say Phil is we're making good progress I think some of the R&D innovation center and the prospect pipeline that we're working on right now and that will be up and running we will have much better insight in terms of where we are in commercialization and tightened market as we exit this year.

Unknown Executive: The next question is from Brian Lee of Goldman Sachs.

Speaker Change: The next question is Brian Lee Goldman Sachs.

Unknown Executive: Hey guys, good afternoon.

Brian K. Lee: Hey, guys. Good afternoon, thanks for taking my questions.

Brian K. Lee: I guess I know a lot of focus around the pricing commentary here Mark So I'm just going to ask another one around that if I could you said three to four cents roughly you Ben.

Unknown Executive: Thanks for taking the questions. I guess I know a lot of focus on the pricing commentary here, Mark, so I'm just going to ask another one on that if I could. You said $0.03 to $0.04 roughly. You've been getting that sense or feedback since April, and then that doesn't even include the more up-to-date kind of ADCVD feedback. So, if we look at the bookings, $0.31 this quarter, not reflecting any of that, that's to suggest you're having discussions real-time around kind of a mid $0.30 per watt, maybe even going higher off of that.

Brian K. Lee: Getting getting that sense feedback since April and then that doesn't even include the more.

Brian K. Lee: To date <unk> feedback so if we look at the bookings 31 cents this quarter.

Speaker Change: Not reflecting any of that debt. That's to suggest you are having discussions real time around kind of a mid 30 cents per watt, maybe even going higher off of that is it fair.

Speaker Change: To assume that level is in play over the next couple of quarters as you think about booking future.

Speaker Change: Future volume here mid mid to high Thirty's and could we see it that quickly in the next couple of quarters and then just secondly, Alex you.

Unknown Executive: Is it fair to assume that level is in play over the next couple of quarters as you think about booking future volume here, mid to high $0.30s, and could we see it that quickly in the next couple of quarters? Secondly, Alex, you kind of quickly alluded to data center demand for electricity. That's obviously gaining a lot of attention. If you look historically, I think you guys have had meaningful indirect exposure to some of the corporates building some of that stuff out.

Speaker Change: You're kind of quickly alluded to data center demand for electricity. That's obviously, gaining a lot of attention I mean, if you look historically I think you guys have had meaningful indirect exposure to some of the corporate.

Speaker Change: Building some of that stuff out can you quantify or give us some sense of your best guesstimate of what percent of your dimmed.

Unknown Executive: Can you quantify or give us some sense of your best estimation of what percent of your demand in the U.S. is coming from those types of customers, data center-driven, corporate, etc., and what you think that could become over time as you kind of look at that as being a new growth vector, if you will? Thanks, guys.

Speaker Change: Demand.

Speaker Change: In the U S is coming from those types of customers data center, driven corporate et cetera, and what you think that could become over over time.

Speaker Change: Look at that as being a new.

Speaker Change: Growth vector if you will thanks guys.

Mark R. Widmar: On the pricing one. Brian, look, I'm happy with what we're seeing right now.

Speaker Change: On the pricing one.

Mark R. Widmar: I don't want to commit to an ASP, you know, in the mid-30s is what we'd expect to be able to realize at this point in time. What I'm trying to indicate is that we have seen a move in market pricing. And there is a difference between, just to be clear, a difference between, you know, international versus domestic; there's an adder for the domestic product.

Speaker Change: Brian.

Brian K. Lee: Let's now look.

Brian K. Lee: I'm happy with what we're seeing right now I don't want to commit to it.

Brian K. Lee: At ASB.

Brian K. Lee: The mid Thirty's as what we'd expect to.

Brian K. Lee: Be able to realize at this point in time.

Speaker Change: What I'm trying to indicators.

Speaker Change: We have seen a move in the market pricing and there is a difference between this to make sure we're clear difference between.

Speaker Change: International versus domestic Theres, a matter for the domestic product.

Speaker Change: And as we've said before three or four <unk> for that so this so that volume will be priced at a higher higher asps than not.

Mark R. Widmar: As we've said before, $0.03, $0.04, $0.05 for that, so that volume will be priced at a higher ASP than not. But what I would say is that we're encouraged, and our strategy for this year is to be patient and continue to move forward with bookings at attractive ASPs. As we said before, this business model is so levered to growth and contribution margin. If we can get to a stable ASP environment as we book out over the next several years and grow the production capacity that we have in front of us, drive costs out as we continue to do, and leverage our fixed costs across our overhead, there's pretty strong operating margin expansion that we can realize if we do that well.

Speaker Change: So, but what I would say that we're encouraged in our.

Speaker Change: Our strategy for this year is to be patient and continue to move forward with bookings at attractive asps.

Speaker Change: As we said before this business model, so levered two to growth and contribution margin. If we can get to a stable ASP environment as we look out over the next several years.

Speaker Change: Gross.

Speaker Change: Production capacity that we have in front of us.

Speaker Change: Drive cost out as we continue to do leverage our fixed costs across our overhead theres pretty pretty strong operating.

Speaker Change: Operating margin expansion that we can realize if we do that well.

Alexander R. Bradley: I don't know if I have a good number for you, but I would say if you look at the companies that we talked about in the call, the ones who are going to be adding to data center demands significantly, Apple, Google, Microsoft, Meta, they value certainty even more than the utilities. If you think about utilities potentially contracting multiple projects, they can deal with a level of failure or delay in a way that these guys can't if they have commitments to renewable targets at a certain time.

Speaker Change: So I don't know if I have a good number for you I would say if you look at the companies that we talked about on the call the ones, who are going to be adding to that and demand significantly Apple Google Microsoft meta.

Speaker Change: They value certainty, even more than the utilities or if you think about utilities potentially contracting multiple projects and they can deal with the level of failing or delay in a way that these guys cognex they have commitments to renewable targets. This on time, so they value certainty and they certainly value.

Alexander R. Bradley: They value certainty, and they certainly value the reliability of where the product is coming from and the concerns around slave labor. We tend to be the first port of call for many of these companies or the developers who are doing the work for them. In many cases, developers will come to us saying that they have had discussions with these people and that they prefer to buy or work with First Solar products, especially for US-based demand.

Speaker Change: The rollout reliability of where the product is coming from and the concerns around slave labor. So we tend to be the first port of call for many of these companies all the developers who are doing the work for them and so in many cases developers will come to us, saying that they have had discussions with these people in that.

Speaker Change: A preference to buy work with first solar products, especially for U S. Based demand I don't think I have a percentage I can give you, but I would say that generally we're going to be.

Alexander R. Bradley: I don't think I have a percentage I can give you, but I would say that, generally, we're going to be the favored supplier to the projects that are going to be supplying power to these data centers for these asset owners. Moses Sutton from BNP Paribas has the next question. Thanks for squeezing me in. What would be the biggest consideration in determining whether you add another factory? I know the pace of bookings at the Natural Lease Flow.

Speaker Change: The favorite supplier to the projects that are going to be supplying power to these data centers these kind of asset owners.

Speaker Change: Yes.

Unknown Executive: And Moses Sutton from BNP Paribas has the next question.

Speaker Change: Thank you Moses Sutton from BNP Paribas has the next question.

Moses Nathaniel Sutton: Thanks for squeezing me in what would be the biggest consideration in determining whether you add another factory I know the pace of bookings within naturally slow considering how far out you're booked but if the industry needs, let's say 50 to 70 gigawatts per annum by late decade of ground Mount in total and considering your market share positioning.

Moses Nathaniel Sutton: Further improving okay at least another fact revival is watching interconnection bottlenecks the poly based competition unknowns as they ramp up in the U S. We're just waiting on developer visibility to get more confident here for these out years.

Mark R. Widmar: But I think, you know, the framework that we use is pretty consistent with what we've done in the past. One thing is, whatever we do, we want it to be, you know, demand driven. And as we can, if we get confidence, especially as we progress down through the second half of this year around a strong and enduring demand profile that we would need to develop this decade. And one of the catalysts that we referenced already is what's going on with data centers. And there's a lot of activity going on there right now. So first, I'll start with demand. The other one, just to make sure, is a stable policy environment.

Moses Nathaniel Sutton: Look I think the framework that we use is pretty consistent with what we've done in the past one is whatever we do we want it to be.

Moses Nathaniel Sutton: Demand driven.

Moses Nathaniel Sutton: And as we can if we get confidence, especially as we progressed through the second half of this year around a strong.

Moses Nathaniel Sutton: And.

Moses Nathaniel Sutton: Enduring demand profile that we would need to the balance of this decade and one of the catalysts that we've referenced already is what's going on with Datacenters and Theres a lot of activity going on there right now so first I'll start with demand or the other.

Moses Nathaniel Sutton: One just to make sure as a stable policy environment.

Mark R. Widmar: And so for what I am doing and what I think I said before in a couple of other calls that I've had is, you know, I've told my team that we need to be ready to go. We need to figure out our supply chain. So we need to have our blast strategy. We've got to think about tellurium, right?

Moses Nathaniel Sutton: And so for what I do.

Moses Nathaniel Sutton: I am doing what I think I've said before in a couple of other calls that <unk> had as I've told my team is we need to be ready to go we need to figure out our supply chain. So we need to have our glass strategy. We got to think about Hillary right. We got to think about.

Mark R. Widmar: We've got to think about the site selection process and access to power ready to go as quickly as possible as we see those inflection points where we start to see strength in demand. And then we see, you know, through the other side of the November elections that, you know, we believe we have a highly predictable and stable policy environment that we can then make informed decisions from. You know, if that starts to come into the mix, then I think we're in a much more positive position to think about further capacity expansion.

Moses Nathaniel Sutton: Our site selection process and access to power.

Moses Nathaniel Sutton: Ready to go to as quickly as possible as we see those inflection point that we start to see strength of demand and then we see.

Moses Nathaniel Sutton: Through the other side of the November elections that we believe we have a highly predictable and stable policy environment that we can then make informed decisions from that.

Moses Nathaniel Sutton: That starts to come into the mix then I think we're in a much more positive.

Moses Nathaniel Sutton: Physician to think about further capacity expansion. So so that's what we're doing and we're going to be as nimble as possible and if all of those we start filling out our scorecard a little bit there with the key dependencies that we need to further capacity expansion.

Mark R. Widmar: So that's what we're doing. And we're going to be, you know, as nimble as possible. And if all those things start filling out our scorecard a little bit there with the key dependencies that we need for further capacity expansion, we'll be ready to go as quickly as possible.

Moses Nathaniel Sutton: We will be ready to go as quickly as possible and what we've proven is that once we make decisions we get.

Mark R. Widmar: And what we've proven is that once we make decisions, you know, we get projects built, constructed, tools installed, and up and running and ramped, probably better than anyone else in this industry. And we want to continue to be able to do that. I know there's been, you know, times when someone caught me by surprise that there was, you know, some concern about execution risk because, you know, we exited last year at 12 gigawatts, and we're going to 25, 26. That, in my mind, is the least of the things that keep me up at night.

Moses Nathaniel Sutton: Projects built constructed.

Moses Nathaniel Sutton: Tools installed and up and running the ramp probably best than anyone else in this industry.

Moses Nathaniel Sutton: And we want to continue to be able to do that I know theres been a time to <unk>, which is somewhat.

Moses Nathaniel Sutton: Caught me by surprise that there was some concerned about execution risk because we exited last year at 12, Gigawatts that we go into 'twenty five 'twenty six.

Moses Nathaniel Sutton: That in my mind is the lease the things that keep me up at night we.

Mark R. Widmar: We do this well. And we've demonstrated that. And like I said, our current activities that we currently have ongoing right now are progressing extremely well and on schedule. And we know if we need to continue to grow off the base we have right now, we truly have the capability to do that. We just want to see the demand in the right policy environment to make that decision.

Moses Nathaniel Sutton: We do this well and we've demonstrated that in like I said, our current activities that we currently have ongoing right now are progressing extremely well and on schedule and.

Moses Nathaniel Sutton: We know if we need to continue to grow off the base. We have right now we have truly have the capability of doing that and we just wanted to see the demand and the right policy environment to make that decision.

Moses Nathaniel Sutton: Okay.

Unknown Executive: Up next is Vikram Bagri's city. Vikram, your line is open. Please check your mute button.

Moses Nathaniel Sutton: Our next this vikram Badri city.

Moses Nathaniel Sutton: Okay.

Vikram Bagri: Secondly, your line is open please check your mute button.

Unknown Executive: Good evening, everyone. I realize five-in-one questions is the way to go, so I'm going to try that. Mark, you previously commented that excess fan inventory in the U.S. was nearly 30 to 40 gigawatts at year-end 23. There is a lot of debate about how much that excess inventory is now. I was wondering if you could share some color on where you think that stands.

Vikram Bagri: Good evening everyone.

Vikram Bagri: Slide five anyone questions, what's the way to go so I'm going to try that market.

Vikram Bagri: Mark.

Vikram Bagri: I'll, maybe take excess volume again between the U S with nearly 30 to 40 Gigawatts.

Speaker Change: If you didn't see a lot of debate about how much of that excess inventory now I was wondering if you can share some color on where that stands.

Mark R. Widmar: And the reason for the debate is the steep price increases as soon as the petition was filed. This indicates some level of concern that the excess inventory might not be that high. And then, as you mentioned, delays and potential cancellation from hydrogen customers in the past. Is there any way you can take advantage of the spot pricing in the market?

Speaker Change: The reason for debate is the steep price increases as soon as the petition was filed filed indicating some level of concern that you might not be that high.

Speaker Change: And then.

Speaker Change: You had mentioned daily.

Speaker Change: Delays in potential cancellation from hydrogen customer in the past is there any way you can take advantage of the spot pricing in the market.

Unknown Executive: And then finally, a couple of press releases about bookings in the last two days. Were these contracts done in the first quarter, given the chart on slide five shows no bookings since March? And if these contracts were entered into after the 1st of May, can you share the price on those bookings as well? Thank you.

Speaker Change: Then finally actually leaving about bookings in last few days.

Speaker Change: These contract GW in the first quarter given this chart on slide five shows new bookings since March.

Speaker Change: These contracts were entered into after the first of May can you share with price on those bookings as well. Thank you.

Mark R. Widmar: All right, please come back with me on some of this because I want to make sure I understand some of the questions. If I start with the last one, you know, the bookings that we reported really were all done from what was our, what was our, what was it? Feb 20, whatever our earnings call was on Feb 27th or 28th, whatever the date was, and really through March 31st. So that 854 megawatts, there's very little of that that happened in the month of April.

Speaker Change: Hi.

Speaker Change: Alright.

Speaker Change: Please come back with me on some of the sticker I want to make sure I got it got some of the questions.

Speaker Change: If I start with the last one.

Speaker Change: Bookings that we reported.

Speaker Change: Really we're all done from.

Speaker Change: Our wells are almost there.

Speaker Change: 2021 of our earnings call is the 27th or 28, whatever the day was and really through to March 31, So that 854 megawatts theres very little of that that happened in the month of April and that's partly what I was trying to say before is that the indication of a potential case, where again.

Mark R. Widmar: That's probably what I was trying to say before is that the indication of a potential case against Southeast Asia really wasn't in the market at the time that we were negotiating and closing on that booking volume. So all that booking volume, the 854, which is incremental, happened pretty much in the month of March.

Speaker Change: Southeast Asia really wasn't into the market at the time that we were negotiating and closing on that booking volumes. So all of that booking volume with 854, which is incremental what's happened happened pretty much through the month of March quarter.

Mark R. Widmar: The quarter to date number 2.7 that we referenced as well, and again, all that happened before there was any real indication of some of the policy changes or even some of the statements that the administration made here recently. The inventory, I think the other question that you asked was about the inventory levels and how much inventory may be in the U.S. And I know there's, you know, speculation and views of, you know, 30 gigawatts, maybe even more that sits in the U.S. that's been brought in partly because of the moratorium that was provided on the circumvention. You know, we've heard that type of number in the past. I have no real way to validate that.

Speaker Change: Quarter to date numbers, two seven that we referenced as well and again all of that happened before there's any real indication of some of the policy changes or even some of the statements that the administration has made here recently.

Speaker Change: The inventory I think the other question that you.

Mark R. Widmar: You asked was about the inventory levels and how much inventory maybe in the U S and I know there is.

Speaker Change: Speculation and views of.

Mark R. Widmar: Three gigawatts, maybe even more of that sits in the U S. That's been brought in partly because of the moratorium that was provided on the circumvention.

Speaker Change: <unk> heard that type of number.

Speaker Change: In the past I have no real way to to validate that.

Mark R. Widmar: But I do believe that, looking at the import records, an excessive amount of product that has been brought into the U.S. at a rate that's much higher than current demand, which is going to have to be managed and worked through. And, you know, there's issues that are going to have to be dealt with once this moratorium is over, you know, that in theory, all that inventory has to be deployed, installed, you know, by the end of this year. You know, to monitor and to ensure that it truly is happening.

Mark R. Widmar: But I do believe that there has been looking at the import records.

Mark R. Widmar: An excessive amount of product that has been brought into the U S. At a rate that's much higher than current.

Mark R. Widmar: Demand, which all it's going to have to be managed and work through in issues that are going to have to be dealt with how what this moratorium is is over the theory, all that all that inventory has to be deployed and installed.

Mark R. Widmar: By the end of this year and to monitor and to ensure that truly is happening uncertain to me how that would happen to be honest with you.

Unknown Executive: It is uncertain to me how that would happen, to be honest with you. So some of that inventory may be subject to tariffs if that were not to happen, but that will be seen in that regard. Then you asked me about the other two. There was a question around hydrogen. And then I think there was a question on spot prices. Unless, Alex, you got either one of those.

Unknown Executive: So some of that inventory may be subject to tariffs if that were not to happen but.

Speaker Change: To be seen in that regard then you asked me about the other chicken to repeat there was a question around hydrogen and then I think there was a question on spot prices unless Alex you've got either one of those I think just related to spot I mean, we've talked before that there isn't a huge immediate spot market in utility scale solar in the same way there is in resi. So when we talk spot we're still talking about projects that.

Alexander R. Bradley: I think just related to spot. We talked before that there isn't a huge immediate spot market for utility-scale solar in the same way that there is for RES. So when we talk about spot, we're still talking about projects that are, you know, two, three quarters ahead, maybe just not eight, 10, 12 quarters ahead. So when I think about the opportunity for us, as we have potential hole openings come up in the year, if we have some short-term holes open up with things like termination convenience, there is an opportunity, yes, for us to capture what I think you would call a spot on a utility scale basis, which is forward a few courses.

Alexander R. Bradley: Two to three quarters ahead, maybe just not 810 12 quarters ahead. So when I think about the opportunity for us as we have potential openings come off in the year. If we have some short term holes open up with things like Tom I should convenience there is an opportunity for us to capture what I think you would call spot on a utility scale basis, which is <unk>.

Alexander R. Bradley: A few quarters I don't think there is a lot of ability to sell meaningful volume on our immediate basis, given the timeline supplementing and development of a utility scale project, but certainly if we have.

Alexander R. Bradley: I don't think there's a lot of ability to sell meaningful volume on an immediate basis given the timelines for the permitting and development of a utility-scale project. But certainly, if we have opportunities around any termination for convenience or if we have other customers that ask us to move product out, we'll certainly go out and see if there's an ability. If anyone else looks for products and wants to have product, we're willing to work with customers in that way.

Alexander R. Bradley: Opportunities around any termination for convenience or if we have on our customers ask us to move product out we will certainly go out and CFS ability if anyone else looks for products and wants to add product, we're willing to work with customers in that way and that could be some opportunity. There and we also said we continue to be cumulatively over sell through 2026. So we continue to do well.

Alexander R. Bradley: There could be some opportunity there. But we also said we would continue to be cumulatively oversold through 2026. So we continue to do an almost daily balancing of our supply and demand and work with our customers to see where things need to move both in and out.

Alexander R. Bradley: Most daily balancing of our supply demand and work with our customers to see where things need to move both in and out and then maybe if you could repeat your question on hydrogen or clarification on any of the things. We responded to maybe that didn't hit the spot.

Unknown Executive: And then maybe if you could repeat your question on hydrogen or give some clarification on any of the things we responded to, maybe that didn't hit the spot.

Unknown Executive: You have already answered, Mark. I was asking if you have a hydrogen customer who might not take delivery if you could feed out those volumes in the spot market and benefit from higher prices, but Alex has already answered. I really appreciate the response.

Speaker Change: And then you already I'm, sorry, Mark I was asking if you have a hydrogen customer who Mike Murphy for delivery. If you could achieve alco's volumes in the spot market and benefit from bad guys, but I'll, let somebody else with daily appreciate the perfect answers. Thanks.

Unknown Executive: Perfect.

Unknown Executive: And next, we'll hear from Kashi Harrison, Piper Stanley, and Sandler.

Speaker Change: And next we will hear from Kathy Harrison Piper Stanley Sandler.

Unknown Executive: Thanks for taking the question at this point. I'm glad I made it. So I'm going to follow Vikram and just ask a bunch at once as well. The first one is on ADCVD.

Kasope Oladipo Harrison: Alright, thanks for taking the question.

Kasope Oladipo Harrison: At this point I'm glad I made it.

Kasope Oladipo Harrison: I'm going to follow Vikram, and just ask a bunch of it once as well first one is on 80 CVD.

Kasope Oladipo Harrison: Your alliance expect to ask for critical circumstances, if the department of Commerce access your case and then as we think about just critical equipment shortages in the market I'm. Just curious if you know what proportion of your customers have secured all their crew.

Unknown Executive: And then as we think about just critical equipment shortages in the market, I'm just curious if you know what proportion of your customers have secured all their critical equipment, transformers, high-capacity circuit breakers, for their project development needs over the next several years, just given how long those lead times are? And then, just finally, I was just checking if the credits for this quarter were $124 million, as indicated in your queue. If so, it seems like your COGS per watt X credits has come down quite a bit. And I was just wondering if you could talk to some of the drivers of lower costs here. Thank you.

Unknown Executive: Critical equipment.

Unknown Executive: Transformers high capacity circuit breakers for their project development needs over the next several years just given how long those lead times are and then just finally I was just checking if the credit this quarter were $124 million as it's indicated in your queue. If so it seems like your Cogs per watt.

Unknown Executive: Ex credits has come down quite a bit and I was just wondering if you could talk to some of the drivers of our lower cost here. Thank you.

Alexander R. Bradley: Let me just take the credit one and I'll pause it for a moment. The credit was higher than that, so we had $194 in the quarter, and then the guide was $190, so it was a little bit over. If you go back into the queue, there are a few moving pieces in the government grants receivable, but the number for Q1 was $194.

Speaker Change: Just take the credit one pause background the credit was higher than that so we had 194 in the quarter.

Alexander R. Bradley: The Guy who was 190 <unk> is a little bit of if you go back into the queue. There's a few moving pieces in the government grants receivable. So the number for Q1 was 194.

Mark R. Widmar: In terms of the ADCVD, which, you know, critical circumstances are effectively retroactivity of some of these tariffs, to me, that's facts and circumstances that will evolve. It depends on what happens.

Alexander R. Bradley: Okay.

Alexander R. Bradley: On the 80 CVD with critical circumstances are effectively retroactivity of of some of these these tariffs.

Mark R. Widmar: To me that.

Mark R. Widmar: Facts and circumstances that will evolve it depends on what happens.

Mark R. Widmar: You know, it's extremely unfortunate in my mind that China has chosen to do what it has done so far, don't you? You know, I think we were in a position, a balanced environment, you know, that we believed was adequate for a domestic industry to grow and scale and create domestic capabilities. China, clearly, not only here in the U.S. but in India, is aggressively trying to prevent that from happening, and given the amount of overcapacity and pricing.

Mark R. Widmar: It's extremely unfortunate in my mind that China has chosen to do what it has done so far I think we were in a position of balanced environment.

Mark R. Widmar: We believe it was.

Mark R. Widmar: Adequate for domestic industry to grow in scale and create domestic capabilities, China clearly not only here in the U S. But in India is aggressively trying to prohibit that from happening and given the amount of overcapacity and pricing.

Mark R. Widmar: And just to be clear, you guys are listening to all their comments and everything else. You know, I think Dago made a comment recently that 70 to 80 percent of the polysilicon guys are selling below cash costs, right? JNCO, but for a one-time item, and including their subsidy income, their last quarter, they lost $3 a share. So everyone's, it's a bloodbath.

Mark R. Widmar: And just to be clear you guys are listening to all of their comments and everything else.

Mark R. Widmar: I think <unk> made a comment recently that 70, 80% of the polysilicon guys are selling below cash cost right.

Mark R. Widmar: Genco, but for a one time item and including their subsidy income there last quarter. They lost $3 a share so everyone's it's above that.

Mark R. Widmar: And if China wants to continue to do that, let them do that on their own accord, right? We should not have to be exposing our domestic industry here in the U.S. and our domestic industry in India, as an example, to China's behavior, right? We need to be able to find a way that allows companies to compete on their own merits and not be always threatened by China's oversupply and abusive, aggressive behaviors; imports stay relatively stable as we go forward.

Mark R. Widmar: If China wants to continue to do that and let them do that on their own accord right, we should not have to be.

Mark R. Widmar: Exposing our domestic industry here in the U S and our domestic industry.

Mark R. Widmar: In India as an example to Chinas behaviors right, we need to be able to find a way that allow companies to compete on their own merits and not be always threatened by China's oversupply and abusive aggressive behaviors.

Mark R. Widmar: So if.

Mark R. Widmar: If pricing on those imports stays relatively stable, then I think there's less of a likelihood that, you know, critical circumstances would be requested, but that is to be determined. And again, this is not just First Solar; this is the coalition that has to make that call. But to me, it's around, you know, facts and circumstances that will determine that. The other question concerns equipment and critical procurement and critical components. Transformers and everything else.

Mark R. Widmar: Imports stay relatively stable as we go forward if pricing on those imports.

Mark R. Widmar: A relatively stable then I think there's less of a likelihood that critical circumstances would be requested but to be determined and again. This is not just the first solar. This is the coalition that has to make that make that call, but to me it's around facts and circumstances that will determine that the other question around equipment and critical procure.

Mark R. Widmar: And critical components.

Mark R. Widmar: Look, a number of our large customers are very sophisticated, and they have gotten ahead of this procurement and supply chain constraint as best they can. In some cases, people are ordering spares and other things that they can utilize across their development portfolio and trying to de-risk as much as they can, but look, there's no way you can insulate yourself 100% from that supply chain disruption and constraint. But we try to work as closely as possible.

Mark R. Widmar: Farmers and everything else.

Mark R. Widmar: A number of our large customers are very sophisticated and they.

Mark R. Widmar: Got ahead of this procurement and supply chain constraints as best they can in some cases people ordering spares and other things that they can.

Mark R. Widmar: You utilize across our development portfolio and trying to de risk as much as as much as I can but.

Mark R. Widmar: There's no way you can insulate yourself, a 100% from from that supply chain disruption and constraint, but we try to work as closely as possible and Thats also why when we do our were over allocated on an annual basis. When we then step back and assess the allocation against that we do try to work as closely as we can.

Mark R. Widmar: That's also why when we do our, you know, we're over allocated on an annual basis, when we then step back and assess the allocation against that, we do try to work as closely as we can with our customers to understand where they are in their development stage of their particular projects, and then things get moved out accordingly, but at any point in time there's always subject to change and what we continue to try to do is create some resiliency as best we can as we enter into a year and hopefully manage some of that during the year as best we can as projects move around.

Mark R. Widmar: Their customers to understand where they are in their development.

Mark R. Widmar: Stage of their particular projects and then things get moved out accordingly, but at any point in time, Theres always subject to change and while we continue to try to do is create some resiliency as best we can as we enter into a year and hopefully manage some of that during the year as best we can as projects move around.

Unknown Executive: And everyone, that does conclude our question and answer session. It does also conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

Speaker Change: And everyone that does conclude our question and answer session. It does also conclude today's conference I would like to thank you all for your participation today you may now disconnect.

Unknown Executive: Okay.

Unknown Executive: Yeah.

Unknown Executive: Okay.

Unknown Executive: Yeah.

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Unknown Executive: Yeah.

Unknown Executive: Okay.