MEMC posts 1Q loss; shares of maker of computer chip wafers and silicon for solar cells fall

MEMC shares tumble after 1Q misses Street view

ST. PETERS, Mo. — Shares of MEMC Electronic Materials Inc. tumbled Friday after the company posted an unexpected first-quarter loss.

MEMC, which makes wafers for computer chips and silicon for solar cells, lost $9.6 million, or 4 cents per share, compared with a profit of $2 million, or a penny per share, in the year-ago quarter.

The 2010 quarter’s results included a $5.3 million, or 2 cents per share, noncash loss to adjust the value of certain warrants.

Revenue more than doubled to $437.7 million, buoyed by the November 2009 acquisition of SunEdison LLC, a provider of solar energy services. Excluding $60.7 million from SunEdison, revenue would have risen by 76 percent to $377 million.

Analysts expected MEMC to earn 4 cents per share in the quarter on revenue of $390 million, according to Thomson Reuters.

Collins Stewart analyst Dan Ries called MEMC’s earnings and margins “disappointing.” He said the company likely will continue to see depressed margins in the second quarter.

He also noted that while semiconductor wafer sales rose in the quarter, the division continues to post losses. MEMC said it’s continuing to restructure the unit.

Ries cut his 2010 earnings forecast to 55 cents per share from 72 cents per share, but raised his 2011 profit outlook to $1.19 per share from 87 cents per share.

He also increase his revenue projection to $1.94 billion from $1.85 billion for this year and bumped up next year’s revenue forecast to $2.16 billion from $2.1 billion.

Shares of MEMC, based in St. Peters, Mo., fell $2.84, or 17.8 percent, to $13.10, in afternoon trading.