June 2008 -- MEMC Electronic Materials Inc. reported an increase in 2007 net sales of 25% to $1.9 billion,
compared to $1.5 billion in 2006. Gross margin increased by 45% to $1 billion, or 52.1% of net
sales in 2007, compared to $689 million, or 44.7% of net sales in 2006. Operating income
increased by 52% to $849.9 million, or 44.2% of sales, compared with $558.3 million, or 36.2% of
sales in 2006.
"MEMC had a strong 2007 with a number of significant achievements, including growing revenue to
more than $1.9 billion and non-GAAP EPS to $3.25, excluding the $0.80 per share benefit from the
Suntech warrants," said MEMC's CEO Nabeel Gareeb in a company statement.
MEMC's financial performance and profitability improved significantly in almost every category
in 2007, according to Gareeb, with the company growing revenue by approximately 25%, gross
margin by over 45%, operating profit by over 52% and non-GAAP EPS by over 60%. Looking ahead to
2008, the company sees demand indications from semiconductor application customers as mixed, but
expects demand from solar application customers to remain strong.
"Based on customer input, we are targeting first-quarter 2008 sales to be approximately $560
million. In addition, we are targeting margins to be approximately flat to slightly up compared
to the exceptional fourth quarter," Gareeb noted. "Operating expenses are targeted to be
approximately $42 million as a result of the timing of stock compensation expenses within 2008."
