June 2009 -- MEMC Electronic Materials Inc., which produces wafers for the semiconductor and solar industries, reported a net income for the 2009 first quarter of $2 million, or 1 cent per share, aided by a tax benefit of $18.9 billion. Net sales of $214 million for the quarter are down 57.3% from the first quarter of 2008, when sales were $501.4 million.
Poor demand and lower prices hurt sales in the first quarter, the company said in its first-quarter earnings release.
MEMC ended the quarter with cash and investments of $1.3 billion, without any significant debt, it stated. "Our first quarter results reflect continuation of what has been an unprecedented reduction in demand in the semiconductor and solar industries," said President and CEO Ahmad Chatila. "The weak end demand for semiconductor and electronic products, as well as continued inventory reduction efforts by our customers, resulted in our semiconductor wafer factories running at abnormally low levels in the first quarter, creating a significant drag of our financial results."
Chatila continued, "MEMC's strong financial position with $1.3 billion in cash and investments and essentially no debt enables us to provide our team with the technology, resources, and support needed to strengthen our competitive position for the long term."
In its first-quarter earnings release, MEMC suggested that wafer demand had begun to show some signs of improvement at the start of the second quarter. That said, pricing remained weak and factory utilization rates were still below normal operating levels.
