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MEMC Electronic Materials (WFR), which makes silicon wafers and raw polysilicon used in the semiconductor and solar sectors, reported fourth quarter revenue of $420.5 million and pro forma EPS of 68 cents a share, topping Street estimates of $416.1 million and 59 cents a share.

For the first quarter, the company sees revenue of $440 million, ahead of Street expectations of $424.7 million. For all of 2007, the company sees revenue of $1.9 billion and pro forma EPS of "a little over $3" a share, nicely above the Street consensus of $$1.84 billion and $2.55 a share.

MEMC also provided 3-5 years targets for basic financial measures. For revenues, it is targeting $3 billion to $4 billion; for non-GAAP EPS, $5 to $7 a share; and all that with “improving margins.”

Speaking about the current quarter, the company said that the “demand environment in the semiconductor industry continues to be mixed,” with some companies working out inventory issues, compounded by seasonal factors. On the other hand, the company said solar demand “continues to be strong.” The company sees margins improving by 200 basis points in the first quarter compared with the fourth quarter.

In after hours trading, MEMC is up $2.77, to $46.39, reversing a loss of $2.08 in the regular session.

WFR 1-yr chart

wfr chart

Source: MEMC Electronic Materials: Solar Demand "Continues To Be Strong"