SunEdison (SUNE) recognized revenue on 76MW of solar system sales, below guidance of 85MW-105MW. But it also retained 74MW on its balance sheet, above guidance of 50MW-60MW. The company expects to recognize revenue on 60MW-80MW of systems in Q2, and to retain 100MW-120MW on its balance sheet.
For the whole of 2014, SunEdison still expects to complete 900MW-1150MW of systems (+90% at the midpoint). But it now expects to recognize revenue on 640MW-580MW (down from 500MW-650MW), and to retain 440MW-570MW on its balance sheet (up from 400MW-500MW).
In spite of Q1 pricing weakness, 2014 average project pricing is now expected to be in a range of $2.40-$2.75 vs. a prior $2.25-$2.75.
Solar energy revenue rose 87% Y/Y in Q1 to $371.5M. The chip wafer division (still set for an IPO) remains weak, with sales falling 11% Y/Y to $206.1M. SunEdison's gross margin fell to 3.8% from 4.9% in Q4 and 9.7% a year ago.
The company's solar project pipeline rose by 173MW Q/Q to 3.6GW. Backlog fell by 73MW to 1GW. 463MW of the pipeline is under construction, down from 503MW at the end of Q4.