According to reports, bad timing of revenue recognition for photovoltaic (PV) power plant projects and lower module sales impacted First Solar’s fourth quarter results.

Industry dynamics have also forced the company to lower its 2012 revenue guidance and it is expected to result in four of the company’s manufacturing lines in Germany being idled for six months in 2012.

Net sales in the fourth quarter were $660 million, which is a decrease of $345 million from the third quarter of 2011.

“First Solar’s performance in the quarter was impacted by an aggressive competitive environment, an uncertain regulatory environment, warranty-related charges, and restructuring costs incurred to help position our business for the future,” said Mike Ahearn, Chairman and interim Chief Executive Officer of First Solar.

“Despite these headwinds, we continue to make strides reducing manufacturing costs, increasing module efficiency, and successfully building out our captive project pipeline.” Mr Ahearn added.