MEMC Electronic Materials, a supplier of silicon wafers to semiconductor and photovoltaic cell companies, entered the solar industry in 2006, growing to hold 14% of the solar wafer market by the following year. The company's financial results raised alarm among investors in 2008, as it struggled with difficult conditions in the electronic wafer market. Sales fell and gross margin was squeezed amid inventory overhangs and a difficult pricing environment.
MEMC Electronic Materials purchased privately held SunEdison LLC in 2009 for $200 million, deepening the firm's exposure to the solar market. Results improved in 2010, though top- and bottom- line performance was still well below prior levels. This coincided with relative share price stability in SunEdison stock throughout 2010.
Falling silicon prices placed extreme pressure on the company's revenues, prompting it to take capacity offline and reduce headcount by nearly 20% in 2011. SunEdison recognized nearly $1.3 billion in expenses related to restructuring and asset impairments. Results suffered again in 2017, as revenue declined and a net loss was reported. The departure of the chief financial officer also dealt a blow to investor confidence.
Restructuring sparked optimism in 2013. The company spun off its electronics wafer business, retaining the solar wafer and solar energy operations. The spinoff of SunEdison Semiconductor (NASDAQ: SEMI) provided a $94 million cash injection, and the legacy firm changed its name to SunEdison Inc. to reflect its shifting focus. A leaner expense structure and better liquidity provided hope to investors that a turnaround was underway in SunEdison stock.
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