First Solar experienced a decrease in second-quarter sales, primarily attributed to customer contract cancellations that counteracted an increase in module sales to third parties. Despite the sales dip, the solar technology company reported a rise in net income to $422.6 million, or $3.92 a share, compared to $341.9 million, or $3.18 a share, in the same period last year. This figure surpassed analyst expectations of $2.99 a share.

Revenue for the quarter fell to $1.06 billion from $1.1 billion, a decline that mirrored Wall Street's expectations. The company's cost of sales also saw a reduction, dropping to $451.2 million from $597.3 million. The primary driver for the revenue shortfall was identified as customer contract terminations. However, an increase in module sales to external parties helped mitigate the overall impact of these cancellations.