NanoVoltaix Company Blog (Solar) - earnings

PV companies see continuing growth

nospam@example.com (chief editor) — Wed, 25 Feb 2009 08:16:39 -0700

Christoph Hammerschmidt
EE Times Europe

MUNICH, Germany — German solar cell manufacturers Q-Cells SE and Ersol Solar Energy AG have posted their annual results. Both expect the crisis to affect their business to some extend but the key note remains optimistic.

Q-Cells (Bitterfeld-Wolfen) reports a production of solar cells with an aggregated power of 570 megawattpeak (MWp) in its FY2008. This equals a growth of 47 percent against the year before. Revenue climbed in lockstep with production to reach € 1.251 billion (about $1.63 billion), 46 percent higher than in the year before. However, in the fourth quarter the crisis made itself felt; growth declined to 13 percent over last year's Q4.

Bosch subsidiary Ersol, based in Erfurt, raised cell production by 132 percent to 123 MWp, revenue was up 93 percent to €310 million. The figures for Q4 were not immediately available but the company hinted to delays in customer projects in Q3 and Q4 as a consequence of the financial market crisis. However, the crisis led to only "slightly weaker sales", the company said in a press release

Continue reading "PV companies see continuing growth"

SolarWorld Increases Operating Result by 51.8 percent in the First Nine Months and Expects to Exceed the Profit Forecast for Fiscal Year 2008

nospam@example.com (chief editor) — Mon, 03 Nov 2008 08:00:28 -0700

SolarWorld AG further expanded sales and earnings by double digit percentage amounts in the 3rd quarter of 2008. In 3Q group sales grew by 47.2 per cent to 238.3 (previous year: 161.9) million EUR and in the first nine months by 41.5 per cent to 665.4 (previous year: 470.1) million EUR. The operating result before interest and tax (EBIT) went up from July through September by 67.3 per cent to 90.7 (previous year: 54.2) million EUR and cumulatively as per September by 51.8 per cent to 209.3 (previous year: 137.9) million EUR. The group profit could be increased in the 3rd quarter by 17.3 per cent to 35.9 (previous year: 30.6) million EUR and in the first nine months by 56.1 percent to 123.0 (previous year: 78.8 ) million EUR. SolarWorld AG has thus consistently taken all currently predictable capital market risks into consideration in its balance sheet. The group-wide rate of international business amounted to 59 (previous
year: 49) per cent.

The Management Board of SolarWorld AG expects to exceed the profit forecast for Fiscal Year 2008.

Suntech Reports Second Quarter 2008 Financial Results

nospam@example.com (chief editor) — Thu, 21 Aug 2008 09:34:03 -0600

SAN FRANCISCO and WUXI, China, Aug. 20 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced second quarter 2008 financial results.

Second Quarter 2008 Highlights

a. Second quarter 2008 total net revenues grew 51.3% year-over-year to $480.2 million.
b. Consolidated gross margin increased to 24.1% for the second quarter 2008 compared to 20.3% for the second quarter 2007. Non-GAAP gross margin reached 24.7% for the second quarter 2008, compared with 21.1% for the second quarter 2007.
c. Net income for the second quarter 2008 was $65.2 million or $0.38 per diluted American Depository Share (ADS). On a non-GAAP basis, Suntech's net income for the second quarter 2008 was $71.3 million or $0.41 per diluted ADS. Each ADS represents one ordinary share.
d. Suntech's PV cell production capacity was 660MW at the end of the second quarter 2008. The Company is on track to reach 1GW PV cell production capacity by the end of 2008.
e. Due to robust demand coupled with strong execution, Suntech has raised full year 2008 revenue guidance from a range of $1.9 billion to $2.1 billion to a range of $2.05 billion to $2.15 billion. Suntech also increased full year 2008 PV product shipment target from 530MW to approximately 550MW.

"A healthy demand environment and smooth execution led to strong revenue growth in the second quarter," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We are fully booked for the second half of 2008 and expect these excellent demand conditions to continue through 2009. As it stands, we have already signed over 200MW of fixed price, fixed volume sales contracts with strong pricing for 2009. We are also in the process of finalizing approximately 500MW of additional sales contracts, which we expect to complete by the end of the third quarter."

Continue reading "Suntech Reports Second Quarter 2008 Financial Results"

Q-Cells AG publishes its report as of 30 June 2008

nospam@example.com (chief editor) — Wed, 13 Aug 2008 09:44:56 -0600

- Sales +65% and EBIT +47%
- Further raw materials secured as basis for accelerated expansion of
the factory in Malaysia
- Increase in thin-film capacities at Sontor and Solibro
- Forecast raised for 2008 and following years
- Agreement with SunEdison for the North American PV market

Bitterfeld-Wolfen, 13 August 2008 - Q-Cells AG has presented its report as of 30 June 2008. Production rose by 65% to 263.5 Megawatt peak (MWp) in the first six months of 2008 (first half-year 2007: 159.8 MWp). During the second quarter of 2008, therefore, the company achieved 25% growth with a production volume of 146.5 MWp compared with the previous quarter. Sales in the first six months also increased by 65% to € 579.5 million (first half-year 2007: € 350.4 million). This corresponds to a sales increase of 15% in the second quarter compared with the first quarter of 2008. In addition to the sales increase, Q-Cells also posted an increase in stocks of € 17.4 million (first quarter: decrease in stocks of € 5.2 million), which impacted on the company’s operating income. This increased stock was associated with ongoing projects of the Q-Cells International GmbH subsidiary established last year which are to be realised by the end of the year.

LDK earnings soar past estimates

nospam@example.com (chief editor) — Tue, 12 Aug 2008 09:01:37 -0600

Reuters

LOS ANGELES — LDK Solar Co. Ltd. Monday (Aug. 11) posted quarterly earnings that blew past Wall Street estimates as a manufacturing capacity expansion allowed the company to sell more solar wafers, sending its shares up 18 percent in extended trade.

The Chinese solar power company also raised its revenue and wafer shipment forecasts for the year.

Second-quarter net income rose to $149.5 million, or $1.29 per American Depositary Share, from $49.8 million, or 45 cents per ADS, a year ago.

Excluding the change in fair value of prepaid forward contracts, the company earned 82 cents a share, according to Reuters Estimates. Wall Street analysts had been expecting earnings of about 40 cents a share.

LDK and other solar power companies have enjoyed rapid growth in the last year as rising fossil fuel prices and concerns about global warming have spurred demand for renewable energy sources.

In recent months, however, investors have shunned solar stocks due to fears that an expected pullback in Spain's generous government subsidies for solar power would hamper demand next year.

ThinkPanmure analyst Peter Peng said much of the second-quarter demand for LDK's solar wafers likely came from Spanish solar system installers who are scrambling to finish projects before a new cap on subsidies goes into effect.

"There is a pull for the Spanish integrators to get projects in by September, but even beyond that most of these solar companies are seeing very, very strong demand for 2009," Peng said. "There is a possibility that Germany, Italy and potentially France and other smaller markets could offset the loss of market size in Spain."

MORE CAPACITY, MORE SALES

LDK's second-quarter revenue was $441.7 million, well above the company's May forecast of $278 million to $288 million. Analysts were expecting $288 million, on average, according to Reuters Estimates.

LDK raised its full-year revenue outlook to between $1.65 billion and $1.75 billion. It had previously expected revenue of $1.08 billion to $1.18 billion for 2008.

"We experienced substantial revenue growth during the second quarter as our wafer capacity expansion exceeded our expectations," LDK Chairman and Chief Executive Xiaofeng Peng said in a statement, adding that construction of LDK's polysilicon plants remained on schedule.

Polysilicon is the solar industry's key raw material, and prices have soared in recent years due to booming demand.

To help offset those higher costs, LDK is currently building its own polysilicon production plant adjacent to its solar wafer facility in Xinyu City, China.

For the full year, LDK said wafer shipments are expected to be between 750 megawatts and 770 MW, up from a previous forecast of 560 MW to 580 MW for the year.

The company's 2008 gross margin forecast was unchanged at between 23 percent and 28 percent.

LDK shares rose to $39.76 after closing up 9 cents at $33.58 on the New York Stock Exchange.

(Editing by Phil Berlowitz, Richard Chang)

First Solar Reports Second Quarter 2008 Results

nospam@example.com (chief editor) — Thu, 31 Jul 2008 10:26:42 -0600

First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the second quarter ended June 28, 2008. Quarterly revenues were $267.0 million, up from $196.9 million in the first quarter of fiscal 2008 and up from $77.2 million in the second quarter of fiscal 2007.

Net income for the second quarter of fiscal 2008 was $69.7 million or $0.85 per share on a fully diluted basis, compared to net income of $46.6 million or $0.57 per share on a fully diluted basis for the first quarter of fiscal 2008.

Net income for the second quarter of fiscal 2007 was $44.4 million or $0.58 per share on a fully diluted basis, which included a one-time income tax benefit of $39.2 million that resulted from the reversal of valuation allowances against previously established U.S. deferred income tax assets.

SolarWorld Announces Second Quarter Results

nospam@example.com (chief editor) — Thu, 31 Jul 2008 10:24:23 -0600

SolarWorld AG has reported 2nd quarter 2008 results. Group sales from April through June went up by 46.6 per cent over the same period last year to 259.6 (previous year: 177.1) million EUR and by 38.6 per cent in the 1st half of 2008 to 427.1 (previous year: 308.1) million EUR.

The operating result before interest and tax (EBIT) grew in the 2nd quarter of 2008 by 54.5 per cent to 75.7 (previous year: 49.0) million EUR and in the 1st half of 2008 by 41.4 per cent to 118.5 (previous year: 83.8 ) million EUR.

Group profits from continued operations increased in the 2nd quarter by 96.2 per cent to 51.8 (previous year: 26.4) million EUR and in the 1st half of the fiscal year by 55.2 per cent to 73.7 (previous year: 47.5) million EUR. G

roup profits including those from discontinued operations amounted to 87.3 million EUR in the 1st half of 2008 due to proceeds from the sale of shares in Gällivare Photo Voltaic AB (GPV) amounting to 13.6 million EUR.

The group expects to exceed the forecast for fiscal year 2008.

San Jose, CA, USA: SunPower Reports Second-Quarter 2008 Results

nospam@example.com (chief editor) — Thu, 17 Jul 2008 09:29:31 -0600

source: www.solarbuzz.com

SunPower Corporation today announced financial results for the second quarter 2008, which ended June 29, 2008.

Revenue for the 2008 second quarter was $382.8 million, up 40% from prior- quarter revenue of $273.7 million and up 120% from year-ago second-quarter revenue of $173.8 million. The Components and Systems segments accounted for 29% and 71% of second quarter revenue, respectively.

On a GAAP basis, for the 2008 second quarter, SunPower reported gross margin of 24.3%, total operating income of $45.0 million and diluted net income per share of $0.34. These figures include non-cash operating expenses for amortization of purchase accounting intangible assets of $4.0 million and non-cash, stock-based compensation of $18.6 million.

On a non-GAAP basis, adjusted to exclude non-cash charges for amortization of intangible assets and stock-based compensation, SunPower reported total gross margin of 26.4%, operating income of $67.6 million and diluted net income per share of $0.61. This compares with prior-quarter non-GAAP gross margin of 24.0%, total operating income of $39.1 million and $0.39 diluted net income per share. Overall gross margin rose sequentially benefitting from a 630 basis point improvement in the Components segment. Components gross margin rose to 31.7% due to lower silicon costs, higher volume and stable to slightly higher average selling prices. Additionally, the systems segment posted a gross margin of 24.2% reflecting a higher percentage of SunPower panels and cost reduction in field construction. Looking forward to the third and fourth quarter, the company expects continued improvement in company gross margin.

"In 2008, SunPower has achieved the geographic and market segment diversity that provides us with tremendous flexibility to respond to new opportunities and minimize risk, such as the uncertainty our industry currently faces in the U.S. and Spanish markets," said Tom Werner, SunPower's CEO. "We have built the infrastructure to deliver our high-efficiency solar technology to customers on four continents from residential rooftops to large- scale utility systems. With our Gen 2 cell lines ramping and further expansion of our manufacturing capabilities, we are beginning to tap unserved demand for our high-efficiency solar systems in Korea, Japan, Australia, Germany, Italy, and neighboring areas in Europe. The overall global business environment remains very favorable as we continue to execute on our long-term strategy focused on brand, technology, cost and people. We are well- positioned for success entering the second half of the year."

"In the second quarter, SunPower benefitted from strong customer demand across multiple geographies including our Systems business segment. In addition to our power plant installations in Spain, we saw the dedication of a 1.4 megawatt project in Korea as well as the announcement of our framework agreement with Enfinity Management SPRL to supply 25 megawatts of projects in Italy by the end of 2009. Demonstrating SunPower's ability to offer solar at utility-scale, we announced an agreement with Florida Power & Light (FPL) for the largest photovoltaic power plant in the United States. Our agreements with FPL include both a 25 megawatt plant in DeSoto County, Fla., as well as a 10 megawatt plant at the Kennedy Space Center. Our power plant customers value SunPower's delivery of the highest-efficiency solar panels, high-energy collection systems technology, a decade of large-scale systems deployment experience, and a low levelized cost of energy (LCOE)."

"SunPower continued to extend its technology lead during the quarter as we announced our world-record, 23.4 percent efficiency, prototype Generation 3 solar cell. This technology, expected to be in production in approximately two years, is a key element in our roadmap to reduce total systems costs to compete with wholesale and retail electric rates by 2012. Also, in order to meet expected future demand and scale economies to reach our cost reduction goals, SunPower announced plans to build its third solar cell manufacturing facility in Malaysia which, when completed, will have a nameplate capacity in excess of 1 gigawatt."

Continue reading "San Jose, CA, USA: SunPower Reports Second-Quarter 2008 Results"

Press Release: Evergreen Solar Announces Fourth Quarter 2007 Profitable Results

nospam@example.com (chief editor) — Wed, 30 Jan 2008 01:00:00 -0700

Worldwide String Ribbon Quarterly Sales Exceed $100 million

MARLBORO, Mass.--(BUSINESS WIRE)--January 30, 2008--Evergreen Solar, Inc. (Nasdaq: ESLR), a manufacturer of solar power products using its proprietary, low-cost String Ribbonâ„¢ wafer technology, today announced financial results for the fourth quarter and full year ended December 31, 2007.

For the fourth quarter of 2007, Evergreen Solar had revenue of $22.2 million, including $5.3 million of fees from its EverQ joint venture, and net income of $788,000, or $0.01 per share, compared with revenue of $18.2 million, including $2.8 million of joint venture fees, and a net loss of $3.7 million, or ($0.04) per share for the third quarter of 2007.

â€œThe past year was marked by significant accomplishments for Evergreen Solar,â€ said Richard M. Feldt, Chairman, CEO and President. â€œWe began our first major factory expansion in Massachusetts and signed five polysilicon supply agreements, including two agreements with DC Chemical Co., Ltd., the second of which was finalized this morning, providing us with 100% of silicon required to both accelerate and increase our annual production to approximately 125 MW in 2009, 300 MW in 2010, 600 MW in 2011 and 850 MW in 2012.â€

2007 Full Year Highlights

Raised approximately $170 million in equity and began the construction on our Devens factory. Phase 1 will be completed by mid 2008 and Phase 2 in early 2009, with a combined annual capacity of approximately 160 MW by early 2010.
Secured long-term polysilicon supply agreements with DC Chemical, Nitol, Wacker and Silpro, providing 100% of our silicon requirements through 2012 and approximately 12,500 metric tons of silicon through 2019.
Completed development of the Quad ribbon wafer furnace with automated ribbon cutting which will be used in all future string ribbon facilities beginning with the Companyâ€™s Devens location and EverQâ€™s third factory.
Opened the second EverQ factory, a 60 MW facility, began the construction of the third EverQ factory, an 80 MW facility, with an expected completion date in early 2009 and announced the expansion of EverQ to 600 MW over the next 5 years.

â€œOur EverQ joint venture continues to show the impressive financial performance that we anticipated when we formed the JV in 2005, achieving sales of EUR 60 million and operating income of approximately 17% in the fourth quarter. EverQâ€™s strong fourth quarter financial results clearly demonstrate the compelling economics of our String Ribbon technology and provided the catalyst for Evergreen to achieve profitability for the quarter. During 2008, we will continue our significant capacity expansion and will incur substantial factory start up costs, impacting profitability in 2008. As we have continuously stated, we expect that Evergreen will achieve profitability when Phase 1 of our Devens factory approaches full capacity, which is expected in early 2009â€, continued Mr. Feldt.

Fourth Quarter 2007 Financial Results

Revenues for the fourth quarter of 2007 were $22.2 million, including $5.3 million of fees from EverQ compared to $18.2 million for the third quarter of 2007, which included $2.8 million of fees.

Worldwide sales of product using our String Ribbon technology, which includes revenues of our Marlboro facility and EverQ, were $104.1 million for the fourth quarter of 2007 compared to $62.9 million in the third quarter and $37.2 million for the same period in 2006. Evergreen Solar reports worldwide sales of product manufactured with its String Ribbon technology as the Company believes it is useful to investors since it provides an indication of the full market penetration and growth of its technology.

Gross margin for the fourth quarter was 28.1% compared to 24.9% for the third quarter of 2007.

Net income for the fourth quarter was $788,000, or $0.01 per share, and includes $3.4 million in equity income from EverQ, representing Evergreen Solar's one-third share of EverQ's net income for the quarter. Net loss for the third quarter of 2007 was $3.7 million, or ($0.04) per share, and included $404,000 of equity income.

2007 Full Year Financial Results

Revenues for 2007 were $69.9 million, compared to $102.3 million for 2006 which included $57.3 million in consolidated EverQ revenue. Until December 19, 2006, the date when EverQâ€™s three partners each became one-third owners, Evergreen Solar consolidated the financial results of EverQ. Since the ownership change, Evergreen Solar has accounted for its investment in EverQ under the equity method.

Worldwide sales of product manufactured with Evergreen Solar's String Ribbon technology, which includes revenues of EverQ, were approximately $252.0 million for 2007 compared to $107.1 million for 2006.

Gross margin for 2007 was 24.4% compared to 11.7% for 2006.

Net loss for 2007 was $16.6 million, or ($0.19) per share, compared to $26.7 million, or ($0.41) per share for 2006.

Guidance for First Quarter 2008

Revenues for the first quarter of 2008 are expected to be approximately $21.5 million to $22.0 million, including approximately $5.0 million of selling fees and royalty payments from EverQ, compared to the $22.2 million reported in the fourth quarter of 2007, which included $5.3 million of fees from EverQ.

Gross margin is expected to be in the range of 24.0% to 28.0%. Operating expenses are expected to be in the range of $10.5 million to $11.5 million excluding factory startup costs which are expected to be in the range of $5.0 million to $5.5 million. Operating loss is expected to be in the range of $10.0 million to $11.0 million and net loss is expected to be in the range of $7.0 million to $8.0 million.

Conference Call Information

Management will conduct a conference call at 5:00 p.m. (ET) today to review the Company's fourth quarter and year end financial results and highlights. The conference call will be webcast live over the Internet. The webcast can be accessed by logging on to the "Investors" section of Evergreen Solar's website, www.evergreensolar.com, prior to the event. The call can also be accessed by dialing (888) 259-8389 or (913) 312-9322 (for International participants) prior to the start of the call.

For those unable to join the live conference call, a replay will be available from 8:00 p.m. (ET) on January 30 through midnight (ET) on February 6. To access the replay, dial (888) 203-1112 or (719) 457-0820 and refer to confirmation code 8407582. The webcast also will be archived on the Company's website.
Continue reading "Press Release: Evergreen Solar Announces Fourth Quarter 2007 Profitable Results"

Press Release: Sales 1,384mn Yen / Ordinary Income 63mn Yen QTR Results of NPC Incorporated [eol News]

nospam@example.com (chief editor) — Tue, 15 Jan 2008 01:00:00 -0700

TOKYO--(BUSINESS WIRE)--January 15, 2008--NPC Incorporated (TOKYO:6255) News:
Company Name = NPC Incorporated
Company Code = (TOKYO:6255)
Market = Tokyo Stock Exchange
Section = Mothers
Industry = Machinery
Fiscal year end = August 31
Announce date = January 11, 2008
Category = First Quarter
Announce Term = September 1, 2007 - November 30, 2007
Consolidated/Non-consolidated = Consolidated

Company Profile

NPC Group's vacuum technologies have been employed in various fields, ranging from vacuum food packaging to photovoltaic module manufacturing.

We are engaged in two operations. They are the vacuum packaging machine business, which corresponds to demands related to food and industrial or electronic components; the photovoltaic manufacturing equipment business related to the downstream-process (module process). Both of these are supported by vacuum technologies, our core technologies that we have been accumulating since our foundation. The vacuum technologies are technologies with new possibilities and wide spheres of application.

[Photovoltaic manufacturing equipment business]

Tabber and Stringer (soldering machine): This equipment wires each cell in a continuous fashion during the manufacturing process of photovoltaic modules, which are a package of cells aligned on hardened glass. It usually solders two tabs (ribbons), on a single cell.

Vacuum Laminator: This equipment laminates photovoltaic modules. After heating the layers of package of cells aligned on the hardened glass, protection films, and others, it completes the modules by pressing them evenly under controlled vacuum.

Cell Tester: This equipment is used in the initial stages of photovoltaic module manufacturing. It measures a cell's output by applying simulated sunlight to each solar cell, and classifies cells based on its output.

Module Tester: This equipment is used in the final inspection process of photovoltaic module manufacturing. It measures output by applying simulated sunlight to finished photovoltaic modules.

[Vacuum packaging machine business]

â€¦ [deletia] â€¦

Consolidated Earnings Highlights

â€¦ [deletia] â€¦

For further detail please see http://www.npcgroup.net/en/ir/highlights.html

We do not guarantee the accuracy of the data shown above. Also we cannot be held responsible for any damages arising from/associated with this data.

Press Release: aleo solar AG tops EUR 200 million revenue mark

nospam@example.com (chief editor) — Wed, 05 Dec 2007 01:00:00 -0700

Prenzlau/Oldenburg (euro adhoc) 05.12.07 -- As of today aleo solar AG can already report EUR 210 million revenue. Thus, the revenue target of EUR 200 million is exceeded. This revenue is accompanied by a solid EBIT margin. Heiner Willers, a member of aleo solar AGâ€™s Management Board, is confident: "Business to date has been at a high level and is rallying strongly towards the end of the year as normal. Provided the weather doesnâ€™t upset our plans we expect deliveries to continue at a high level in the period up to the end of the year." Germany remains the world leader in photovoltaic systems as far as annual newly installed output is concerned, although international demand also remains strong. "In addition to Spain, Italy is also increasingly turning in a excellent performance", said Willers, "and we are certain to reach our goal of expanding our 2007 international revenue to 30% of the total." This means that it a good thing that aleo solar AG will be expanding its production capacity in 2008 from 100 to 180 megawatts and will therefore be well equipped to handle growth in the coming years.

PV Crystalox Solar sees year profit 'materially' ahead

nospam@example.com (chief editor) — Mon, 03 Dec 2007 01:00:00 -0700

LONDON (SHARECAST), Mon 03 Dec 2007 -- Shares in PV Crystalox Solar are in demand on news that full year pre-tax profits are expected to be "materially" ahead of forecasts. The group, which produces and supplies multicrystalline silicon ingots and wafers for use in solar electricity generation systems, said strong market demand meant that sales prices continued to firm and margins increased despite the weakness of the Japanese yen and tightening of scrap silicon availability. The additional quantity of contracted polysilicon received in the second half of the year has enabled the group to increase shipments compared with those in the first half. Total shipments in 2007 are expected to be in the range of 190-195 Megawatt (MW). Sales revenues are expected to be broadly in line with forecasts. The group also announced the signing of a long term contract with one of its major customers for the supply of 220MW of multicrystalline wafers over the next five years. Discussions are ongoing with other major customers in respect of further long-term contracts, PV added.

Press Release: Solarfun Reports Third Quarter 2007 Results

nospam@example.com (chief editor) — Thu, 29 Nov 2007 09:24:45 -0700

SHANGHAI, China--(BUSINESS WIRE)--November 29, 2007--Solarfun Power Holdings Co. , Ltd. (â€œSolarfunâ€ or â€œthe Companyâ€) (NASDAQ:SOLF), a vertically-integrated manufacturer of silicon ingots and photovoltaic (PV) cells and modules in China, today reported its unaudited financial results for the quarter ended September 30, 2007.

Third Quarter 2007 Highlights

Net revenue was RMB 753.8 million (US$ 100.6 million), up 312 % from the comparable quarter in 2006, and 63% higher than 2Q 2007.
Total PV module shipments were 27.3 MW, continuing a trend of strong sequential increases from 16.4 MW and 6.5 MW in 2Q and 1Q 2007, respectively.
The average selling price (â€œASPâ€) remained stable at $3.66, compared to $3.68 in 2Q 2007.
Gross profit reached RMB 120.7 million (US$ 16.1 million), an increase of 133 % from the same quarter last year, and 72 % from 2Q 2007.
Gross margin improved to 16% from 15.2 % in 2Q 2007.
Net income was RMB 59.6 million (US$ 8.0 million), a gain of 146 % from the same quarter in 2006, and 190% from 2Q 2007.
Earnings per basic ADS were RMB 1.24 (US$ 0.17), in the third quarter of 2007, a 22% gain from the same quarter a year ago and 190% above 2Q 2007.

Mr. Yonghua Lu, Chairman and CEO of Solarfun commented, â€œWe are quite pleased with our progress at all levels. Our shipments continued to increase and demand remained robust. We successfully completed the addition of PV cell production lines 7 and 8 in November 2007 and have achieved annual manufacturing capacity of 240 MW. Our gross profit margin increase is a reflection of stabilizing ASP in addition to reduced raw material costs, and we have been able to leverage growing economies of scale by spreading our operating expenses across our higher sales volumes.â€

â€œDuring the quarter, we continued to broaden the size and quality of our customer base, as well as our suppliers of polysilicon and wafers. Additionally, we are making solid progress on the development of our new ingot manufacturing subsidiary, Jiangsu Yangguang Solar Technology Co. Ltd. We already received wafer samples and they have met our high standards of quality. Now we are in the planning stages of a full delivery schedule.â€

Other Financial Highlights for the Third Quarter of 2007

Income from operations increased to RMB 63.3 million (US$ 8.4 million), or 8.4% of total net revenue, from RMB 29.1 million (US$ 3.9 million), or 6.3% of total net revenue, in 2Q 2007. The operating profit margin in the third quarter of 2006 was 16.5%. The decline compared to last year was primarily due to spending on corporate infrastructure and sales and marketing expenses. The sequential increase in operating profit margin was largely due to spreading costs across the higher sales volume.
Interest expense more than doubled to RMB 6.7 million (US$ 0.9 million) from 2Q 2007 due to higher short-term bank debt borrowings.
Exchange losses of RMB 0.7 million (US$ 0.09 million) decreased significantly from RMB 10.4 million (US$ 1.4 million) in 2Q 2007, primarily because cash balances in U.S. dollars dropped as our IPO proceeds were invested in growing the business.
Share-based compensation expenses rose to RMB 5.6 million (US$ 0.74 million), from RMB 5.1 million (US$ 0.68 million) in 2Q 2007.

Financial Position

As of September 30, 2007, the Company had cash and cash equivalents of RMB 345.4 million (US$ 46.1 million) and working capital of RMB 1,234.0 million (US$ 165 million). Total bank borrowings were RMB 775.9 million (US$ 103.6 million). The Company filed a registration statement on Form F-1 on November 27, 2007. This registration statement seeks to register the sale of ADSs that will be used to facilitate hedging transactions by purchasers of the convertible notes that we plan to offer concurrently in a transaction pursuant to Rule 144A once the registration statement is declared effective by the SEC.

Net accounts receivable increased to RMB 681.9 million (US$ 91.0 million), from RMB 360.3 million (US$ 48.1 million) in 2Q 2007, largely due to the Companyâ€™s higher sales volumes. Days Sales Outstanding (â€œDSOâ€) continued to improve to 63 days in 3Q 2007.

Recent Events

The Company previously announced that it had secured several large multi-year framework commitments for over 185 MW for 2008 delivery. The Company had entered into signed contracts for the sale of 38.5 MW of these PV modules from 2007 to 2008.
In November 2007, the Company entered into an agreement with LDK, under which LDK agreed to deliver to us multicrystalline wafers valued at approximately RMB 2 billion from early 2008 to 2010.
On November 26, 2007, the Company announced a $306 million polysilicon supply contract with Hoku Scientific, Inc., with deliveries beginning in 2009 and continuing over an eight-year period.
The company made certain adjustments to its financial results for the six months ended June 30, 2007, resulting in an increase in net income of RMB 1.2 million from its previously announced results for the two quarters ended June 30, 2007. These adjustments primarily include a decrease in the Companyâ€™s operating expenses due to forfeiture of options granted to departing employees, partially offset by an increase in income tax.

Management Changes

We recently appointed Ms. Amy Jing Liu to be our chief financial officer, replacing Mr. Kevin C. Wei, whose employment contract expired on October 31, 2007. Ms. Liu brings broad finance and operations management experience with large multi-national companies, having previously worked as VP- Director of Finance- China and Hong Kong in Thermo Fisher Scientific and as Finance manager in DuPont. Ms. Ru Cai, our principal accounting officer whose employment contract also expired on October 31, 2007, departed the Company. In addition, Mr. Fei Yun recently resigned as director of technology.

Business Outlook 2007

Based on current operating trends and other conditions, Solarfun is raising its 2007 full year guidance as follows:

Net revenue of US$280-US$300 million, which represents an increase of 230%-250% over 2006. This compares to the previously announced guidance of US$250 million to US$270 million.
Full-year shipments at the high end of the previously communicated guidance of 70-80MW, which represents a 210% to 254% increase over 2006.
The Company already reached its target of hitting annualized total PV cell production capacity of 240MW by the end of 2007.

Chairman Lu concluded, â€œLooking forward, we are reiterating our optimism for the fourth quarter and full year ahead. We now have 240 MW of capacity in place, and we plan to continue to expand our production capacity in order to meet our anticipated demand, which remains robust. Additionally, our supply situation is improving; we believe we have secured 100% of our needs in 2007 and a significant portion of our anticipated needs in 2008, and pricing through the remainder of this year and well into next looks to be quite strong.â€

â€¦ [deletia] â€¦

Trina Solar Shares Fall 20% on 3Q

nospam@example.com (chief editor) — Wed, 21 Nov 2007 20:14:31 -0700

Investors are dissatisfied with the Chinese company's third-quarter earnings. But missed expectations are only part of the problem.
by Rachel Barron, Greentech Media (November 21, 2007)

Chinese solar manufacturer Trina Solar watched shares plummet more than 20 percent Wednesday after posting a third-quarter profit that wasn't up to snuff. The company blamed some of its hardship on a tight silicon supply that has plagued the solar industry.

Net income jumped 86.8 percent to $7.2 million, or 28 cents per share, from $3.9 million a year earlier. Because Trina Solar went public in December, it didn't have earnings-per-share figures for the third quarter of 2006.

Revenue also jumped to $82.6 million from $32.4 million last year, beating analyst expectations of $80.8 million.

Although revenue beat expectations, Trina Solar's earnings, which analysts expected to reach 34 cents per share, left Wall Street disappointed.

The company blamed low sales prices for solar panels and high costs for silicon for weakening profit margins that lowered earnings.

The story has become common in the solar industry, which is in the midst of a silicon shortage that has squeezed company margins, especially for new entrants (see Could China Steal the Solar Throne?, Silicon Shortage Has Big Impact, Silicon Starvation, Panelists Debate When the Silicon Shortage Will End).

Wall Street unleashed its frustration by sending company shares down $11.51 per share to close at $37.37 per share Wednesday.

Rick Hanna, an equity analyst for Morningstar, thinks investors have several motives.

"I can't imagine missed earnings are the only reason for a big sell off," he said.

For one, Trina Solar is rapidly expanding, but -- during the third-quarter conference call with analysts -- failed to share details about how it plans to finance the building of a silicon-production plant that its board already approved.

Hanna estimates the plant will cost about $400 million to $500 million to build, which means the company will need an injection of capital from the equity markets or from long-term debt financing.

Although debt financing appears to be a better fit for the company, Hanna said, the company will have to pursue the backing in the wake of the credit-industry turmoil that has rocked the markets.

Perhaps the failure to share details made investors feel there were too many unknowns, and Wall Street doesn't like surprises, he said.

Hanna said investors also could have inflated growth expectations that were reinforced earlier this month, when thin-film solar manufacturer First Solar (NSDQ: FSLR) posted dazzling third-quarter earnings (see Thin-Film Solar Production to Leap Forward, Thin-Film Solar Gets Another Boost).

Trina Solar wouldn't be the first company suggested to fall prey to such a comparison. Earlier this month, JA Solar (NSDQ: JASO) took a 21.64-percent nosedive, despite posting a third-quarter profit that beat analyst expectations and raising its full-year revenue forecast (see JA Solar Gets No Reward From Investors).

A side note to Trina Solar's quarterly report was a mention of changes to come in the amount of silicon the company has in storage.

The company said its silicon stock includes reclaimable silicon that might not be usable and that might have to be removed from its books.

The extra effort to showcase such detail is no doubt in reaction to the scrutiny that befell LDK (NYSE: LDK) after a former employee raised allegations of discrepancies in the company's silicon inventory (see LDK Says SEC Is Inquiring Into Inventory Discrepancy Allegations, New Details Surface as LDK's Stock Continues to Plunge).

But Hanna doesn't think the inventory issue is a huge red flag for Trina Solar. He said the note implies the company will have to write down $500,000 out of $50 million of inventory.

Trina Solar Results: Another Sign Solar Needs Consolidation

nospam@example.com (chief editor) — Wed, 21 Nov 2007 19:04:59 -0700

by Alexis Madrigal, Earth2Tech (November 21st, 2007)

Trina Solar today reported a third-quarter profit rise of 87 percent, but the results fell short of analysts expectations, sending its shares to close down nearly 24 percent. Yet even with the decline, Trinaâ€™s stock is up 84 percent since its December 2006 IPO.

Trinaâ€™s shortfall also pushed down the solar sector as a whole, which, as weâ€™ve previously noted, has had a banner year. But trading around solar has been choppy lately, with key subsidies in question and quarterly results coming in all over the map.

Investors are also getting skittish about rising polysilicon costs, which drove Trinaâ€™s margins down to 20.6 percent from 26 percent. The litany of concerns noted by Banc of America analyst Eric Brown seem like problems endemic to any commodity business, where limited product differentiation means fierce competition and low margins.

Still, solar companies are up big this year because someone has to make the commodity parts for large-scale solar systems that are being installed now, not sometime down the road. It might not be a pretty business, but it will be a business.

Fierce competition plus a maturing, more stable marketplace means one thing: consolidation. It seems like only a matter of time before SunPower (SPWR), Suntech Power (STP), First Solar (FSLR) and Trina realize that one big solar module maker has a better shot at surviving the next decade of solar industry growth than a half-dozen companies fighting tooth and nail (like a couple of Democratic presidential contenders).