2007'08.17.Fri
Canadian Solar Reports Second Quarter 2007 Results
August 14, 2007
-- Q2 net revenues of $60.4 million, a three-fold
increase from $17.5
million in Q1
-- Q2 loss of $0.11 per share compared to a loss of
$0.14 per share in Q1
-- Full year 2007 net revenue guidance increased to
$255-$265 million
from $220-$230 million
JIANGSU, China, Aug. 14 /Xinhua-PRNewswire/ -- Canadian
Solar Inc. ("the Company," "CSI," or
"we") (Nasdaq: CSIQ) today reported its
preliminary unaudited US GAAP financial information for the
second quarter of 2007 ended June 30, 2007.
Net revenues for the quarter were $60.4 million,
including $2.7 million silicon material sales, compared to
net revenues of $17.3 million for the second quarter of
2006 and $17.5 million for the first quarter of 2007. Net
revenues for the first quarter of 2007 included $2.8
million in silicon material sales. Net loss for the
quarter was $2.9 million, or $0.11 per share, compared to
net income of $2.5 million, or $0.16 per diluted share, for
the second quarter of 2006 and net loss of $3.9 million, or
$0.14 per share, for the first quarter of 2007. Excluding
share-based compensation expenses of $2.4 million, the net
loss for the quarter would have been $0.5 million, or $0.02
per share.
Dr. Shawn Qu, Chairman and CEO of CSI, commented:
"Our Q2 revenues were at the high end of our guidance
range. We continue to benefit from our strong
international sales and marketing network and our focus on
tier one distributors and project-based companies. During
the quarter, we saw sustained demand for our products in
Germany and Spain. We expect to complete our Phase One
in-house solar cell production facility in the middle of
October, which would bring our total cell capacity to 100MW
per year. We have recently ramped up our module production
capacity to 180MW per year. These successful steps in our
expansion strategy will help to solidify our position as a
major player in the industry and enable us to meet
increased customer demand."
Bing Zhu, CFO of CSI, noted: "Our gross margins
improved slightly in Q2 due to our increasing in-house
solar cell manufacturing capability. We would have been
profitable on a cash operating basis during the quarter
without the following two factors: first, we cleared out
1.63MW of high-priced solar cells inventory purchased in
2006 and secondly, we incurred slightly higher yield loss,
as we almost quadrupled our production within one quarter.
Entering the third quarter, we are experiencing stable
module pricing and expect this to continue during the
second half of 2007. We have also experienced modest
materials price increases from certain suppliers. We are
working on improving our cost structure and operating
efficiencies to offset these increases and expect our
operating margins to improve significantly in Q4 as we
speed up our in-house solar cell manufacturing
production."
Recent Developments
We recently started to ramp up production at our second
25MW solar cell production line, following installation and
acceptance tests in June and July. We expect to install
our third and fourth 25MW cell production lines in
September and October 2007, ahead of our original schedule.
By doing so, we expect to increase our in-house solar cell
manufacturing capacity to 100 MW by the middle of Q4.
We also recently entered into agreements for syndicated
loans of US$50 million with Industrial and Commercial Bank
of China and China Communications Bank. Both banks
announced their intention to continue to support our newly
revised three-year growth plan. Together with other
existing banking arrangements, CSI has approximately US$90
million in available credit lines.
Revenue by Geography (US$ thousands)
Q207 Q107
Q206
Region Revenue % Revenue %
Revenue %
Asia 2,959 4.9 % 3,308 18.9 %
96 0.6 %
Europe
57,282 94.8 % 12,139 69.4 %
16,602 96.3 %
North America
142 0.2 % 225 1.3 %
528 3.1 %
South America
-- -- 1,817 10.4 %
-- --
Other
30 0.1 % -- 0.0 %
24 0.0 %
Total Net
Revenue 60,413 100.0 % 17,489 100.0 %
17,250 100.0 %
Note: Asian revenue included $2.7 million silicon
materials sales in Q207
and $2.8 million silicon materials sales in Q107.
Outlook
Based on current market conditions, our order backlog
and our production capacity, we are increasing our prior
guidance of net revenues for the full year 2007 to
$255-$265 million from $220-$230 million. Shipments for
the year are expected to be 70-75MW, compared to our
original estimate of 64MW. Based on indications from our
key customers, the Company estimates that the demand for
CSI module products in 2008 is now over 200MW.
Net revenues for the third quarter of 2007 are expected
to be $80-$85 million, with cash operating income,
determined on a non-GAAP basis by excluding share based
compensation, in the range of $1.6-$2.0 million. Shipments
for the third quarter of 2007 are expected to be 20-23 MW.
In the third quarter, our current customer backlog orders
are enabling us to better utilize our existing inventory of
all cell grades, which will help us increase our product
efficiency and improve our profit margins on the module
sales.
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on
Tuesday, August 14, 2007 (in Jiangsu). This will be 9:00
a.m. on Tuesday, August 14, 2007 in New York. During the
call, time will be set aside for analysts and interested
investors to ask questions of executive officers.
The call may be accessed by dialing +1-866-202-0886
(domestic) or +1-617-213-8841 (international). The
passcode to access the call is 62629322. A replay of the
call will be available starting one hour after the call and
continuing until 11:00p.m. on Tuesday, August 21, 2007 (in
Jiangsu) or 11:00a.m. on Tuesday, August 21, 2007 (in New
York) at http://www.csisolar.com and by telephone at
+1-888-286-8010 (domestic) or +1-617-801-6888
(international). The passcode to access the replay is
54310460.
About Canadian Solar Inc. (Nasdaq: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a
vertically integrated manufacturer of solar cell, solar
module and custom-designed solar application products
serving worldwide customers. CSI is incorporated in Canada
and conducts all of its manufacturing operations in China.
Backed by years of experience and knowledge in the solar
power market and the silicon industry, CSI has become a
major global provider of solar power products for a wide
range of applications. For more information, please visit
http://www.csisolar.com .
Safe Harbor/Forward-Looking Statements
Certain statements in this press release including
statements regarding expected future financial and industry
growth are forward-looking statements that involve a number
of risks and uncertainties that could cause actual results
to differ materially. These statements are made under the
"Safe Harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by such terms
as "believes," "expects,"
"anticipates," "intends,"
"estimates," the negative of these terms, or
other comparable terminology. Factors that could cause
actual results to differ include general business and
economic conditions and the state of the solar industry;
governmental support for the deployment of solar power;
future shortage or availability of the supply of
high-purity silicon; demand for end-use products by
consumers and inventory levels of such products in the
supply chain; changes in demand from significant customers,
including customers of our silicon materials sales; changes
in demand from major markets such as Germany; changes in
customer order patterns; changes in product mix; capacity
utilization; level of competition; pricing pressure and
declines in average selling price; delays in new product
introduction; continued success in technological
innovations and delivery of products with the features
customers demand; shortage in supply of materials or
capacity requirements; availability of financing; exchange
rate fluctuations; litigation and other risks as described
in the Company's SEC filings, including its annual report
on Form 20-F originally filed on May 29, 2007 and its
registration statement on Form F-1 originally filed on
October 23, 2006, as amended. Although the Company
believes that the expectations reflected in the forward
looking statements are reasonable, it cannot guarantee
future results, level of activity, performance, or
achievements. You should not place undue reliance on these
forward-looking statements. All information provided in
this press release is as of today's date, unless otherwise
stated, and CSI undertakes no duty to update such
information, except as required under applicable law.
Canadian Solar Inc.
Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, except share and per share
data and
unless otherwise stated)
Q2 2007 Q2 2006 H1
2007 H1 2006
Net Revenues:
Net Revenues - product 60,413 17,240
77,902 25,973
Net Revenues - others -- 10
-- 68
Total Net revenues 60,413 17,250
77,902 26,041
Cost of Revenues:
Cost of Revenues -
product 57,940 12,294
75,084 18,555
Cost of Revenues -
others -- 10
-- 68
Total Cost of Sales 57,940 12,304
75,084 18,623
Gross profit 2,473 4,946
2,818 7,418
Operating expenses
Selling expenses 1,294 404
2,347 529
General and
administrative expenses 3,765 1,354
6,851 1,750
Research and
development expenses 204 17
390 44
Total operating expenses 5,263 1,775
9,588 2,323
Income/(Loss) from
operations: (2,790) 3,171
(6,770) 5,095
Other income (expenses):
Interest expenses (275) (881)
(342) (1,635)
Interest income 41 34
326 53
Loss on change in fair
value of derivatives -- --
-- (6,997)
Loss on change in fair
value of instruments
related to convertible
notes -- --
-- (1,190)
Others - net -- (7)
-- (1)
Income (loss) before
taxes (3,024) 2,317
(6,786) (4,675)
Income taxes 153 183
61 111
Net Income (loss) (2,871) 2,500
(6,725) (4,564)
Basic (loss)/gain per
share (0.11) 0.16
(0.25) (0.30)
Basic weighted averaging
outstanding shares 27,276,699 15,427,995
27,273,350 15,427,995
Canadian Solar Inc.
Reconciliation of US GAAP Gross Profit, Operating Income
(Loss) and
Net Income (Loss) to
Non-US GAAP Gross Profit, Operating Income (Loss) and Net
Income
(Loss)
(Unaudited)
Use of Non-GAAP Financial Information
To supplement its condensed consolidated financial
statements presented in accordance with GAAP, CSI uses the
following measures as defined as non-GAAP financial
measures by the SEC: adjusted gross profit, adjusted
operating income (loss) and adjusted net income (loss),
each excluding share-based compensation and other one-time
non-cash charges, expenses or gains, which we refer to as
special items. CSI believes that non-GAAP adjusted gross
profit, adjusted operating income (loss) and adjusted net
income (loss) measures indicate the company's baseline
performance before subtracting other charges. In addition,
these non-GAAP measures are among the primary indicators
used by the management as a basis for its planning and
forecasting of future periods. The presentation of these
non-GAAP measures is not intended to be considered in
isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP.
Q2 2007 Q2 2006
Gross Operating Net Gross
Operating Net
Profit Income Income Profit
Income Income
(Loss) (Loss)
(Loss) (Loss)
US GAAP
Profit/(Loss) 2,473 (2,790) (2,871) 4,946
3,171 2,500
Convertible
Note charge
303
Share-based
compensation
charge 57 2,365 2,365 24
590 590
Total special
items 57 2,365 2,365 24
590 893
Non-US GAAP
Profit/(Loss) 2,530 (425) (506) 4,970
3,761 3,393
Adjusted Gross
Margin 4.19 %
28.67 %
Adjusted
Operating
Expense - % of
Revenue 4.89 %
7.01 %
Adjusted
Operating Margin (0.70)%
21.80 %
H1 2007
H1 2006
Gross Operating Net Gross
Operating Net
Profit Income Income Profit
Income Income
(Loss) (Loss)
(Loss) (Loss)
US GAAP
Profit/(Loss) 2,818 (6,770) (6,725) 7,418
5,095 (4,564)
Convertible
Note charge
8,893
Share-based
compensation
charge 126 4,589 4,589 24
590 590
Total special
items 126 4,589 4,589 24
590 9,483
Non-US GAAP
Profit/(Loss) 2,944 (2,181) (2,136) 7,442
5,685 4,919
Adjusted Gross
Margin 3.78 %
28.58 %
Adjusted
Operating
Expense - % of
Revenue 6.58 %
6.75 %
Adjusted
Operating Margin (2.80)%
21.83 %
Non-US GAAP adjusted condensed consolidated statements
of operations
are intended to present the Company's operating
results, excluding
special items.
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands of U.S. Dollars)
June
30 December 31
2007 2006
ASSETS
Current Assets:
Cash and cash equivalents
22,869 40,911
Restricted cash
1,577 825
Accounts receivable, net
39,249 17,344
Inventories
59,775 39,700
Value added tax recoverable
6,696 2,281
Advances to suppliers
13,244 13,484
Prepaid and other current
assets
1,251 2,398
Total current assets
144,661 116,943
Property, plant and equipment,
net
21,656 7,910
Intangible assets
54 39
Prepaid lease payments
1,168 1,103
Deferred tax assets - non
current
3,508 3,639
TOTAL ASSETS
171,047 129,634
LIABILITIES AND STOCKHOLDER'S
EQUITY
Current liabilities:
Short term borrowings
37,679 3,311
Accounts payable
6,033 6,874
Other payables
4,332 993
Advances from suppliers and
customers
7,785 3,225
Income tax payable
492 112
Amounts due to related parties
188 149
Other current liabilities
1,025 1,191
Total current liabilities
57,534 15,855
Accrued warranty costs
1,597 875
TOTAL LIABILITIES
59,131 16,730
Stockholders' equity
Common shares
97,354 97,302
Additional paid in capital
21,923 17,334
Accumulated deficit
(10,119) (2,783)
Accumulated other
comprehensive income
2,758 1,051
Total stockholders' equity
111,916 112,904
LIABILITIES AND STOCKHOLDER'S
EQUITY
171,047 129,634
For more information, please contact:
In Jiangsu, P.R. China:
Bing Zhu, Chief Financial Officer
Canadian Solar Inc.
Phone: +86-512-6269-6755
Email: ir@csisolar.com
In the U.S.:
David Pasquale
The Ruth Group
Phone: +1-646-536-7006
Email: dpasquale@theruthgroup.com
PR
Post your Comment
広告
ブログ内検索
アーカイブ
カウンター