Canadian Solar Updates 1Q10 Performance

The maker of technology to be used in solar panels has revealed that the SEC has begun an investigation surrounding certain sales transactions in 2009, which may have continuing legal effects moving forward.

CSIQ is down -16% for the day.

Canadian Solar Inc. (the "Company," "we" or "Canadian Solar") (Nasdaq: CSIQ), one of the world's largest solar companies, today updated its 1Q 2010 performance and guidance for 2Q 2010 and the second half of 2010. The Company has postponed the release of its full financial results for the first quarter ended March 31, 2010 and its quarterly conference call, scheduled for June 2, as a result of the commencement of an investigation by the Audit Committee of the Company's Board of Directors. While the investigation is ongoing, the Company is updating preliminary first quarter operating results.
...
-- We have implemented a more robust foreign currency hedging plan,
raising our hedging level to more than 90% of our expected Q2 cash flow.
We are now hedging well into Q3.
-- We are on track to expand our internal cell capacity from the current
420MW to 700MW.
-- We intend to commence ramping up our new cell lines on July 1st and
complete the ramping up process in September;
-- We have successfully revamped our ingot and wafer plant and expect it
to contribute positively to our P&L in 2Q10;
-- We will take advantage of our global market profile and increase sales
in non-Euro currencies.

Operations Update

-- Conversion Efficiency: We began commercial manufacturing of enhanced
selective emitter ("ESE") modules in March 2010. We have shipped over
3.0 MW of ESE modules to date. Conversion efficiencies have approached
18% in initial production runs. We expect to increase our ESE cell
production capacity to 120 MW by the end of the third quarter.
-- Module Capacity: We increased our module production capacity from 820
MW at the end of 2009 to 1.3 GW at the end of May 2010.
-- Cell Capacity: We currently have 420 MW of internal solar cell
production capacity. We expect to reach 700 MW of internal solar cell
production capacity by September 2010.
-- Ingot and Wafer Capacity: Our internal ingot and wafer operation
stopped incurring losses in 1Q10. The furnaces have been repaired and
the plant is expected to contribute to our margins in 2Q10. We expect
to produce approximately 30 MW to 35 MW of wafers internally in 2Q10.
-- Ratio of Internal Cell Production: In 1Q10 we manufactured
approximately 50% of the cells we used in the quarter internally. In
2Q10 we expect to produce approximately 110 MW of cells internally
representing approximately 60% of our 2Q10 shipments. By 4Q10 we
expect to produce approximately 165 MW of cells internally,
representing approximately 70% of our expected 4Q10 shipments.

Source

Labels: Canadian Solar Inc., CSIQ, Solar Stocks

posted by Ertai at 2:43 PM