Canadian Solar returns to operating profits in Q1 2013

Guelph, Canada - Canadian Solar Inc. announced its financial results for the first quarter ended March 31, 2013.

Solar module shipments were 340 MW, compared to 404 MW in the fourth quarter of 2012. Solar module shipments to Japan were up 75.9% from the fourth quarter of 2012, representing 24.5% of total shipments. Net revenue was $263.6 million, compared to $294.8 million in the fourth quarter of 2012. Revenue derived from the Company's total solutions business represented 19.2% of total revenue, compared to 12.8% in the fourth quarter of 2012. Gross margin was 9.7%, compared to 5.0% in the fourth quarter of 2012. Diluted loss per share was $0.10, compared to diluted loss per share of $2.43 in the fourth quarter of 2012. Cash, cash equivalents and restricted cash balances at the end of the quarter were $606.1 million, compared to $564.3 million at the end of the fourth quarter of 2012.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: "We are pleased with our first quarter results and our progress in the execution of our strategy. Our shipments of 340 MW exceeded our initial guidance of 290 MW to 310 MW, while gross margin came in at the high-end of our guidance. During the quarter, we also continued the successful transformation of our business model from a leading module supplier into a leading solar power solutions company with a solid and growing utility-scale project pipeline in Canada, the U.S., China and Japan, as well as a profitable and growing residential solar system kits business in Japan. Our total solutions business represented 19.2% of our revenue in the first quarter, compared to 12.8% in the fourth quarter of 2012. We are also pleased with our results in Japan where our investment and market development efforts since 2009 are beginning to pay off. We have a differentiated position in this important growth market with a strong brand name as opposed to being a private label manufacturer like many of our competitors. We are well positioned in the high-margin and long-term sustainable residential rooftop kits business as well as the high-volume commercial project market. Our strong market position is also helping us to develop our own utility project pipeline, which we expect, will become a meaningful part of our business in the quarters ahead. Meanwhile we have maintained our strong position in the South East Asia market including India and Thailand."

The Company's business outlook is based on management's current views with respect to operating and market conditions, its current order book, and the challenging global financing environment, which continues to result in customer demand uncertainty. Management's views and estimates are subject to change without notice. For the second quarter of 2013, module shipments are expected to be in the range of approximately 380 MW to 420 MW. Gross margin for the quarter is expected to be between 9% and 11%. For the full year 2013, the Company expects module shipments to be in the range of approximately 1.6 GW to 1.8 GW.

Source: IWR Online, 29 May 2013