JA Solar (Nasdaq: JASO) Tuesday announced a steep drop in revenue and a net loss for its first quarter ending March 31, 2009.
Revenue was RMB 231.7 million ($33.9 million), a decrease of 79.4% from RMB 1.1 billion ($164.2 million) in the first quarter of 2008 and a decrease of 76.3% from RMB 979.0 million ($143.3 million) reported in 4Q08.
Net loss per diluted ADS in 1Q09 was RMB 1.20 (a
loss of $0.18), compared with net income per diluted ADS of RMB 0.99
($0.15) in 1Q08 and net loss per diluted ADS of RMB
0.68 (a loss of $0.10) in 4Q08.
Analysts polled by Thomson Reuters expected, on average, a loss of $0.05 per share on revenue of $107.9 million.
Operating loss in 1Q09 was RMB 193.1 million (a loss of $28.3 million), compared with operating income of RMB 163.6 million ($23.9 million) in 1Q08 and operating loss of RMB 121.1 million (a loss of $17.7 million) in 4Q08.
At March 31, 2009, JA Solar had cash and cash equivalents of RMB 1.7 billion ($249.2 million), compared with RMB 1.9 billion ($282.4 million) at Dec. 31, 2008.
"The first quarter of 2009 was the most challenging quarter for JA Solar since the company was founded in 2005," said Samuel Yang, CEO of JA Solar. "The global industry conditions were particularly difficult, with the market affected by worse than normal seasonality, a weak macro-economic environment and the continuing impact of the credit crisis resulting in some issues with customer project financing. However, we are actively managing our business to prepare for what we hope to be the market’s recovery in the latter part of this year and we are seeing encouraging signs of market improvement in key end markets. We have sufficient liquidity to sustain the current downturn and we are positioning ourselves for growth in the second half of 2009 and beyond," he said.
JA Solar said it is unlikely to achieve the results as given in the 2009 guidance provided on March 10, 2009, which was for revenue of $830 million to $952 million and production output of 500 megawatts (MW) to 550 MW.
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