Suntech Power Holdings Co., Ltd. (NYSE: STP), a manufacturer of photovoltaic (PV) cells and modules announced big increases in revenue and net income
Suntech reported total net revenues of $386.7 million for the Q307, representing a 137.3% increase from Q306.
Non-GAAP gross profit for Q307 was $82.8 million, an increase of 117.9% year-over-year.
Non-GAAP operating expenses in Q307 totaled $19.3 million and accounted for 5.0% of net revenues.
Non-GAAP income from operations for Q307 was $63.5 million, an increase of 113.1% from Q306. Non-GAAP operating margin was 16.4%.
Non-GAAP net income for Q307 was $61.2 million, an increase of 86.6% over Q306, or $0.36 per non-GAAP diluted ADS.
On a GAAP basis, for Q307 gross profit was $80.0 million, an increase of 115.1% over Q306.
In Q307, capital expenditures, which the company says were primarily related to production capacity expansion and the construction of Suntech’s new production facilities, totaled $41.8 million..
Suntech’s balance of cash and cash equivalents was reported as $588.6 million on September 30, 2007, compared to $520.0 million on June 30, 2007. Inventory totaled $164.3 million on September 30, 2007, compared to $198.4 million on June 30, 2007. The company says changes were primarily due to improved inventory management.
Dr. Zhengrong Shi, Suntech’s Chairman and CEO, said, “We exceeded our top line expectations and achieved a significant production milestone with total quarterly output surpassing 100MW for the first time in Suntech’s history. We already have purchase orders for 2008 delivery totaling over 450MW, and we expect that extremely strong demand for our PV products will continue, leading to firm pricing in 2008.”
He added, “At the end of the third quarter, we completed construction of our new 1GW production facility in Wuxi, China. This facility will enable us to transition to a new generation of technology that will facilitate the production of higher efficiency PV cells using thinner wafers on a multi-gigawatt scale.”
Commenting on Suntech’s silicon supply, Dr. Shi said: “Our recent long term silicon contracts with Asia Silicon, Nitol Solar, ReneSola and a major Korean conglomerate mark a major turning point for Suntech’s silicon supply environment as they will both enhance our margins and expand our volume … In the near term, despite the industry’s shortage, our procurement has been highly successful and we have secured enough silicon for at least 530MW of output.”
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors.
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