Solar wafer maker LDK Solar Co Ltd (NYSE: LDK) reported a more-than-eightfold increase in Q3 profits this week on the heels of an audit the company says cleared it of allegations it had overstated silicon inventories.
According to LDK’s earnings release, net income jumped for Q307 to $41.6 million, or 37 cents per diluted American Depository Share (ADS), from $5.0 million, or 4 cents per diluted ADS, for Q306.
In addition the company reported sales increased over 400% to $158.7 million.
Other Q307 Financial Highlights, according to LDK:
— Revenue of $158.7 million, up 60% quarter-over-quarter
— Gross profit of $48.9 million, up 40% quarter-over-quarter
— Signed four long-term wafer supply agreements during the third quarter
— Total wafer shipments increased 49% sequentially to 78.9MW in the third quarter
The company says it ended Q307 with $125.9 million in cash and cash equivalents.
"We are pleased to report strong results for the third quarter, following a positive outcome of the independent inventory review," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "With the inventory investigation behind us, we have returned our focus to growing our business. During the third quarter we experienced continued robust demand for our wafers and made great strides in expanding our customer base. We signed four long-term wafer supply contracts during the third quarter and five more since the quarter closed. We view these agreements as a testament to the quality of our products.
"We remain on track to meet our wafer production capacity goal of 400MW by the end of 2007. Additionally, the construction of our polysilicon plant is tracking with our original plan. In addition to the anticipated cost efficiencies we expect to achieve upon completion of our polysilicon plant, we are continuing cost reduction efforts through further advancements of our product processes," concluded Mr. Peng.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK’s headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People’s Republic of China. The company’s office in the United States is located in Sunnyvale, California.
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