Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF), a Chinese manufacturer of silicon ingots and photovoltaic (PV) cells, reported unaudited financial results for 1Q08 that beat Wall Street targets.
Net income was $15.3 million, or $0.32 per share, compared to a small net loss in 1Q07.
Net revenue was US$ 171.0 million, an increase of 529% from 4Q07.
Analysts were looking for earnings of 16 cents a share, before special items, on revenue of $136.45 million, according to Reuters Estimates.
PV module shipments reached 40.3MW, which represented 40% growth over 4Q07 and 517% from the first quarter last year.
Average selling price was strong at $4.07 and was significantly higher than $3.85 in 4Q07. Spain and Germany saw particular pricing strength and the company also benefited from the strong Euro during the period.
The geographic breakdown of net revenue was as follows: Spain 46%, Germany 36%, France 8%, Italy 6%, and Switzerland 4%.
As of March 31, 2008, the company had cash and cash equivalents of $84.9 million and working capital of $334.0 million. Total bank borrowings were $167.3 million.
The company said it expects demand to remain strong, with shipments between 40-45 MW and average selling price’s (ASP) around $4.00 based on current contracted pricing. However, the continuing decline in the value of the Euro could impact this ASP assumption.
The company raises its previous guidance of 160 megawatts (MW) in shipments to a range of 160-180 MW.
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