Canadian Solar Inc. (Nasdaq: CSIQ – News) reported its unaudited year-end and 4Q08 results showing a large rise in yearly revenue despite a steep loss in 4Q.
Net revenues for the quarter were $73.0 million, compared to net revenues of $127.5 million for 4Q07 and $252.4 million for 3Q08.
Net loss for the quarter was $50.6 million, or $1.42 per diluted share, compared to a net income of $6.0 million, or $0.21 per diluted share, for 4Q07 and net income of $11.1 million, or $0.31 per diluted share, for 3Q08.
The net loss in the fourth quarter included a $23.3 million write-down for inventory against the net realizable value of inventories as a result of the rapid decrease in the market price and value of feedstock, work-in-progress and finished solar modules, the company said.
The company had $136.2 million cash at the end of the quarter. Accounts receivables at the end of the quarter were $50.6 million compared with $153.1 million at the end of Q3. Over the same period the Company paid down approximately $78 million in short term and related party debt.
Net revenues for 2008 were $709.2 million, compared to $302.8 million for 2007, an increase of 134% per year. Net loss for 2008 was $10.0 million, or $0.32 per diluted share, compared to net loss of $0.2 million, or $0.01 per diluted share, for 2007.
"Our strategy will continue to include protecting our balance sheet, maintaining and improving relationships with our high-quality customers who are larger, long-term solar players and to improving our already very competitive cost structure. We expect to achieve wafer to module processing costs of $0.60 per watt and polysilicon to module processing costs of $0.90 per watt by the end of Q2 2009," Dr. Shawn Qu, Chairman and CEO of Canadian Solar, said.
Arthur Chien, CFO of Canadian Solar, said: "We believe our strong cash position, low accounts receivables and our access to additional short and long term financing through the support of our local banks are sufficient for our working capital requirements, while retaining our ability to increase capital expenditures that will help to increase our margins and capacity over the long term."
Based on current customer orders, market forecasts and supply contracts, the company projects full year 2009 shipments of 300 to 350 megawatts (MW), with net revenues of $600 to $800 million.
"Achieving our guidance assumes improved macroeconomic conditions in H2 2009," the company said in a release.
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