Solar PV Investor Forums

Q3 shipment approx 520 MW, of which modules approx 150 MW

Q4 shipment approx 700 MW

Q3 gross margin slightly negative before inventory write down of 32m
http://finance.yahoo.com/news/renesola-r…-083000628.html

Negative GM before inventory write down...looks troubling to me.
Obviously...SOL has trouble containing the cost. Looking at another 50M$ equity destruction going into Q4.

Even CSI looks troubling ...if it is not for the project revenue recognition in Q3. Overall, I think Trina did a good job in managing the inventory..better than anybody.

Negative GM is not good, but one has to recognize that it is way more difficult to achieve good GM on wafer sales than on module sales. Operating margin and especially operating cash flow can still be ok for wafer sales compared to module sales even if modules GM looks better than wafer GM. They'll hopefully breakout the module GM, so we can compare that to peers. My guess is it will be only be slightly positive.

At this point the expectation should be that poly and wafer heavy companies should have the most GM difficulties in 2H. Even GCL will look weak.