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Canadian Solar gross profit up, net revenue down

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Staff writer ▼ | May 29, 2013
Canadian SolarCanadian Solar announced financial results for Q1, 2013: net revenues of $263.6 million means decrease of 10.6% from $294.8 million in the fourth quarter of 2012.


Net revenues was down 19.1% from $325.8 million in the first quarter of 2012. Total solar module shipments in the first quarter of 2013 were 340 MW, compared to 404 MW in the fourth quarter of 2012 and 343 MW in the first quarter of 2012.

Solar module shipments to the Japanese market were up 75.9% from the fourth quarter of 2012, representing 24.5% of total solar module shipments in the first quarter of 2013. Total solar module shipments in the first quarter of 2013 included 23 MW used in the Company's total solutions business, compared to 16 MW in the fourth quarter of 2012, and 7 MW in the first quarter of 2012.

By geography, in the first quarter of 2013, sales to European markets represented 24.7% of net revenue, sales to North America represented 17.9% of net revenue, and sales to Asia and all other markets represented 57.4% of net revenue.

Gross profit in the first quarter of 2013 was $25.6 million, compared to $14.9 million in the fourth quarter of 2012 and $25.1 million in the first quarter of 2012. The sequential quarterly increase in gross profit was primarily due to a stable average selling price and lower inventory write-offs, which more than compensated for the lower shipment volume.

The year-over-year increase in gross profit was primarily due to lower manufacturing cost which was partially offset by the decline in average selling price during the period.

Operating margin was 6.8% in the first quarter of 2013, compared to negative 31.0% in the fourth quarter of 2012 and negative 4.1% in the first quarter of 2012. Interest expense was $14.6 million, and interest income was $3.3 million.

The Company recorded a gain on change in fair value of derivatives of $1.7 million in the first quarter of 2013. Net foreign exchange loss was $14.8 million. Net loss attributable to Canadian Solar in Q1 2013 was $4.4 million, or $0.10 per diluted share.

As of March 31, 2013, the Company had $606.1 million of cash, cash equivalents and restricted cash, compared to $564.3 million as of December 31, 2012.

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