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Canadian Solar Q1 net revenue down 10%

Staff writer ▼ | May 8, 2015
Canadian Solar announced its financial results for the first quarter ended March 31, 2015. Net revenue was $860.9 million, down 10% from $ 956.2 million in Q4 2014 and up 84.6% from $466.3 million in Q1 2014.
Canadian Solar
Canadian Solar   Net revenue was $860.9 million
Total solar module shipments in the first quarter of 2015 were 1.23 GW, of which 1.03 GW was recognized in revenue, compared to 897 MW recognized in revenue in the fourth quarter of 2014 and 500 MW recognized in revenue in the first quarter of 2014.

Solar module shipments recognized in revenue in the first quarter of 2015 included 124 MW used in the Company's total solutions business, compared to 163 MW in the fourth quarter of 2014 and 49 MW in the first quarter of 2014.

By geography, in the first quarter of 2015, sales to the Americas represented 48.7% of net revenue, sales to Asia and other markets represented 33.6% of net revenue, and sales to Europe represented 17.7% of net revenue, compared to 61.8 %, 32.7% and 5.5%, respectively, in the fourth quarter of 2014 and 43.6%, 50.4% and 6.0%, respectively, in the first quarter of 2014.

Gross profit for the first quarter of 2015 was $153.0 million, compared to $184.9 million in the fourth quarter of 2014 and $68.6 million in the first quarter of 2014. Gross margin in the first quarter of 2015 was 17.8%, compared to 19.3% in the fourth quarter of 2014 and 14.7% in the first quarter of 2014.

The sequential decrease in gross margin was primarily due to lower average selling price of modules and lower margin from the total solution business in Canada.

Total operating expenses were $74.2 million in the first quarter of 2015, up 7.7% from $68.9 million in the fourth quarter of 2014 and 76.6% from $42.0 million in the first quarter of 2014.

Selling expenses were $40.8 million in the first quarter of 2015, up 12.7% from $36.2 million in the fourth quarter of 2014 and 65.0% from $24.7 million in the first quarter of 2014.

The sequential increase was primarily due to higher shipping and handling expenses. The year-over-year increase was primarily due to higher shipment volume as well as an increase in external sales commissions.

General and administrative expenses were $29.5 million in the first quarter of 2015, up 0.9% from $29.3 million in the fourth quarter of 2014 and 100.4% from $14.7 million in the first quarter of 2014.

The sequential increase was primarily due to increase in professional fees and expenses, partially offset by decrease in salary and bonus expenses. The year-over-year increase was primarily due to higher labor costs and increase in various professional fees and expenses, of which $4.1 million was related to the acquisition of Recurrent.

Research and development expenses were $3.9 million in the first quarter of 2015, compared to $3.4 million in the fourth quarter of 2014 and $2.5 million in the first quarter of 2014.

Operating margin was 9.1% in the first quarter of 2015, compared to 12.1% in the fourth quarter of 2014 and 5.7% in the first quarter of 2014.


 

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