Canadian Solar (CSIQ) Reports Smaller-Than-Expected Q1 Loss

May 26, 2009 7:13 AM EDT

Canadian Solar (Nasdaq: CSIQ) reports Q1 loss of $0.10 per share, ex-items, above the consensus of a $0.26 loss. Revenues came in at $49.5 million, versus the consensus of $54.1 million.

Commenting on its outlook CSIQ said, Within the first quarter, shipments increased sequentially month over month. This positive trend continued into Q2 and we expect further increases in Q3. Offsetting this positive trend, however, customers, especially those in United States, continue to face an uncertain financing environment. Additionally, recent inventory clearance efforts by some of our competitors have resulted in declining module ASPs, which may cause delays in project purchase decisions by customers. We expect that these issues may ultimately lead to some order reductions or push-outs into 2010. As a result, we are taking a more conservative outlook and now expect full year 2009 shipments to be around 200 MW to 220 MW, with previously issued net revenue outlook adjusted accordingly.

We expect our Q2 shipment level will be significantly higher than that of Q1, reflecting improved solar installation levels around the world and increased demand for our high-quality and cost-competitive solar products. We also expect that we will achieve greater market diversification as we now have order booking to sell into Germany, Spain, Italy, the Czech Republic, France, Korea, the U.S., China, Japan and several other countries in Q2."

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