A-Power Profit Slips, Shares Plunge (Update)

Momma said there'd be quarters like these. A-Power Energy(APWR Quote) reported before the opening bell that sales and profit slipped in the first quarter.

Revenue slipped 3.5% to $31.2 million from $32.3 million in the year-over period. Profit dropped to $1.6 million from $2.9 million, giving the company per-share earnings of 4 cents. EPS was at 14 cents in the year over period.

The results for the company, which creates power distribution systems throughout China, fell well short of expectations.

"The first quarter is typically slow for us due to seasonality and weather conditions in the northeast region of China," CEO Jinxiang Lu said.

Looks like investors didn't give the company the benefit of the doubt. Shares nosedived through the day, losing $3.11 to finish at $9.98 -- a whopping 24% drop.

On slightly better news, the company did say that the Shenyang government will invest $44 million in Shenyang Power, a consortium of energy companies pushing for alternative energy technologies. As the lead investor, A-Power will have a 60% stake in the consortium after the Shenyang investment.

The company also said that it signed an agreement to ship two units of 2.7MW wind turbines with Jinzhou Jinxia New Energy, marking A-Power's first wind turbine business shipments.

Lu also added that the company is monitoring general and administrative expenses with an eye toward expansion.