Solar now can clearly [position us] against our other alternative such as wind and (inaudible) user base for an increasing number of markets, and the user categories. We view this as positive trend (inaudible) for our company and the solar industry in the future.
Lastly, I wish to highlight our mission today, announced the ISO certification from the British Standards Institute. This achievement is a great [declamation] of our commitment to leading the PV industry in sustainable development.
With that, I’d like to turn the call to our CFO, Terry Wang to share our fourth quarter 2011 financial results. Terry?
Terry WangThank you, Mr. Gao, and welcome everyone to our earnings conference call. I’d like to present an overview of our fourth quarter and full year financial results followed by the company’s guidance for the first quarter and the full year of 2012. Due to the growth of the worldwide module capacity, and peak third quarter inventory levels, the fourth quarter saw significantly lower product prices. Though our costs came down substantially due to the low cash costs and the inventory walk through, which I will discuss later, reductions were not sufficient enough to offset the fall of ASP in this quarter, which inevitably affect our margin, and adversely affect our bottom line results. We have achieved in this quarter, roughly shipment of a 425 megawatt, which exceeded our upper range of guidance by 21%, translated to a total net revenue of $435 million in the fourth quarter, quarter-on-quarter volume increase approximately 16%. Reflecting market ASP reductions, our gross profit was $31 million, a decrease of approximately 40% from third quarter. The overall gross margin was 7.1% below the company’s previous guidance of approximately 10%. And that will increase the cost control measures taken in the fourth quarter, will incur our 21.6% increase in operating expenses to $93.9 million, which include accounts receivables, provisions of $16.3 million, and a $9.1 million provisions for earlier polysilicon supply (inaudible), one of the which to Anatone Solar. Read the rest of this transcript for free on seekingalpha.com
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