Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading polysilicon manufacturer based in China, today announced its unaudited financial results for the fourth quarter and fiscal year 2011.
Fourth Quarter 2011 Financial and Operating Highlights
- Polysilicon shipments were approximately 834 metric tons, or MT. Photovoltaic (PV) module shipments were 9.6 Mega watts, or MW. Wafer shipments were 7.8 MW. In addition, the Company provided 5.9 MW PV modules manufacturing outsourcing service to its customers.
- Revenues were $38.2 million, compared to $59.6 million in the third quarter of 2011 and $81.9 million in the fourth quarter of 2010.
- Gross loss was $11.2 million, compared to gross profit $19.9 million in the third quarter of 2011 and $45.8 million in the fourth quarter of 2010. Excluding the impact of $10.6 million inventory write-down, gross loss would be $0.6 million.
- Gross margin was negative 29.3%, compared to positive 33.3% in the third quarter of 2011 and 55.9% in the fourth quarter of 2010. Excluding $10.6 million of inventory write-down, gross margin would be negative 1.6%.
- Operating loss was $49.9 million, compared to operating profit $17.1 million in the third quarter of 2011 and $41.3 million in the fourth quarter of 2010.
- Operating margin was negative 130.4%, compared to positive 28.8% in the third quarter of 2011 and 50.4% in the fourth quarter of 2010. Excluding provision of fixed assets impairment of $38.5 million and inventory write-down of $10.6 million, operating loss would be $0.8 million, representing a margin of negative 2.1%.
- Net loss attributable to Daqo New Energy Corp. shareholders was $39.4 million, compared to profit $12.1 million in the third quarter of 2011 and $32.8 million in the fourth quarter of 2010.
- Earnings per fully diluted ADS were negative $1.12, compared to positive $0.34 in the third quarter of 2011, and $0.95 in the fourth quarter of 2010.
Full Year 2011 Results Financial and Operating Highlights
- Polysilicon shipments were 3,947 MT, an increase of 8.1% from 2010.
- Revenues were $255.8 million, an increase of 5.4% from 2010.
- Gross profit was $86.1 million, compared to $106.2 million in 2010.
- Gross margin was 33.7%, compared to 43.8% in 2010.
- Operating income was $43.4 million, compared to $92.5 million in 2010.
- Net income was $34.9 million, compared to $69.1 million in 2010.
- Net income attributable to Daqo New Energy Corp. shareholders was $33.3 million, compared to $68.6 million in 2010.
- Earnings per fully-diluted ADS were $0.95, compared to $2.32 in 2010.
“In the fourth quarter of 2011, we continued to operate our polysilicon manufacturing smoothly. We achieved our targets for production and shipment. In addition, we successfully conducted annual maintenance, and in turn laid a concrete foundation for the operation in 2012.” commented Dr. Gongda Yao, Chief Executive Officer of the Company “Nevertheless, the weakening industry environment resulted in even lower selling prices for Polysilicon, Wafer and Module compared to the third quarter, which adversely affected our profitability.”
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