This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Canadian Solar Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: CSIQ

All information provided on this call is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information except as required under applicable law.

At this time, I would like to now turn the call over to Dr. Shawn Qu. Please go ahead, sir.

Shawn Qu

Thanks, David, and thank you, all, for joining us on today's call. With a backdrop of a challenging solar industry environment, we are pleased with our results for the quarter at 412 megawatts. Our shipments came in close to our expectations, while gross margin on a GAAP basis came in above our guidance. Demand strength in Europe was offset by somehow slow sales in North America, while we are still waiting for the demand surge expected in other markets such as China and Japan.

The key theme for Canadian Solar in the second quarter remains a solid execution at all levels of our organization. We continued to execute on all the key components of our strategy. Specifically, we are focused on increasing our market share and gaining scale, reducing our costs, expanding our higher-margin total solution business and enhancing our product offering by launching innovative, high-efficiency modules.

In the second quarter, we believe we gained market share over other competitors while expanding our customer base and geographic footprint. We are consolidating our position on our worldwide top 4 suppliers, making Canadian Solar the partner of choice across all key geographies. In addition, we are executing the -- we are exiting the second quarter with one of the strongest balance sheets in the solar industry, positioning Canadian Solar to benefit from the global flight to quality and bankability and to emerge from the current cycle as a stronger leader.

On the manufacturing front, we continued our relentless focus on the reduction of our all-in module manufacturing costs, which reached $0.67 per watt, down from $0.73 per watt in the first quarter. Progress of our cost roadmap was driven by continued improvement across all the staff in the production process. The $0.06 per watt cost reduction from Q1 to Q2 is roughly equally shared by reduction in the cost of silicon wafer and the cost of cellular module processing in our own factory. We believe we are now among the lowest cost suppliers in the world, and we are within reach of our industry-leading OEM module manufacturing cost target below $0.60 per watt by the end of 2012.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs