ASPs continued to decline in the second quarter with module ASPs dropping to 0.75 per watt and wafer ASPs dropping to $0.31 per watt in the second quarter compared to $0.84 per watt and $0.33 per watt respectively in the first quarter. Second quarter revenues were $233 million up 10.2% from $211.5 million in the first quarter as a result of higher module shipments.
Please turn to slide 7 for update on our research and developments.[Foreign Language] R&D remained the central focus in the second quarter. During the quarter, we made progress in the development of our Virtus wafer and modules. We developed a second generation of our Virtus wafer, which uses our newly developed and proprietary in-house manufacturing process, the Virtus A++ process which reduces wafers without the use of monocrystalline seeds. This new manufacturing process results in lower light induced degradation and lower processing costs, which in turn results in a production of more distributed ingots with a greater percentage of high efficiency products. At present, our Virtus A++ processing cost is close to $0.12 per watt, significantly lower than our overall processing cost of $0.17 per watt. We are confident, we can lower this to $0.11 per watt by the end of the year and we’ll continue to invest in Virtus A++ to improve its efficiency. At present, the Virtus A++ method produces wafers with average cell efficiency of 17.5% and Virtus II modules that generate 250 watts to 260 watts of power based on 60 solar cells with a potential to generate as much as 300 watts to 310 watts of power based on 72 solar cells. Read the rest of this transcript for free on seekingalpha.com