We have always believed it would be irresponsible to prioritize short-term shipment gains over long-term financial stability. As a consequence we entered the second half of the year in a relatively strong financial position in the industry. This combined with the consistent excellence of our product ensures that we receive the task of our customers across key market. We see us as a long term player.
Let's take a look of some of the key metrics for the quarter starting with our shipments. In this quarter shipments were 418 megawatts, in line with the low end of our guidance. As that said, given the current market uncertainty ensuring long-term financial stability is more important than chasing short-term shipments volumes. Having said that, I do want to highlight that we are making excellent progress in module shipments.
Customers, in question they recognized the quality and the value of our offerings. This quarter for the first time modules account for more than 60% of revenues and more than 55% of shipments. In the long term, the greater share of modules in overall shipments to the [gross] margins.
Gross margins, in this quarter continued to improve increasing to 4.8% in second quarter than 2.1% in first quarter. This shows the success of our cost cutting effort, increased operating efficiency and technological improvements. Our operating margin was negatively impacted by increase in operating expense and this was primary due to the prepayment impairment of 3.4 million related to the share transfer agreement with M.SETEK for the acquisition of a 65% interest in Hebei Ningjin Songgong. We will discuss this in more detail later.Read the rest of this transcript for free on seekingalpha.com
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