Trina Solar Ltd. (TSL)
Q2 2010 Earnings Call
August 24, 2010 8:00 AM ET
Thomas Young – Senior Director, Investor Relations
Jifan Gao – Chairman and CEO
Terry Wang – Chief Financial Officer
Sean Tzou – Chief Strategy Officer
Gary Yu – SVP, Operations
Rob Stone – Cowen and Company
Kelly Dougherty – Macquarie
Dan Ries – Collins Stewart
Vishal Shah – Barclays Capital
Lu Yeung – UBS
Jesse Pichel – Jefferies
Sunil Gupta – Morgan Stanley
Timothy Arcuri – Citi
Gordon Johnson – Axiom Capital Management
Satya Kumar – Credit Suisse
Sam Dubinsky – Wells Fargo
Previous Statements by TSL
» Trina Solar Ltd. Q1 2010 Earnings Call Transcript
» Trina Solar Ltd. Q4 2009 Earnings Call Transcript
» Trina Solar Ltd. Q3 2009 Earnings Call Transcript.
Good morning. My name is Alicia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Trina Solar Second Quarter 2010 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions)
Thank you. I would now like to turn the call over to Thomas Young, Senior Director, Investor Relations. Mr. Young, you may begin your conference.
Thank you, Operator. Good day to all and welcome to Trina Solar's second quarter 2010 earnings conference call. This is Thomas Young, Trina Solar's Senior Director of Investor Relations. With us today are Trina Solar's Chairman and CEO, Jifan Gao; Chief Financial Officer, Terry Wang; Chief Strategy Officer, Sean Tzou; and Senior Vice President, Operations, Gary Yu.
Before I turn the call over to Mr. Gao, may I remind our listeners that in this call management's prepared remarks contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995.
Actual results may differ from those discussed today and therefore, we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission.
In addition, any projections as to the company's future performance represent management's estimates as of today, August 24, 2010. Trina Solar assumes no obligation to update these projections in the future as market conditions change.
For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days at the Investor center of Trina Solar’s website at trinasolar.com.
With that, it's my pleasure to turn the call over to Trina Solar's Chairman and CEO, Mr. Jifan Gao.
Thank you, Thomas. And thank you everyone for joining us on this call. We are pleased to announce that the second was another solid quarter for Trina Solar. We meet our guidance with recorded shipment volume of 223 megawatt and exceeding good margin improvement from our strong managements and exclusion.
We continue to maintain our operating activities, reduced costs and extend our global brand appreciation from the quality leader. We saw promising growth in our business not only across Europe but in Australia, South East Asia and U.S.
We signed landmark agreement with Southern California Edison to supply their California Solar Program with our PV modules. This demonstrates Trina Solar’s high level brand reorganization program and the land market appreciation for our leading customer service offerings. High quality products are the foundation of our appreciation.
In the second quarter, we are very pleased to announced partnership with TUV Rheinland, UL and CGC, by working closely with this top global dedicating facilities, we can reduce the term respect to very innovating to the market we have increased our quality demand at the highest level.
The second quarter saw existing progress on the R&D front. We have also met developing our strong R&D capabilities to develop our Quad MAX technology. We are pleased with this quarter as of July 30th to reach their already efficient they were 18.5% based on recent higher production. We have also increased our [test labor associates] for which 19.42%.
Finally, in June, we are pleased to be ranked second out of 26 leading company in the PRTM PV Sustainable Growth Index 2010. Showing the complete appreciation of growth, success and sustainable.
Looking forward, we continue to fuel our excel quality image and (inaudible). We continue to make improvement to our production techniques, research programs and importantly, maintain focus on internal customer service. It is our vision and long-term goal to be prove leader in the solar PV industry. We view just as this exciting industry develops we are in a greater position to achieve the growth.
I would now like turn the call over to our CFO, Terry Wang, who will share our second quarter 2010 financial results. Terry?
Thank you, Mr. Gao, and welcome to everyone today. I’d like to present an overview of our financial results, followed by the company's guidance for the third quarter.
As a housekeeping item, I would like, first, to bring your attention to accounting rules, ASC 470-20, that we adopt on January 1, 2010. The prior-period financials will retroactively adjust to reflect the adoption of this new accounting guidance. Please refer to today's earnings release for details.
The second quarter was another outstanding quarter, which were achieved record shipment volume and improved gross margin, which exceeded our previous guidance of high 20s in percentage term. Our total net revenue in the second quarter was $370.8 million, driven by sequential shipment volume increase of approximately 16%.
Our record shipment volume of 223 megawatts exceeded our guidance of 200 to 205 megawatts, reflecting increase brand recognition for product in new and established PV market. Including the U.S. and Australia combined with increase margin demand ahead of the mid-year Germany feed-in tariff adjustments.