Utility-scale PV inverter manufacturer, Advanced Energy Industries has revised downwards its second quarter financial results due to the changing market dynamics seen in the solar industry. The company cited PV project construction delays, due to falling prices and delays in permitting and financing, amongst others for the revised guidance. AE expects revenue in the range of US$137-US$140 million, compared to previous guidance range of US$148-US$160 million.
“The performance of our renewables business drove our lower than expected second quarter revenue, while our thin film business performed in-line with our expectations,” noted Dr. Hans Betz, chief executive officer, Advanced Energy Industries. “Our results were primarily impacted by changing solar market conditions driven by panel price declines, short lead-times for components, and permitting and financing delays.”
“These trends are causing some customers to push-out purchases until panel prices stabilize, leading to the postponement of construction of their projects. Additionally, changing incentive programs in certain regions, coupled with increasing competition, affected the quarter and continue to be ongoing industry dynamics. While we are disappointed in our renewables results this quarter, our recently-announced large project wins reinforce our confidence in our strategy of selling based on LCOE (levelized cost of energy), which we believe will continue to differentiate us from our competitors,” added Dr. Betz.
Advanced Energy will release its second quarter 2011 financial results after the market closes on July 25, 2011.