Tough market conditions have forced polysilicon producer Daqo to lower its second-quarter financial outlook for revenue and shipments. The move came after Daqo was hit hard by weak demand and declining prices for its products.

Daqo said that revenue would be in the range of US$70-71 million, compared to a prior guidance of between US$92-95 million, potentially around 23% below guidance given in first quarter 2011 financial statements.

Polysilicon shipments had originally expected to be in the range of 950MT-1000MT, generating revenue of between US$64.5-67.5 million. Revised shipment guidance means polysilicon shipments are now anticipated to be in the range of 970-990MT, narrowing the previous forecast.

Daqo projects shipments of 0.7MW of wafer, 4MW of PV modules under its own brand and sales of 8MW of PV modules for outsourcing for its customers.

Previously, Daqo had guided 7MW of wafer shipments, 14MW PV modules under its own brand and sales of around 2.5MW PV modules outsourcing for its customers.

“We had experienced a substantial price decline in the second quarter of 2011, and as a result, we are revising our revenue guidance for the second quarter of 2011,” commented Daqo chief financial officer Jimmy Lai. “The reduction in revenue guidance is mainly due to the less shipment in the down-stream product, wafer and module.”