ReneSola has released its preliminary unaudited results for the 2010 fiscal year’s second quarter. Taking into consideration this quarter’s results, the company expects total solar product shipments for the second half of this year to be in between 600MW and 650MW. Net revenue is expected to be around $550 million to $570 million, while gross project margin is predicted to be between 28% and 30% for the second half of the year as well.
The company expects total solar product shipments for the second quarter to be between 250MW and 260MW, showing a 3.1% to 7.3% increase from first quarter results. Net revenue for the second quarter should be in the $245 million-$255 million range, representing an increase of 21% to 25.8% from the first quarter. Finally the gross profit margin will end up between 28% and 30%, compared to Q1’s 17.1%, according to the company.
“The strong demand for high-quality wafer products witnessed during the first quarter of 2010 continued through the second quarter as a result of ongoing tightness in the wafer supply chain,” said Li Xianshou, ReneSola’s chief executive officer. “Execution of our cost reduction strategies and the efforts we have made to develop and position our business have allowed us to capitalize on improved demand trends while becoming a leading low-cost solar product provider.
“By leveraging our leading wafer manufacturing platform and complementary OEM module production services and capitalizing on our strong customer relationships, we have benefited from a cost-competitive strategy to deliver record product shipments and increased profitability. We expect to see stable pricing in the coming months as demand has remained strong and is expected to continue in the second half of 2010.”