Fist Solar’s key solar module encapsulant supplier, STR Holdings has withdrawn its full year revenue guidance and lowered third quarter non-GAAP earnings forecast in light of continued weak demand and more likely, pressure on prices as end-product pricing has continued to fall all-year – due to overcapacity and lack of demand elasticity.
“As we advised during our second quarter earnings conference call, our guidance was based on expectations for increased demand due to a number of factors including increased demand generated from the clearing of solar panel inventory, a restoration of project financing in Europe, decreased module ASPs and a pull-in effect in advance of feed-in tariff reductions in Germany,” stated Barry A. Morris, Executive Vice President and Chief Financial Officer. “We were not alone in this view. However, as has been widely reported, demand for solar modules has not yet recovered.”
STR had cited in its second quarter conference call that it expected PV revenues to decline by as much as 30% in Q3, with a rebound in Q4.
The materials supplier had already reduced full-year revenue guidance to a range between US$381-US$398 million but does not now believe this guidance is justified. New guidance was said to be given in its third quarter financials, due in early November.
STR said that third quarter revenue was still inline with prior guidance of US$51 to US$57 million but non-GAAP earnings could be US$.01 to US$.02 per share lower than the previously published guidance range of US$0.12 to US$0.16 per share.
