Down significantly from the 22.1 MWp of photovoltaic modules shipped in Q4 2011, Sunways shipped just 6.4 MWp in Q1 2012, which translated into sales revenues of 5.1 million, compared to 16.4 million in Q1 2011.
Material shortages at LDK Solar, which completed its investment in Sunways at the end of this April, saw "limited availability"of the German companys modules. This, and continued pressure on selling prices, was attributed to the decline.
Sunways solar cell sales revenues similarly fell, from 7.5 million in Q1 2011, to 4 million in Q1 2012; volumes fell from 6.8 MWp to 4.9 MWp in the same period. Inverter revenues, on the other hand, saw a small boost, from 3.1 million in Q1 2011, to 4.1 million, and volume grew from 12.6 MWp to 24.3 MWp.
Looking at overall sales, revenues halved from 22.2 million in Q1 2011, to 10.4 million in Q1 2012. Business in Spain and Italy was said to have been "particularly disappointing", with revenues declining by over 90% in each market. Germany also saw a decline from 9.4 million to 7.1 million in the same period. On a more positive note, sales in Asia increased on back of the LDK cooperation, to reach 0.4 million in Q1 2012, compared to 0.1 million in Q1 2011.
At -7.3 million, Sunways Q1 2012 profit took a tumble, from the 2.7 million consolidated net loss seen in Q1 2011. This saw earnings per share drop from -0.23 to -0.42 in the same period. Meanwhile, Q1 2012 EBIT decreased from -3.5 million to -6.8 million. Gross margin, however, increased to 12.6 percent, up from 11.5 percent in Q1 2011.
Looking ahead to the full year, Sunways declined to offer any earnings or shipment guidance. It did say, however, that its goal was to stabilize sales revenues and reduce EBIT losses. "Corporate development is expected to be funded with cash-flows, but in particular through long payment terms to be granted by and a letter of support from LDK Solar," it added.
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Becky Beetz
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