The company expects module shipments to increase over 75% quarter over quarter in Q4 this year. Q3 net revenues were US$218.2 million,a decrease of 6.4% from Q2 but it met the company guidance.
The gross loss for Q3 was US$39.2 million with a gross margin of negative 18%, which included a US$31.6 million write-down for inventory, compared to a gross profit of US$1.3 million with a gross margin of 0.6% in Q2 2012.
The operating loss was US$82.8 million with an operating margin of negative 38%. This is compared to Q2's negative 14.9% operating margin. Q3's net loss was US$78.6 million, representing basic and diluted loss per share of US$0.46 and basic and diluted loss per American depositary share (ADS) of US$0.91.
Cash and cash equivalents plus restricted cash were US$335.2 million as of the end of Q3 2012, compared to US$394.2 million as of the end of Q2.
"While we delivered record shipments in the third quarter, declining selling prices and the substantial supply-demand imbalance continued to have a large impact on our margins," explained Xianshou Li, ReneSola's chief executive officer. Li remains confident in the company's ability to lower costs and develop technology despite difficult market conditions. To date, ReneSolar has 40MW of projects under construction in China and 6MW of projects in Romania.
In Q4 the company expects a total wafer and module shipment between 635 MW to 675 MW, with solar module shipments expected to be in the range of 250 MW to 270 MW. Revenues are expected to be in the range of US$240 million to US$260 million and gross margin is expected to be positive in Q4 2012.
Earnings conference call
ReneSola's management will host an earnings conference call on Friday, November 30, 2012 at 8 am U.S. Eastern Time (9 pm Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S. / International: +1-718-354-1231
Hong Kong: +852-2475-0994
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "ReneSola Call".
A replay of the conference call may be accessed by phone at the following number until December 7, 2012:
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola's website.
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