Neo Solar is into profit

Taiwanese cell manufacturer Neo Solar is already reaping the benefits of May’s merger with Delsolar as its third-quarter figures were accompanied by the triumphant phrase: "The company is officially turned into profitability."

The figure in question is a net profit of NT$200 million (US$6.8 million) for the first three-quarters of 2013, on net revenues of NT$13 billion and a nine-month gross profit of NT$1 billion.

With October’s revenues of NT$2.3 billion the largest monthly figure since March 2011 – and up 1.3% on September for a tenth consecutive monthly rise – the third quarter earnings statement issued by the company on Wednesday bullishly remarked "some market research agencies predict" 40 GW of solar installations worldwide next year, rising to 50 GW the year after.

Where NeoSolar’s press releases state the global solar market is ‘bottoming up’, it’s safe to assume the company means bottoming out rather than committing a Freudian slip.

The NT$2.3 billion revenue garnered last month contributed to a quarterly total of NT$6.4 billion for gross three-month profits of NT$903 million, operating profits of NT$502 million and net profits of NT$465 million.

The earnings statement mentions increasing capacity optimization and cost reductions after the share-swap merger with Delsolar was completed in May as well as the positive contribution of the enlarged company’s recent NT$4.1 billion fundraising.

Neo Solar’s project systems work on phase I of the U.S.’ largest airport solar system – the 12.5 MW installation at Indianapolis Airport, connected last month – is cited as evidence of a growing contribution to company revenues being made by its General Energy Solutions subsidiary from contracts Statesside and in Taiwan and Japan.

Impressively, rather than making vague claims about R&D and the ‘next generation’ of products, Neo Solar is also trumpeting the pilot production of two new cells.

It claims its p-type Black20 cell boasts a maximum efficiency of 20.6% and its n-type bifacial cell BiFi has a front side average efficiency of 19.6%, becoming a 24.9% equivalency on the presumption 30% of light is reflected from the rear side. The new bifacial cell, says NeoSolar, can generate 35% more energy than regular cells when tilt installed and, when vertically installed, still beats regular cells and boasts morning and afternoon peaks.

All in all, things are far from bottoming up for Neo Solar.