Wed, Aug 22, 2012 - Page 14 News List

Neo Solar Power’s net loss narrows, but still sizeable

PARTIALLY CLOUDY OUTLOOK:The company said it was still optimistic about the third-quarter revenue outlook despite the volatility in the global solar market

By Kevin Chen  /  Staff reporter

Solar-cell maker Neo Solar Power Corp (新日光能源) said its net loss in the second quarter had narrowed by 80 percent from the first quarter on rising orders, although it still posted a 185 percent increase in first-half net loss due to a sizable loss write-off on long-term material supply contracts in the first quarter.

Neo Solar is among several Taiwanese solar firms, such as Gintech Energy Corp (昱晶), DelSolar Co (旺能) and E-Ton Solar Tech Co (益通), that reported smaller net losses in the April-to-June quarter from the previous three months due to the short-time spot price increase and the stable demand.

However, market researcher EnergyTrend, a research team at Taipei-based TrendForce Corp (集邦科技), said earlier this month that it was not upbeat about the third quarter, with order visibility remaining low in Europe and continued price cuts by Chinese firms to adjust their inventories.

NET LOSS

Hsinchu-based Neo Solar said in a statement on Monday its net loss for the six months ended June 30 expanded to NT$2.18 billion (US$72.7 million), or a net loss per share of NT$5.07, from NT$753.76 million, or NT$2.31 per share, a year earlier.

Revenue in the first six months totaled NT$7.06 billion, down 42.79 percent from NT$12.33 billion a year earlier, it said.

However, net loss in the second quarter narrowed to NT$362 million, or NT$0.84 per share, from NT$1.82 billion, or NT$4.23 per share, in the previous quarter, and that compared with a net loss of NT$1.06 billion, or NT$3.29 per share, in the second quarter of last year, the company’s data showed.

Neo Solar said in the statement that average selling prices dropped slightly in the second quarter from the first quarter, but its consolidated revenue rose 27.17 percent sequentially to NT$3.95 billion in the second quarter because of strong demand from China, Europe, Japan and emerging markets.

Gross margin improved to minus-5.26 percent from minus-51 percent in the first quarter, when the company booked write-off of losses incurred from its long-term material supply contracts, the company said.

“Neo Solar remains optimistic about the third quarter revenue outlook despite global solar market volatility,” the company said in the statement.

SOLAR SHARES

Shares in Neo Solar jumped 4.91 percent to NT$17.1 yesterday. Other solar stocks also rose yesterday, compared with an increase of 1.01 percent on the benchmark TAIEX.

Solar cell makers Motech Industries Inc (茂迪) increased 5.94 percent to NT$30.3, while Gintech, E-Ton and DelSolar all closed limit-up at NT$31.2, NT$12.8 and NT$12.9 respectively.

Green Energy Technology Inc (綠能), the nation’s biggest solar wafer maker, surged by daily up-limit to NT$20.5, and Giga Solar Materials Corp (碩禾), a provider of conductive materials for solar cells, climbed 2.14 percent to NT$262.5.

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