Green Energy Technology Inc (綠能科技), the nation’s largest solar wafer supplier, yesterday said it expects to report its first profitable quarter in five quarters, as efforts to avoid low-margin orders started to bear fruit last quarter.
Prior to last quarter, the company posted a net loss of NT$745 million (US$25.18 million) in the first three quarters, compared with losses of NT$413 million during the same period in 2016.
The Taoyuan-based company expects last quarter’s gross margin to stay above the break-even level, extending momentum from September last year.
“We have tried to avoid orders that cannot deliver a profit,” Green Energy spokeswoman Christine Chen (陳婷婷) said by telephone. “As a result, we are optimistic about our gross margin and bottom line for the fourth quarter [of last year].”
Green Energy also gave an upbeat business outlook for this quarter, citing brisk customer demand.
“The order visibility is clear. We see orders coming in through the Lunar New Year holiday,” Chen said, adding that prices of solar wafers and cell modules could trade in a stable range.
Meanwhile, factory utilization dropped from 95 percent in November last year to 90 percent last month and revenue fell 12 percent month-on-month to NT$1.11 billion last month — the lowest level in five months — although still a strong rebound of 46 percent from NT$759 million made a year earlier.
“The company will expand its high-end diamond wire-cut wafer and solar brick businesses in 2018,” Green Energy said in a statement. “With an optimized product mix, we are optimistic about reaching operating profits [this year].”
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