CSUN - Earnings Call Transcript Q1 2013 -China Sunergy Co Ltd

Excerpt from the earnings call:

Stephen Zhifang Cai states that " In the first quarter, we grew roughly by 13% from the previous quarter to $62 million, as we shift a total of 102.5 megawatts, which was 31% more than four quarters. Our ASP for the first quarter decreased to $0.59 award, which was nearly 8% lower than previous quarter. More importantly, we will have quickly improved gross margin and the return to our positive 0.4% compared with net gross margin of 3.7% in the pre-quarter.

In the quarter, Europe with the overall revenue contribution of the 60% remained the largest destination for our products. Within Europe, we have also improved revenue mix with the revenues contributions from the friends, Germany and Italy 6% respectively. We believe the overall demand in Europe was negatively impact by that investigation of EU, AD and CVD during the quarter. Notably, total installation in general decreased more than 50% year-over-year followed by Italy, Belgium and some of the other major EU solar markets. "

CFO states " This quarter, inventory provisions decreased to $0.4 million compared with $1.2 million in the prior quarter. Overall, gross margin for the quarter was 0.4% compared with gross margin of 3.7% a quarter ago. During the quarter, the SG&A expense was $7.6 million compared with $33.1 million in a prior quarter. Comparatively bad debt provision was only 0.2 million in the first quarter versus $26.1 million in previous quarter. We continue to tightly control OpEx, forcefully collect bad debts and optimize headcount. As a note there was $5.9 million in other operating expenses due to the euro-dollar exchange loss, resulted from the depreciation of euros in the first quarter. 

All-in-all, net loss attributable to ordinary shareholders narrowed to $22.9 million and non-GAAP net loss improved to $22.3 million in the first quarter of 2013. Net loss per ADS was $1.71 in the first quarter and non-GAAP net loss per ADS was $1.67 during the period. Going into our balance sheet items in slide 10. Our inventory level decreased to $69.1 million, as we shipped more in first quarter. We will continue to maintain inventory at a reasonable level by planning production according to orders and project plans. Reflecting our continuous efforts to improve customer selection and a tighter cost controls. "

Full Transcript here http://www.earningsimpact.com/Transcript/81819/CSUN/Q1-2013-Earnings-Call