JIASHAN, China, Aug. 24, 2012 /PRNewswire-Asia/ -- ReneSola Ltd ("ReneSola" or the "Company") (NYSE: SOL), a leading global manufacturer of solar modules and solar wafers, today announced its unaudited financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Financial and Operating Highlights
- Total solar wafer and module shipments in Q2 2012 were 503.7 megawatts ("MW"), exceeding Company guidance and representing an increase of 8.1% from 466.0 MW in Q1 2012.
- Q2 2012 net revenues were US$233.0 million, exceeding Company guidance and representing an increase of 10.2% from US$211.5 million in Q1 2012.
- Q2 2012 gross profit was US$1.3 million with a gross margin of 0.6%, compared to a gross loss of US$8.0 million with a gross margin of negative 3.8% in Q1 2012.
- Q2 2012 operating loss was US$34.6 million with an operating margin of negative 14.9%, compared to an operating loss of US$37.8 million with an operating margin of negative 17.9% in Q1 2012.
- Q2 2012 net loss was US$34.8 million, representing basic and diluted loss per share of US$0.20, and basic and diluted loss per American depositary share ("ADS") of US$0.40.
- Cash and cash equivalents plus restricted cash were $394.2 million as of the end of Q2 2012, compared to US$388.3 million as of the end of Q1 2012.
"Despite what remained a challenging macro-environment, with lower average selling prices and lingering uncertainty surrounding the solar market, we continued to execute on our overarching strategy in the second quarter of 2012 to grow our module business, lower costs and develop superior technology," said Mr. Xianshou Li, ReneSola's chief executive officer. "We achieved record module shipments in the second quarter, up 76% quarter over quarter and 146% year over year, which is reflected in the number of employees we have added this year, primarily in the area of modules. On top of that, our sales and marketing efforts have enhanced our brand awareness among top solar companies, particularly with respect to our high-efficiency Virtus modules, which utilize our proprietary Virtus wafers. We continue to operate at 100% capacity and have built strong relationships with numerous customers that we are confident will continue to grow."
Mr. Li continued, "While we have invested further in our module business, we still consider wafer manufacturing to be our core competitive strength, as it represents the key stage in determining module efficiency. We continued to invest in R&D in the second quarter to improve our product efficiencies and manufacturing processes, which will help lower our costs. In the second quarter, manufacturing costs decreased between 10% and 15% across each of our key products: modules, wafers and polysilicon. Additionally, our R&D investments have led to horizontal developments, such as microinverters, which we expect will provide us with additional opportunities for growth. We will continue to invest in R&D, while simultaneously expanding our sales and marketing reach, to overcome short-term challenges and to prepare for when market conditions improve."
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