Solarfun Power Holdings Co., Ltd. (NASDAQ:SOLF) reported fourth quarter 2008 and full-year results this morning. For the quarter, Solarfun posted a net loss of -$1.14/ADS. Revenue was $164.6 million, down nearly 12% sequentially. Analysts had been expecting a loss of -$0.59/share.
As with other solar makers, Solarfun faces a difficult 2009, particularly in the first quarter. The company expects to ship around 35 megawatts at an average selling price in the range of 2.05-2.10 Euros, about 15% below fourth quarter pricing. Fourth quarter 2008 shipments totaled about 48 megawatts. The company does expect margins to improve during the course of 2009.
Solarfun expects selling prices to get worse, by another 10%-15%, by year-end 2009. But don’t worry because the company also expects to have plenty of funding for the year: “Funding to be adequate to meet 2009 anticipated spending requirements through a combination of cash on hand and access to commercial bank lines of credit, which remain accommodative in China.”
And to add a little more shade over the solar operation, the company’s CFO is resigning effective March 31.
Solarfun was down about 5.5% in early trading and is threatening its 52-week low of $3.52/ADS. These have now recovered and are down 2% at $3,84.
Paul Ausick
March 25, 2009
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