Friday, October 12, 2007

LDK Solar continues to make deals

October 10, 2007

The company announces its first supply contract since disclosing accusations of inventory discrepancies.

It's business as usual at Xinyu, China's LDK Solar (NYSE: LDK). The company announced today its first supply contract since word leaked out of accusations of inventory discrepancies.

LDK signed a three year contract to supply multicrystalline solar wafers to Beijing's Chinalight Solar. LDK valued the deal at RMB 1 billion, with delivery expected to start in 2008.

The company disclosed last week that it fired its financial controller "for cause" in September, after he spent just seven months on the job. The ex-controller claimed the company has poor inventory controls.

LDK said its management conducted an internal investigation and physical inventory counts and found no material discrepancies.

The company also said its audit committee is conducting a review, which will be disclosed to the public when it's complete.

LDK manufactures multicrystalline solar wafers, which are the principal raw material used to produce solar cells, using both virgin and recyclable polysilicon for ingot production.

This week, the company boosted its third quarter revenue guidance to $140 million to $150 million, up from $115 million to $125 million.

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