Thursday, December 11, 2008

JA Solar Again Cuts Q4 Guidance

Posted by Eric Savitz

The troubles in the solar sector continue to deepen.

JA Solar this afternoon again cut its Q4 guidance.

The solar cell company now sees revenue of about $124 million, down from previous guidance of $191.5 million to $220.9 million. The earlier guidance, which JA Solar had provided on November 12, had been dramatically below the then-consensus view of $371.4 million.
The company said it continues to see gross margin of 5% to 7%, and break-even non-GAAP earnings per ADS

JA Solar now sees 2008 production of 250-260 MW, down from earlier guidance of 310 MW.

In a statement, CEO Samuel Yang said that the company over the past few weeks has seen "a dramatic slowdown in orders" due to macro economic conditions.

Yang said he expects the company to be profitable in 2009.

After hours, JASO is down 17 cents, or 6%, to $2.68.

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