Canadian Solar Inc. (the "Company", "we" or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar companies, updated its financial guidance for the third quarter 2011 based on its current views with respect to operating and market conditions, its current order book and customers' forecasts, all of which are subject to change.
For the third quarter of 2011, Canadian Solar expects shipments to be in line with prior guidance of 350 MW to 360 MW despite broader weakness experienced in the solar market worldwide. The Company noted that it saw strength in customer demand return at the end of the third quarter of 2011. Management believes that demand was initially lower earlier in the third quarter as customers appear to have been waiting as long as possible before committing to purchases given continued pressure on average selling prices ("ASP's") throughout the solar supply chain. This was compounded by a weaker than normal financing environment. Due to the lower ASP's, the Company now expects its gross margin for the third quarter will be in the range of 2% to 5%, compared to prior guidance of 9% to 12%.