Solarfun Power skids on second-quarter margin decline
Shares of Solarfun Power Holdings Co., Ltd. (Nasdaq:SOLF) aren’t having so much fun today after the silicon ingots and photovoltaic cells manufacturer this morning said that tight supply and higher costs for polysilicon and wafers constrained both top and bottom line growth, as well as gross margins in the second quarter. Gross margin decreased to 13.7% from 15.8% in the second quarter of 2008.
However, despite these challenges, second-quarter results did manage to trump the consensus on Wall Street.
Additionally, going forward, the company stated that gross margins for the second half of 2008 are expected to improve from levels seen in the second quarter.
Shares slipped 12%, or $2.33, to $16.61 in afternoon trading. For detailed price information and news stories on Solarfun Power Holdings, click SOLF.
An earlier version of this item on SmallCapInvestor.com incorrectly stated that results had fallen short of analysts’ estimates, on the part of oversight of the currency conversion when comparing estimates.
About the Author
Reporter Jennifer Schonberger is based in SmallCapInvestor.com's Washington, D.C. bureau.
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