LDK Reports Positively
LDK Solar, a manufacturer of multicrystalline solar wafers and PV products, today reported its unaudited financial results for the first quarter ended March 31, 2010. Net sales for the first quarter of fiscal 2010 were $347.6 million, compared to $304.6 million for the fourth quarter of fiscal 2009, and $283.3 million for the first quarter of fiscal 2009. For the first quarter of fiscal 2010, gross profit was $54.5 million, compared to $30.2 million in the fourth quarter of fiscal 2009, and a gross profit of $4.9 million for the first quarter of fiscal 2009. Gross margin for the first quarter of fiscal 2010 was 15.7%, compared to 9.9% in the fourth quarter of fiscal 2009 and 1.7% in the first quarter of fiscal 2009.
Income from operations for the first quarter of fiscal 2010 was $33.0 million, compared to loss from operations of $3.5 million for the fourth quarter of fiscal 2009, and compared to loss from operations of $16.1 million for the first quarter of fiscal 2009. Loss from operations for the fourth quarter of fiscal 2009 included a non-recurring charge of $10.0 million for the settlement of a class action lawsuit. Operating margin for the first quarter of fiscal 2010 was 9.5% compared to negative 1.1% in the fourth quarter of fiscal 2009 and negative 5.7% in the first quarter of fiscal 2009.
Income tax expense for the first quarter of fiscal 2010 was $3.2 million, compared to income tax expense of $5.3 million in the fourth quarter of fiscal 2009 and an income tax benefit of $1.6 million in the first quarter of fiscal 2009. Net income for the first quarter of fiscal 2010 was $7.2 million, or $0.06 per diluted ADS, compared to a net loss of $13.2 million, or $0.12 per diluted ADS for the fourth quarter of fiscal 2009. The number of shares for calculating diluted ADS was approximately 125.8 million and 109.6 million for the first quarter of fiscal 2010 and the fourth quarter of fiscal 2009, respectively.
LDK Solar ended the first quarter of fiscal 2010 with $347.4 million in cash and cash equivalents and $96.3 million in short-term pledged bank deposits.
"Continued momentum in the solar industry drove results for the first quarter," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our efforts to diversify our business within the module market tracked well in the quarter. We brought crystalline module manufacturing in house and signed several module supply contracts during the first quarter. In our wafer business, we continue to closely monitor demand levels to meet our customers' needs. In April we achieved annualized wafer capacity of 2.0 GW, maintaining our industry leadership as we continue to represent a significant share of global wafer capacity.
"We were particularly pleased with our progress in improving our operating efficiencies during the first quarter. Profitability improved sequentially, in part due to our ongoing efforts to manage capital expenditures and closely control expenses. We look forward to the increased benefit associated with the ramping up of our polysilicon production. We produced nearly 700 MT polysilicon in total between our 1,000 MT plant and the first 5,000 MT train of our 15,000 MT plant during the quarter and continue to ramp our output monthly. We remain encouraged by the improving industry dynamics," concluded Mr. Peng.
