Canadian Solar Updates 2010 First Quarter Performance

Solar panel producer Canadian Solar Inc. has updated its first quarter performance for 2010. The company also updated its guidance for the second quarter. The announcement of the company’s first quarter financial results has been postponed because of an ongoing investigation by the Audit Committee of the company's Board of Directors.

The investigation was initiated after the Securities and Exchange Commission (SEC) issued a subpoena to the company seeking documents regarding certain sales transactions in 2009. The company intends to fully cooperate with the SEC. Forensic accountants and a counsel have been appointed by the Audit Committee to assist in reviewing the transactions.

The company might revise the net revenue of the fourth quarter of 2009 since the company would recognize sales only after full cash payments have been received from its customers. These transactions would be deferred to the first or second quarter of 2010 and net revenues for 2009 might be accordingly revised.

The first quarter of 2010 saw shipments to principal solar industry markets. Europe stays as the top market for the company’s products, driven by to increased demand caused by Germany's proposed reduction of feed-in-tariff. Shawn Qu, CEO of Canadian Solar said that the record-high shipments made by the company prove its brand recognition in the industry. Canadian Solar is now focusing on non-German customers and conducting U.S. dollar-denominated sales.