Canadian Solar (CSIQ) reported a much larger loss then expected this morning, posting an EPS loss of 1.39/share after taking out one time costs.  Revenues took a plunge as well, dropping 43% over the year ago quarter to $73 million. 

Commenting on the quarter, CEO Shawn Qu highlighted the usual suspects.  “In Q4,difficult credit conditions for our customers, market-wide module and raw materials inventory price declines and winter weather in Germany directly affected our revenue growth and profitability.”

With $136 million in cash the company may be able to ride out the storm.  CFO Arthur Chien commented, saying ”We are encouraged by our ability to weather the current economic storm to date, especially as seen in our cash generation and healthy balance sheet. We exercised prudent financial management principles by writing down the value of inventory and making provisions for doubtful accounts. These balance sheet provisions did however significantly affect our quarterly and annual results. We expect to see improved gross margins in Q2 2009 and achieve our guidance margins in H2 once older inventory has been used and as we benefit from lower raw materials pricing.”

The company is offering 09 guidance, estimating shipments of 300 – 350MW with revenues of $600 – 800 million with the assumption that the 2nd half of the year will see significant improvement. 

It appears that much of the bad news was priced in as the stock rebounded sharply off the lows today to finish near the highs with significant volume.  Not massive capitulation by any stretch but it could signal that bottom is near for CSIQ.