A surprisingly good quarter out of China Sunergy (CSUN) this morning.  The company swung back to a profit in the quarter, posting .03/share excluding one time items on revenues of $70.1 million.  Analysts were expecting .01/share and $60.79 million respectively.  It looks like the company is finally getting its costs under control which it had been unable to do in the past 2 quarters.

Commented the CEO, “After two quarters of unfavorable economic conditions, we are pleased that the decisive action we took earlier in the year has led to second quarter results which meet or exceed our expectations. We have experienced steady monthly progress among operational and financial level improvements, due to our effective financial and inventory management, a focus on developing existing and new market opportunities and continued dedication to our leading solar technologies.”

The company believes that while the solar market will continue to recover, that will happen at a slower pace than originally thought.  The anticipate 3rd quarter shipments of 48 – 55MW, but sees no improvement in gross margins due to strong pricing competition.  For the full year, it now expects shipments in the lower end of the 150 – 200MW guidance it gave previously.