Solarfun (SOLF) Jumping PreMarket On Better Than Expected Results

Solarfun (SOLF) is up nearly 10% in premarket trading after reporting much better than expected earnings results.  The company reported a loss .02/share vs the consensus estimates of a .17/share loss on revenues that were right about in line with estimates at $100 million.  Considering the loss this quarter was considerably less than last quarters .40/share loss, perhaps the company is beginning to stabilize.  However, the quarter represented the first quarter over quarter revenue decline and it was significant. 

Peter Xie, President of Solarfun, commented, “The first quarter of this year saw mixed results from our perspective. On the one hand, shipments and sales continue to be pressured by excess channel inventories, industry-wide module production overcapacity, declining prices, and the continued tight lending environment for solar projects. However, we do believe that the first quarter will prove to be the low point for industry demand and for our company during this cycle. We are cautiously optimistic for a more meaningful rebound, particularly during the second half of this year and heading into 2010. That being said, the timing and magnitude of this turn is quite unpredictable and as a result, we will continue to refrain from making specific quarterly and full year projections

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