Canadian Solar released its financial results for 2Q14. Both the net revenue and gross profit increased, compared to 1Q14 and 2Q13. These are mainly resulted from strong module demand out of Japan, Germany, the UK and the U.S. as well as progress in the build out of the company’s utility-scale solar projects in Canada.

Second Quarter 2014 Highlights

• Solar module shipments were 646 MW, compared to 500 MW in the first quarter of 2014 and to second quarter guidance in the range of 600 MW to 630 MW.
• Net revenue was US$623.8 million, compared to US$466.3 million in the first quarter of 2014 and to second quarter guidance in the range of US$560 million to US$590 million.
• Net revenue from the total solutions business as a percentage of total net revenue was 32.6% compared to 27.4% in the first quarter of 2014.
• Gross margin was 19.0%, compared to 14.7% in the first quarter of 2014 and to second quarter guidance in the range of 17% to 19%.
• Net income attributable to Canadian Solar in the second quarter of 2014 was US$55.8 million, or US$0.95 per diluted share, compared to US$3.8 million, or US$0.07 per diluted share, in the first quarter of 2014.
• Cash, cash equivalents and restricted cash balances at the end of the quarter totaled US$788.3 million, compared to US$781.0 million at the end of the first quarter of 2014.
• Net cash used in operating activities was US$44.3 million, compared to net cash used in operating activities of US$153.7 million in the first quarter of 2014.
• During the quarter, the Company closed the sale of one solar power plant in Ontario, Canada to an affiliate of Concord Green Energy valued at over C$60 million.
• During the quarter, the Company entered into an engineering, procurement and construction (EPC) agreement with Kingston Solar LP, a solar energy partnership formed by Samsung Renewable Energy Inc., for the construction of a 140 MW DC utility-scale solar power plant, which is expected to generate revenue of over C$300 million for Canadian Solar.