LDK Solar Reports Financial Results for First Quarter of Fiscal 2010

XINYU CITY, China and SUNNYVALE, Calif., May 10 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, today reported its unaudited financial results for the first quarter ended March 31, 2010.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Recent Highlights:

• First quarter 2010 revenue was $347.6 million;
• Shipped 426.7 MW of wafers and 31.3 MW of modules in the first quarter;
• Gross margin for the first quarter of fiscal 2010 was 15.7%;
• Net income was $7.2 million, or $0.06 per diluted ADS for the first quarter;
• Increased wafer capacity to 2.0 GW in April 2010; and
• Acquired Best Solar's crystalline module manufacturing plant.

Net sales for the first quarter of fiscal 2010 were $347.6 million, compared to $304.6 million for the fourth quarter of fiscal 2009, and $283.3 million for the first quarter of fiscal 2009.

For the first quarter of fiscal 2010, gross profit was $54.5 million, compared to $30.2 million in the fourth quarter of fiscal 2009, and a gross profit of $4.9 million for the first quarter of fiscal 2009.

Gross margin for the first quarter of fiscal 2010 was 15.7%, compared to 9.9% in the fourth quarter of fiscal 2009 and 1.7% in the first quarter of fiscal 2009.  

Income from operations for the first quarter of fiscal 2010 was $33.0 million, compared to loss from operations of $3.5 million for the fourth quarter of fiscal 2009, and compared to loss from operations of $16.1 million for the first quarter of fiscal 2009.  Loss from operations for the fourth quarter of fiscal 2009 included a non-recurring charge of $10.0 million for the settlement of a class action lawsuit.

Operating margin for the first quarter of fiscal 2010 was 9.5% compared to negative 1.1% in the fourth quarter of fiscal 2009 and negative 5.7% in the first quarter of fiscal 2009.

Income tax expense for the first quarter of fiscal 2010 was $3.2 million, compared to income tax expense of $5.3 million in the fourth quarter of fiscal 2009 and an income tax benefit of $1.6 million in the first quarter of fiscal 2009.

Net income for the first quarter of fiscal 2010 was $7.2 million, or $0.06 per diluted ADS, compared to a net loss of $13.2 million, or $0.12 per diluted ADS for the fourth quarter of fiscal 2009.  The number of shares for calculating diluted ADS was approximately 125.8 million and 109.6 million for the first quarter of fiscal 2010 and the fourth quarter of fiscal 2009, respectively.

LDK Solar ended the first quarter of fiscal 2010 with $347.4 million in cash and cash equivalents and $96.3 million in short-term pledged bank deposits.

"Continued momentum in the solar industry drove results for the first quarter," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.  "Our efforts to diversify our business within the module market tracked well in the quarter. We brought crystalline module manufacturing in house and signed several module supply contracts during the first quarter. In our wafer business, we continue to closely monitor demand levels to meet our customers' needs. In April we achieved annualized wafer capacity of 2.0 GW, maintaining our industry leadership as we continue to represent a significant share of global wafer capacity.  

"We were particularly pleased with our progress in improving our operating efficiencies during the first quarter.  Profitability improved sequentially, in part due to our ongoing efforts to manage capital expenditures and closely control expenses. We look forward to the increased benefit associated with the ramping up of our polysilicon production.  We produced nearly 700 MT polysilicon in total between our 1,000 MT plant and the first 5,000 MT train of our 15,000 MT plant during the quarter and continue to ramp our output monthly. We remain encouraged by the improving industry dynamics," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the second quarter of fiscal 2010, LDK Solar estimates its revenue to be in the range of $460 million and $490 million with wafer shipments between 460 MW and 480 MW, and module shipments between 60 MW and 70 MW.  For fiscal 2010, we expect our revenue to be in the range of $1.6 to $1.7 billion with wafer shipments between 1.7 GW and 1.8 GW and module shipment between 200 MW and 300 MW.

Conference Call Details

The LDK Solar First Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on May 10, 2010.  To listen to the live conference call, please dial 877-941-8602 (within U.S.) or 480-629-9811 (outside U.S.) at 4:50 p.m. ET on May 10, 2010. An audio replay of the call will be available through May 12, 2010, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4294955#.

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and the world's largest producer of multicrystalline wafers. LDK Solar manufactures polysilicon, mono and multi crystalline ingots, wafers, modules, and engages in project development activities in selected segments of the PV market. Through its broad product offering of mono and multi crystalline solar wafers and modules, LDK Solar provides its customers with a full spectrum of solutions. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. LDK Solar's office in the United States is located in Sunnyvale, California. For more information about our company and products, please visit www.ldksolar.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing construction projects, including its polysilicon plants, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the solar industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.

SOURCE LDK Solar Co., Ltd.