LDK Solar Reports Financial Results for the Second Quarter of Fiscal 2013

LDK Solar Co., Ltd. (“LDK Solar”; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today reported its unaudited financial results for the second quarter ended June 30, 2013.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Second Quarter Highlights:

Net sales of $114.7 million;
Shipped 303.9 megawatts (MW) of wafers; and
Shipped 35.3 MW of cells and modules in the second quarter.
Net sales for the second quarter of fiscal 2013 were $114.7 million, compared to $104.3 million for the first quarter of fiscal 2013, and$235.4 million for the second quarter of fiscal 2012.

Gross loss for the second quarter of fiscal 2013 was $53.8 million, compared to gross loss of $59.5 million in the first quarter of fiscal 2013, and gross loss of $92.0 million for the second quarter of fiscal 2012.

Gross margin for the second quarter of fiscal 2013 was negative 46.9%, compared to negative 57.0% in the first quarter of fiscal 2013, and negative 39.1% in the second quarter of fiscal 2012.

LDK Solar’s management determined that a loss on recoverable VAT of $19.5 million and an inventory write-down of $3.7 million was required during the preparation of its second quarter 2013 financial results. As a result, gross margin and results from operations were negatively impacted in the second quarter of fiscal 2013.

Loss from operations for the second quarter of fiscal 2013 was $95.1 million, compared to loss from operations of $93.2 million for the first quarter of fiscal 2013, and loss from operations of $172.7 million for the second quarter of fiscal 2012. During the second quarter of 2013,LDK Solar’s management determined that a provision for doubtful trade receivables of $9.0 million was required in view of the deteriorating solar market which negatively affected our customers.

Operating margin for the second quarter of fiscal 2013 was negative 82.9% compared to negative 89.4% in the first quarter of fiscal 2013, and negative 73.4% in the second quarter of fiscal 2012.

Income tax benefit for the second quarter of fiscal 2013 was $4.8 million, compared to income tax benefit of $1.3 million in the first quarter of fiscal 2013 and income tax benefit of $23.7 million in the second quarter of fiscal 2012.

Net loss available to LDK Solar’s shareholders for the second quarter of fiscal 2013 was $165.3 million, or a loss of $0.97 per diluted ADS, compared to net loss of $187.1 million, or a loss of $1.21 per diluted ADS for the first quarter of fiscal 2013 and net loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 170.5 million for the second quarter of fiscal 2013.

LDK Solar ended the second quarter of fiscal 2013 with $85.1 million in cash and cash equivalents and $203.0 million in short-term pledged bank deposits.

“We delivered second quarter revenue that was in line with expectations and reduced our net loss both sequentially and on a year-over-year basis,” stated Sam Tong, President and CEO of LDK Solar. “We have been navigating the challenging solar industry dynamics with a focus on improving our cost structure and becoming a more nimble company. We are starting to see early signs of improvement within the PV market as ASP’s are beginning to stabilize. We are also encouraged by recent updates on solar policies from China and the EU.”

“We have built a solid pipeline of solar project business worldwide and we remain committed to working with the relevant shareholders, banks and government agencies to secure the resources needed to drive these projects forward,” continued Mr. Tong.

“We continue to work diligently on initiatives to improve our cost structure by driving down production costs and tightening operating expenses. By adapting our business to the evolving demand environment, we believe we will position LDK Solar for long term growth—furthering our ability to take advantage of the substantial market opportunity to address global energy needs with solar power,” concluded Mr. Tong.

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 third quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $140 million to $180 million, wafer shipments between 350 MW and 450 MW and cell and module shipments between 60 MW and 80 MW.

Conference Call Details
The LDK Solar Second Quarter 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on August 27, 2013. To listen to the live conference call, please dial 877-941-2068 (within U.S.) or 480-629-9712 (outside U.S.) at 8:00 a.m. ET onAugust 27, 2013. An audio replay of the call will be available through September 6, 2013, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4635695#.

A live webcast of the call will be available on the company’s investor relations website at http://investor.ldksolar.com.

Source: LDK Solar

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