Canadian Solar reported on Friday that its gross margin for the fourth quarter will be lower due to defective equipment at the company’s plant, according to a release.
The company updated its outlook for the fourth quarter of 2009 and expects to report shipments of 138 megawatts but with a gross margin in the low, instead of high, teens.
The company had previously anticipated shipments of about 128 megawatts for the quarter and gross margins in the high teens.
Candian Solar’s stock (NASD:CSIQ) was off 10 percent, trading around the $22 mark, before the opening bell on Friday, down from a 52 week high of $33.68 in early January.
Margins were affected by higher processing costs caused by defective production equipment at the company’s plant, which it is working to address. The company has also been clearing and revaluing older solar cell inventory.
The company will release its fourth quarter results on March 3 at 8 a.m.
Canadian Solar Chief Executive officer Dr. Shawn Qu and Director for Investor Relations, Alex Taylor, will be presenting at Piper Jaffray’s Fifth Annual Clean Technology & Renewables Conference on Tuesday.
The company has been growing in recent months, selling 6,900,000 shares of common stock in October. Proceeds were used for general corporate purposes.