SOLF's mid quarter update, increasing anticipated 3Q 2009 #s, is below..consensus estimate on Yahoo Finance is for 15 cents eps on 145M in revenues for SOLF's 3Q 2009 reporting period..

For the third quarter of 2009, Solarfun estimates:

Total module shipments will exceed 100 MW; versus 64.3MW in 2Q 2009, this is great, a 55.52% minimum jump up in shipments 3Q versus 2Q 2009..

Total revenues will be between RMB 918 million and RMB 984 million;

Gross margin will be approximately 17%;

So figuring that it hits the high end..

revenue of 984 million RMB...converted to dollars..that's $144,118,775...SOLF's gross margin on that would be that figure X .17, + = s $24,500,200...shares outstanding are 53.8M..

Hard to say if SOLF can book net income in 3Q 2009..it lost money in 2Q 2009...we will soon see...I think it will beat the consensus estimate of 15 cents, which is net income of 8,070,000, or 53.8M x .15...for it to hit this number..on a $24,500,200 gross margin figure using guidance, $8,070,000/$24,500,000, SOLF will have to drop 32.9% of the gross margin figure to the net income line..is this doable?

Unfortunately, SOLF has a history of big charges that prevent it from reporting net income, hopefully that will not be the case this quarter..

No negative pre-announcements re 3Q 2009 results from SOLF thus far, so am thinking positively about the actual numbers coming in..other opinions welcome...

Outlook given by company when it released 2Q 2009 numbers..

BUSINESS OUTLOOK

Based on current operating trends and market conditions, the Company provides the following outlook.

The Company expects:


Total module shipments to exceed 100 MW in the third quarter.


Total module shipments to be approximately 80 MW in the fourth quarter, although visibility currently remains quite low.


Average selling prices to further decline to US$2.00 per watt, or below, by the end of 2009.

Peter Xie concluded, "The demand environment appears to be improving in the second half of the year. We will increase our focus on enhancing product performance and quality and on further enhancing our relationships with both new and existing customers. We are enthused about the long term market opportunity in China and have built an internal organization to capture those opportunities. We have been approved by Jiangsu Development and Reform Commission to construct two projects totaling 20 MW in our home province, Jiangsu Province. In the second quarter of 2009, we entered into a number of new framework sales agreements in Europe, totaling approximately 30 MW, to cover our module shipments in the second half of 2009. We are enhancing both our senior level technical team and marketing team in both Europe and the US to better serve our customers and to grow our business."