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Canadian Solar Inc. Message Board

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  • slider5x5 slider5x5 Aug 14, 2007 12:52 PM Flag

    Guys I was in this stock once

    I'm kindof with you on the compensation issue in that I would like to see some actual disclosure of who is geting what.

    With that said, if you break down the 2.4 million in stock based compensation between the top management which can be found here: http://stocks.us.reuters.com/stocks/officersDirectors.asp?symbol=CSIQ.O&WTmodLOC=L2-LeftNav-11-Officers

    I get 12 "key" officers and 3 directors

    Just using the 12 officers that breaks down to an average of $200,000 per officer and since they are growing so fast the 12 officer number might be light. It could be 15 now for all I know since they are expanding.

    Of course in that $200,000 compensation average, some will be making more others less but taken as an average it does not seem too excessive especially considering the growth in China and the need to attract and retain great talent.

    That is my take on it.

    _____

    Any way you slice it, it was a good report:

    http://biz.yahoo.com/prnews/070814/cntu025.html?.v=8

    "Excluding share-based compensation expenses of $2.4 million, the net loss for the quarter would have been $0.5 million, or $0.02 per share.

    Dr. Shawn Qu, Chairman and CEO of CSI, commented: "Our Q2 revenues were at the high end of our guidance range. We continue to benefit from our strong international sales and marketing network and our focus on tier one distributors and project-based companies. During the quarter, we saw sustained demand for our products in Germany and Spain. We expect to complete our Phase One in-house solar cell production facility in the middle of October, which would bring our total cell capacity to 100MW per year. We have recently ramped up our module production capacity to 180MW per year. These successful steps in our expansion strategy will help to solidify our position as a major player in the industry and enable us to meet increased customer demand."

    Bing Zhu, CFO of CSI, noted: "Our gross margins improved slightly in Q2 due to our increasing in-house solar cell manufacturing capability.

    **** We would have been profitable on a cash operating basis during the quarter without the following two factors: first, we cleared out 1.63MW of high-priced solar cells inventory purchased in 2006 and secondly, we incurred slightly higher yield loss, as we almost quadrupled our production within one quarter." ****

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    • that is happening EVERY QUARTER

      not every year
      who earns 200K in bonuses/compensation every quarter? Most US companies are not that crazy to even try it...

      • 1 Reply to markox5
      • if the 12 denominator is correct it's definitely on the high end but not totally out of whack for example:

        The top 4 could be earning on average $1 Million/year

        The bottom 8 would be earning $750,000/year

        From an investor viewpoint, one would want to see these figures come down especially when they are in the red, but certainly the compensation is not totally outrageous.

        Top line growth YOY = + 350%

        if all their sales were from internally produced material their margins would be in the 15% region

        cash flow positive in third quarter

        scaling up they have more influence over their costs...


        ____

        If you are short you have to be hoping for unbridled spending on compensation, and lack of control over costs.

        Just the opposite is happening.

        From the conference call:

        margins went up slightly in Q2 to about 3% while clearing old high priced inventory

        clearing old high priced inventory will be done by 3rd Q 2007

        they expect to generate cash in Q3 2007

        Question of 13-15% gross margin still on the table?

        next yr mid teen gross margin

        q3 2007 mid to high single digits

        q4 2007 double digit gross margins

 
CSIQ
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