Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rob Stone - Cowen & Company.
Robert Stone - Cowen & Co.
Hi, guys this question is for Terry or Sean. I wonder if you could provide a little more detail on the cost per watt reduction. I think in Q3, you had an average cost of $1.13 per watt non-silicon and you said, it’s approaching $0.80 for multicrystalline now, can you give us the complete picture, what is the cost for mono-cells and how did you achieve such a significant reduction from just Q3 to Q4?
Terry Wang
Hi Rob, this is Terry. In Q3, 2008 we announced that our manufacturing cost per watt basis all inclusive fully and cost include depreciation mono and multi and during the previous quarter, it was separate and as we increasing our shipment in multicrystalline modules, then our costs dropped dramatically and our $0.82 is per watt basis for multicrystalline and do not include depreciation by $0.08.
So, as we increase the multicrystalline, our costs we’re further down continuously and go through this quarter and we actually compare in our Q3 multicrystal per watt and the Q4 crystalline per watt we’re down by approximately by 15%, most of the driven force is we adopt our technology innovation in the process that help us to reduce our increasing yields reduce the usage of the material and in conjunction with all the other materials.
Robert Stone - Cowen & Co.
Okay, simple housekeeping question for you Terry. Could you just give us the capital expenditures and depreciation in Q4?
Terry Wang
It’s roughly about $0.08 billing into our non-silicon costs. As we reported early we include all the things together, but now we want to separate it so, people will know that this is non-silicon costs. It’s purely that’s related to non-silicon and the product production process.
Robert Stone - Cowen & Co.
Okay, I understand that, what I was asking for actually was the all-in capital expenditures and depreciation, not as the cost per watt, but the dollars in Q4?
Terry Wang
In Q4 capital expenditure was spend about $28 million total and the depreciation is about $6.4 million.
Sean Tzou
Robert, this is Sean, maybe I can probably add some comments to what Terry just mentioned. To compare to $1.13 we announced in Q3 announcement, currently into Q4 we did achieved about $0.97. So that means it’s about $0.16 reduction or 15% from the Q3 range, we originally forecasted that we will reach $1.05, however, we did have a much better result from quite a lot of areas and that’s what we achieved a lower cost target.
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