Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Vishal Shah - Barclays Capital.
Vishal Shah - Barclays Capital
Jack, I was hoping if you can help us understand the gross margin performance in the quarter. You took some additional write-down; I would have imagined that would have helped your gross margins, so maybe you can provide some color there. Secondly, on your outlook for polysilicon prices, how do you think prices are doing right now and what do you think prices will do in the second half? Thank you.
Jack Lai
Okay. First on the gross margin performance; inventory write-down was performed in the fourth quarter of 2008, so in the first quarter of 2009 it is a normal calculation of gross margin, which were about 1.7% in gross margin and of course that is very much caused by the ASP decline and that we have a low gross margin situation.
As far as the ASP is concerned, right now we are seeing the price somewhere between $1.10 to about $1.30 per watt. It is kind of ranging pretty wide because of certain market conditions. In the short-term, we are still looking at this low price range; however, maybe towards the end of the second quarter and beginning of the second half, as the market condition improves, we believe that the price was stabilized and maybe we’ll be coming back in the second half of the year.
Vishal Shah - Barclays Capital
What are your thoughts on polysilicon prices?
Jack Lai
On the polysilicon prices, we are also experiencing a wider range. At this moment, we are experiencing prices between 100 to 150. We see the price coming down to below 100, and we believe in the near term that the price will be somewhere below 100 levels, and still a pretty wide range at this moment.
Operator
Your next question comes from Sunil Gupta - Morgan Stanley
Sunil Gupta - Morgan Stanley
Jack, I just wanted to understand some of the items on your balance sheet such as receivables and also in terms of inventory and if I could start with perhaps just receivables. I see that they have gone up a lot, despite smaller revenue that you had in Q1. Is there a change in payment terms to your customers or were there any specific issues why receivables have gone up?
Second, on your inventory, could you help us understand the mix of your inventory in terms of how much is from raw materials, how much is finished goods, and within raw material how much is just polysilicon feedstock and other raw materials?
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