UPDATE 1-Solarfun Q3 beats Street; warns of falling prices

Tue Dec 2, 2008 9:28am EST

* Q3 profit $0.16/ADS beats Wall Street view * Sees average selling prices declining in Q4

* Expects to be cash-flow positive during H2 2009

* Shares down 16 pct

Dec 2 (Reuters) - Photovoltaic-cell maker Solarfun Power Holdings Co Ltd SOLF.O reported third-quarter results that beat market estimates, helped by higher photovoltaic module shipments, but warned of a further dip in average selling prices.

Photovoltaic module shipments rose 53 percent to 41.8 megawatts (MW) for the third quarter ended Sept. 30.

Average selling prices (ASP) fell to $4.04 from $4.17 in the second quarter.

For the fourth quarter, Solarfun expects ASP to fall less than 5 percent from the third-quarter levels. For 2009, prices are expected to decline 5 percent to 10 percent from the fourth quarter of 2008.

The company said it expects gross margins to improve in the fourth quarter. It sees margins of 10 percent to 15 percent for 2009.

Total shipments for 2008 are expected to be at or slightly below the low end of its previous forecast of 175 MW to 190 MW.

Shares of the company fell 16 percent to $4 in trading before the bell. Excluding today's fall, they have lost nearly 79 percent of their market value in the last six months.

For the alerts, double click [ID:nWNAB8689] (Reporting by Adveith Nair in Bangalore; Editing by Vinu Pilakkott)

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