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From: OmertaSoldier5/24/2008 7:23:04 AM
   of 79
 
SOLF Q1 5/21/08 Press Release Source: Solarfun Power Holdings Co., Ltd.

Solarfun Reports 2008 First Quarter Results
Wednesday May 21, 6:35 am ET

SHANGHAI, China--(BUSINESS WIRE)--Solarfun Power Holdings Co., Ltd. (“Solarfun” or “the Company”) (NASDAQ:SOLF - News), an established vertically-integrated manufacturer of silicon ingots and photovoltaic (PV) cells and modules in China, today reported its unaudited financial results for the first quarter ended March 31, 2008.
2008 FIRST QUARTER RESULTS

Net revenue was RMB 1.20 billion (US$ 171.0 million), an increase of 529% from the fourth quarter of 2007.
PV module shipments showed good momentum, reaching 40.3MW, which represented 40% growth over 4Q2007 and 517% from the first quarter last year.
Average selling price (“ASP”) was strong at $4.07 and was significantly higher than the ASP of $3.85 in the fourth quarter of 2007. Spain and Germany saw particular pricing strength and the Company also benefited from the strong Euro during the period.
The geographic breakdown of net revenue was as follows: Spain 46%, Germany 36%, France 8%, Italy 6%, and Switzerland 4%. The company’s customer base remained diversified with only two customers accounting for over 10% of sales.
Gross profit was RMB 197.4 million (US$ 28.2 million), an increase of 502% from the same quarter last year.
As the Company had guided, gross margins softened slightly to 16.5% due primarily to higher polysilicon and wafer costs.
Operating profit was RMB 144.9 million (US$ 20.7 million), a rise of over 3300% from the same quarter last year and 56% from 4Q2007. Operating margins increased to 12.1%, as the Company managed to control operating costs, while revenues grew substantially.
Interest expense rose to US$ 3.8 million due to increased bank borrowing and the Company’s Convertible Senior Notes offering.
The Company recorded a currency gain of US$ 2.8 million as a result of the appreciation of the RMB relative to the U.S. Dollar.
Net income was RMB 107.0 million (US$ 15.3 million). The Company reported a small net loss in the comparable quarter in 2007.
Earnings per basic ADS were RMB 2.21 (US$ 0.32).
Harold Hoskens, CEO of Solarfun, noted, “During the first quarter, the Company was able to achieve both record shipments and profits in spite of tight supply and price increases of raw materials. Our customer demand is robust, pricing for our products remains strong, and we have good control of our operating expenses and improved working capital management.”

FIRST QUARTER 2008 FINANCIAL RESULTS

The Company’s total net revenue in the first quarter of 2008 was RMB 1.20 billion (US$ 171.0 million), representing an increase of 529% from RMB 190.7 million in the first quarter of 2007 and an increase of 21% from RMB 987.8 million in the fourth quarter of 2007. The increase was primarily due to an increase in shipments and an increase in ASP in the first quarter of 2008. Total net PV module shipments and ASP were 40.3MW and US$ 4.07 per watt in the first quarter of 2008 compared to 28.1MW and US$ 3.85 per watt in the fourth quarter of 2007 and 6.5MW and US$ 3.77 per watt in the first quarter of 2007.

Gross profit in the first quarter of 2008 was RMB 197.4 million (US$ 28.2 million), representing an increase of 501.5% from RMB 32.8 million in the first quarter of 2007 and an increase of 13.1% from RMB 174.5 million in the fourth quarter of 2007. The gross margin decreased to 16.5% from 17.2% in the first quarter of 2007, and from 17.7% in the fourth quarter of 2007. The sequential decrease in gross margin was largely attributable to the higher costs of silicon-based materials in the first quarter of 2008.

Income from operations in the first quarter of 2008 was RMB 144.9 million (US$ 20.7 million), or 12.1% of total net revenue, compared RMB 4.3 million, or 2.2% of total net revenue in the first quarter of 2007, and to RMB 92.7 million, or 9.4% of total net revenue in the fourth quarter of 2007. The decrease in operating margin was mainly due to the increase in gross profit and relatively constant total operating costs. In addition, the Company generally incurred lower operating costs during the early part of the year.

Net income attributable to ordinary shareholders in the first quarter of 2008 was RMB 107.0 million, compared to net loss of RMB 2.5 million in the first quarter of 2007, and to net income of RMB 66.4 million in the fourth quarter of 2007. Basic net income per ADS in the first quarter of 2008 was RMB 2.21 (US$ 0.32) per ADS, compared to net loss of RMB 0.05 per ADS in the first quarter of 2007, and to net income of RMB 1.38 per ADS in the fourth quarter of 2007.

FINANCIAL POSITION

As of March 31, 2008, the Company had cash and cash equivalents of RMB 595.2 million (US$ 84.9 million) and working capital of RMB 2.34 billion (US$ 334.0 million). Total bank borrowings were RMB 1.17 billion (US$ 167.3 million). On January 29, 2008 the Company placed US $172.5 million of Convertible Senior Subordinated Notes due 2018.

Net accounts receivable rose to RMB 674.6 million (US$ 96.2 million) due to the higher level of revenue, but continued focus on cash management practices reduced Days Sales Outstanding (DSO’s) to 42, down materially from the 91 days in the first quarter of 2007.

Capital outlays during the First Quarter totaled US$ 149.3 million, of which US$ 40.5 million was for capital expenditures and US$108.8 million was for pre-payments to suppliers.

BUSINESS OUTLOOK

Based on current operating trends and other conditions, the Company’s outlook is as follows:

For 2Q2008, management expects:

Demand to remain strong, with shipments between 40-45 MW and ASP’s around $4.00 based on current contracted pricing. However, the continuing decline in the value of the Euro could impact this ASP assumption.
Gross margin to continue to be impacted by higher silicon costs with further declines from the level seen in 1Q08.
For the full year 2008:

The Company raises its previous guidance of 160 MW in shipments to a range of 160-180 MW. Visibility on ASP in the second and third quarters of 2008 is good, although incentive changes in Spain and Germany could lead to less visibility on ASP’s beginning in the fourth quarter of 2008.
The 120 MW cell capacity expansion to our Qidong facility is expected to be completed by the early part of 3Q2008, which will raise aggregate annual manufacturing capacity (or “total nameplate capacity”), to 360 MW. In anticipation of improving polysilicon supply and in recognition of long lead time deliveries for certain equipment, the Company will continue to pursue its vertical integration strategy by expanding production capacity at its 52%-owned ingot manufacturing facility - Jiangsu Yangguang Solar Technology Ltd. In addition, the Company has begun development of a wire saw facility in Qidong. Over time, these programs are expected to improve the Company’s ability to control production costs, improve quality and secure reliable delivery of wafers.
Harold Hoskens, Chief Executive Officer, concluded, “We believe we are well positioned to take advantage of the continued burgeoning growth of PV demand. We are growing well in excess of the overall industry, securing good long-term relationships with key customers, are focused on improving our quality, and are building scale through a vertically-integrated business model which should allow us to maintain our ability to compete effectively from a low-cost production base.”

Conference Call:

Management will host a conference call to discuss the results at 8:00 am U.S. Eastern Time (8:00 pm Shanghai time) on May 21, 2008.

- U.S. Toll Free Number: +1 866 362 4820
- International dial-in number: +1 617 597 5345
- China Toll Free Number: +10 800 130 0399
Passcode: SOLF

A live webcast of the conference call will be available on the investor relations section of the Company’s website at: solarfun.com.cn. A replay of the webcast will be available for one month.

A telephone replay of the call will be available for twenty-four hours after the conclusion of the conference call. The dial-in details for the replay are as follows:

- U.S. Toll Free Number: +1 888 286 8010
- International dial-in number: +1 617 801 6888
Passcode: 74083898

Foreign Currency Conversion

The conversion in this release of Renminbi into U.S. dollars is made solely for the convenience of the reader, and is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of March 31, 2008, which was RMB7.0120 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on March 31, 2008, or at any other date. The percentages stated in this press release are calculated based on Renminbi amounts.

Financial Statements


SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),
except for number of shares and per share data)

For the three months ended
March 31 December 31 March 31 March 31
2007 2007 2008 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
RMB RMB RMB USD
Net revenue
Photovoltaic modules 190,475 804,164 1,151,507 164,220
Photovoltaic cells 266 50,025 29,734 4,240
Photovoltaic cells processing - - - -
PV modules processing - 5,876 - -
Others - 127,706 18,088 2,580

Total net revenue 190,741 987,771 1,199,329 171,040

Cost of revenue
Photovoltaic modules (157,700 ) (653,667 ) (958,882 ) (136,749 )
Photovoltaic cells (225 ) (47,476 ) (27,918 ) (3,981 )
Photovoltaic cells processing - - - -
PV modules processing - (2,014 ) - -
Others - (110,110 ) (15,136 ) (2,159 )

Total cost of revenue (157,925 ) (813,267 ) (1,001,936 ) (142,889 )

Gross profit 32,816 174,504 197,393 28,151

Operating expenses
Selling expenses (6,438 ) (23,167 ) (21,989 ) (3,136 )
G&A expenses (15,892 ) (50,153 ) (25,685 ) (3,663 )
R&D expenses (6,224 ) (8,506 ) (4,784 ) (682 )

Total operating expenses (28,554 ) (81,826 ) (52,458 ) (7,481 )

Operating profit 4,262 92,678 144,935 20,670

Interest expenses (5,308 ) (11,293 ) (26,669 ) (3,803 )
Interest income 9,557 (1,805 ) 2,381 340
Exchange losses (11,253 ) (3,307 ) 19,430 2,771
Other income 1,050 (7,552 ) 2,011 287
Other expenses (331 ) (2,032 ) (12,323 ) (1,757 )
Value of embedded foreign currency derivative - - - -
Government grant 20 1,369 124 18

Net income (loss) before income tax and minority interest
(2,003 ) 68,058 129,889 18,526


Income tax benefit / (expenses) (424 ) (3,814 ) (19,488 ) (2,779 )
Minority interest (105 ) 2,199 (3,363 ) (480 )

Net income (loss) (2,532 ) 66,443 107,038 15,267

Net income attributable to ordinary shareholders
(2,532 ) 66,443 107,038 15,267


Net income / (loss) per share

Basic (0.0105 ) 0.2759 0.4424 0.0631
Diluted (0.0105 ) 0.2759 0.4424 0.0631

Shares used in computation
Basic 240,023,776 240,807,142 241,954,744 241,954,744
Diluted 240,023,776 240,807,142 241,954,744 241,954,744


Net income / (loss) per ADS

Basic (0.0527 ) 1.3796 2.2119 0.3155
Diluted (0.0527 ) 1.3796 2.2119 0.3155

ADSs used in computation
Basic 48,004,755 48,161,428 48,390,949 48,390,949
Diluted 48,004,755 48,161,428 48,390,949 48,390,949


SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),
except for number of shares and per share data)


December 31 March 31 March 31
2007 2008 2008
(Unaudited) (Unaudited) (Unaudited)
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 272,928 595,158 84,877
Restricted cash 42,253 474,725 67,702
Accounts receivable, net 430,692 674,629 96,211
Inventories, net 728,480 760,775 108,496
Advance to suppliers 640,118 1,121,311 159,913
Other current assets 218,918 155,767 22,214
Deferred tax assets 3,026 4,381 625
Amount due from related parties 920 917 131
Amount due from shareholders - - -

Total current assets 2,337,335 3,787,663 540,169

Non-current assets
Fixed assets – net 702,884 857,612 122,306
Intangible assets – net 94,282 93,800 13,377
Deferred tax assets 4,767 4,936 704
Long-term deferred expenses 209,946 200,026 28,526
Long-term investment 300 300 43


Total non-current assets 1,012,179 1,156,674 164,956

TOTAL ASSETS 3,349,514 4,944,337 705,125

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term bank borrowings 980,002 1,003,082 143,052
Long-term bank borrowings, current portion - - -
Accounts payable 141,709 187,965 26,806
Notes payable - - -
Accrued expenses and other liabilities 135,396 142,199 20,279
Customer deposits 27,628 90,654 12,928
Amount due to related parties 92,739 21,851 3,116
Amount due to shareholders - - -

Total current liabilities 1,377,474 1,445,751 206,181

Non-current liabilities
Long-term bank borrowings, non-current portion - 170,000 24,244
Convertible notes payable - 1,210,778 172,672
Long term payable - 10,000 1,426
Deferred tax liability 9,038 8,990 1,282

Total non-current liabilities 9,038 1,399,768 199,624

Minority interests 100,420 111,783 15,942


Temporary equity - 32 5


Shareholders’ equity
Ordinary shares
(par value US$0.0001 per share; 400,000,000 shares authorized; 241,954,744 shares and 241,954,744 issued and outstanding at December 31, 2007 and March 31, 2008, respectively) 194 194 28
Additional paid-in capital 1,601,853 1,619,236 230,924
Statutory reserves 37,548 50,935 7,264
Retained earnings 222,987 316,638 45,157

Total shareholders’ equity 1,862,582 1,987,003 283,373

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3,349,514 4,944,337 705,125

Safe Harbor Statement

This news release contains forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995, such as the Company’s business outlook for 2008, including first quarter and full year 2008 estimates for net revenue, PV product shipments, raw materials and product prices, PV cell production capacity and gross margins. Forward-looking statements involve inherent risks and uncertainties and actual results may differ materially from such estimates depending on future events and other changes in business climate and market conditions. Solarfun disclaims any obligation to update or correct this information.

About Solarfun

Solarfun Power Holdings Co, Ltd. manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules, and manufactures 100% of its modules with in-house produced PV cells. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards. SOLF-G

solarfun.com.cn

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To: OmertaSoldier who wrote (68)7/11/2008 5:22:08 PM
From: OmertaSoldier
   of 79
 
from seekingalpha M Lu 7/11/08

As you have read in my previous article last week, I believe LDK Solar (LDK) is in a solid position within the exploding solar industry. It's well on its way to becoming a world leading, vertically integrated wafer and polysilicon producer.

Some people pointed out in my previous article that I didn't include "this or that" aspect of the company, but the truth is that I probably did. However, the article was already quite extensive and would have been nearly twice as long if I wrote about every aspect I have examined in this company. I posted the points I thought were the most relevant and significant. As my first major piece, I am glad it was very well received. I appreciate everyone taking the time to read it.

As an investor/trader in a modern global market, I have found one of the biggest tools at my disposal is my fluency in Mandarin Chinese. I have found that this is very significant when it comes to Chinese companies. Hoping to one day be an accomplished financial analyst, I like to practice my analytical skills. One of the advantages of being bilingual is that it practically doubles your sources for analysis. You read articles, figures, and statistics in Chinese that have never been/never will be mentioned in western media.

This information is not your average day news article either. I'm talking about serious material information that could be a major advantage to those with access and ability. That's why I believe language is one of the strongest tools in the business world.

For example, I was recently researching Chinese news sources and media syndicates for information about LDK Solar. Being a Chinese company, LDK is a lot more likely to appear in Eastern media than in the west.

Interestingly; I came across the official website of the local government where LDK Solar is based, Xinyu City. Looking further into the site, I came across this page. It states:

" ?????LDK????,??????,?????????????LDK????????????????,??????????????????? ?????????????????????????????,??LDK?????????????,?6???,??????1.24???"

For those that don't read Chinese, the page is a government tax report stating the tax revenues generated by LDK Solar for the national government. The most important part is the last sentence that translates to:

As of the end of June, LDK Solar has generated a tax revenue of 124,000,000 CNY (Chinese Yuan) [year to date]

This information listed on an official government website which is quite significant on a number of different levels. The most significant is that it gives us the ability to back solve for the net income of the past 6 months. We can then subtract the reported earnings from the first quarter and know the net income and EPS for the second quarter which is not to be released until July 28th.

Therefore, due to government tax revenue reports being released before LDK's earnings reports; we can backsolve for LDK's yet to be released earnings results.

Information such as this would never leak in western media due to the language barrier.

Another page from the government's website suggests that LDK's revenues year to date (1/08-06/08), weighed in at 3.8 Billion CNY ($554,016,620):

"?6??,??????????38??"

Coming from the Chinese Government website report, I believe the source is very credible. There may be a few rounding errors or exchange issues but we can use more conservative figures.

Analyst Estimates:

LDK Solar is set to report 2nd quarter earnings on July 28th (est). Looking at current estimates, most analysts currently expect $0.42/share on revenues of $282.04 Million. We can simply look at the revenue for the YTD revenue figure and subtract the known figure from the first quarter 2008 earnings report, we come up with:

$554,016,620 - 233,399,000 = $320,617,620 Implied Q2-2008 Revenue

Now Let's Crunch Some Numbers

Because the figure from the government report looks slightly rounded, let's round down to be conservative (let's say 123,000,000 CNY). If we take an exchange rate of 6.859 CNY to 1USD, this would give us a total tax revenue of $17,932,643 to the government. It should actually be more since we rounded down and the fact that the dollar has significantly weakened versus the Chinese Yuan to the tune of about 6% YTD. Heres a 1 year chart of the USD to Yuan:

If you guys recall from my previous article, this is how LDK's ridiculously favorable tax situation stands:

NATIONAL INCOME TAX:

LDK will be exempt from national income taxes for 2 years (2006-2007)
LDK will pay a 50% reduced national income tax rate for the following 3 years (2008-2010): -12.5%
LDK will pay the full 25% national income tax thereafter (2011+)
LOCAL INCOME TAX:

LDK will be exempt from local taxes for 5 years (2006-2010)
LDK will pay a 50% reduced local tax tate for the 5 years (2011-2015): - 1.5%
LDK will pay the full 3% local income tax rate thereafter (2016+)
So to set this into perspective, LDK will only start paying its regular combined tax rate after 2016. Seeing how it is currently 2008, this is the first year LDK will pay its half off national tax rate and is still exempt from any local taxes. This is in contrast to the original 15/30% tax from the old law.

So since LDK is exempt from all local taxes until 2010, it is safe to assume that the figure on the website is the national tax revenues generated by LDK to the national government.

Knowing this, we can see the following information from the Q1-2008 income statement press release (figures in thousands of USD):

We can see th at the amount of income tax paid was $8,511,000 USD. This is a little more than at the stated tax rate of 12.5% as stated in the earnings release PR. I am still looking into why it's closer to 14.5% but i think it has to do with other gains/losses outside of operating income or the possibility of the tax differences in accounting standards. It is assumed on a national level that the government implemented IFRS accounting standards as of January 1st, 2007. This would take some effort to convert to GAAP and would be even more complicated since we don't have detailed figures. But for the sake of argument we'll use 15% to be conservative.

We can take the adjusted figure from the Xinyu Government website ($17,932,643) and subtract last quarter's income tax expense to see what LDK paid this quarter in national income tax:

$17,932,643 - $8,511,000= <$9,421,643 in Q2 Income Tax Expense

We then take this income tax expense and divide it by the adjusted 15% tax rate to get the net income for Q2.

$ 9,421,643/.15 = >62,810,953 in Q2 Net Income, Pre-Tax

We can then take the numbers and figure out what net income after tax should roughly be (with a very conservative skew for a generous margin of error) by simply subtracting the income tax expense from the pre-tax income:

$62,810,953 -$9,421,643 = >$53,389,310 in Q2 Net Income After Tax
We can then further solve for the EPS by looking at the outstanding shares as of 3-31-08, which is 106.5M shares. Its hard to say what the outstanding shares is due to the recent $400M in convertible bond offering and $200M buy back plan, but lets just keep it at 106.5M for arguments sake. Therefore the EPS should be:

$53,389,310/106,500,000 = >$0.50/share EPS for Q2 - 2008

Notice how I put the greater than sign in front of all the figures due to the ultra conservative nature of this calculation. Although these numbers may vary from the actual numbers due to rounding/calculation differences, this shows that based on government issued reports:

LDK will blow out Q2 Revenue by nearly 14% and EPS by nearly 20%+

Furthermore, the company is now in the monocrystalline business which diversifies its offerings. Everything I have read (English and Chinese) confirms that the plants are on track and business has never been better. This is quite ironic since the global economy has clearly seen better days.

I've also read material evidence that suggests Mr. Pichel's fears of ramping complications are unwarranted and irrational. Being completely sold out throughout 2009, the next 2 years of LDK are practically set. LDK has next to nothing to worry about.

Some people claim that they "can't trust the LDK management. And that they're a bunch of Chinese crooks that are cooking the books" but they seem to forget that LDK came out 100% clean from the independent investigation. They also seem to forget that Enron and MCI Worldcom were some of the most "American" companies in history. So to claim that LDK is a fraudulent company is more than foolish.

This company is truly a remarkable investment opportunity. It has recently formed a bottom and is a clear steal at current prices. Remember as Warren Buffet once said,

In the short run, the market's a voting machine and sometimes people vote very unintelligently. In the long run, it's a weighing machine and the weight of business and how it does is what affects values over time.

LDK is definitely a heavy-set company. I am actually hoping to visit LDK in JiangXi when I get a chance this summer to further evaluate the company. I look forward to watching this company prosper and grow. Who knows? Maybe I'll have an opportunity to work with them after graduation. The more I study this peculiar company, the more it interests me. LDK Solar is definitely in a great position.

But to the 14M+ Shorts: I Suggest Finding Cover. The Forecast is Looking VERY Sunny for LDK Solar. A Sunburn Would Be Painful.

Disclosure: Long LDK

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From: OmertaSoldier8/6/2008 7:26:47 PM
   of 79
 
China Digital TV 2Q Announces Unaudited Second Quarter 2008 Results
Wednesday August 6, 5:00 pm ET

BEIJING, Aug. 6 /Xinhua-PRNewswire/ -- China Digital TV Holding, Co. Ltd. (NYSE: STV - News; "China Digital TV" or the "Company"), the leading provider of conditional access (CA) systems to China's rapidly growing digital television market, today announced its unaudited financial results for the second quarter ended June 30, 2008.

Highlights for the Second Quarter 2008
-- Net revenue in the second quarter was US$19.4 million, a 74.2% increase
from the corresponding period in 2007 and a 12.5% increase from the
first quarter of 2008.

-- Income from operation in the second quarter was US$11.2 million, a
70.1% increase from the corresponding period in 2007 and a 9.4%
increase from the first quarter of 2008.

-- Basic earnings per share in the second quarter were US$0.20, compared
to US$0.14 in the corresponding period of 2007 and US$0.20 in the first
quarter of 2008.

-- China Digital TV sold approximately 2.69 million smart cards during the
second quarter, an increase of 75.8% from the corresponding period in
2007 and an increase of 16.8% from the first quarter of 2008.

-- Gross margin was 79.8% in the second quarter of 2008, compared to 80.3%
in the corresponding period in 2007 and 80.9% in the first quarter of
2008.

-- Operating margin, defined as income from operation divided by net
revenue, for the second quarter of 2008 was 57.6%, compared to 58.9% in
the corresponding period of 2007, and 59.1% in the first quarter of
2008.

-- During the second quarter, according to market data collected by the
Company, China Digital TV entered into 10 new contracts to install CA
systems out of a total of 16 contracts entered into in China during the
quarter.

"This was another solid quarter for China Digital TV. Strong results in our core CA business affirm the steady growth trajectory of our business," said Mr. Jianhua Zhu, China Digital TV's chief executive officer. Zhu continued, "In the second quarter, we celebrated groundbreaking events in our value added services (VAS) business. We signed joint venture agreements with partners in the cities of Guangzhou and Dongguan to develop and market various digital TV-based applications. The formation of these joint ventures is a significant step for us. China Digital TV is one of the few pioneers making real progress in the promising VAS business in the digital TV industry in China.

Mr. Mason Xu, China Digital TV's chief financial officer, added, "In the past quarter, we posted a 74% year-over-year increase in net revenue with healthy margins. Also, according to in-house data, we signed over 60% of the available contracts to install CA systems with network operators in China over the quarter. We achieved strong results despite cumulative negative effects from the earthquake in southwestern China, early impact from cable operators' postponing network upgrades until after the Beijing Olympic Games to be held this August and September and substantial investments made in our VAS business. Our results are compelling evidence that our company continues to leverage strong fundamentals to support future growth."

Second Quarter 2008 Results

(Note: Unless otherwise stated, all financial statement amounts used in this press release are based on U.S. GAAP.)

In the second quarter of 2008, China Digital TV reported net revenue of US$19.4 million, an increase of 74.2% from US$11.1 million in the second quarter of 2007 and an increase of 12.5% from US$17.2 million in the first quarter of 2008. The increase in net revenue was due to an increase in the volume of smart cards sold.

According to Company data, in the second quarter of 2008, China Digital TV entered into 10 new contracts to install CA systems with network cable operators out of a total of 16 such contracts signed in China.

Revenues from smart cards and related products were US$18.1 million in the second quarter of 2008, an increase of 79.0% from the corresponding period of 2007 and an increase of 14.2% from the first quarter of 2008. Sales of smart cards and related products accounted for 92.7% of total revenue for this quarter, up from 91.1% in the first quarter.

In the second quarter, of 180 existing operator customers, a total of 142 bought smart cards from the Company, compared with 135 in the first quarter. Revenue from the top five customers accounted for 30.9% of total revenue, compared to 48.4% in the first quarter.

Revenues from services were US$1.4 million in the second quarter of 2008, an increase of 29.4% from the corresponding period in 2007 and a decrease of 8.5% from the first quarter of 2008. Service revenue accounted for 7.3% of total revenue for this quarter. The quarter-over-quarter decrease is mainly due to a 30% decline in licensing income. In the second quarter, China Digital TV issued fewer certificates to set-top box manufacturers for CA system terminal-end software and set-box design than in the first quarter.

Gross profit in the second quarter of 2008 was US$15.5 million, an increase of 73.2% from US$8.9 million in the corresponding period of 2007 and an increase of 10.9% from US$14.0 million in the first quarter of 2008. Gross margin was 79.8% in the second quarter of 2008, compared to 80.3% in the corresponding period in 2007 and 80.9% in the first quarter of 2008.

Average selling price (ASP) decreased by 3.6% in the second quarter while unit cost decreased by 5.5%. The decrease in unit cost was mainly due to decreases in the cost of computer chips used in smart cards and outsourcing expenses. The slight decrease in overall gross margin mainly reflects a decline in gross margin of the system integration business.

Operating expenses in the second quarter of 2008 were US$4.3 million, an increase of 81.7% from US$2.4 million in the corresponding period of 2007 and an increase of 14.8% from US$3.8 million in the first quarter of 2008. In the second quarter, the Company hired 23 new employees, bringing the total number of employees to 462.

-- Research and development expenses in the second quarter increased 53.4%
to US$1.6 million from US$1.1 million in the corresponding period of
2007 and increased 12.2% from US$1.4 million in the first quarter of
2008. The year-over-year and quarter-over-quarter increases were
largely due to an increase of R&D headcount and R&D outsourcing
expenses during the period.

-- Sales and marketing expenses in the second quarter of 2008 increased
103.9% to US$1.3 million from US$0.6 million in the corresponding
period of 2007 and increased 20.9% from US$1.0 million in the first
quarter of 2008. The year-over-year and quarter-over-quarter increases
were primarily due to increases in sales and marketing headcount and
costs associated with corporate marketing and promotional activities.

-- General and administrative expenses in the second quarter of 2008
increased 104.6% to US$1.4 million from US$0.7 million in the
corresponding period of 2007 and increased 12.8% from US$1.3 million in
the first quarter of 2008. The year-over-year and quarter-over-quarter
increases were primarily due to increases in headcount, especially more
experienced, higher-level and managerial staff. Additionally,
professional service expenses increased in the second quarter.

Operating margin, defined as income from operations divided by net revenue, in the second quarter of 2008 was 57.6%, compared to 58.9% in the corresponding period of 2007 and 59.1% in the first quarter of 2008.

Income tax expense in the second quarter of 2008 was US$1.5 million, an increase of 126.1% year-over-year and 11.1% sequentially. The year-over-year increase was due to increased profit and new Enterprise Income Tax Law of the PRC, which took effect in January 2008. China Digital TV plans to apply for "New and High-Tech Enterprise" status, with an applicable 15% tax rate and a 50% reduction in 2008. Prior to receiving official approval of this status, the Company calculates income tax expense based on the 25% statutory tax rate, according to the new Enterprise Income Tax Law and a 50% reduction, resulting in a 12.5% income tax rate for the first half of 2008, rather than the 7.5% tax rate used last year.

Net income in the second quarter of 2008 was US$11.2 million, an increase of 88.2% from US$6.0 million in the corresponding period of 2007 and a decrease of 1.2% from US$11.4 million in the first quarter of 2008. The slight quarter-over-quarter decrease reflects the decline in interest income, due to a decrease in interest rates in the United States and a one-time RMB2 million special donation to earthquake affected regions in Sichuan, China.

Non-GAAP net income, defined as net income excluding certain non-cash expenses, including share-based compensation expenses and amortization of acquired intangible assets, in the second quarter of 2008 was US$11.5 million, an increase of 76.5 % from US$6.5 million in the corresponding period of 2007 and a decrease of 3.0% from US$11.9 million in the first quarter of 2008.

As of June 30, 2008, China Digital TV had cash and cash equivalents, restricted cash and deposits with maturity over three months totaling US$269.7 million. Operating cash flow in the second quarter of 2008 was a net inflow of approximately US$9 million.

Recent Developments
-- China Digital TV entered into two agreements to form joint ventures
in Guangzhou and Dongguan, both in Guangdong province in southern China.
These joint ventures plan to focus on developing value-added services
for digital TV platforms. The two cities currently have over two
million digital TV subscribers in total.

-- China Digital TV was chosen as the conditional access (CA) system
provider for two provincial cable TV network operators, Hubei Chutian
Digital TV Technology Co. Ltd. and Hebei Media Information Network
Holdings Co. Ltd., which together serve more than eight million
households. The ten operators signed in the second quarter serve over
ten million households in total.

-- China Digital TV was designated as a mobile TV solution developer by
the State Administration of Radio, Film and Television (SARFT), China's
regulatory authority on broadcasting. Under the agreement signed with
Zhongguang Satellite Mobile Broadcasting Corporation, a company
affiliated with SARFT, China Digital TV will develop Electronic Service
Guides (ESGs) based on the China Mobile Multimedia Broadcasting (CMMB)
standard, a home-grown broadcasting platform designed for mobile
devices.

-- China Digital TV launched STV-RT10UP, a chip used in digital PC-TV
receiving card, which enables PCs to support digital video recorder
(DVR) and HDTV functions on three channels simultaneously. The Company
plans to start marketing this innovative digital TV solution later this
year. The product initially targets viewers who watch analog TV
programs on their PCs, currently estimated at over 10 million people in
China.

Outlook for the Third Quarter Ended September 30, 2008 and the Full Year 2008

Based on information available on August 6, 2008, China Digital TV expects its net revenue for the third quarter of 2008 to be in the range of US$15.5 million to US$16.5 million, representing year-over-year growth in the range of 8% to 15%.

In May, a massive earthquake hit Sichuan province in southwestern China causing certain network operators to focus on recovery efforts and postpone planned network upgrades. Another macro issue affecting the third quarter is the 2008 Beijing Olympic Games. The Company has found a great number of operators have decided to wait until after the Games to make any technological changes to their network systems, ensuring that all existing systems are functioning properly during the Olympic Games. These operators will delay placing smart card orders. Both of these one-time events will impact third quarter results.

China Digital TV expects many of the orders deferred in the third quarter will be made up in the fourth quarter. Therefore, for the full year 2008, the Company maintains the forecast of smart card shipment volume at approximately 11 million.

Based on updated mid-year projections, China Digital TV has narrowed its expectation of full year 2008 net revenue to be in the range of US$80 million to US$83 million from the previous range of US$79 million to US$84 million, representing year-over-year growth in the range of 44% to 50%.

China Digital TV's management will hold a conference call at 8 p.m. on August 6, 2008 U.S. Eastern Time (8 a.m. on August 7, 2008 Beijing/Hong Kong time).

Dial-in details for this conference call are as follows:

United States Toll Free: +1.888.396.2386
International: +1.617.847.8712
Hong Kong: +852.3002.1672
China Toll Free: +10.800.130.0399

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode for all regions is "China Digital TV Earnings Call."

Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

A replay may be accessed by phone at the following number until September
13, 2008:

United States: +1.888.286.8010
International: +1.617.801.6888
Passcode: 89545650

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the third quarter of 2008 and full year of 2008 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans. China Digital TV may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our registration statement on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiaries, Beijing Super TV Co., Ltd. and Beijing Novel-Super Media Investment Co., Ltd, and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd.

For more information please visit the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
( in U.S. dollars in thousands, except share data )

For the three months ended
June 30, March 31, June 30,
2008 2008 2007
Revenues:
Products 18,069 15,822 10,095
Services 1,413 1,545 1,092
Total revenues 19,482 17,367 11,187
Business taxes (94) (126) (57)
Net revenue 19,388 17,241 11,130

Cost of revenues:
Products (2,908) (2,624) (1,487)
Services (1,008) (664) (710)
Total cost of revenues (3,916) (3,288) (2,197)
Gross profit 15,472 13,953 8,933

Operating expenses:
Research and development
expenses (1,614) (1,439) (1,052)
Sales and marketing
expenses (1,262) (1,044) (619)
General and administrative
expenses (1,436) (1,273) (702)
Total operating expense (4,312) (3,756) (2,373)

Income from operation 11,160 10,197 6,560

Interest income 1,778 2,379 62
Other (expense) /income (232) 115 --
Income before income tax 12,706 12,691 6,622
Income tax benefits /
(expenses)
Income tax-current (1,433) (1,345) (659)
Income tax-deferred (23) 35 15
Net income before minority
interest and net (loss) /
income from equity
method investments 11,250 11,381 5,978
Minority interest 1 -- --
Net (loss)/income from equity
method investments (3) 4 --
Net income 11,248 11,385 5,978

Net income per share:
Basic ordinary shares 0.20 0.20 0.14
Basic preferred shares -- -- 0.14
Diluted ordinary shares 0.18 0.19 0.13

Weighted average shares used
in computation:
Basic ordinary shares 57,346,818 57,296,932 34,000,000
Basic preferred shares -- -- 9,496,932
Diluted ordinary shares 60,915,126 61,082,377 37,264,505

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
( in U.S. dollars in thousands )

June 30, December 31,
ASSETS 2008 2007
Current assets:
Cash and cash equivalents 232,174 228,958
Restricted cash 2,149 706
Deposits with maturity over three months 35,369 17,948
Accounts receivable 10,261 6,118
Inventories, net 3,485 2,967
Prepaid expenses and other current assets 2,185 1,254
Amounts due from related parties 1,509 1,277
Deferred costs-current 330 541
Deferred income taxes - current 170 184
Total current assets 287,632 259,953
Property and equipment, net 1,582 1,379
Intangible assets, net 859 1,002
Goodwill 497 467
Long-term investments 441 396
Deferred costs-non-current 340 488
Deferred income taxes - non-current 92 50
Total assets 291,443 263,735

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 636 485
Accrued expenses and other current liabilities 4,981 4,757
Deferred revenue - current 3,611 4,784
Income tax payable 2,012 722
Total current liabilities 11,240 10,748
Deferred revenue-non-current 831 1,136
Total Liabilities 12,071 11,884
Minority interest 4,720 4,000
Shareholders' equity:
Ordinary shares 29 29
Additional paid-in capital 225,470 224,863
Statutory reserve 5,688 5,688
Accumulated profit 36,977 14,344
Accumulated other comprehensive income 6,488 2,927
Total shareholders' equity 274,652 247,851
TOTAL LIABILITIES, MINORITY INTEREST, AND
SHAREHOLDERS' EQUITY 291,443 263,735

Reconciliation of Non-GAAP Measures

Non-GAAP net income excludes certain non-cash expenses, including share-based compensation expenses and amortization of acquired intangible assets. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain non-cash expenses that may not be indicative of our operating performance from a cash perspective. We believe that both management and investors benefit from referring to this additional information in assessing our performance and when planning and forecasting future periods.

For the three months ended
June 30, March 31, June 30,
2008 2008 2007

Net income - GAAP 11,248 11,385 5,978
Share - based compensation 161 382 378
Amortization of intangible
assets 102 99 165

Net income - Non-GAAP 11,511 11,866 6,521

For investor and media inquiries, please contact:

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From: OmertaSoldier8/11/2008 6:43:49 PM
   of 79
 
LDK Solar Reports Financial Results for the Second Quarter 2008
Monday August 11, 4:05 pm ET

XINYU CITY, China and SUNNYVALE, Calif., Aug. 11 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. (NYSE: LDK - News), a leading manufacturer of solar wafers, today reported its unaudited financial results for the second quarter ended June 30, 2008.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Second Quarter 2008 Financial Highlights:
-- Revenue of $441.7 million, up 89.2% quarter-over-quarter;
-- Annualized wafer production capacity reached 880 MW by end of June;
-- Signed nine long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 60.8% to 191.7 MW during the quarter;
and
-- Gross profit margin for the quarter was 25.4%.

Net sales for the second quarter of fiscal 2008 were $441.7 million, up 89.2% from $233.4 million for the first quarter of fiscal 2008, and up 345.9% year-over-year from $99.1 million for the second quarter of fiscal 2007.

Gross profit for the second quarter of fiscal 2008 was $112.3 million, up 73.9% from $64.6 million for the first quarter of fiscal 2008, and up 221.8% year-over-year from $34.9 million for the second quarter of fiscal 2007. Gross profit margin for the second quarter of fiscal 2008 was 25.4% compared with 27.7% in the first quarter of fiscal 2008 and 35.2% in the second quarter of fiscal 2007. Operating profit for the second quarter of fiscal 2008 was $100.3 million, up 90.9% from $52.5 million for the first quarter of fiscal 2008, and up 225.4% year-over-year from $30.8 million for the second quarter of fiscal 2007. Operating profit margin for the second quarter of fiscal 2008 was 22.7% compared with 22.5% in the first quarter of fiscal 2008 and 31.1% in the second quarter of fiscal 2007.

Income tax expense for the second quarter of fiscal 2008 was $13.3 million. One of our operating subsidiaries in the PRC, after the first two years of exemptions, is now subject to the tax rate of 12.5% under the PRC Enterprise Income Tax Law that became effective on January 1, 2008.

Net income for the second quarter of fiscal 2008 was $149.5 million, or $1.29 per diluted ADS, compared to net income of $49.8 million, or $0.45 per diluted ADS for the first quarter of fiscal 2008.

LDK Solar ended the second quarter of fiscal 2008 with $83.7 million in cash and cash equivalents and with $261.9 million in pledged bank deposits.

"We experienced substantial revenue growth during the second quarter as our wafer capacity expansion exceeded our expectations," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "We were also pleased to introduce our first Nova wafers using Upgraded Metallurgical Silicon (UMG), which began shipping to certain customers, ahead of schedule during the quarter. Customer demand remains strong and we have signed nine long-term wafer supply agreements year-to-date, further diversifying our customer base. In response to our sales backlog, we are again raising our target annualized capacity to 1.2 GW by the end of 2008, 2.2 GW by the end of 2009 and 3.2 GW by the end of 2010."

"We are pleased with our continued success of executing our growth strategies. In addition to our wafer capacity expansion, tremendous progress has been made to date on the construction of our polysilicon plants and the project remains on schedule," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $486 million to $496 million with wafer shipments between 210 MW to 220 MW. LDK Solar also updated its outlook for the full year of fiscal 2008. For the full year of fiscal 2008, LDK Solar currently estimates:

-- Revenue to be in the range of $1.65 billion to $1.75 billion;
-- Wafer shipments in the range of 750 MW to 770 MW;
-- Gross margin in the range of 23% to 28%; and
-- Annualized wafer production capacity to be 1.2 GW by the end of 2008.

Conference Call Details

The LDK Solar Second Quarter 2008 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on Monday, August 11, 2008. To listen to the live conference call, please dial 800-366-3908 (within U.S.) or 303-205-0033 (outside U.S.) at 4:50 p.m. ET on August 11, 2008. An audio replay of the call will be available to investors through August 14, 2008, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11117794#.

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$'000, except share and per share data)

6/30/2008 3/31/2008
Assets
Current assets
Cash and cash equivalents 83,742 93,705
Pledged bank deposits 261,934 142,086
Trade accounts receivable, net 34,964 8,905
Inventories, net 656,202 519,594
Prepayments to suppliers 253,806 206,330
Other current assets 48,830 39,187
Deferred income tax assets 1,307 658
Total current assets 1,340,785 1,010,465
Property, plant and equipment, net 705,784 501,078
Deposit for property, plant and equipments 222,400 200,725
Intangible asset, net 1,103 1,109
Land use rights 78,946 64,612
Inventories to be processed beyond one year, net 10,529 21,401
Prepayments to suppliers to be utilized beyond
one year 20,538 20,534
Pledged bank deposits - non-current 33,444 30,020
Convertible senior notes issuance costs 10,530 -
Other financial assets 3,196 2,794
Deferred income tax assets 596 368
Total assets 2,427,851 1,853,106

Liabilities and shareholders' equity
Current liabilities
Short-term bank borrowings 375,634 313,933
Trade accounts payable 67,003 37,465
Advance payments from customers 242,962 231,089
Accrued expenses and other payables 166,994 137,525
Income tax payable 5,293 4,466
Other financial liabilities 6,213 7,577
Total current liabilities 864,099 732,055
Long-term bank borrowings, excluding current
portions 99,158 37,795
Convertible senior notes 400,000 -
Advance payments from customers - non-current 364,706 301,313
Other liabilities 2,252 2,164
Total liabilities 1,730,215 1,073,327
Shareholders' equity

Ordinary shares: US$0.10 par value;
499,580,000 shares authorized;
106,478,033 shares issued and outstanding
as of June 30, 2008 and March 31, 2008 10,648 10,648
Additional paid-in capital 238,555 494,358
Statutory reserve 18,697 18,697
Accumulated other comprehensive income 84,340 60,214
Retained earnings 345,396 195,862
Total shareholders' equity 697,636 779,779

Total liabilities and shareholders' equity 2,427,851 1,853,106

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Income Statement Information
(In US$'000, except per ADS data)

For the 3 Months Ended
6/30/2008 3/31/2008

Net sales 441,665 233,399

Cost of goods sold (329,372) (168,831)
Gross profit 112,293 64,568
Selling expenses (599) (481)
General and administrative expenses (10,956) (11,185)
Research and development expenses (437) (371)
Total operating expenses (11,992) (12,037)
Income from operations 100,301 52,531
Other income/(expenses):
Interest income 1,698 1,326
Interest expense (10,197) (5,254)
Foreign currency exchange gain, net 5,823 5,339
Government subsidy 4,347 4,521
Change in fair value of prepaid forward
contracts 60,028 -
Others 856 (126)
Income before income tax 162,856 58,337
Income tax (expenses)/benefit (13,322) (8,511)
Net income available to ordinary shareholders 149,534 49,826

Net income per ADS, Diluted $1.29 $0.45

About LDK Solar

LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its activities; the effectiveness, profitability, and marketability of its products; the future trading of its securities; its ability to operate as a public company; the period of time for which its current liquidity will enable it to fund its operations; its ability to protect its proprietary information; general economic and business conditions; the volatility of its operating results and financial condition; its ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about LDK Solar and the industry. These statements are based upon information available to LDK Solar's management as of the date hereof. Actual results may differ materially from the anticipated results because of certain risks and uncertainties. This press release also contains forward looking statements about the progress of LDK Solar's construction of its polysilicon plant. These statements are based on information available to its management today. Actual results may differ, including various factors which may delay or disrupt the plant's construction and completion, including, poor weather, the risk of labor difficulties, construction difficulties or financing difficulties.

LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although LDK Solar believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

--------------------------------------------------------------------------------
Source: LDK Solar Co., Ltd.

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From: OmertaSoldier8/16/2008 4:03:22 AM
   of 79
 
LDK Signs Five-Year Wafer Supply Agreement with XL Telecom & Energy Limited
Wednesday August 13, 3:15 am ET

XINYU CITY, China and SUNNYVALE, Calif., Aug. 13 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd ("LDK Solar"; NYSE: LDK), a leading manufacturer of solar wafers, today announced that it has signed a five-year contract to supply multicrystalline solar wafers to India-based XL Telecom & Energy Limited.


Under the terms of the agreement, LDK Solar will deliver approximately 300 MW of multicrystalline silicon solar wafers to XL Telecom & Energy Limited over a five-year period, commencing in the first quarter of 2009 and extending through 2013. XL Telecom & Energy Limited will make a down payment representing a portion of the contract value to LDK Solar.

"We are pleased to enter into this long-term supply contract with XL Telecom & Energy Limited, a leading Solar Export company," stated Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar. "With this most recent supply contract we are looking forward to building a relationship with XL Telecom & Energy Limited as well as expanding our presence in India."

"As we work to achieve our capacity expansion and growth goals to meet the increasing demands of the global photovoltaic market in the coming years, we are very pleased to have LDK Solar as a long-term partner and look forward to their supply, in order to secure an important part of our wafer needs," commented Dinesh Kumar, Managing Director and CEO of XL Telecom & Energy Limited.

About LDK Solar (NYSE: LDK - News)

LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.

About XL Telecom & Energy Limited

XL Telecom & Energy Limited, a NSE and BSE listed Company with its headquarters out of Hyderabad, India, and is a leading Solar Exporter. XL is in the process of establishing its 120 MW Solar Cell manufacturing facility in Rajiv Gandhi Nano Technology Park SEZ, which is scheduled to commence its operations in Sep/Oct 2008. XL Telecom and Energy is a Rs.7 Billion Revenues company with its focus in Solar, Ethanol and Telecom segments and was established in 1985.

Safe Harbor

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From: OmertaSoldier8/25/2008 12:18:35 PM
   of 79
 
LDK's 2009 revenue outlook above estimates
Monday August 25, 7:30 am ET
LDK offers upbeat 2009 revenue outlook as expansion of wafer production is ahead of schedule

NEW YORK (AP) -- LDK Solar Co. Ltd. on Monday projected 2009 revenue above Wall Street estimates as the China-based solar wafer maker said it met its goal of expanding its wafer production capacity ahead of schedule.
LDK said it expects revenue between $2.8 billion and $3 billion for 2009. It also expects to ship between 1.45 gigawatts and 1.55 gigawatts of wafer shipments for next year.

Analysts surveyed by Thomson Reuters expect full-year revenue of $2.43 billion for next year.

The company said that it reached its goal of shipping 1.0 gigawatts ahead of schedule, which is in line with the company's previously announced plans to reach annualized wafer production capacity of up to 1.2 gigawatts by the end of the year; 2.2 gigawatts by the end of 2009 and 3.2 gigawatts by the end of 2010.

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From: OmertaSoldier10/13/2008 10:59:05 AM
   of 79
 

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From: OmertaSoldier3/10/2009 6:46:43 PM
   of 79
 
STV 4Q 2008
China Digital TV Announces Unaudited Fourth Quarter and Full Year 2008 Results
Tuesday March 10, 2009, 5:00 pm EDT
Buzz up! Print Related:China Digital TV Holding Co., Ltd.
BEIJING, March 10 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV - News; "China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2008.

Related Quotes
Symbol Price Change
STV 7.08 +0.58


{"s" : "stv","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Highlights for Fourth Quarter 2008
-- Net revenues in the fourth quarter were US$16.8 million, a 13.8%
decrease from the corresponding period in 2007 and in line with the
third quarter of 2008.
-- Gross profit in the fourth quarter was US$13.4 million, a decrease of
14.0% from the corresponding period of 2007 and a decrease of 2.9% from
the third quarter of 2008. Gross margin was 79.6% in the fourth quarter
of 2008, compared to 79.8% in the corresponding period of 2007 and
81.8% in the third quarter of 2008.
-- Operating margin, defined as income from operations divided by net
revenues, for the fourth quarter of 2008 was 45.4%, compared to 54.0%
in the corresponding period of 2007, and 49.1% in the third quarter of
2008.
-- Diluted earnings per ADS (one ADS representing one ordinary share) in
the fourth quarter were US$0.21, compared to US$0.22 in the
corresponding period of 2007 and US$0.14 in the third quarter of 2008.
-- China Digital TV shipped approximately 2.66 million smart cards during
the fourth quarter, an increase of 2.1% from the corresponding period
in 2007 and an increase of 20.1% from the third quarter of 2008.
-- According to market data collected by the Company, China Digital TV
entered into 16 out of a total of 34 new contracts to install CA
systems in China during the fourth quarter of 2008.

Highlights for Full Year 2008
-- Net revenues in 2008 were US$70.3 million, a 26.8% increase from 2007.
-- Gross Profit in 2008 was US$56.6 million, a 25.2% increase from 2007.
-- Diluted earnings per ADS in 2008 were US$0.72, compared to US$0.68 in
2007.
-- China Digital TV shipped 9.86 million smart cards in 2008, an increase
of 34.8% from 2007. Between the beginning of 2004 and the end of 2008,
China Digital TV shipped a total of over 22.8 million smart cards.
-- According to market data collected by the Company, China Digital TV
entered into 36 out of a total of 66 new contracts to install CA
systems in 2008.

"Despite a tough quarter in which the slowing Chinese economy impacted the entire cable TV industry, we achieved growth in smart card shipment and maintained our market-leading position in China's CA industry," said Mr. Jianhua Zhu, China Digital TV's chief executive officer.

"We believe that China remains on track to complete the mass migration to TV digitalization by 2015 and with our leading position in the CA industry, China Digital TV is well positioned to benefit from this," continued Mr. Zhu. "In the near term, as customer needs continue to evolve, we will remain focused on developing our CA system solutions and service capabilities. We also expect opportunities to arise from consolidation in the CA industry as cable TV network operators choose to work with reliable domestic CA systems suppliers who understand local operator needs. Looking ahead, we believe that the next generation of digital value-added services has the potential to become an important contributor to our growth and we will continue to invest in related technologies and explore viable business models in this area."

China Digital TV's chief financial officer, Mr. Mason Xu, commented, "In 2008, both our net revenues and gross profit increased more than 25% compared to 2007, despite a challenging business environment in the second half of the year. While 2009 will likely be a difficult year, we expect that overall card shipment will continue to grow. Supported by our strong balance sheet, we will continue to invest in value-added services to ensure we capture long-term gains from the promising digitalization industry. At the same time, we will manage our cost structure in a prudent fashion, including tightened control over headcount growth and less essential expenses."

Fourth Quarter 2008 Results

(Note: Unless otherwise stated, all financial statement measures stated in this press release are based on U.S. GAAP.)

In the fourth quarter of 2008, China Digital TV reported net revenues of US$16.8 million, a decrease of 13.8% from US$19.5 million in the fourth quarter of 2007 and in line with US$16.9 million in the third quarter of 2008. The year-over-year decrease in net revenues was primarily attributable to decreases in the average selling price ("ASP") of smart cards in 2008 as the Company adopted a more aggressive pricing strategy to strengthen its market-leading position. The flat quarter-over-quarter revenues largely reflected ASP decline offset by shipment growth.

Revenues from smart cards and related products were US$15.4 million in the fourth quarter of 2008, a decrease of 13.6% from the corresponding period of 2007 and an increase of 2.1% from the third quarter of 2008. Sales of smart cards and related products accounted for 91.4% of total revenues for the quarter, up from 88.9% in the third quarter of 2008.

In the fourth quarter of 2008, out of the Company's approximately 200 existing operator customers, 162 bought smart cards from the Company, compared with 152 in the third quarter of 2008. Revenues from the top five customers accounted for 30.4% of total revenues in the fourth quarter of 2008, compared to 23.8% in the third quarter of 2008.

Revenues from services were US$1.4 million in the fourth quarter of 2008, a decrease of 20.2% from the corresponding period in 2007 and a decrease of 22.8% from the third quarter of 2008. Service revenues accounted for 8.6% of total revenues for the quarter. The year-over-year and quarter-over-quarter decreases were primarily due to declines in licensing and royalty revenues collected from set-top box manufacturers.

Gross profit in the fourth quarter of 2008 was US$13.4 million, a decrease of 14.0% from US$15.6 million in the corresponding period of 2007 and a decrease of 2.9% from US$13.8 million in the third quarter of 2008. Gross margin was 79.6% in the fourth quarter of 2008, compared to 79.8% in the corresponding period in 2007 and 81.8% in the third quarter of 2008. The year-over-year decline in gross profit was mainly due to the decrease in ASP of smart cards. The quarter-over-quarter decline in gross profit was due to the decrease in ASP and the increase in unit costs of smart cards.

In the fourth quarter of 2008, ASP for smart cards decreased by 10.8% compared to the third quarter. The unit cost for smart cards in the fourth quarter increased by 11.7% compared to the third quarter due to an increase in fees associated with monitoring for counterfeiting and other questionable activities in the CA industry.

Operating expenses for the fourth quarter of 2008 were US$5.8 million, an increase of 14.4% from US$5.0 million in the same period of 2007 and an increase of 4.3% from US$5.5 million in the third quarter of 2008.

-- Research and development expenses in the fourth quarter increased 28.9%
to US$1.9 million from US$1.5 million in the corresponding period of
2007 and decreased 1.9% from US$2.0 million in the third quarter of
2008. The year-over-year increase was mainly due to an increase in
headcount. The quarter-over-quarter trend was relatively flat as the
number of R&D staff remained stable during the period.

-- Sales and marketing expenses for the fourth quarter of 2008 were in
line with the corresponding period of 2007 and decreased 18.0% to
US$1.7 million from US$2.1 million in the third quarter of 2008. The
quarter-over-quarter decrease was primarily due to reduced marketing
activities and an adjustment associated with the actual year-end bonus
being less than the sum of quarterly provisions.

-- General and administrative expenses for the fourth quarter of 2008
increased 14.2% to US$2.2 million from US$1.9 million in the
corresponding period of 2007 and increased 42.7% from US$1.5 million in
the third quarter of 2008. The annual and sequential increases were
mainly due to a US$0.4 million bad debt provision recorded in the
fourth quarter of 2008, and to a lesser extent increases in share-based
compensation expenses and tax-related consulting fees.

Income from operations in the fourth quarter was US$7.6 million, a 27.6% decrease from the corresponding period of 2007 and a 7.7% decrease from the third quarter of 2008.

Operating margin, defined as income from operations divided by net revenue, in the fourth quarter of 2008 was 45.4%, compared to 54.0% in the corresponding period of 2007 and 49.1% in the third quarter of 2008.

Income tax benefit in the fourth quarter of 2008 was US$ 1.6 million, compare to income tax expenses of US$0.46 million in the corresponding period of 2007 and US$2.0 million in the third quarter of 2008. In the fourth quarter, Beijing Super TV Co., Ltd., a subsidiary of the Company, and Beijing Novel-Super Digital TV Technology Co., Ltd. (together with Beijing Super TV Co., Ltd., the "Entities"), a consolidated affiliate of the Company, successfully obtained their respective New and High-Tech Enterprise Certificates under the PRC Enterprise Income Tax Law. The Entities, therefore, are qualified to enjoy a preferential tax rate of 15% with a further 50% reduction, since they are located in a high-tech zone in Beijing, starting from January 1, 2008 to December 31, 2009. The Company pre-calculated income tax expenses of the two Entities based on a 12.5% statutory tax rate in the first and second quarters, and a 25% statutory tax rate in the third quarter. A tax benefit of US$1.6 million was recorded in the fourth quarter to reflect the impact of applying the 7.5% preferential tax rate to the full year of 2008.

Net income in the fourth quarter of 2008 was US$12.2 million, a decrease of 5.2% from US$12.9 million in the corresponding period of 2007 and an increase of 48.2% from US$8.2 million in the third quarter of 2008. The year-over-year decrease was primarily due to the decline in net revenues and increase in operating expenses. The quarter-over-quarter increase was primarily due to the tax benefit resulting from the downward adjustment of the applicable tax rate.

Non-GAAP net income, defined as net income excluding certain non-cash expenses, including share-based compensation expenses and amortization related to business acquisitions, in the fourth quarter of 2008 was US$12.7 million, a decrease of 3.9% from US$13.2 million in the corresponding period of 2007 and an increase of 49.2% from US$8.5 million in the third quarter of 2008.

As of December 31, 2008, China Digital TV had cash and cash equivalents, restricted cash and deposits with maturity over three months totaling US$273.4 million. Operating cash flow in the fourth quarter of 2008 was approximately US$11.1 million.

On September 17, 2008, the Company's board of directors authorized a share repurchase program. As of December 31, 2008 the Company had bought back 2,307,566 ADSs at a total cost of approximately US$16.1 million (including transaction costs) under the share repurchase program.

On December 19, 2008, the Company declared a special cash dividend of US$1.00 per share on the Company's ordinary shares. As of the end of February 2009, the dividend was paid to shareholders of record as of the close of business on January 8, 2009.

Full Year 2008 Results

Net revenues in 2008 increased 26.8% to US$70.3 million from US$55.5 million in 2007, primarily due to the growth of the Company's CA business as reflected by a 34.8% increase in smart card shipments in 2008.

According to market data collected by the Company, China Digital TV entered into 36 out of a total of 66 new contracts to install CA systems in 2008.

Revenues from smart cards and related products in 2008 were US$64.4 million, an increase of 29.5% from 2007, reflecting an increase in smart card shipments, which was partially offset by a decrease in ASP. Sales of smart cards and related products accounted for 91.1% of total revenues for the year.

Revenues from services were US$6.3 million in 2008, an increase of 4.6% from 2007. Revenues from services represented 8.9% of total revenues in 2008.

Gross profit was US$56.6 million in 2008, an increase of 25.2% from US$45.2 million in 2007. Gross margin was 80.5% in 2008, compared to 81.5% in 2007.

Operating expenses in 2008 were US$19.4 million, an increase of 59.9% from US$12.1 million in 2007. The increase in operating expenses was due to a combination of factors including a significant increase in the number of employees, increases in other R&D and marketing expenses and an increase in general and administrative expenses associated with the Company being in its first full year of operations as a public company.

-- Research and development expenses in 2008 increased 49.1% to US$6.9
million from US$4.6 million in 2007. Compensation costs, accounting
for more than 70% of total R&D expenses, increased by 45% due to
substantial increases in headcount.

-- Sales and marketing expenses in 2008 increased 61.3% to US$6.1 million
from US$3.8 million in 2007. The increase was primarily due to
substantially higher compensation costs associated with strategic hires
in sales and increases in marketing expenditures.

-- General and administrative expenses in 2008 increased 71.9% to US$6.4
million from US$3.7 million in 2007. The increase was primarily due to
substantially higher compensation costs associated with strategic hires
in the finance and legal departments and substantial increases in
consulting fees associated with being a public company.

Income from operations in 2008 was US$37.3 million, a 12.6% increase from 2007.

Operating margin in 2008 was 53.0%, compared to 59.7% in 2007.

Net income in 2008 was US$43.1 million, an increase of 27.3% from US$33.8 million in 2007. Basic and diluted earnings per ADS in 2008 were US$0.75 and US$0.72 respectively.

Business Outlook

Based on information available on March 10, 2009, China Digital TV expects smart card shipments for the first quarter of 2009 to be in the range of 2.1 million to 2.3 million. Net revenues for the first quarter of 2009 are expected to be in the range of US$13.5 million to US$14.5 million, representing a year-over-year decrease in the range of 16% to 21%. This decrease reflects a weaker ASP compared to the first quarter of 2008 and lack of growth in shipments resulting from the general economic downturn.

For full year 2009, the Company expects overall smart card shipments to increase approximately 20% compared to full year 2008. While ASP for smart cards may continue to face downward pressure in 2009, the Company does not expect ASP to decline significantly from the level of fourth quarter 2008.

Conference Call Information

The Company will hold an earnings conference call at 8:00 p.m. on Tuesday, March 10, 2009 Eastern Daylight Time (8:00 a.m. on Wednesday, March 11, Beijing/Hong Kong Time).

Conference Call Dial-in Information

United States Toll Free: +1-866-953-0757
International: +1-617-399-3487
Hong Kong: +852-3002-1672
China Toll Free: +10-800-130-0399

Passcode: China Digital TV Earnings Call

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the call will be available for one week between 10:00 p.m. on March 10, 2009 and 10:00 p.m. on March 17, 2009 Eastern Daylight Time.

Replay Information

United States: +1-888-286-8010
International: +1-617-801-6888

Passcode: 71120949

Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the first quarter of 2009 and full year 2009 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans and future market positions. China Digital TV may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiaries, Beijing Super TV Co., Ltd. and Beijing Novel-Super Media Investment Co., Ltd, and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd.

For more information please visit the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

For investor and media inquiries, please contact:

In China:

Eric Yuan
China Digital TV
Tel: +86-10-8279-0021
Email: ir@novel-supertv.com

Cynthia He
Brunswick Group LLC
Tel: +86-10-6566-9504
Email: che@brunswickgroup.com

In the US:

Kate Tellier
Brunswick Group LLC
Tel: +1-212-706-7879
Email: ktellier@brunswickgroup.com

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(in U.S. dollars in thousands, except share data)

For the three months ended
December 31, September 30, December 31,
2008 2008 2007
Revenues:
Products $ 15,422 $ 15,099 $ 17,851
Services 1,449 1,878 1,815
Total revenues 16,871 16,977 19,666
Business taxes (28) (115) (121)
Net revenue 16,843 16,862 19,545

Cost of Revenues:
Products (3,050) (2,295) (3,613)
Services (390) (766) (339)
Total Cost of
Revenues (3,440) (3,061) (3,952)
Gross Profit 13,403 13,801 15,593

Operating expenses:
Research and
development expenses (1,915) (1,953) (1,486)
Sales and
marketing expenses (1,693) (2,064) (1,666)
General and
administrative
expenses (2,154) (1,509) (1,886)
Total Operating
Expense (5,762) (5,526) (5,038)

Income from operation 7,641 8,275 10,555

Interest income 2,604 2,377 2,522
Other income / (expense) 385 (392) 263
Income before income tax 10,630 10,260 13,340
Income tax benefits/(expenses)
Income tax-current 2,054 (2,547) (612)
Income tax-deferred (480) 504 148
Net income before minority
interest and net (loss)
income from equity
method investments 12,204 8,217 12,876

Minority interest 5 8 --
Net (loss) income
from equity method
investments (11) 6 (6)
Net income $ 12,198 $ 8,231 $ 12,870

Net income per share:
Basic ordinary shares $ 0.22 $ 0.14 $ 0.23
Basic preferred shares -- -- 0.30
Diluted ordinary shares $ 0.21 $ 0.14 $ 0.22

Weighted average shares
used in computation:
Basic ordinary shares 56,272,562 57,643,602 54,511,429
Basic preferred shares -- -- 1,135,503
Diluted ordinary shares 57,613,559 60,627,807 58,377,611

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(in U.S. dollars in thousands, except share data)

For the twelve months ended
December 31, December 31,
2008 2007
Revenues:
Products $ 64,412 $ 49,741
Services 6,285 6,011
Total revenues 70,697 55,752
Business taxes (363) (299)
Net revenue 70,334 55,453

Cost of Revenues:
Products (10,877) (8,100)
Services (2,828) (2,135)
Total Cost of
Revenues (13,705) (10,235)
Gross Profit 56,629 45,218

Operating expenses:
Research and development expenses (6,921) (4,643)
Sales and marketing expenses (6,063) (3,758)
General and administrative expenses (6,372) (3,706)
Total Operating
Expense (19,356) (12,107)

Income from operation 37,273 33,111

Interest income 9,138 2,790
Other (expense)/income (124) 263
Income before income tax 46,287 36,164
Income tax benefits / (expenses)
Income tax-current (3,271) (2,554)
Income tax-deferred 36 212
Net income before minority
interest and net loss from
equity method investments 43,052 33,822

Minority interest 14 --
Net loss from equity
method investments (4) (6)
Net income $ 43,062 $ 33,816

Net income per share:
Basic ordinary shares $ 0.75 $ 0.74
Basic preferred shares -- 0.66
Diluted ordinary shares $ 0.72 $ 0.68

Weighted average shares
used in computation:
Basic ordinary shares 57,138,985 39,170,004
Basic preferred shares -- 7,389,394
Diluted ordinary shares 60,058,724 42,773,590

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in U.S. dollars in thousands)

December 31, December 31,
ASSETS 2008 2007
Current assets:
Cash and cash equivalents $ 202,947 $ 228,958
Restricted cash 24 706
Deposits with maturity over three months 70,468 17,948
Accounts receivable, net 12,509 6,118
Inventories, net 4,014 2,967
Prepaid expenses and other current assets 2,393 1,254
Amounts due from related parties -- 1,277
Deferred costs-current 326 541
Deferred income taxes - current 201 184
Total current assets 292,882 259,953
Property and equipment, net 1,880 1,379
Intangible assets, net 1,854 1,002
Goodwill 499 467
Long-term investments 437 396
Deferred costs-non-current 338 488
Deferred income taxes - non-current 86 50
Total assets 297,976 263,735

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,103 485
Accrued expenses and other
current liabilities 7,888 4,757
Deferred revenue - current 3,704 4,784

Payable to shareholders 57,210 --
Income tax payable 1,088 722
Total current liabilities 70,993 10,748
Deferred revenue-non-current 957 1,136
Deferred income taxes - non-current -- --
Total Liabilities 71,950 11,884
Minority interest 1,564 4,000
Shareholders' equity:
Ordinary shares 29 29
Additional paid-in capital 154,643 224,863
Statutory reserve 10,184 5,688
Accumulated profit 52,910 14,344
Accumulated other comprehensive income 6,696 2,927
Total shareholders' equity 224,462 247,851

TOTAL LIABILITIES, MINORITY
INTEREST, AND SHAREHOLDERS' EQUITY $ 297,976 $ 263,735

Reconciliation of Non-GAAP Measures

Non-GAAP net income excludes certain non-cash expenses, including share-based compensation expenses and amortization related to business acquisitions. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain non-cash expenses that may not be indicative of our operating performance from a cash perspective. We believe that both management and investors benefit from referring to this additional information in assessing our performance and when planning and forecasting future periods.

For the three months ended
December 31, September 30, December 31,
2008 2008 2007

Net Income - GAAP $ 12,198 $ 8,231 $ 12,870
Share-based compensation 386 116 230
Amortization related to
business acquisitions 103 155 97

Net Income - Non-GAAP $ 12,687 $ 8,502 $ 13,197

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From: OmertaSoldier3/11/2009 11:16:03 AM
   of 79
 
LDK 4Q 2008

LDK Solar Reports Financial Results for Fourth Quarter and Fiscal 2008
Wednesday March 11, 2009, 7:00 am EDT
Buzz up! Print Related:LDK Solar Co.Ltd.
XINYU CITY, China and SUNNYVALE, Calif., March 11 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK - News), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008.

Related Quotes
Symbol Price Change
LDK 4.40 -0.31


{"s" : "ldk","k" : "c10,l10,p20,t10","o" : "","j" : ""} All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Fiscal Year 2008 Financial Highlights:

Fiscal year 2008 revenue of $1.6 billion, up 214% year-over-year;
Annualized wafer production capacity expanded by over 1 GW, reaching 1.46 GW at the end of 2008;
Annual wafer shipments increased nearly four-fold to 818 MW in 2008;
Commenced in-house polysilicon production in early January, 2009 for additional cost savings; and
Signed 14 long-term wafer supply agreements during the year, achieving a sales backlog of over 14 GW through 2018.

Net sales for the fourth quarter of fiscal 2008 were $426.6 million, down 21.3% from $541.8 million for the third quarter of fiscal 2008, and up 121% from $192.8 million for the fourth quarter of fiscal 2007.

During the fourth quarter, LDK Solar recorded a write-down of $216.7 million against the cost of inventories for a decline in net realizable value of inventories resulting from the rapid market price decline for solar wafers. As a result, gross profit and income from operations were negatively impacted in the fourth quarter of fiscal 2008.

For the fourth quarter of fiscal 2008, gross profit was negative $126.8 million, compared to $122.9 million in the third quarter of fiscal 2008, and $58.0 million for the fourth quarter of fiscal 2007.

Excluding the inventory write-down, gross profit was $89.9 million, or a gross margin of 21.1% for the fourth quarter and operating profit was $61.7 million, or an operating margin of 14.5% for the fourth quarter.

Gross margin for the fourth quarter of fiscal 2008 was negative 29.7% compared to 22.7% in the third quarter of fiscal 2008 and 30.1% in the fourth quarter of fiscal 2007.

Loss from operation for the fourth quarter of fiscal 2008 was $155.1 million, compared to income from operation of $107.8 million for the third quarter of fiscal 2008, and income from operation of $46.7 million for the fourth quarter of fiscal 2007.

Operating margin for the fourth quarter of fiscal 2008 was negative 36.3% compared to 19.9% in the third quarter of fiscal 2008 and 24.2% in the fourth quarter of fiscal 2007.

Income tax benefit for the fourth quarter of fiscal 2008 was $18.4 million, compared to income tax expense of $13.8 million in the third quarter of fiscal 2008.

Net loss for the fourth quarter of fiscal 2008 was $133.1 million, or $1.25 per diluted ADS, compared to net income of $88.4 million, or $0.77 per diluted ADS, for the third quarter of fiscal 2008.

Revenue for the fiscal year ended December 31, 2008 was $1.6 billion, up 214% from revenue of $523.9 million for 2007. Gross profit for the year ended December 31, 2008 was $173.0 million, compared to $170.2 million for fiscal 2007. Gross margin for the year ended December 31, 2008 was 10.5%, compared to 32.5% for fiscal 2007.

Operating profit for the year ended December 31, 2008 was $105.6 million, compared to $146.8 million for fiscal 2007.

Operating margin for the year ended December 31, 2008 was 6.4%, compared to 28.0% for fiscal 2007.

Excluding the inventory write-down, gross profit was $389.7 million, or a gross margin of 23.7% for fiscal 2008 and operating profit was $322.3 million, or an operating margin of 19.6% for fiscal 2008.

For the year ended December 31, 2008, income tax expense was $17.2 million, compared to income tax benefit of $0.8 million for fiscal 2007.

For the year ended December 31, 2008, net income was $154.7 million, or $1.42 per diluted ADS, compared to net income of $144.1 million, or $1.37 per diluted ADS, for fiscal 2007.

LDK Solar ended fiscal 2008 with $255.5 million in cash and cash equivalents and $83.4 million in short-term pledged bank deposits.

"Despite its challenges, 2008 was a year of impressive and rapid growth for LDK Solar," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "We successfully executed on aggressive expansion plans, increasing wafer capacity from 420 MW in 2007 to 1.46 GW at the end of 2008 which was correlated by a dramatic increase in wafer sales year over year.

"Additionally, we completed the construction of and commenced polysilicon production in our 1,000 MT polysilicon plant, and are very pleased with the high quality output produced to date. We continue to progress in the construction of our 15,000 MT plant and expect the first 5,000 MT train to reach mechanical completion at the end of the second quarter of 2009. We look forward to realizing the cost saving benefits of in-house polysilicon production as we work towards our current targets of between 2,000 and 3,000 MT of polysilicon output in 2009," continued Mr. Peng.

"We enter 2009 with conservative optimism. In light of the continued economic slowdown and global credit crisis, we recently amended our expansion plans to lower capital expenditure needs in the near term and to better reflect muted market expectations for 2009. As the credit markets continue to contract, we believe that conservative cash management is imperative and will focus on closely monitoring capital spending to protect our healthy cash position and unused credit facilities, which were $850 million at the end of 2008. While the business environment has been challenging, we believe we are uniquely positioned within the solar industry and going forward will benefit from our lean cost structure and economies of scale. As we brace for continued challenges in the current marketplace, we remain confident in the core strengths of our business model and long-term growth strategies," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the first quarter of fiscal 2009, LDK Solar estimates its revenue to be in the range of $240 million to $280 million with wafer shipments between 170 MW to 200 MW and gross margin between 3% and 6%. For the full year of fiscal 2009, LDK Solar currently estimates:

Revenue to be in the range of $1.4 billion to $1.8 billion;
Wafer shipments in the range of 1.2 GW to 1.45 GW;
Gross margin between 12% and 19%; and
Production of between 2,000 and 3,000 MT of polysilicon in 2009.

Conference Call Details

The LDK Solar Fourth Quarter and Fiscal Year 2008 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on March 11, 2009. To listen to the live conference call, please dial 800-366-7449 (within U.S.) or 303-228-2965 (outside U.S.) at 7:50 a.m. ET on March 11, 2009. An audio replay of the call will be available to investors through March 16, 2009, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11126850#.

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$'000, except share and per share data)

12/31/2008 9/30/2008 12/31/2007
Assets
Current assets
Cash and cash equivalents 255,523 347,762 83,470
Pledged bank deposits 83,383 115,028 135,950
Trade accounts receivable 94,733 40,286 3,767
Bills receivable 3,075 - -
Inventories 704,439 702,314 349,997
Prepayments to suppliers, net 83,561 294,855 138,193
Other current assets 68,123 47,800 29,825
Deferred income tax assets, net 32,205 1,965 546
------ ----- ---
Total current assets 1,325,042 1,550,010 741,748
Property, plant and equipment, net 1,697,203 1,138,539 336,763
Deposits for purchases of property,
plant and equipment 233,296 301,252 151,233
Intangible asset, net 1,037 1,074 1,096
Land use rights 99,162 97,818 29,259
Inventories to be processed beyond
one year - 7,678 29,981
Prepayments to suppliers expected
to be utilized beyond one year,
net 33,617 22,082 18,994
Pledged bank deposits - non-current 49,686 49,476 -
Debt issuance costs, net 8,764 9,657 -
Investment in an associate 5,630 2,579 -
Other financial assets - - 525
Deposits relating to sales and
leaseback transactions 7,316 - -
Deferred income tax assets 375 1,052 387
--- ----- ---
Total assets 3,461,128 3,181,217 1,309,986
--------- --------- ---------

Liabilities and shareholders'
equity
Current liabilities
Short-term bank borrowings and
current portion of long-term bank
borrowings 666,200 451,940 264,101
Bills payable 11,406 - -
Trade accounts payable 124,066 59,165 18,032
Advance payments from customers,
current portion 256,411 342,879 141,223
Accrued expenses and other payables 429,968 331,418 95,301
Due to a related party 4,359 - -
Other financial liabilities 18,545 500 3,357
------ --- -----
Total current liabilities 1,510,955 1,185,902 522,014
Convertible senior notes 400,000 400,000 -
Long-term bank borrowings, excluding
current portions 154,252 159,465 25,125
Obligations under capital leases,
excluding current installments 40,083 - -
Advance payments from customers -
non-current 487,577 434,303 67,554
Other liabilities 3,485 2,172 2,222
Deferred income tax liability 1,468 - -
----- --- ---
Total liabilities 2,597,820 2,181,842 616,915
Shareholders' equity

Ordinary shares: US$0.10 par value;
499,580,000 shares authorized;
113,501,049, 113,501,049 and
106,044,700 shares issued as of
December 31, 2008, September 30,
2008 and December 31, 2007,
respectively; 113,110,396,
113,109,250 and 106,044,700 shares
outstanding as of December 31,
2008, September 30, 2008 and
December 31, 2007, respectively 11,311 11,311 10,604
Additional paid-in capital 446,327 441,913 486,253
Statutory reserve 29,676 18,697 18,697
Accumulated other comprehensive
income 86,219 93,610 31,481
Retained earnings 289,775 433,844 146,036
------- ------- -------
Total shareholders' equity 863,308 999,375 693,071

Total liabilities and shareholders'
equity 3,461,128 3,181,217 1,309,986
--------- --------- ---------

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Income Statement Information
(In US$'000, except per ADS data)

For the 3 Months Ended Fiscal Year
12/31/2008 9/30/2008 2008 2007

Net sales 426,612 541,819 1,643,495 523,946
Cost of
goods sold (553,402) (418,906) (1,470,511) (353,709)
--------- --------- ----------- ---------
Gross (loss) /
profit (126,790) 122,913 172,984 170,237
Selling expenses (1,139) (1,567) (3,786) (873)
General and
Administrative
expenses (23,028) (10,904) (56,073) (19,360)
Research and
development expenses (4,114) (2,648) (7,570) (3,202)
------- ------- ------- -------
Total operating
expenses (28,281) (15,119) (67,429) (23,435)
-------- -------- -------- --------
(Loss) / income
from operations (155,071) 107,794 105,555 146,802
Other
income/(expenses):
Interest income 979 1,872 5,875 4,109
Interest expense
and amortization
of discount on
exchange notes and
convertible senior
notes issuance
costs (8,284) (10,612) (34,347) (9,419)
Decrease in fair
value of warrants - - - 2
Foreign currency
exchange gain /
(loss), net 4,950 (1,617) 14,495 (1,654)
Government subsidy 5,366 5,431 19,665 3,461
Change in fair
value of
prepaid forward
contracts - - 60,028 -
Others 567 (641) 656 -
--- ----- --- -
(Loss) / income
before income tax (151,493) 102,227 171,927 143,301
Income tax benefit /
(expenses) 18,403 (13,779) (17,209) 758
------ -------- -------- ---
Net income (133,090) 88,448 154,718 144,059
Accretion of
Series A - - - (860)
Accretion of
Series B - - - (2,726)
Accretion of
Series C - - - (1,351)
--- --- --- -------
Net (loss) / income
Available to
ordinary
shareholders (133,090) 88,448 154,718 139,122
--------- ------ ------- -------

Net (loss) /
Income per
ADS, Diluted $(1.25) $0.77 $1.42 $1.37
----------- ---------- ---------- ----------

About LDK Solar (NYSE: LDK - News)

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From: OmertaSoldier3/12/2009 2:56:43 PM
   of 79
 
seek alpha take Q4

LDK Solar (LDK) reported Q4 and FY08 financial results this morning. The results weren’t too surprising, given the fact that the company has taken a couple opportunities in the past months to lower guidance in the face of eroding ASPs (which is an industry wide phenomenon) and the current global economic crisis which is slowing the pace of solar projects. Against a backdrop of challenging conditions, LDK, like so many of its peers has seen its multiples compressed to the extent that almost all future growth is fully discounted. That being said, based on management’s guidance yesterday morning we are adjusting our expectations for FY09 downward as well as our target trading range for the stock.

Results: LDK Solar reported a 21.3% decline in Q4 sales on a sequential basis to $426.6 million, and a 121% increase on a Y/Y basis. Gross profit in the Q4 was negative $126.8 million, impacted by an inventory write-down. Backing the write-down out, GP would have been $89.9 million for the quarter, or a GM of 21.1%. However, with the write-down, GM in Q4 was a negative 29.7%. Net loss of the Q4 was $133.1 million, or $1.25 per diluted ADS, compared to net income of $88.4 million for the same period last year. For the FY08, revenue was $1.6 billion, a 214% Y/Y increase. Gross profit was $173 million, representing GM of 10.5%, down from 32.5% in FY07. Net income for the year was $154.7 million, or $1.42 per diluted ADS, compared to net income of $144.1 million in FY07. In terms of guidance, management said it expects Q1 revenue in the range of $240 to $280 million with wafer shipments between 170MW and 200MW and gross margin between 3% and 6%. For the FY09, it expects revenue in a range of $1.4 billion to $1.8 billion, with wafer shipments in a range of 1.2GW and 1.45GW, gross margin between 12% and 19% and poly production of between 2,000 and 3,000MT. Reducing cap ex plans for 2009 in a range of $190 to $245 million.

Our Take: We listened in on the conference call, where managed provided further color:

Q4 ASP per watt $2.18 decrease of $0.30 from prior quarter – result of rapid wafer decline in prices;
Management expects prepayments to decline in the face of global financial crisis , and continues to undertake cost cutting initiatives to compensate for lower anticipated cash flow and pricing pressures;
Conditions will continue to be challenging in the near term for LDK, as they are with other solar firms facing headwinds.
The biggest concerns we have, which seemed to be consistent with the analyst questions on the call, are that there is another write down ahead. Piper’s Jesse Pichel focused in on this risk in his line of questioning, with management stating its average poly costs were in the range of $170 to $180, Pichel implied with poly prices continuing to decline there is potential for another write down. In the worst case scenario, we wouldn’t expect a second write down on inventory to mirror the $216.7 million write down in the Q4, but it would likely be material to the company’s results and this risk will inevitably continue to be priced into LDK’s stock, which is trading this morning down to $4.30.

Another concern we have from a liquidity standpoint, primarily, is that management said it expects deposits against backlog orders to decline going forward. Here again, Pichel noted that his understanding was that LDK was set to receive an additional $300 to $400 million in deposits which would be used to help finance the build-out of its 15,000MT poly plant. As it stands, management has said it is slowing down its plans for this plant, focusing now 100% on the first 5,000MT train, delaying installation of its second and third trains. The strategy is primarily one of cash preservation, but it creates some additional concerns as well. Namely, when poly production facilities are brought online, it takes some time to iron out the inefficiencies and this early period typically inflates operating costs, on a relative basis. The additional 10,000MT from the other two trains would presumably bring sufficient volume and economies of scale to help offset this effect. So with an anticipation of higher initial poly production costs, in a market where poly prices are widely expected to continue to decline, the implication for operating margins and further write offs is a concern.

On the positive side, management seems to have found a level of conservatism in its guidance and planning at this point that should serve it better. In addition to continued cost cutting measures, its liquidity position is relatively strong, with a cash balance of about $300 million, or roughly $2.50 per ADS, expected operating cash flow (based on 12% to 19% gross margin expectations), and more than $500 million available on its Line of Credit, the company should be able to navigate through the year without raising addition capital through equity. It intends to control cap ex through maintaining relatively level wafer capacity through the year (at about 1.5GW), monitoring market demand to determine when it makes sense to plan for further expansion. Management also indicated it is talking with Chinese banks about moving some of its short term debt into long-term bonds. Its revenue guidance this year is based on wafer shipment guidance of 1.45GW, even though it has a backlog this year of 1.7GW.

So management is being cautious and acknowledging risk in its forecasts for slippage from customers facing issues of their own. That being said, there is some additional upside to the guidance built in here as well if they are able to fulfill their backlog. Poly production has begun at the 1,000MT plant and management reiterated that it expects to reach full production capacity by mid-year. It is about 95% complete with respect to train 1 on its 15,000MT facility, and, as noted above, plans are to produce about 2,000 to 3,000MT of poly in 2009, which will bring cost benefits to the business as well. Though not as significant as it would have been if LDK had been able to stick to its guidance of 5,000 to 7,000MT for the year.

But in this environment, it makes sense to preserve cash and avoid trying to tap the capital markets – especially at current levels. Keep in mind last September it raised capital north of $40 per share. And don’t forget that LDK is the largest and lowest-cost wafer producer in the world. At $4.30, the company’s market cap is a paltry $513 million, or 0.32x FY09E revenue of $1.6 billion and 3.21x FY09E income of $160 million. It has about $2.50 in cash per share, and it is valuing its raw materials at about $500 million. Its backlog is massive, about 20GW in total. To put that in perspective, the management anticipates driving about $240 to $280 million in revenue on 200MW in the first quarter.

We are lowering our expected FY09 revenues to $1.6 billion from $2 billion, and income expectations for the year to $160 million, assuming 10% net margins. As we noted above, there are some legitimate reasons for concern over LDK’s near-term outlook, but at $4.30 we think the risk has been more than factored in, given the points made in the previous paragraph. We think a reasonable set of metrics for the stock, until visibility gets better in the solar sector, and until LDK can demonstrate that write offs and lowered guidance is behind us, is .8x FY09E revenues and 6xFY09E income, which would yield an implied market cap range of $960 million to $1.28 billion, and a target trading range of $8 to $10.

Disclosure: Todd Pitcher/Aspire is LONG LDK. The information provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities.
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Register or Login to rate comments » caviar 1 Comment What is the likelihood of poly prices going back up sooner than expected? If it happens, could it reverse sensitively LDK's losses in the short term? Mar 12 11:02 AM | Link | Reply 00 dzr_greg 9 Comments Here is my take on this :
Poly price is like commodity. So if there is a little turnaround in the economy, Poly price will increase.
Concerning LDK,
The management looks more cautious, but their outlook on Poly production aren't reliable. They changed their position on it every month (their Earning statement is different then last month downside forecast).
Because of all that, i'm just worry about the accuracy of the management, i do feel that the market is more pricing lack of confident on the management then more LDK issue.

Now i also hope that they will reflect Poly stock price more on the margin then on write downs (i think it is perhaps the reason why margin will be around 6-8pct in Q1).
Long term is still bullish on LDK if they make through this crisis.... (that is closer to the end then the beginning i think and hope).
But renegociation of the debt will be important (long term debt over short term) and .... regain credibility from the management is the most important element. Mar 12 02:07 PM |

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