Solar cell firm Tainergy Tech expects to enjoy another sequential growth in August revenues thanks to stable orders from Europe-based clients. Order visibility for September remains positive, but prices will likely come under downward pressure due to the more competitive market, according to the company.

Tainergy saw July revenues jump 75.3% on month to NT$2.66 billion (US$92 million). Revenues had slid sequentially for the fourth straight month in June.

Tainergy said August revenues are likely to increase about 10% on month thanks to its close ties with Europe-based module firms, as well as benefiting from new government incentive policies. Revenues for September will also be buoyed by clear order visibility.

However, Tainergy expressed concerns that its product ASP may be dragged down by the increased competition in Europe. The company believes its optimum customer structure will help maintain prices above the market average.

First-tier Europe-based firms including Solon, Aleo and Centrosolar reportedly are among Tainergy's major customers, accounting for more than 40% of the solar cell supplier's overall revenues at present.

Solar cell manufacturers, including Tainergy, had a weak second quarter of 2011 affected by government subsidy cuts in Europe as well as weak macro-economic factors.

Tainergy swung to net losses of NT$189 million in the second quarter from profits of NT$48 million in the first quarter. It reported net losses of NT$142 million for the first half of 2011 with EPS reaching negative NT$1.18.

Tainergy is a subsidiary of Kenmec Mechanical Engineering, which makes chip-manufacturing automation tools as well as production equipment for the flat-panel display (FPD) and solar sectors.

Source:digitimes