This Week in Solar: Suntech Power Holdings Co., Ltd. (ADR) (STP), MEMC Electronic Materials, Inc. (WFR)

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I expect legal action by bondholders in the next few days, if not in the next few hours. This isn’t over and it doesn’t look good for Suntech, no matter what happens.

News and notes
There were a few important earnings reports this week. Here’s what happened:

Canadian Solar Inc. (NASDAQ:CSIQ) reported fourth-quarter earnings and revenue fell 37.8% to $294.8 million. Gross margin was 5% and the company lost 104.9 million, or $2.43 per share, in the quarter. Net debt was $970.8 million to end the year.

ReneSola Ltd. (ADR) (NYSE:SOL) also reported results and revenue was up 63.3% from a year ago to $306.5 million on a 110% jump in total shipments. Gross margin was 3.3%, up from a year ago but still an unsustainably low number. The company lost $49.8 million, or $0.58 per share, and net debt stood at $633.7 million at the end of the quarter.

MEMC Electronic Materials, Inc. (NYSE:WFR) announced its intention to change its name to SunEdison and released outlook for 2013. It expects semiconductor revenue of $940 million-$990 million, up from $918 million last year. Systems sold will be 420 MW-490 MW from 383 MW in 2012, and costs will fall from $3.79 per watt to $3.10-$3.40.

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) announced that it began shipments to 35 MW worth of projects in Israel built by Siemens.

Foolish bottom line
The earnings numbers out of China continue to be terrible and I see no signs of improvement any time soon. If Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) does go under it may ease some of the oversupply in the industry, which would actually be good for everyone else, including Chinese suppliers. Check back to Fool.com for the latest on Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) over the next week as this strange story unfolds.

The article This Week in Solar originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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