Canadian Solar (CSIQ) sank close to 20% to $9.25 on Wednesday, its biggest decline since May 6, after the Chinese solar-cell maker postponed the release of its full financial results for the first quarter ended March 31, 2010 and its quarterly conference call, scheduled for June 2, as a result of the commencement of an investigation. Canadian Solar announced late on Tuesday that the company received a subpoena from the Securities and Exchange Commission requesting documents relating to, among other things, certain sales transactions in 2009.
Canadian Solar said its audit committee launched an investigation after getting the subpoena from the SEC. The company, which was founded in Ontario, Canada, also said it might revise its fourth quarter and full year 2009 results as it now intends to recognize sales only after receiving full cash payments from certain customers.
But despite the possibility of the 4Q09 revision Dr. Shawn Qu, Chairman and CEO of Canadian Solar, said the “market demand was very strong in the first quarter. [The co.] reached record-high shipment levels in Q1, which we believe demonstrates the success of our diversified sales channels and our strong brand name recognition.”
Shares of CSIQ fell $1.74, or 14.67 percent, to $10.11 in midday trading.