Did JA Solar
According to GAAP accounting standards, which by definition are generally acceptable, JA reported a per-share loss of one penny on a fully diluted basis. But another thing about GAAP numbers is that they often don't present the full picture.
As with LDK Solar
Oil and gas companies like Devon Energy
I'm also curmudgeonly when it comes to cash flows, and this brings me to yet another way of judging profitability. Note that cash on hand increased by around $300 million from the first quarter. That would be impressive, had there not been a $400 million debt raise during the period.
Back out that financing, and JA Solar consumed cash in the quarter. The usual suspects were to blame: prepayments to silicon suppliers and capital expenditures. Prepayments now amount to nearly a third of total assets. The company's CFO noted that without these outlays the company would have positive operating cash flow. That's about as exculpatory as telling a highway patrolman you'd be sober if it weren't for that last brew you chugged.
The simple fact is that JA has to keep burning cash to stay relevant in this highly dynamic market. If the demand for solar cells produced by the likes of JA, Suntech Power
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