Canadian Solar Reports 4Q09 Loss After Audit Review (CSIQ)

Canadian Solar (NASDAQ: CSIQ) reported a 4Q09 loss after its audit committee reviewed revenue recognition.

EPS went from a $0.35 to ($0.38), a 73 cent decline.

Collins Stewart analysts said, "CSIQ credit control procedures in late-CY09 were clearly lacking. It was
dealing with a surprising number of speculative accounts during a boom in which the industry’s most established customers needed modules. We suspect that CSIQ was accepting greater credit risk in exchange for customers willing to pay higher prices."

Canadian Solar is rated Hold by Collins Stewart.

Shares of CSIQ are trading down more than 10% today on the news.