Canadian Solar's operating expenses sharply jumped 30% to USD69m

Blame it on idle assets.

Canadian Solar has reported a 5% q-q increase in revenues and 16% q-q growth in shipments in 4Q14.

According to a research note from Nomura, however, net profits were affected by higher operating expenses (up 30% q-q) and a USD4.9mn forex and derivatives impact.

Further, gross margin in 4Q14 was reported at 19.3% vs 22.9% in 3Q14 mainly due to the impact of the US trade case, lower ASP of modules as a result of depreciation of Yen and EUR against USD, and lower margin from total solutions business in Canada.

Operating expenses were up sharply at USD69mn (up 30% q-q) mainly due to higher legal fees related to trade and other cases, impairment of certain idle assets of approx ~USD2mn and higher salary and bonus expenses.

Here's more from Nomura:

Canadian Solar has guided for total module shipments in the range of 1,000-1,030MW in 1Q15F, which includes ~55MW of shipments to the company’s utility scale solar projects that will not be recognised into 1Q15F revenues.

1Q15F revenue is expected to be between USD725-775mn while gross margin is expected to be between 16-18%, according to management.

For the full year FY15F, the company expects total module shipments in the range of 4.0-4.3GW and total revenue in the range of USD2.8-3.0bn.