ReneSola Ltd (NYSE:SOL) is a well-known name among the manufacturers of solar waters. These are thin sheets of crystalline silicon material used in the production of solar cells. The company that started in the mid-2000s has come a long way and is now an international leading brand and technology provider for many green energy products, such as, solar panels and energy storage system. And as solar energy has become more and more popular in the recent years, the company has enjoyed the luxury of high revenues. But, in its 3^rd quarter of 2014, ReneSola (NYSE:SOL) reported a loss of 12 cents according to the American Depositary Share. Analysts believe this is due to fewer shipments in the quarter as well as loss incurred due to European currency depreciation.

The company also suffered a blow in terms of revenue as the quarter wrapped up with less than Zacks consensus estimates of $429 million to $387.1 million. A year ago, the figure was a striking 419.3 million. The company blames lower shipment volume for its loss. But looking into the shipments during the quarter in review, the shipment scales went 22% low as compared to last year at 663.9 megawatt (MW). In terms of geographical breakdown, the scales representation was 47% in Europe, 25% in Japan, 12% in China, 8% in US, and for the rest of the world, it was 9%.

Looking at the gross margin however, showed an expansion to 15.3% from 8.7% in 2013, and last quarter’s 14.7%. Operating expenses went up by 5% to $48.6 million for the quarter and operating income was at $8.5million.

The company’s financial condition seems to be fluctuating as compared to last year. Restricted cash for the quarter is at $196.7 million, as compared to the $348.9 million as of December 31, 2013.Cash flow through operating activities was $10.7 million for the third quarter compared to the $40.6million of the 2^nd quarter. The company’s total debt till September 2014 stands at $748.8 million, leaving behind the $742.6 million of December 31, 2013.

In terms of what to expect in the next quarter, the company sees the fourth quarter solar module shipment range to be 460 MW till 480 MW, with an additional margin of 13%. A 1.94 GW to 1.96 GW module shipment is expected. These figures were readjusted from 2.3 GW to 2.5 GW.

Regardless of expectations, the company seems to be hit by the anti-dumping laws and government subsidies. The solar demand is expected to go down globally to 35% by 2018. As these hurdles start to grasp pace, ReneSola (NYSE:SOL) shifts back to its original equipment manufacturing strategy. It seems that the company can continue operations regardless of uncertainty over regulations in trading into solar markets in Australia, US and India. The company also plans to expand into South Korea, Turkey and some part of Europe by the end of 2015.

With the expansion plan and cost control in place, the company seems in good form to take on the next quarter.

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