FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of August 2007

Commission File Number: 001-33107

CANADIAN SOLAR INC.

Xin Zhuang Industry Park,
Changshu, Suzhou
Jiangsu 215562
People’s Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   þ                    Form 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):          

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):          

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   o                    No   þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

82-    N/A   

 

 

CANADIAN SOLAR INC.

Form 6-K

TABLE OF CONTENTS

		Page
Signature			3
EX-99.1 PRESS RELEASE

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 15, 2007

Canadian Solar Reports Second Quarter 2007 Results

		•		Q2 net revenues of $60.4 million, a three-fold increase from $17.5 million in Q1
		•		Q2 loss of $0.11 per share compared to a loss of $0.14 per share in Q1
		•		Full year 2007 net revenue guidance increased to $255-$265 million from $220-$230 million

Jiangsu, China, August 14, 2007 — Canadian Solar Inc. (“the Company,” “CSI,” or “we”) (NASDAQ: CSIQ) today reported its preliminary unaudited US GAAP financial information for the second quarter of 2007 ended June 30, 2007.

Net revenues for the quarter were $60.4 million, including $2.7 million silicon material sales, compared to net revenues of $17.3 million for the second quarter of 2006 and $17.5 million for the first quarter of 2007. Net revenues for the first quarter of 2007 included $2.8 million in silicon material sales. Net loss for the quarter was $2.9 million, or $0.11 per share, compared to net income of $2.5 million, or $0.16 per diluted share, for the second quarter of 2006 and net loss of $3.9 million, or $0.14 per share, for the first quarter of 2007. Excluding share-based compensation expenses of $2.4 million, the net loss for the quarter would have been $0.5 million, or $0.02 per share.

Dr. Shawn Qu, Chairman and CEO of CSI, commented: “Our Q2 revenues were at the high end of our guidance range. We continue to benefit from our strong international sales and marketing network and our focus on tier one distributors and project-based companies. During the quarter, we saw sustained demand for our products in Germany and Spain. We expect to complete our Phase One in-house solar cell production facility in the middle of October, which would bring our total cell capacity to 100MW per year. We have recently ramped up our module production capacity to 180MW per year. These successful steps in our expansion strategy will help to solidify our position as a major player in the industry and enable us to meet increased customer demand.”

Bing Zhu, CFO of CSI, noted: “Our gross margins improved slightly in Q2 due to our increasing in-house solar cell manufacturing capability. We would have been profitable on a cash operating basis during the quarter without the following two factors: first, we cleared out 1.63MW of high-priced solar cells inventory purchased in 2006 and secondly, we incurred slightly higher yield loss, as we almost quadrupled our production within one quarter. Entering the third quarter, we are experiencing stable module pricing and expect this to continue during the second half of 2007. We have also experienced modest materials price increases from certain suppliers. We are working on improving our cost structure and operating efficiencies to offset these increases and expect our operating margins to improve significantly in Q4 as we speed up our in-house solar cell manufacturing production.”

Recent Developments

We recently started to ramp up production at our second 25MW solar cell production line, following installation and acceptance tests in June and July. We expect to install our third and fourth 25MW cell production lines in September and October 2007, ahead of our original schedule. By doing so, we expect to increase our in-house solar cell manufacturing capacity to 100 MW by the middle of Q4.

We also recently entered into agreements for syndicated loans of US$50 million with Industrial and Commercial Bank of China and China Communications Bank. Both banks announced their intention to continue to support our newly revised three-year growth plan. Together with other existing banking arrangements, CSI has approximately US$90 million in available credit lines.

Revenue by Geography (US $ thousands)

		Q207								Q107								Q206
Region		Revenue				%				Revenue				%				Revenue				%
Asia			2,959				4.9	%			3,308				18.9	%			96				0.6	%
Europe			57,282				94.8	%			12,139				69.4	%			16,602				96.3	%
North America			142				0.2	%			225				1.3	%			528				3.1	%
South America			—				—				1,817				10.4	%			—				—
Other			30				0.1	%			—				0.0	%			24				0.0	%
Total Net Revenue			60,413				100.0	%			17,489				100.0	%			17,250				100.0	%

Outlook

Based on current market conditions, our order backlog and our production capacity, we are increasing our prior guidance of net revenues for the full year 2007 to $255-$265 million from $220-$230 million. Shipments for the year are expected to be 70-75MW, compared to our original estimate of 64MW. Based on indications from our key customers, the Company estimates that the demand for CSI module products in 2008 is now over 200MW.

Net revenues for the third quarter of 2007 are expected to be $80-$85 million, with cash operating income, determined on a non-GAAP basis by excluding share based compensation, in the range of $1.6-$2.0 million. Shipments for the third quarter of 2007 are expected to be 20-23 MW. In the third quarter, our current customer backlog orders are enabling us to better utilize our existing inventory of all cell grades, which will help us increase our product efficiency and improve our profit margins on the module sales.

Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Tuesday, August 14, 2007 (in Jiangsu). This will be 9:00 a.m. on Tuesday, August 14, 2007 in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.

The call may be accessed by dialing +1-866-202-0886 (domestic) or +1-617-213-8841 (international). The passcode to access the call is 62629322. A replay of the call will be available starting one hour after the call and continuing until 11:00p.m. on Tuesday, August 21, 2007 (in Jiangsu) or 11:00a.m. on Tuesday, August 21, 2007 (in New York) at www.csisolar.com and by telephone at +1-888-286-8010 (domestic) or +1-617-801-6888 (international). The passcode to access the replay is 54310460.

About Canadian Solar Inc. (NASDAQ: CSIQ)

Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com.

Contacts:

In Jiangsu, P.R. China Bing Zhu, Chief Financial Officer Canadian Solar Inc. Phone: +86-512-62696755 ir@csisolar.com		In the U.S. David Pasquale The Ruth Group Phone: +1-646-536-7006 dpasquale@theruthgroup.com

Safe Harbor/Forward-Looking Statements

Certain statements in this press release including statements regarding expected future financial and industry growth are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as “believes,” “expects,” “anticipates,” “intends,” “estimates,” the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future shortage or availability of the supply of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers, including customers of our silicon materials sales; changes in demand from major markets such as Germany; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling price; delays in new product introduction; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company’s SEC filings, including its annual report on Form 20-F originally filed on May 29, 2007 and its registration statement on Form F-1 originally filed on October 23, 2006, as amended. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and CSI undertakes no duty to update such information, except as required under applicable law.

Canadian Solar Inc.
Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, except share and per share data and unless otherwise stated)

		Q2 2007				Q2 2006				H1 2007				H1 2006
Net Revenues:
Net Revenues — product			60,413				17,240				77,902				25,973
Net Revenues — others			—				10				—				68
Total Net revenues			60,413				17,250				77,902				26,041
Cost of Revenues:
Cost of Revenues — product			57,940				12,294				75,084				18,555
Cost of Revenues — others			—				10				—				68
Total Cost of Sales			57,940				12,304				75,084				18,623
Gross profit			2,473				4,946				2,818				7,418
Operating expenses
Selling expenses			1,294				404				2,347				529
General and administrative expenses			3,765				1,354				6,851				1,750
Research and development expenses			204				17				390				44
Total operating expenses			5,263				1,775				9,588				2,323
Income/(Loss) from operations:			(2,790	)			3,171				(6,770	)			5,095
Other income (expenses):
Interest expenses			(275	)			(881	)			(342	)			(1,635	)
Interest income			41				34				326				53
Loss on change in fair value of derivatives			—				—				—				(6,997	)
Loss on change in fair value of instruments related to convertible notes			—				—				—				(1,190	)
Others — net			—				(7	)			—				(1	)
Income (loss) before taxes			(3,024	)			2,317				(6,786	)			(4,675	)
Income taxes			153				183				61				111
Net Income (loss)			(2,871	)			2,500				(6,725	)			(4,564	)
Basic (loss)/gain per share			(0.11	)			0.16				(0.25	)			(0.30	)
Basic weighted averaging outstanding shares			27,276,699				15,427,995				27,273,350				15,427,995

Canadian Solar Inc.
Reconciliation of US GAAP Gross Profit, Operating Income (Loss) and Net Income (Loss) to
Non-US GAAP Gross Profit, Operating Income (Loss) and Net Income (Loss)
(Unaudited)
Use of Non-GAAP Financial Information

To supplement its condensed consolidated financial statements presented in accordance with GAAP, CSI uses the following measures as defined as non-GAAP financial measures by the SEC: adjusted gross profit, adjusted operating income (loss) and adjusted net income (loss), each excluding share-based compensation and other one-time non-cash charges, expenses or gains, which we refer to as special items. CSI believes that non-GAAP adjusted gross profit, adjusted operating income (loss) and adjusted net income (loss) measures indicate the company’s baseline performance before subtracting other charges. In addition, these non-GAAP measures are among the primary indicators used by the management as a basis for its planning and forecasting of future periods. The presentation of these non-GAAP measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

		Q2 2007												Q2 2006
						Operating				Net								Operating				Net
		Gross				Income				Income				Gross				Income				Income
		Profit				(Loss)				(Loss)				Profit				(Loss)				(Loss)
US GAAP Profit/(Loss)			2,473				(2,790	)			(2,871	)			4,946				3,171				2,500
Convertible Note charge																							303
Share-based compensation charge			57				2,365				2,365				24				590				590
Total special items			57				2,365				2,365				24				590				893
Non-US GAAP Profit/(Loss)			2,530				(425	)			(506	)			4,970				3,761				3,393
Adjusted Gross Margin											4.19	%											28.67	%
Adjusted Operating Expense — % of Revenue											4.89	%											7.01	%
Adjusted Operating Margin											(0.70	)%											21.80	%

		H1 2007												H1 2006
						Operating				Net								Operating				Net
		Gross				Income				Income				Gross				Income				Income
		Profit				(Loss)				(Loss)				Profit				(Loss)				(Loss)
US GAAP Profit/(Loss)			2,818				(6,770	)			(6,725	)			7,418				5,095				(4,564	)
Convertible Note charge																							8,893
Share-based compensation charge			126				4,589				4,589				24				590				590
Total special items			126				4,589				4,589				24				590				9,483
Non-US GAAP Profit/(Loss)			2,944				(2,181	)			(2,136	)			7,442				5,685				4,919
Adjusted Gross Margin											3.78	%											28.58	%
Adjusted Operating Expense — % of Revenue											6.58	%											6.75	%
Adjusted Operating Margin											(2.80	)%											21.83	%

Non-US GAAP adjusted condensed consolidated statements of operations are intended to present the Company’s operating results, excluding special items.

Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands of U.S. Dollars)

		June 30				December 31
		2007				2006
ASSETS
Current Assets:
Cash and cash equivalents			22,869				40,911
Restricted cash			1,577				825
Accounts receivable, net			39,249				17,344
Inventories			59,775				39,700
Value added tax recoverable			6,696				2,281
Advances to suppliers			13,244				13,484
Prepaid and other current assets			1,251				2,398
Total current assets			144,661				116,943
Property, plant and equipment, net			21,656				7,910
Intangible assets			54				39
Prepaid lease payments			1,168				1,103
Deferred tax assets — non current			3,508				3,639
TOTAL ASSETS			171,047				129,634
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Short term borrowings			37,679				3,311
Accounts payable			6,033				6,874
Other payables			4,332				993
Advances from suppliers and customers			7,785				3,225
Income tax payable			492				112
Amounts due to related parties			188				149
Other current liabilities			1,025				1,191
Total current liabilities			57,534				15,855
Accrued warranty costs			1,597				875
TOTAL LIABILITIES			59,131				16,730
Stockholders’ equity
Common shares			97,354				97,302
Additional paid in capital			21,923				17,334
Accumulated deficit			(10,119	)			(2,783	)
Accumulated other comprehensive income			2,758				1,051
Total stockholders’ equity			111,916				112,904
LIABILITIES AND STOCKHOLDER’S EQUITY			171,047				129,634