On the top line, revenues fell 14.1% year/year to $692.37 million, which also easily topped expectations.
Solar module shipments recognized in revenue totaled 1,638 MW, compared to 1,489 MW recognized in revenue in the first quarter of 2017 and 1,290 MW recognized in revenue in the second quarter of 2016. Solar module shipments recognized in revenue in the second quarter of 2017 included 29.2 MW used in the company's total solutions business, compared to 176.3 MW in the first quarter of 2017 and 18.7 MW in the second quarter of 2016.
Total solar module shipments were 1,745 MW, compared to 1,480 MW in the first quarter of 2017, and second quarter guidance in the range of 1,530 MW to 1,580 MW.
Gross margin was 24.2%, including the benefits of two AD/CVD reversals of $42.6 million and $15.0 million based on the final rates of Solar 1 AR3 and Solar 2 AR1, respectively. Gross margin was 15.9%, excluding these reversal benefit, compared to 13.5% in the first quarter of 2017, and second quarter guidance of 13.0% to 15.0%.
Meanwhile, the company's portfolio of solar power plants in commercial operation was 1,260.2 MWp as of June 30, 2017, with an estimated total resale value of approximately $1.8 billion. Only the class B share value of the company's tax equity deal projects in the U.S. was included in this resale value.
In July 2017, the company completed the sale of the 281 MWp Great Valley Solar project, previously called Tranquillity 8, to Sempra Renewables LLC, a unit of Sempra Energy.
The company completed the sale of an 80% interest in each of 191.5 MWp Pirapora I, 115 MWp Pirapora II and 92.5 MWp Pirapora III to EDF. EN do Brasil.
Looking ahead, the company expects to see revenue of $805-825 million, which comes in well below current expectations.
Gross margin for the third quarter of 2017 is expected to be between 15% and 17%. The company also reiterates its expectation that total module shipments in 2017 will be in the range of 6.0 GW to 6.5 GW. The module shipments recognized in revenue and total annual revenue will depend on market conditions, including ASP trends.
Ultimately, mostly likely due to the company's third quarter forecast, shares of CSIQ are trading notably lower after the open here. CSIQ is now down 8%.