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 November 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): 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)(7): o

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: November 15, 2007

Exhibit 99.1

Canadian Solar Reports Third Quarter 2007 Results

•

Q3 net revenues of $97.4 million, a 61% increase over Q2 net revenues of $60.4 million

•

Q3 earnings per diluted share of $0.02 compared to Q2 loss per diluted share of $0.11

•

Full year 2007 net revenue guidance increased to $285-$295 million from previous guidance of $255-$265 million

•

Full year 2008 net revenue expected to be $650-$750 million and shipments expected to be 200-220MW

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

Net revenues for the quarter were $97.4 million, including $3.8 million of silicon material sales, compared to net revenues of $17.8 million for the third quarter of 2006 and $60.4 million for the second quarter of 2007. Net revenues for the second quarter of 2007 included $2.7 million of silicon material sales. Net income for the quarter was $0.5 million, or $0.02 per diluted share, compared to net income of $0.24 million, or $0.01 per diluted share, for the third quarter of 2006 and net loss of $2.9 million, or $0.11 per diluted share, for the second quarter of 2007. Excluding share-based compensation expenses of $2.4 million, non-GAAP net income for the quarter would have been $3.0 million, or $0.11 per diluted share.

Dr. Shawn Qu, Chairman and CEO of CSI, commented: “Q3 was another strong quarter for us as we achieved revenues above our guidance for the second quarter in a row. Our return to profitability was achieved through continued sales momentum, improved production yields, better inventory controls, improved cash management and stable pricing. As a result, we were able to increase our product shipments and improve our profit margins as forecast despite modest price increases in materials from some suppliers. Our second 25MW solar cell manufacturing line is now operating at full production capacity. In addition, we have completed the installation of our third and fourth lines, and expect to bring our total internal solar cell manufacturing capacity to 100MW starting next month. During the quarter, we also added new members to our Board of Directors and expanded our executive management team to help manage the next phase of our growth. Our strengthened supply situation and execution have led to increased confidence in our forecasts for revenue growth and margin improvement in Q4 and 2008.”

Bing Zhu, CFO of CSI, noted: “As expected, our gross margins improved in Q3 due to the combination of continued sales growth and effective cost controls, as well as our increased in-house solar cell manufacturing capability. Our current progress in Q4 gives us confidence that we will be able to continue our pace of growth and profitability improvement in 2008.”

Revenue by Geography (US $ thousands)
		Q307								Q207								Q306
Region		Revenue				%				Revenue				%				Revenue				%
Asia			4,097				4.20	%			2,959				4.90	%			569				3.20	%
Europe			93,036				95.48	%			57,282				94.82	%			16,613				93.33	%
Americas			—				—				142				0.23	%			575				3.23	%
Other			304				0.32	%			30				0.05	%			43				0.24	%
Total Net Revenue			97,437				100.00	%			60,413				100.0	%			17,800				100.00	%

Recent Developments

The construction of our new Changshu solar module plant is currently on schedule. We expect the new plant, which will have 24,000 square meters of production and training space, to open in January 2008, bringing our total annual solar module production capacity to 400MW.

We have commenced work on two new projects:

•		Expansion of our solar cell manufacturing capacity from 100MW to 250 MW. We expect to complete this project by the summer of 2008; and
•		Construction of a solar ingot and wafer plant in the City of Luoyang, China. We expect to complete Phase One of this project by the summer of 2008, which will give us an annual solar wafer capacity of 40-60MW.

Outlook

Dr. Qu continued: “We recently announced sales contracts in Spain, the U.S. and Germany, all of which are important solar industry growth markets. Customer demand remains strong and our operational structure is now much leaner. We are positioned for further growth as we demonstrate the successful leveraging of our operating model.”

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 $285-$295 million from the previous guidance of $255-$265 million. The total annual shipments are expected to be about 80MW, including some OEM tolling business.

Net revenue for the fourth quarter of 2007 is expected to be $110-$120 million, with non-GAAP operating income, determined by excluding share based compensation expenses expected to be in the range from $8.0-$8.5 million. Shipments for the fourth quarter of 2007 are expected to be approximately 35 MW.

Based on current customer orders and market forecasts, we expect net revenue for 2008 to be $650-$750 million. The Company intends to continue its long-term supply chain strategy, which combines internal solar wafer and cell production and direct purchasing from a selected number of long-term strategic wafer and cell suppliers. The Company believes that it has contractually secured 90% of its silicon or cell requirements to support module production of 200-220MW in 2008. The Company continues to evaluate new technologies, including the use of metallurgical silicon (UMG) products, which, if successful, would have the potential to increase total shipments by 30-40MW in 2008.

Investor Conference Call / Webcast Details

A conference call has been scheduled for 10:00 p.m. on Wednesday, November 14, 2007 (in Jiangsu). This will be 9:00 a.m. on Wednesday, November 14, 2007 in New York. During the call, time will be set aside for analysts and interested investors to ask questions of senior executive officers of the Company.

The call may be accessed by dialing: +1-800-435-1398 (domestic) or +1-617-614-4078 (international). The passcode to access the call is: 74227024. A replay of the call will be available starting one hour after the call and continuing until 12:00 a.m. on Thursday, November 22, 2007 (in Jiangsu) or 11:00a.m. on Wednesday, November 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: 90058052 .

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 customers worldwide. 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		In the U.S.
Bing Zhu, Chief Financial Officer		David Pasquale
Canadian Solar Inc.		The Ruth Group
Phone: +86-512-62696755		Phone: +1-646-536-7006
ir@csisolar.com		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. 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 Canadian Solar 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)

										9 Months				9 Months
		Q3 2007				Q3 2006				2007				2006
Net revenues:
Net revenues — product			97,437				17,799				175,339				43,773
Net revenues — others			—								—				68
Total net revenues			97,437				17,799				175,339				43,841
Cost of revenues:
Cost of revenues — product			91,088				12,977				166,172				31,533
Cost of revenues — others			—								—				68
Total cost of sales			91,088				12,977				166,172				31,601
Gross profit			6,349				4,822				9,167				12,240
Operating expenses:
Selling expenses			2,214				1,147				4,560				1676
General and administrative expenses			4,527				2,733				11,378				4,483
Research and development expenses			287				70				677				115
Total operating expenses			7,028				3,950				16,615				6,274
Income/(loss) from operations			(679	)			872				(7,448	)			5,966
Other income (expenses):
Interest expenses			(601	)			(346	)			(943	)			(1,980	)
Interest income			70				38				396				91
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			1,716				(12	)			1,716				(13	)
Income (loss) before taxes			506				552				(6,279	)			(4,123	)
Income taxes			16				(313	)			77				(202	)
Net income (loss)			522				239				(6,202	)			(4,325	)
Basic gain (loss) per share			0.02				0.01				(0.23	)			(0.25	)
Basic weighted average outstanding shares			27,290,298				20,970,000				27,279,021				17,275,330
Diluted gain (loss) per share			0.02				0.01				(0.23	)			(0.25	)
Diluted weighted average outstanding shares			27,416,859				20,998,334				27,279,021				17,275,330

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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 those 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.

		Q3 2007												Q3 2006
		Gross				Operating				Net				Gross				Operating				Net
		Profit				Income				Income				Profit				Income				Income
						(Loss)				(Loss)								(Loss)				(Loss)
US GAAP Profit (Loss)			6,349				(679	)			522				4,822				872				239
Share-based compensation			36				2,428				2,428				73				2,904				2,904
Total Special Items			36				2,428				2,428				73				2,904				2,904
Non-US GAAP Profit (Loss)			6,385				1,749				2,950				4,895				3,776				3,143
Non-US GAAP Gain (Loss) per Diluted Share											0.11												0.15
Adjusted Gross Margin											6.55	%											27.50	%
Adjusted Operating Margin											1.80	%											21.21	%

		9 Months 2007												9 Months 2006
		Gross				Operating				Net				Gross				Operating				Net
		Profit				Income				Income				Profit				Income				Income
						(Loss)				(Loss)								(Loss)				(Loss)
US GAAP Profit (Loss)			9,167				(7,448	)			(6,202	)			12,240				5,966				(4,325	)
Convertible Note charge																							8,893
Share-based compensation			162				7,018				7,018				97				3,494				3,494
Total Special Items			162				7,018				7,018				97				3,494				12,387
Non-US GAAP Profit (Loss)			9,329				(430	)			816				12,337				9,460				8,062
Non-US GAAP Gain (Loss) per Diluted Share											0.03												0.47
Adjusted Gross Margin											5.32	%											28.14	%
Adjusted Operating Margin											(0.25	)%											21.58	%

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

Page 5

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

		September 30				December 31
		2007				2006
ASSETS
Current assets:
Cash and cash equivalents			27,402				40,911
Restricted cash			3,357				825
Accounts receivable, net			49,061				17,344
Inventories			65,918				39,700
Value added tax recoverable			7,926				2,281
Advances to suppliers			18,731				13,484
Prepaid and other current assets			2,473				2,398
Total current assets			174,868				116,943
Property, plant and equipment, net			31,688				7,910
Intangible assets			91				39
Prepaid lease payments			1,178				1,103
Deferred tax assets — non current			3,837				3,639
TOTAL ASSETS			211,662				129,634
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Short term borrowings			51,651				3,311
Accounts payable			14,919				6,874
Other payables			5,189				993
Advances from suppliers and customers			9,496				3,225
Income tax payable			509				112
Amounts due to related parties			202				149
Other current liabilities			1,330				1,191
Total current liabilities			83,296				15,855
Accrued warranty costs			2,552				875
Long term debt			10,003
TOTAL LIABILITIES			95,851				16,730
Stockholders’ equity
Common shares			97,354				97,302
Additional paid in capital			24,352				17,334
Accumulated deficit			(9,597	)			(2,783	)
Accumulated other comprehensive income			3,702				1,051
TOTAL STOCKHOLDERS’ EQUITY			115,811				112,904
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			211,662				129,634

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