NEW YORK (Commodity Online): In a major set back to the investors, China-based solar cell manufacturer, China Sunergy Company Ltd (NASDAQ:CSUN) tumbled on the bourses on the news that the company reported a surprise loss in the fourth-quarter today.

The company attributed the losses to bad debts of customers and falling prices. China Sunergy beated street revenue estimates by USD 3 million, with USD 97.6 million in fourth quarter sales. But this may not come to the rescue to the company. Revenue out performance in the fourth quarter from other solar companies has not led to a share rally when the solar companies have not also provided earnings out performance, gross margin improvement, and expense reduction.

China Sunergy's gross margin improved 0.5% in the fourth quarter. Expenses were on the rise for China Sunergy. The company said it took a USD 4.9 million charge for doubtful accounts receivable. According to recent reports, the company has lost USD 3.5 million, or 9 cents per share, for the quarter ended Dec. 31.

SG&A expenses in the fourth quarter of 2009 were USD 10.7 million, up from USD 7.1 million in the third quarter. The company said it lost USD 3.5 million, or 9 cents per share, for the quarter ended Dec. 31. During the same period a year earlier it lost almost USD 26.8 million, or 67 cents per share.

The company stocks sank by 3.74% on Nasdaq and traded at USD 4.12 in the later trading sessions today. For the year, the Chinese firm reported a loss of USD 9.8 million, or 25 cents per share, compared with losses of USD 22.9 million, or 58 cents per share, in 2008. Revenue for the year fell 18.8 percent to USD 284.9 million, from USD 350.9 million.

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