Canadian Solar Inc. reported mixed financial results for the second quarter of 2010, with a sequential increase in net income coupled with a sequential decrease in sales and shipments of solar cells.

Canadian Solar Inc. reported net income of $3.2 million, or $0.07 per diluted share, for the second quarter of 2010, compared to net income of $1.5 million, or $0.03 per diluted share, in the first quarter of 2010.

Sales declined for Canadian Solar Inc. in the second quarter of 2010. The company reported net sales of $328.7 million, compared to net sales of $336.9 million in the previous quarter.

Shipments in the second quarter of 2010 Canadian Solar Inc. came in at 181.2 megawatts, compared to 185 megawatts in the prior quarter. Canadian Solar Inc. said that the European market segment continued to be the largest for the company.

Canadian Solar Inc. established guidance on shipments of solar cells for the third quarter of 2010, and full year. The company expects to ship from 190 to 200 megawatts during the third quarter of 2010, and 700 to 800 megawatts during 2010.

Canadian Solar Inc. is also increasing the company’s manufacturing capacity to accommodate the increase in business. The company expects to have solar cell manufacturing capacity of 1.3 gigawatts by early 2011.

For more information on the company, go to www.canadiansolar.com