In its latest quarterly earnings announcement, Suntech Power Holdings reports that its total net revenues for the first quarter of 2010 will be in the area of $580-590 million, with a gross margin in the area of 19 to 20 percent.

The company noted that its previous guidance had predicted a gross margin of 18 to 20 percent.

Suntech CEO Zhengrong Shi was pleased by the "extremely strong demand" for company solar products in the past quarter and predicted that "robust demand in incumbent solar markets and rapid growth in a host of emerging markets" would "continue deep into 2010."

However, the fiscal instability in Europe took a certain toll on the company despite its strong overall performance. The euro has been hit hard by concerns that Greece and a handful of other nations could default on debt obligations, although the situation may have turned a corner this week with the announcement of a large bailout package.

According to Suntech, recent declines of the euro in favor of the dollar have resulted in a foreign exchange loss that could be as high as $25 million for the first quarter, although this sum is expected to be offset somewhat by up to $3 million gained from hedging activities.