* Q2 shr loss C$0.11 vs C$0.05 a year earlier
* Takes C$6.25 mln inventory writedown
* Says worst of solar sector slump may be over
* Shares fall nearly 8 percent to C$0.35
OTTAWA, Aug 13 (Reuters) - Arise Technologies Inc APV.TO stock fell nearly 8 percent on Thursday after the cash-strapped solar technology company said its quarterly loss doubled as it took a C$6.25 million ($5.7 million) inventory writedown.
Solar cell prices have dropped 30 percent on a per-watt basis so far this year, said Arise, which forecasts a full-year decline of 40 percent to 45 percent.
But the company expects the price of its raw material, silicon wafers, to drop between 45 percent and 55 percent in 2009, offsetting the impact of lower cell prices on its results.
Part of a sector hurt by a dearth of project funding and glut of supply, Arise reported a net loss of C$13.5 million, or 11 Canadian cents a share, compared with a loss of C$6.5 million, or 5 Canadian cents a share, in the year earlier period.
Revenue increased to C$5.5 million from C$745,347 in the year-before quarter, when it was not yet shipping solar cells.
Second-quarter solar cell shipments rose more than 26 percent from the first quarter, Arise reported, adding that the industry still expects a “further upturn” over the next six months.
“It is promising to see shipments grow sequentially but the company appears to be continually chasing its input costs to match pricing declines as demonstrated in its negative gross margin,” said Fraser Mackenzie analyst John Safrance in a note.
Arise said its working capital deficit widened to C$27.1 million from C$11.1 million at the end of the first quarter. The company struck a deal last week with Commerzbank to extend two lines of credit totaling 10 million euros to the end of 2009.
The company also said it has signed a term sheet with an unnamed investment fund for up to C$10 million of equity financing. In exchange for cash, Arise said it would issue discounted common shares to the fund. ($1=$1.09 Canadian) (Reporting by Susan Taylor; editing by Peter Galloway)