UPDATE 2-JA Solar profit rises, sets convertible sale

(Adds sale of notes, gross margin, new capacity, dateline)

LOS ANGELES, May 12 (Reuters) - Chinese solar cell maker JA Solar Holdings Co (JASO.O: Quote, Profile, Research) posted a better-than-expected quarterly profit as revenue more than tripled on soaring demand for solar power.

The company also said it would sell $300 million of 5-year senior convertible notes and American Depositary Shares.

First-quarter net income was $22 million, or 14 cents per American depositary share (ADS), compared with $8.6 million, or 7 cents per ADS, a year earlier.

Revenue rose to $160 million from $47.8 million.

Analysts were expecting earnings of 10 cents a share, excluding special items, on revenue of $149.4 million, according to Reuters Estimates.

Gross margin was 21 percent during the quarter, compared to 20.5 percent a year ago.

During the quarter, the Hebei, China-based company more than doubled its power production to 49.2 megawatts (MW), while shipments tripled to 51.4 MW. Production of solar cells, which turn sunlight into electricity, is measured in megawatts.

The company also maintained its 2008 revenue outlook of $1.03 billion to $1.14 billion. Analysts were expecting $1 billion.