SunPower Reports Second-Quarter 2013 Results
SAN JOSE, Calif., July 31, 2013 /PRNewswire/ — Sun Power Corp. (NASDAQ: SPWR) today announced financial results for its 2013 second quarter ended June 30, 2013.
“SunPower’s strong results in the second quarter reflect solid operational execution, as well as continued demand for our high efficiency systems in both the power plant and distributed generation channels across all major geographies,” said Tom Werner, SunPower president and CEO. “Our North American business continues to be the cornerstone of our success as we completed panel installation at the California Valley Solar Ranch (CVSR) with full project completion expected by year end. Construction of the 579-megawatt (MW) Solar Star Projects for MidAmerican Solar continues. Additionally, we strengthened our position as the leader in the commercial market booking $100 million in commercial projects in the second quarter. In the residential business, demand continues to be solid with $150 million in new lease capacity financing, SunPower is well positioned for success in the second half of the year.
“In APAC, demand in the Japanese market continued to be strong as evidenced by our fourth quarter of record shipments. Our success in Japan reflects that our industry leading technology, reliability and quality remain distinct competitive advantages in this market. Finally, we are seeing a turnaround in our European business as we recorded our third straight quarter of financial improvement. With demand trends improving and stabilization in both industry conditions and pricing, we remain confident in our ability to achieve profitability in the EMEA region by the end of 2013,” concluded Werner.
Key milestones achieved by the company since the first quarter of 2013 include:
• Completed panel installation for the 250-MW CVSR project – full project completion by end of 2013
• Continued construction of 579-MW Solar Star projects for MidAmerican Solar
• Booked $100 million in North American commercial projects
• Signed more than 25-MW supply agreement for a power plant in Japan
• Booked approximately 60-MW dc in residential systems in Europe
• Residential lease program – 18,400 customers with approximately 147-MW booked to date
• Reached full capacity in all manufacturing facilities
• $150 million in new residential lease financing capacity with two partners
• Completed $300 million offering of senior convertible debentures to strengthen balance sheet
• Secured a new three-year $250 million revolving line of credit facility
“We significantly exceeded our financial targets for the second quarter,” said Chuck Boynton, SunPower CFO. “We also strengthened our balance sheet with our successful convertible bond offering, securing a new three-year $250 million revolver and are prudently managing our working capital as we reduced inventory by more than 15 percent. For the balance of the year, our focus remains on managing our cash, strategically investing in our technology and positioning the company for long-term profitability.”
Second quarter fiscal 2013 GAAP results include pre-tax charges, expenses and adjustments totaling approximately $39.7 million, including a $16.1 million gross margin reduction related to the timing of revenue recognition from utility and power plant projects; $10.5 million in stock-based compensation expense; $12.2 million in non-cash interest expense; a benefit of $0.3 million in restructuring related to the October 2012 restructuring plan, and $1.2 million of other adjustments. These adjustments and charges are excluded from the company’s non-GAAP results. Additionally, second-quarter GAAP results exclude an adjustment of approximately $73.5 million in revenue primarily related to utility and power plant projects.
Third Quarter 2013 Financial Outlook
The company’s third quarter 2013 consolidated non-GAAP guidance is as follows: revenue of $550 million to $600 million, gross margin of 17 percent to 19 percent, net income per diluted share of $0.15 to $0.35 and megawatts (MW) recognized in the range of 240 MW to 260 MW. On a GAAP basis, the company expects revenue of $575 million to $625 million, gross margin of 20 percent to 22 percent and net income per diluted share of $0.10 to $0.30. For fiscal year 2013, the company expects non-GAAP revenue of $2.5 billion to $2.6 billion, gross margin of 18 percent to 20 percent, net income per diluted share of $1.00 to $1.30, capital expenditures of $60 million to $80 million and gigawatts (GW) recognized in the range of 1.0 GW to 1.1 GW. On a GAAP basis, the company expects revenue of $2.45 billion to $2.55 billion, gross margin of 17 percent to 19 percent and net income (loss) per diluted share of ($0.05) to $0.20. SunPower remains on track to reduce its operational expenses by 10 percent compared to 2012 and expects to generate free cash flow, including lease financings, in the range of $100 million to $200 million while continuing to invest in its technology roadmap and manufacturing cost reduction initiatives.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP historical figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release. Please note that the company has posted supplemental information and slides related to its second quarter 2013 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpowercorp.com/events.cfm. The capacity of power plants in this release is described in approximate megawatts on an alternating current (ac) basis unless otherwise noted.