SAN JOSE, Calif., Nov. 3, 2011 /PRNewswire/ -- SunPower Corp.
(NASDAQ: SPWRA, SPWRB) today announced financial results for its
2011 third quarter ended October 2,
2011.
|
|
($ Millions except per-share
data)
|
3rd
Quarter
2011
|
2nd
Quarter
2011
|
3rd
Quarter
2010
|
|
Revenue
|
$705.4
|
$592.3
|
$550.6
|
|
GAAP gross margin
|
10.8%
|
3.3% (2)
|
20.4%
|
|
GAAP net income
(loss)
|
($370.8)(1)
|
($147.9)
|
$20.1
|
|
GAAP net income (loss) per
share
|
($3.77)(1)
|
($1.51)(2)(3)
|
$0.21
|
|
Non-GAAP gross
margin(4)
|
11.4%
|
12.5%
|
22.3%
|
|
Non-GAAP net income (loss) per
diluted share(4)
|
$0.16
|
($0.19)
|
$0.26
|
|
|
|
|
|
|
|
(1) Includes pre-tax non-cash
charges totaling approximately $349.8 million related to the
impairment of goodwill and intangible assets.
|
|
(2) Includes pre-tax charges
totaling approximately $48.5 million, including $16.0 million
related to the company's panel reallocation strategy and $32.5
million related to the write-down of third-party inventory and
costs associated with the termination of third-party cell supply
contracts
|
|
(3) Includes pre-tax charges
totaling approximately $26.4 million, including $13.3 million
related to the company's panel reallocation strategy and $13.1
million in expenses related to the Total tender offer
|
|
(4) A reconciliation of Non-GAAP
to GAAP results is included at the end of this press
release
|
|
|
"We executed well in the quarter as we met our third-quarter
plan despite a period of rapidly changing market conditions," said
Tom Werner, SunPower president and
CEO. "Our diversified channels provided us with the
flexibility to reallocate product between business segments and
regions. During Q3, we maintained our premium position in our
Residential and Commercial (R&C) business while substantially
gaining share in Germany and
the United States. In our
Utility and Power Plants (UPP) business, we completed the
construction of both of our Italian power plants by the
August 31 deadline and advanced a set
of North American power plants through permitting and approvals.
We remain focused on our 2011 panel cost reduction roadmap
and have commenced production on the first line using our
step-reduced cell manufacturing process.
"Our GAAP financial results for the quarter include a pre-tax,
non-cash charge totaling approximately $349.8 million related to the impairment of
goodwill and intangible assets primarily attributable to the
company's public market valuation on September 30.
"We were pleased to complete the sale of the 250 megawatt (MW)
California Valley Solar Ranch (CVSR) to NRG immediately prior to
the project's financial closing of a $1.2
billion Department of Energy loan guarantee in September,"
continued Werner. "We began construction of the power plant
in the third quarter and expect to recognize non-GAAP revenue from
CVSR in the fourth quarter. The project will create
approximately 350 jobs during the 2-year construction period and
infuse $315 million into the
San Luis Obispo County economy.
"Looking forward, our UPP pipeline of global projects continues
to mature as customers benefit from our industry-leading
technology's high efficiency, quality, reliability and bankability.
In R&C, we have seen stronger order flow recently due to
the rapid acceptance of our new residential leasing products as
well as our plan to continue to offer competitive pricing at the
beginning of the fourth quarter in order to gain market share.
While our R&C business will show substantial year over
year growth, our fourth quarter performance will reflect slower
than anticipated demand growth."
Key milestones achieved by the company since the second quarter
of 2011 include:
- Announced $275 million revolving
credit facility and $200 million
letter of credit facility
- Started construction of the 250-MW California Valley Solar
Ranch power plant which was sold to NRG and settled all outstanding
litigation related to the project
- Signed 15-MW supply agreement with Mahindra EPC Services for
power plants in India for delivery
by the end of 2011
- Completed permitting and commenced sale process for 25-MW power
plant for Modesto Irrigation District in California which is expected to commence
construction in 2011
- Launched new C7 concentrator tracking system for power plants
and AC solar panels for the residential market
- Partnered with Ford Motor Company to offer Ford Focus Electric
car owners high efficiency SunPower systems to offset the energy
used in charging the vehicle
- Expanded #1 market share position in US residential market
"We further improved our balance sheet flexibility during the
quarter while continuing to successfully manage our inventory and
working capital needs," said Dennis
Arriola, SunPower CFO. "Our new $275 million revolving credit and $200 million letter of credit facilities helped
to reduce our overall cost of capital, improve our liquidity and
further demonstrate the value of our relationship with Total.
These facilities, coupled with our existing $771 million letter of credit facility, provide
further support to our strong and growing large commercial and UPP
businesses in North America.
In order to better position SunPower for the future, we
expect to implement a company-wide restructuring program in the
fourth quarter to accelerate operating cost reduction and improve
our overall operating efficiency. We currently expect this
program to reduce operating expenses by as much as 10% in 2012,
while growing the company. In addition, we have reprioritized
our capital expenditure and research and development projects to
support our focus on accelerated cost reduction while optimizing
cash flow in 2012."
2011 Financial Outlook
The company updated its fiscal year 2011 consolidated non-GAAP
guidance as follows: total revenue of $2.40
billion to $2.45 billion, gross margin of 12% to 14%, net
income per diluted share of ($0.05)
to $0.20, capital expenditures of
$125 million to $135 million, and MW
recognized in the range of 800 to 825 MW.
For fiscal year 2011, the company expects the following
consolidated GAAP results: revenue of $2.30
billion to $2.35 billion, gross margin of 9% to 11%, net
loss per share of ($5.90) to ($5.65)
and MW recognized in the range of 790 to 815 MW. GAAP loss
per share guidance for 2011 includes a $349.8 million one-time, pre-tax charges related
to the impairment of goodwill and intangibles, pre-tax charges
totaling approximately $65.7 million
related to the company's panel reallocation strategy and write-down
of third-party inventory and costs associated with the termination
of third-party cell supply contracts. 2011 GAAP earnings per
share guidance includes pre-tax charges totaling approximately
$14.7 million for expenses related to
the Total tender offer. Additionally, as a result of the
expected restructuring program under consideration, the company
believes it may incur a one-time, pre-tax charge of approximately
$10 million which is not included in
current 2011 GAAP guidance.
The company will provide its outlook for 2012 at its fourth
quarter earnings call in February
2012.
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 third
quarter 2011 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.
About SunPower
SunPower Corp. (NASDAQ: SPWRA, SPWRB) designs, manufactures and
delivers the highest efficiency, highest reliability solar panels
and systems available today. Residential, business, government and
utility customers rely on the company's quarter century of
experience and guaranteed performance to provide maximum return on
investment throughout the life of the solar system. Headquartered
in San Jose, Calif., SunPower has
offices in North America,
Europe, Australia and Asia. For more information, visit
www.SunPowercorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements that do not
represent historical facts and may be based on underlying
assumptions. The company uses words and phrases such as
"remain focused,""roadmap," "expect," "will," "looking
forward," "continues to," "order flow," "plan," "agreement,"
"growing," "implementing," "outlook," "guidance," "believes"
and similar expressions to identify forward-looking statements in
this press release, including forward-looking statements
regarding: (a) focus on cost reduction roadmap for 2011; (b)
construction and revenue recognition with respect to the CVSR
project; (c) ability to execute and monetize the UPP pipeline; (d)
increased order flow from R&C and continued competitive
pricing, and growth in R&C business; (e) agreement to supply to
Mahindra; (f) beginning construction on the Modesto Irrigation
District project; (g) growing business in commercial and UPP in
North America; (h) improving liquidity, balance sheet and cash
flows; (i) value in our relationship with Total; (j) expected
operating expense savings from the expected restructuring program
while growing the company; (k) forecasted GAAP and non-GAAP Q4 2011
and FY 2011 revenues, GAAP and non-GAAP gross margins, GAAP and
non-GAAP net income/loss per diluted share, capital expenditures
and MW recognized; (l) expected impact of the restructuring program
on financials; and (m) expected timing of providing guidance for
2012 . Such forward-looking statements are based on
information available to the company as of the date of this release
and involve a number of risks and uncertainties, some beyond the
company's control, that could cause actual results to differ
materially from those anticipated by these forward-looking
statements, including risks and uncertainties such as: (i)
increasing competition in the industry and lower average selling
prices, impact on gross margins, and any revaluation of inventory
as a result of decreasing ASP or reduced demand; (ii) the impact of
regulatory changes and the continuation of governmental and related
economic incentives promoting the use of solar power, and the
impact of such changes on our revenues, financial results, and any
potential impairments to our intangible assets, project assets, and
goodwill; (iii) the company's ability to meet its cost reduction
plans and reduce it operating expenses; (iv) the company's ability
to obtain and maintain an adequate supply of raw materials,
components, and solar panels, as well as the price it pays for such
items and third parties' willingness to renegotiate or cancel above
market contracts; (v) general business and economic conditions,
including seasonality of the solar industry and growth trends in
the solar industry; (vi) the company's ability to revise its
portfolio allocation geographically and across downstream channels
to respond to regulatory changes; (vii) the company's ability to
increase or sustain its growth rate; (viii) construction
difficulties or potential delays, including obtaining land use
rights, permits, license, other governmental approvals, and
transmission access and upgrades, and any litigation relating
thereto; (ix) timeline for revenue recognition and impact on the
company's operating results; (x) the significant investment
required to construct power plants and the company's ability to
sell or otherwise monetize power plants, including the company's
success in completing the design, construction and maintenance of
CVSR; (xi) fluctuations in the company's operating results and its
unpredictability, especially revenues from the UPP segment or in
response to regulatory changes; (xii) the availability of financing
arrangements for the company's utilities projects and the company's
customers; (xiii) potential difficulties associated with operating
the joint venture with AUO and the company's ability to achieve the
anticipated synergies and manufacturing benefits, including ramping
Fab 3 according to plan; (xiv) the company's ability to remain
competitive in its product offering, obtain premium pricing while
continuing to reduce costs and achieve lower targeted cost per
watt; (xv) the company's liquidity, substantial indebtedness, and
its ability to obtain additional financing; (xvi) manufacturing
difficulties that could arise;( xvii) the company's ability to
achieve the expected benefits from its relationship with Total;
(xviii) the success of the company's ongoing research and
development efforts and the acceptance of the company's new
products and services; (xix) the company's ability to protect its
intellectual property; (xx) the company's exposure to foreign
exchange, credit and interest rate risk; (xxi) possible impairment
of goodwill. intangible assets, and project assets; (xxii) possible
consolidation of the joint venture AUO SunPower; and (xxiii) other
risks described in the company's Annual Report on Form 10-K for the
year ended January 2, 2011, Quarterly Reports on Form 10-Q for the
quarters ended April 3, 2011 and July 3, 2011 and other filings
with the Securities and Exchange Commission. These
forward-looking statements should not be relied upon as
representing the company's views as of any subsequent date, and the
company is under no obligation to, and expressly disclaims any
responsibility to, update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
SUNPOWER
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Oct.
2,
|
|
Jan.
2,
|
|
|
2011
|
|
2011
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
374,562
|
|
$
605,420
|
|
Restricted cash and cash
equivalents
|
226,510
|
|
256,299
|
|
Investments
|
8,962
|
|
38,720
|
|
Accounts receivable,
net
|
438,091
|
|
381,200
|
|
Costs and estimated earnings in
excess of billings
|
98,828
|
|
89,190
|
|
Inventories
|
425,233
|
|
313,398
|
|
Advances to suppliers
|
296,518
|
|
287,092
|
|
Prepaid expenses and other
assets
|
589,683
|
|
371,228
|
|
Property, plant and equipment,
net
|
585,022
|
|
578,620
|
|
Project assets - plants and
land
|
67,873
|
|
46,106
|
|
Goodwill and other intangible
assets, net
|
41,897
|
|
412,058
|
|
|
|
|
|
|
Total assets
|
$
3,153,179
|
|
$
3,379,331
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable
|
$
428,489
|
|
$
382,884
|
|
Accrued and other
liabilities
|
340,035
|
|
268,836
|
|
Billings in excess of costs and
estimated earnings
|
63,813
|
|
48,715
|
|
Bank loans
|
355,001
|
|
248,010
|
|
Convertible debt
|
612,638
|
|
591,923
|
|
Customer advances
|
179,749
|
|
181,529
|
|
|
|
|
|
|
Total
liabilities
|
1,979,725
|
|
1,721,897
|
|
|
|
|
|
|
Stockholders' equity
|
1,173,454
|
|
1,657,434
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,153,179
|
|
$
3,379,331
|
|
|
|
|
|
SUNPOWER
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
|
|
Oct.
2,
|
|
Jul.
3,
|
|
Oct.
3,
|
|
Oct.
2,
|
|
Oct.
3,
|
|
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Utility and power
plants
|
|
324,542
|
|
$
302,439
|
|
$
257,803
|
|
$
872,890
|
|
$
521,896
|
|
Residential and
commercial
|
|
380,885
|
|
289,816
|
|
292,842
|
|
876,210
|
|
760,261
|
|
Total revenue
|
|
705,427
|
|
592,255
|
|
550,645
|
|
1,749,100
|
|
1,282,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Utility and power
plants
|
|
285,537
|
|
309,032
|
|
212,526
|
|
797,580
|
|
421,178
|
|
Residential and
commercial
|
|
343,766
|
|
263,929
|
|
225,534
|
|
767,580
|
|
588,800
|
|
Total cost of
revenue
|
|
629,303
|
|
572,961
|
|
438,060
|
|
1,565,160
|
|
1,009,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
76,124
|
|
19,294
|
|
112,585
|
|
183,940
|
|
272,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
12,664
|
|
15,255
|
|
13,382
|
|
41,565
|
|
34,995
|
|
Selling, general and
administrative
|
|
76,329
|
|
90,856
|
|
91,015
|
|
243,364
|
|
233,671
|
|
Restructuring
charges
|
|
637
|
|
13,308
|
|
-
|
|
13,945
|
|
-
|
|
Goodwill and other
intangible asset impairment
|
|
349,758
|
|
-
|
|
-
|
|
349,758
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
439,388
|
|
119,419
|
|
104,397
|
|
648,632
|
|
268,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
(363,264)
|
|
(100,125)
|
|
8,188
|
|
(464,692)
|
|
3,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deconsolidation of
consolidated subsidiary
|
|
-
|
|
-
|
|
36,849
|
|
-
|
|
36,849
|
|
Gain on change in equity interest in unconsolidated investee
|
|
-
|
|
322
|
|
-
|
|
322
|
|
28,348
|
|
Gain on sale of equity
interest in unconsolidated investee
|
|
10,989
|
|
-
|
|
-
|
|
10,989
|
|
-
|
|
Gain (loss) on
mark-to-market derivatives
|
|
472
|
|
(97)
|
|
(2,967)
|
|
331
|
|
28,885
|
|
Interest and other income
(expense), net
|
|
(8,875)
|
|
(25,098)
|
|
(25,973)
|
|
(57,696)
|
|
(72,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
2,586
|
|
(24,873)
|
|
7,909
|
|
(46,054)
|
|
22,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes and
equity in earnings of unconsolidated investees
|
|
(360,678)
|
|
(124,998)
|
|
16,097
|
|
(510,746)
|
|
25,527
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
Benefit from (provision for)
income taxes
|
|
(11,077)
|
|
(22,702)
|
|
(3,376)
|
|
(17,963)
|
|
(19,493)
|
|
Equity in earnings (loss) of
unconsolidated investees
|
|
971
|
|
(172)
|
|
5,825
|
|
7,932
|
|
10,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
(370,785)
|
|
(147,872)
|
|
18,546
|
|
(520,778)
|
|
17,007
|
|
Income from discontinued
operations, net of taxes
|
|
-
|
|
-
|
|
1,570
|
|
-
|
|
9,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
(370,784)
|
|
$
(147,872)
|
|
$
20,116
|
|
$
(520,777)
|
|
$
26,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share of
class A and class B common stock:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share – basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.19
|
|
$
(5.34)
|
|
$
0.18
|
|
Discontinued
operations
|
|
-
|
|
-
|
|
0.02
|
|
-
|
|
0.10
|
|
Net income (loss) per
share – basic
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.21
|
|
$
(5.34)
|
|
$
0.28
|
|
Net income (loss) per
share – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.19
|
|
$
(5.34)
|
|
$
0.18
|
|
Discontinued
operations
|
|
-
|
|
-
|
|
0.02
|
|
-
|
|
0.09
|
|
Net income (loss) per
share – diluted
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.21
|
|
$
(5.34)
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
98,259
|
|
97,656
|
|
95,840
|
|
97,456
|
|
95,519
|
|
- Diluted
|
|
98,259
|
|
97,656
|
|
105,648
|
|
97,456
|
|
96,741
|
|
|
|
|
|
|
|
|
|
|
|
|
SUNPOWER
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
NINE MONTHS
ENDED
|
|
|
|
|
Oct.
2,
|
|
|
Jul.
3,
|
|
|
Oct.
3,
|
|
|
Oct.
2,
|
|
|
Oct.
3,
|
|
|
|
|
2011
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(370,784)
|
|
|
$
|
(147,872)
|
|
|
$
|
20,116
|
|
|
$
|
(520,777)
|
|
|
$
|
26,473
|
|
|
Less: Income from discontinued operations, net of taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
1,570
|
|
|
|
-
|
|
|
|
9,466
|
|
|
Income (loss) from
continuing operations
|
|
$
|
(370,784)
|
|
|
$
|
(147,872)
|
|
|
$
|
18,546
|
|
|
$
|
(520,777)
|
|
|
$
|
17,007
|
|
|
Adjustments to reconcile
loss from continuing operations to net cash used in operating
activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
11,848
|
|
|
|
12,817
|
|
|
|
15,665
|
|
|
|
37,829
|
|
|
|
38,064
|
|
|
Depreciation
|
|
|
30,315
|
|
|
|
27,967
|
|
|
|
26,407
|
|
|
|
83,979
|
|
|
|
75,680
|
|
|
Amortization of other
intangible assets
|
|
|
6,682
|
|
|
|
6,868
|
|
|
|
11,578
|
|
|
|
20,614
|
|
|
|
28,039
|
|
|
Goodwill
impairment
|
|
|
309,457
|
|
|
|
-
|
|
|
|
-
|
|
|
|
309,457
|
|
|
|
-
|
|
|
Other intangible asset
impairment
|
|
|
40,301
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40,301
|
|
|
|
-
|
|
|
Loss (gain on sale) of
investments
|
|
|
-
|
|
|
|
319
|
|
|
|
-
|
|
|
|
191
|
|
|
|
(1,572)
|
|
|
Loss (gain) on
mark-to-market derivatives
|
|
|
(472)
|
|
|
|
97
|
|
|
|
2,967
|
|
|
|
(331)
|
|
|
|
(28,885)
|
|
|
Non-cash interest
expense
|
|
|
6,780
|
|
|
|
7,007
|
|
|
|
6,407
|
|
|
|
21,112
|
|
|
|
22,175
|
|
|
Amortization of debt
issuance costs
|
|
|
1,462
|
|
|
|
1,478
|
|
|
|
2,240
|
|
|
|
4,196
|
|
|
|
4,030
|
|
|
Amortization of promissory
notes
|
|
|
134
|
|
|
|
2,062
|
|
|
|
6,022
|
|
|
|
3,486
|
|
|
|
8,941
|
|
|
Gain on sale of equity
interest in unconsolidated investee
|
|
|
(10,989)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,989)
|
|
|
|
-
|
|
|
Gain on change in equity
interest in unconsolidated investee
|
|
|
-
|
|
|
|
(322)
|
|
|
|
-
|
|
|
|
(322)
|
|
|
|
(28,348)
|
|
|
Third-party inventories
write-down
|
|
|
-
|
|
|
|
16,399
|
|
|
|
-
|
|
|
|
16,399
|
|
|
|
-
|
|
|
Project assets
write-down
|
|
|
-
|
|
|
|
16,053
|
|
|
|
-
|
|
|
|
16,053
|
|
|
|
-
|
|
|
Gain on deconsolidation of
consolidated subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
(36,849)
|
|
|
|
-
|
|
|
|
(36,849)
|
|
|
Equity in (earnings) loss
of unconsolidated investees
|
|
|
(971)
|
|
|
|
172
|
|
|
|
(5,825)
|
|
|
|
(7,932)
|
|
|
|
(10,973)
|
|
|
Deferred income taxes and
other tax liabilities
|
|
|
1,224
|
|
|
|
87
|
|
|
|
6,489
|
|
|
|
(860)
|
|
|
|
18,708
|
|
|
Accounts
receivable
|
|
|
(51,696)
|
|
|
|
(49,165)
|
|
|
|
(45,541)
|
|
|
|
(48,587)
|
|
|
|
(3,879)
|
|
|
Costs and estimated
earnings in excess of billings
|
|
|
43,810
|
|
|
|
(6,476)
|
|
|
|
(48,155)
|
|
|
|
(3,304)
|
|
|
|
(80,719)
|
|
|
Inventories
|
|
|
(17,756)
|
|
|
|
60,202
|
|
|
|
(11,962)
|
|
|
|
(120,753)
|
|
|
|
(84,210)
|
|
|
Project assets
|
|
|
40,600
|
|
|
|
(56,198)
|
|
|
|
(98,362)
|
|
|
|
(43,242)
|
|
|
|
(146,268)
|
|
|
Prepaid expenses and other
assets
|
|
|
(113,715)
|
|
|
|
4,905
|
|
|
|
30,541
|
|
|
|
(123,044)
|
|
|
|
(76,774)
|
|
|
Advances to
suppliers
|
|
|
7,935
|
|
|
|
(4,650)
|
|
|
|
(2,085)
|
|
|
|
(9,535)
|
|
|
|
1,672
|
|
|
Accounts payable and other
accrued liabilities
|
|
|
64,448
|
|
|
|
26,352
|
|
|
|
98,351
|
|
|
|
64,432
|
|
|
|
219,133
|
|
|
Billings in excess of
costs and estimated earnings
|
|
|
16,825
|
|
|
|
(23,751)
|
|
|
|
6,557
|
|
|
|
14,345
|
|
|
|
1,269
|
|
|
Customer
advances
|
|
|
6,114
|
|
|
|
(224)
|
|
|
|
(8,912)
|
|
|
|
(1,698)
|
|
|
|
(7,961)
|
|
|
Net provided by (cash
used) in operating activities of continuing operations
|
|
|
21,552
|
|
|
|
(105,873)
|
|
|
|
(25,921)
|
|
|
|
(258,980)
|
|
|
|
(71,720)
|
|
|
Net cash used in operating
activities of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,618)
|
|
|
|
-
|
|
|
|
(3,969)
|
|
|
Net cash provided by (cash
used) in operating activities
|
|
|
21,552
|
|
|
|
(105,873)
|
|
|
|
(30,539)
|
|
|
|
(258,980)
|
|
|
|
(75,689)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
restricted cash and cash equivalents
|
|
|
(904)
|
|
|
|
35,421
|
|
|
|
72,927
|
|
|
|
29,789
|
|
|
|
64,674
|
|
|
Purchases of property,
plant and equipment
|
|
|
(17,364)
|
|
|
|
(23,407)
|
|
|
|
(4,331)
|
|
|
|
(85,528)
|
|
|
|
(104,623)
|
|
|
Proceeds from sale of
equipment to third-party
|
|
|
2
|
|
|
|
290
|
|
|
|
2,409
|
|
|
|
501
|
|
|
|
5,284
|
|
|
Cash decrease due to
deconsolidation of consolidated subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,879)
|
|
|
|
-
|
|
|
|
(12,879)
|
|
|
Purchases of marketable
securities
|
|
|
(8,962)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,962)
|
|
|
|
-
|
|
|
Proceeds from sales or
maturities of available-for-sale securities
|
|
|
-
|
|
|
|
43,459
|
|
|
|
-
|
|
|
|
43,759
|
|
|
|
1,572
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(272,699)
|
|
|
Cash received for sale of
investment in joint ventures and other non-public
companies
|
|
|
24,043
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,043
|
|
|
|
-
|
|
|
Cash paid for investments
in joint ventures and other non-public companies
|
|
|
(30,000)
|
|
|
|
(30,000)
|
|
|
|
(2,180)
|
|
|
|
(80,000)
|
|
|
|
(3,798)
|
|
|
Net cash provided by
(used in) investing activities of continuing operations
|
|
|
(33,185)
|
|
|
|
25,763
|
|
|
|
55,946
|
|
|
|
(76,398)
|
|
|
|
(322,469)
|
|
|
Net provided by in
investing activities of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
51,658
|
|
|
|
-
|
|
|
|
33,950
|
|
|
Net cash provided by (used
in) investing activities
|
|
|
(33,185)
|
|
|
|
25,763
|
|
|
|
107,604
|
|
|
|
(76,398)
|
|
|
|
(288,519)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of
bank loans, net of issuance costs
|
|
|
300,000
|
|
|
|
25,000
|
|
|
|
-
|
|
|
|
489,221
|
|
|
|
-
|
|
|
Proceeds from issuance of
project loans, net of issuance costs
|
|
|
-
|
|
|
|
-
|
|
|
|
51,189
|
|
|
|
-
|
|
|
|
56,323
|
|
|
Proceeds from issuance of
convertible debt, net of issuance costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
244,241
|
|
|
Assumption of project
loans by customers
|
|
|
-
|
|
|
|
-
|
|
|
|
(57,732)
|
|
|
|
-
|
|
|
|
(57,732)
|
|
|
Repayment of bank
loans
|
|
|
(150,988)
|
|
|
|
(70,000)
|
|
|
|
(33,646)
|
|
|
|
(377,124)
|
|
|
|
(63,646)
|
|
|
Cash paid for repurchased
convertible debt
|
|
|
-
|
|
|
|
-
|
|
|
|
(143,804)
|
|
|
|
-
|
|
|
|
(143,804)
|
|
|
Cash paid for bond
hedge
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(75,200)
|
|
|
Proceeds from warrant
transactions
|
|
|
2,261
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,261
|
|
|
|
61,450
|
|
|
Proceeds from exercise of
stock options
|
|
|
87
|
|
|
|
3,853
|
|
|
|
324
|
|
|
|
4,013
|
|
|
|
670
|
|
|
Purchases of stock for tax
withholding obligations on vested restricted stock
|
|
|
(1,154)
|
|
|
|
(1,319)
|
|
|
|
(562)
|
|
|
|
(10,550)
|
|
|
|
(2,539)
|
|
|
Net cash provided by (used
in) financing activities of continuing operations
|
|
|
150,206
|
|
|
|
(42,466)
|
|
|
|
(184,231)
|
|
|
|
107,821
|
|
|
|
19,763
|
|
|
Net cash provided by
financing activities of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,059
|
|
|
Net cash provided by (used
in) financing activities
|
|
|
150,206
|
|
|
|
(42,466)
|
|
|
|
(184,231)
|
|
|
|
107,821
|
|
|
|
36,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(9,801)
|
|
|
|
506
|
|
|
|
5,410
|
|
|
|
(3,301)
|
|
|
|
(7,281)
|
|
|
Net decrease in cash and
cash equivalents
|
|
|
128,772
|
|
|
|
(122,070)
|
|
|
|
(101,756)
|
|
|
|
(230,858)
|
|
|
|
(334,667)
|
|
|
Cash and cash equivalents
at beginning of period
|
|
|
245,790
|
|
|
|
367,860
|
|
|
|
382,968
|
|
|
|
605,420
|
|
|
|
615,879
|
|
|
Cash and cash equivalents
at end of period
|
|
$
|
374,562
|
|
|
$
|
245,790
|
|
|
$
|
281,212
|
|
|
$
|
374,562
|
|
|
$
|
281,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment acquisitions funded by liabilities
|
|
$
|
11,781
|
|
|
$
|
6,494
|
|
|
$
|
4,382
|
|
|
$
|
11,781
|
|
|
$
|
4,382
|
|
|
Non-cash interest expense
capitalized and added to the cost of qualified assets
|
|
$
|
802
|
|
|
$
|
795
|
|
|
$
|
1,856
|
|
|
$
|
2,907
|
|
|
$
|
2,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
|
|
|
Oct.
2,
|
|
Jul.
3,
|
|
Oct.
3,
|
|
Oct.
2,
|
|
Oct.
3,
|
|
|
Oct.
2,
|
|
Jul.
3,
|
|
Oct.
3,
|
|
Oct.
2,
|
|
Oct.
3,
|
|
|
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
(Presented
on a GAAP Basis)
|
|
|
|
|
|
(Presented
on a non-GAAP Basis)
|
|
Gross margin
|
|
|
$
76,124
|
|
$
19,294
|
|
$
112,585
|
|
$
183,940
|
|
$
272,179
|
|
|
$
80,292
|
|
$
73,853
|
|
$
123,398
|
|
$
245,917
|
|
$
304,821
|
|
Operating income
(loss)
|
|
|
$
(363,264)
|
|
$
(100,125)
|
|
$
8,188
|
|
$
(464,692)
|
|
$
3,513
|
|
|
$
6,642
|
|
$
(4,090)
|
|
$
45,192
|
|
$
23,800
|
|
$
91,750
|
|
Net income (loss) per share of class A and class B common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.21
|
|
$
(5.34)
|
|
$
0.28
|
|
|
$
0.16
|
|
$
(0.19)
|
|
$0.27
|
|
$
0.12
|
|
$
0.48
|
|
- Diluted
|
|
|
$
(3.77)
|
|
$
(1.51)
|
|
$
0.21
|
|
$
(5.34)
|
|
$
0.27
|
|
|
$
0.16
|
|
$
(0.19)
|
|
$0.26
|
|
$
0.12
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About SunPower's Non-GAAP
Financial Measures
|
|
|
|
To supplement its consolidated
financial results presented in accordance with GAAP, SunPower uses
non-GAAP measures which are adjusted from the most directly
comparable GAAP results to exclude certain items, as described
below. In addition, the presentation of non-GAAP gross margin
and non-GAAP operating income includes the results of discontinued
operations. Management does not consider these items in evaluating
the core operational activities of SunPower. The specific
non-GAAP measures listed below are gross margin, operating
income (loss) and net income (loss) per share. Management believes
that each of these non-GAAP measures (gross margin, operating
income (loss) and net income (loss) per share) are useful to
investors by enabling them to better assess changes in each of
these key elements of SunPower's results of operations across
different reporting periods on a consistent basis, independent of
these items. Thus, each of these non-GAAP financial measures
provides investors with another method for assessing
SunPower's operating results in a manner that is focused on its
ongoing core operating performance, absent the effects of these
items. Management also uses these non-GAAP measures internally to
assess the business and financial performance of current and
historical results, for strategic decision making, forecasting
future results and evaluating the company's current
performance. Many of the analysts covering SunPower also use
these non-GAAP measures in their analyses. Given management's use
of these non-GAAP measures, SunPower believes these measures are
important to investors in understanding SunPower's current and
future operating results as seen through the eyes of
management. These non-GAAP measures are not
in accordance with or an alternative for GAAP financial data, the
non-GAAP measures should be reviewed together with the GAAP
measures and are not intended to serve as a substitute for
results under GAAP, and may be different from non-GAAP measures
used by other companies.
|
|
|
|
- Non-GAAP gross margin. The use
of this non-GAAP financial measure allows management to evaluate
the gross margin of SunPower's core businesses and trends across
different reporting periods on a consistent basis, independent of
charges including amortization of intangible assets, stock-based
compensation, certain losses due to change in European government
incentives, and interest expense. In addition, the presentation of
non-GAAP gross margin includes the results of discontinued
operations. This non-GAAP financial measure is an important
component of management's internal performance measurement process
as it is used to assess the current and historical financial
results of the business, for strategic decision making, preparing
budgets and forecasting future results. Management presents
this non-GAAP financial measure to enable investors and analysts to
evaluate SunPower's revenue generation performance relative to the
direct costs of revenue of its core businesses.
|
|
- Non-GAAP operating income
(loss). The use of this non-GAAP financial measure allows
management to evaluate the operating results of SunPower's core
businesses and trends across different reporting periods on a
consistent basis, independent of charges including goodwill and
other intangible asset impairment, amortization of intangible
assets and promissory notes, stock-based compensation, Total
investment related costs, certain losses due to change in European
government incentives, and interest expense. In addition, the
presentation of non-GAAP operating income (loss) includes the
results of discontinued operations. Non-GAAP operating income
(loss) is an important component of management's internal
performance measurement process as it is used to assess the current
and historical financial results of the business, for strategic
decision making, preparing budgets and forecasting future results.
Management presents this non-GAAP financial measure to enable
investors and analysts to understand the results of operations of
SunPower's core businesses and to compare results of operations on
a more consistent basis against that of other companies in the
industry.
|
|
- Non-GAAP net income (loss) per
share. Management presents this non-GAAP financial measure to
enable investors and analysts to assess SunPower's operating
results and trends across different reporting periods on a
consistent basis, independent of items including goodwill and other
intangible asset impairment, amortization of intangible assets and
promissory notes, stock-based compensation, Total investment
related costs, certain losses due to change in European government
incentives, interest expense, net gains (losses) on mark-to-market
derivative instruments, changes in our equity investment in joint
ventures, and the tax effects of these non-GAAP adjustments. In
addition, investors and analysts can compare SunPower's operating
results on a more consistent basis against that of other companies
in the industry.
|
|
|
|
|
|
Excluded Items
|
|
|
|
- Goodwill and other intangible
asset impairment. During the three and nine months ended
October 2, 2011, the Company recorded a goodwill impairment of
$309.5 million and an intangible asset impairment of $40.3 million
attributable to the change in public market valuation of the solar
sector. SunPower excludes these items because these expenses are
not reflective of ongoing operating results in the period incurred.
These amounts arise from prior acquisitions and have no direct
correlation to the operation of SunPower's core
businesses.
|
|
- Amortization of intangible
assets. SunPower incurs amortization of intangible assets as a
result of acquisitions, which includes in-process research and
development, patents, project assets, purchased technology and
trade names. SunPower excludes these items because these expenses
are not reflective of ongoing operating results in the period
incurred. These amounts arise from prior acquisitions and have no
direct correlation to the operation of SunPower's core
businesses.
|
|
- Stock-based compensation.
Stock-based compensation relates primarily to SunPower stock awards
such as stock options and restricted stock. Stock-based
compensation is a non-cash expense that varies in amount from
period to period and is dependent on market forces that are
difficult to predict. As a result of this unpredictability,
management excludes this item from its internal operating forecasts
and models. Management believes that non-GAAP measures adjusted for
stock-based compensation provide investors with a basis to measure
the company's core performance against the performance of other
companies without the variability created by stock-based
compensation.
|
|
- Total investment related costs.
SunPower excludes expenses such as legal, banking and other
professional services incurred in connection with Total
Gas & Power USA, SAS's investment in SunPower. SunPower
excludes such charges because these expenses are not reflective of
ongoing operating results in the period incurred. These amounts
arise from the investment made by Total and have no direct
correlation to the operation of SunPower's core
businesses.
|
|
- Amortization of promissory
notes. Included in the total consideration for a prior acquisition
completed on March 26, 2010 is $14 million in promissory notes to
the acquiree's management shareholders issued by SunPower. Since
the vesting and payment of the promissory notes are contingent on
future employment, the promissory notes are considered deferred
compensation and therefore are not included in the purchase price
allocated to the net assets acquired. SunPower excludes this
non-cash charge over the service period required under the terms of
the promissory notes because these expenses are not reflective of
ongoing operating results in the period incurred. These amounts
arise from prior acquisitions and have no direct correlation to the
operation of SunPower's core businesses.
|
|
- Loss on change in European
government incentives. On May 5, 2011, the Italian government
announced a legislative decree which defined the revised
feed-in-tariff ("FIT") and the transition process effective June 1,
2011. The decree announced a decline in FIT and also set forth a
limit on the construction of solar plants on agricultural land.
Similarly, other European countries reduced government incentives
for the solar market. Such changes had a materially negative effect
on the market for solar systems in Europe and affected SunPower's
financial results as follows:
- Restructuring.
In response to reductions in
European government incentives, which have had a significant impact
on the global solar market, on June 13, 2011, SunPower's
Board of Directors approved a restructuring plan to realign its
resources. As a result, SunPower recorded restructuring charges in
the second quarter of fiscal 2011. Restructuring charges are
excluded from non-GAAP financial measures because they are not
considered core operating activities and such costs have not
historically occurred in each year. Although SunPower has engaged
in restructuring activities in the past, each has been a discrete
event based on a unique set of business objectives. As such,
management believes that it is appropriate to exclude restructuring
charges from SunPower's non-GAAP financial measures as they are not
reflective of ongoing operating results or contribute to a
meaningful evaluation of a company's past operating
performance.
- Write-down of project
assets. Project assets consist primarily
of capitalized costs relating to solar power system projects in
various stages of development that we incur prior to the sale of
the solar power system to a third party. These costs include costs
for land and costs for developing and constructing a solar power
system. The fair market value of these project assets declined due
to SunPower's inability to develop, commercialize and sell active
projects within Europe. Such charges are excluded from non-GAAP
financial measures as they are related to a discrete event and are
not reflective of ongoing operating results.
- Third-party inventory
charges. Charges relate to the write-down
of third-party inventory and costs associated with the termination
of above-market third-party solar cell supply contracts as the
decline in European government incentives, primarily in Italy, has
driven down demand and average selling price in certain areas of
Europe. Such charges are excluded from non-GAAP financial measures
as they are related to a discrete event and are not reflective of
ongoing operating results.
- Loss on foreign currency
derivatives. SunPower has an active hedging
program designed to reduce its exposure to movements in foreign
currency exchange rates. As a part of this program, SunPower
designates certain derivative transactions as effective cash flow
hedges of anticipated foreign currency revenues and records the
effective portion of changes in the fair value of such transactions
in accumulated other comprehensive income (loss) until the
anticipated revenues have occurred, at which point the associated
income or loss would be recognized in revenue. In the first quarter
of fiscal 2011, in connection with the decline in forecasted
revenue surrounding the change in the Italian FIT, SunPower
reclassified an amount held in accumulated other comprehensive
income (loss) to other income (expense), net for certain previously
anticipated transactions which did not occur or were now probable
not to occur. SunPower excludes this item as it is not reflective
of ongoing operating results and excluding this data provides
investors with a basis to compare the company's performance against
the performance of other companies without such
transactions.
|
|
- Non-cash interest expense.
SunPower separately accounted for the liability and equity
components of its convertible debt issued in 2007 in a manner that
reflected interest expense equal to its non-convertible debt
borrowing rate. In addition, SunPower measured the two share
lending arrangements entered into in connection with its
convertible debt issued in 2007 at fair value and amortized the
imputed share lending costs in current and prior periods. As a
result, SunPower incurs interest expense that is substantially
higher than interest payable on its 1.25% senior convertible
debentures and 0.75% senior convertible debentures.
|
|
In addition, SunPower
separately accounted for the fair value liabilities of the embedded
cash conversion option and the over-allotment option on its 4.5%
senior cash convertible debentures issued in 2010 as an original
issue discount and a corresponding derivative conversion liability.
As a result, SunPower incurs interest expense that is substantially
higher than interest payable on its 4.5% senior cash convertible
debentures. SunPower excludes non-cash interest expense because the
expense is not reflective of its ongoing financial results in the
period incurred. Excluding this data provides investors with a
basis to compare the company's performance against the performance
of other companies without non-cash interest expense.
|
|
|
|
- Gain (loss) on mark-to-market
derivative instruments. In connection with the issuance of its 4.5%
senior cash convertible debentures in 2010, SunPower entered into
certain convertible debenture hedge and warrant transactions with
respect to its class A common stock intended to reduce the
potential cash payments that would occur upon conversion of the
debentures. The convertible debenture hedge and warrant
transactions consisting of call option instruments are deemed to be
mark-to-market derivatives until such transactions settle or
expire. As of December 23, 2010, the warrant transactions were
amended to be share-settled rather than cash-settled, therefore,
the warrant transactions are not subject to mark-to-market
accounting treatment subsequent to December 23, 2010. In addition,
the embedded cash conversion option of the debt is deemed to be a
mark-to-market derivative instrument during the period in which the
cash convertible debt remains outstanding. Finally, the
over-allotment option in favor of the debenture underwriters is
deemed a mark-to-market derivative instrument during the period the
over-allotment option remained unexercised, or from April 1, 2010
through April 5, 2010. SunPower excluded the net gain (loss)
relating to the above mentioned derivative instruments from its
non-GAAP results because it was not realized in cash and it is not
reflective of the company's ongoing financial results. Excluding
this data provides investors with a basis to compare the company's
performance against the performance of other companies without a
net non-cash gain (loss) on mark-to-market derivative
instruments.
|
|
- Gain on change in equity
interest in unconsolidated investee. On June 30, 2010, Woongjin
Energy Co., Ltd ("Woongjin Energy") completed its initial public
offering and the sale of 15.9 million new shares of common stock.
In the second quarter of 2011, Woongjin Energy issued additional
equity to other investors. SunPower did not participate in these
common stock issuances by Woongjin Energy. As a result of the new
common stock issuances by Woongjin Energy, SunPower's percentage
equity interest in Woongjin Energy decreased and SunPower
recognized a non-cash gain in both the second quarter of 2011 and
2010, representing the excess of the price over SunPower's per
share carrying value of its shares. SunPower excluded the non-cash
gain from its non-GAAP results because it was not realized in cash
and it is not reflective of its ongoing financial results.
Excluding this data provides investors with a basis to compare
SunPower's performance against the performance of other companies
without non-cash income from a gain on change in its equity
interest in unconsolidated investees.
|
|
- Gain on sale of equity interest
in unconsolidated investee. As noted in the "Gain on change in
equity interest in unconsolidated investee" section above, SunPower
previously excluded certain non-cash gains from its non-GAAP
results. During the third quarter of 2011, SunPower sold a
portion of its equity interests in Woongjin Energy. As the gain on
sale was now realized in cash, SunPower recognized an incremental
gain on sale in its non-GAAP results based on the cumulative amount
of gains previously excluded from non-GAAP results and the
proportional amount of equity interests sold.
|
|
- Tax effect. This amount is used
to present each of the amounts described above on an after-tax
basis with the presentation of non-GAAP net income (loss) per
share.
|
|
- Income from discontinued
operations, net of taxes. In connection with a prior acquisition
completed on March 26, 2010, it acquired an already completed and
operating solar power plant. In the period in which an asset of
SunPower is classified as held-for-sale, it is required to present
the related assets, liabilities and results of operations
associated with that asset as discontinued operations in its
financial statements in accordance with GAAP. During the second
quarter of 2010, SunPower generated electricity revenue and
incurred costs and expenses associated with this owned asset. The
presentation of SunPower's Consolidated Statements of Operations
discloses the results of operations of the solar power plant as a
one line item classification as discontinued operations in
accordance with GAAP. As such, the presentation of GAAP gross
margin and GAAP operating income in the second quarter of 2010
excludes the results of these discontinued operations. SunPower
reclassified the results of the solar power plant operations from
the one line discontinued operations classification for GAAP
purposes to the natural account classifications (revenue, etc.)
within non-GAAP gross margin and non-GAAP operating income.
SunPower believes this reclassification of the solar power plant's
results of operations provides an appropriate representation of the
results of SunPower's operations during the quarter in operating a
solar power plant.
|
|
|
|
|
|
For more information on these
non-GAAP financial measures, please see the tables captioned
"Reconciliations of GAAP Measures to Non-GAAP Measures" set forth
at the end of this release and which should be read together with
the preceding financial statements prepared in accordance with
GAAP.
|
|
|
SUNPOWER
CORPORATION
|
|
|
RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES
|
|
|
(Unaudited)
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
|
|
|
Oct.
2,
|
|
|
Jul.
3,
|
|
|
Oct.
3,
|
|
|
|
Oct.
2,
|
|
|
Oct.
3,
|
|
|
|
|
2011
|
|
|
2011
|
|
|
2010
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP utility and power plants revenue
|
|
$
324,542
|
|
|
$
302,439
|
|
|
$
257,803
|
|
|
|
$
872,890
|
|
|
$
521,896
|
|
|
Discontinued
operations
|
|
-
|
|
|
-
|
|
|
3,176
|
|
|
|
-
|
|
|
11,081
|
|
|
Non-GAAP utility and power
plants revenue
|
|
$
324,542
|
|
|
$
302,439
|
|
|
$
260,979
|
|
|
|
$
872,890
|
|
|
$
532,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total revenue
|
|
$
705,427
|
|
|
$
592,255
|
|
|
$
550,645
|
|
|
|
$
1,749,100
|
|
|
$
1,282,157
|
|
|
Discontinued
operations
|
|
-
|
|
|
-
|
|
|
3,176
|
|
|
|
-
|
|
|
11,081
|
|
|
Non-GAAP total
revenue
|
|
$
705,427
|
|
|
$
592,255
|
|
|
$
553,821
|
|
|
|
$
1,749,100
|
|
|
$
1,293,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP utility and power plants
gross margin
|
|
$
39,005
|
12%
|
|
$
(6,593)
|
-2%
|
|
$
45,277
|
18%
|
|
|
$
75,310
|
9%
|
|
$
100,718
|
19%
|
|
Amortization of intangible
assets
|
|
63
|
|
|
65
|
|
|
946
|
|
|
|
230
|
|
|
2,409
|
|
|
Stock-based compensation
expense
|
|
1,762
|
|
|
2,414
|
|
|
2,442
|
|
|
|
5,061
|
|
|
5,265
|
|
|
Loss on change in European
government incentives
|
|
-
|
|
|
29,082
|
|
|
|
|
|
|
29,082
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
193
|
|
|
601
|
|
|
293
|
|
|
|
1,179
|
|
|
969
|
|
|
Discontinued
operations
|
|
-
|
|
|
-
|
|
|
3,176
|
|
|
|
-
|
|
|
11,081
|
|
|
Non-GAAP utility and power
plants gross margin
|
|
$
41,023
|
13%
|
|
$
25,569
|
8%
|
|
$
52,134
|
20%
|
|
|
$
110,862
|
13%
|
|
$
120,442
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP residential and commercial
gross margin
|
|
$
37,119
|
10%
|
|
$
25,887
|
9%
|
|
$
67,308
|
23%
|
|
|
$
108,630
|
12%
|
|
$
171,461
|
23%
|
|
Amortization of intangible
assets
|
|
-
|
|
|
2
|
|
|
1,745
|
|
|
|
195
|
|
|
5,994
|
|
|
Stock-based compensation
expense
|
|
1,948
|
|
|
2,859
|
|
|
1,941
|
|
|
|
5,843
|
|
|
5,759
|
|
|
Loss on change in European
government incentives
|
|
-
|
|
|
19,381
|
|
|
|
|
|
|
19,381
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
202
|
|
|
155
|
|
|
270
|
|
|
|
1,006
|
|
|
1,165
|
|
|
Non-GAAP residential and
commercial gross margin
|
|
$
39,269
|
10%
|
|
$
48,284
|
17%
|
|
$
71,264
|
24%
|
|
|
$
135,055
|
15%
|
|
$
184,379
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total gross
margin
|
|
$
76,124
|
11%
|
|
$
19,294
|
3%
|
|
$
112,585
|
20%
|
|
|
$
183,940
|
11%
|
|
$
272,179
|
21%
|
|
Amortization of intangible
assets
|
|
63
|
|
|
67
|
|
|
2,691
|
|
|
|
425
|
|
|
8,403
|
|
|
Stock-based compensation
expense
|
|
3,710
|
|
|
5,273
|
|
|
4,383
|
|
|
|
10,904
|
|
|
11,024
|
|
|
Loss on change in European
government incentives
|
|
-
|
|
|
48,463
|
|
|
|
|
|
|
48,463
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
395
|
|
|
756
|
|
|
563
|
|
|
|
2,185
|
|
|
2,134
|
|
|
Discontinued
operations
|
|
-
|
|
|
-
|
|
|
3,176
|
|
|
|
-
|
|
|
11,081
|
|
|
Non-GAAP total gross
margin
|
|
$
80,292
|
11%
|
|
$
73,853
|
12%
|
|
$
123,398
|
22%
|
|
|
$
245,917
|
14%
|
|
$
304,821
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
$
(363,264)
|
|
|
$
(100,125)
|
|
|
$
8,188
|
|
|
|
$
(464,692)
|
|
|
$
3,513
|
|
|
Goodwill and other
intangible asset impairment
|
|
349,758
|
|
|
-
|
|
|
-
|
|
|
|
349,758
|
|
|
-
|
|
|
Amortization of intangible
assets
|
|
6,682
|
|
|
6,868
|
|
|
11,578
|
|
|
|
20,614
|
|
|
28,039
|
|
|
Stock-based compensation
expense
|
|
11,849
|
|
|
12,817
|
|
|
15,665
|
|
|
|
37,829
|
|
|
38,064
|
|
|
Total investment related
costs
|
|
429
|
|
|
13,123
|
|
|
|
|
|
|
13,552
|
|
|
-
|
|
|
Amortization of promissory
notes
|
|
134
|
|
|
2,062
|
|
|
6,022
|
|
|
|
3,486
|
|
|
8,941
|
|
|
Loss on change in European
government incentives
|
|
637
|
|
|
60,407
|
|
|
|
|
|
|
61,044
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
417
|
|
|
758
|
|
|
563
|
|
|
|
2,209
|
|
|
2,134
|
|
|
Discontinued
operations
|
|
-
|
|
|
-
|
|
|
3,176
|
|
|
|
-
|
|
|
11,059
|
|
|
Non-GAAP operating
income
|
|
$
6,642
|
|
|
$
(4,090)
|
|
|
$
45,192
|
|
|
|
$
23,800
|
|
|
$
91,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
SHARE:
|
|
|
|
THREE MONTHS
ENDED
|
|
|
NINE MONTHS
ENDED
|
|
|
|
|
Oct.
2,
|
|
|
Jul.
3,
|
|
|
Oct.
3,
|
|
|
Oct.
2,
|
|
|
Oct.
3,
|
|
|
|
|
2011
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
share
|
|
$
|
(3.77)
|
|
|
$
|
(1.51)
|
|
|
$
|
0.21
|
|
|
$
|
(5.34)
|
|
|
$
|
0.28
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible asset impairment
|
|
|
3.56
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.59
|
|
|
|
-
|
|
|
Amortization of intangible
assets
|
|
|
0.07
|
|
|
|
0.07
|
|
|
|
0.12
|
|
|
|
0.21
|
|
|
|
0.29
|
|
|
Stock-based compensation
expense
|
|
|
0.12
|
|
|
|
0.13
|
|
|
|
0.16
|
|
|
|
0.39
|
|
|
|
0.40
|
|
|
Total investment related
costs
|
|
|
0.00
|
|
|
|
0.13
|
|
|
|
-
|
|
|
|
0.14
|
|
|
|
-
|
|
|
Amortization of promissory
notes
|
|
|
0.00
|
|
|
|
0.02
|
|
|
|
0.06
|
|
|
|
0.04
|
|
|
|
0.09
|
|
|
Loss on change in European
government incentives
|
|
|
0.01
|
|
|
|
0.62
|
|
|
|
-
|
|
|
|
0.67
|
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
|
0.07
|
|
|
|
0.07
|
|
|
|
0.07
|
|
|
|
0.22
|
|
|
|
0.23
|
|
|
Mark-to-market
derivatives
|
|
|
(0.00)
|
|
|
|
0.00
|
|
|
|
0.03
|
|
|
|
(0.00)
|
|
|
|
(0.30)
|
|
|
Gain on sale of equity
interest in unconsolidated investee
|
|
|
0.04
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
|
Gain on change in equity
interest in unconsolidated investee
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
(0.30)
|
|
|
Gain on deconsolidation of
consolidated subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.38)
|
|
|
|
-
|
|
|
|
(0.39)
|
|
|
Tax effect
|
|
|
0.06
|
|
|
|
0.28
|
|
|
|
0.00
|
|
|
|
0.17
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
per share
|
|
$
|
0.16
|
|
|
$
|
(0.19)
|
|
|
$
|
0.27
|
|
|
$
|
0.12
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
share
|
|
$
|
(3.77)
|
|
|
$
|
(1.51)
|
|
|
$
|
0.21
|
|
|
$
|
(5.34)
|
|
|
$
|
0.27
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible asset impairment
|
|
|
3.56
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.59
|
|
|
|
-
|
|
|
Amortization of intangible
assets
|
|
|
0.07
|
|
|
|
0.07
|
|
|
|
0.11
|
|
|
|
0.21
|
|
|
|
0.29
|
|
|
Stock-based compensation
expense
|
|
|
0.12
|
|
|
|
0.13
|
|
|
|
0.15
|
|
|
|
0.39
|
|
|
|
0.39
|
|
|
Total investment related
costs
|
|
|
0.00
|
|
|
|
0.13
|
|
|
|
-
|
|
|
|
0.14
|
|
|
|
-
|
|
|
Amortization of promissory
notes
|
|
|
0.00
|
|
|
|
0.02
|
|
|
|
0.06
|
|
|
|
0.04
|
|
|
|
0.09
|
|
|
Loss on change in European
government incentives
|
|
|
0.01
|
|
|
|
0.62
|
|
|
|
-
|
|
|
|
0.67
|
|
|
|
-
|
|
|
Non-cash interest
expense
|
|
|
0.07
|
|
|
|
0.07
|
|
|
|
0.06
|
|
|
|
0.22
|
|
|
|
0.23
|
|
|
Mark-to-market
derivatives
|
|
|
(0.00)
|
|
|
|
0.00
|
|
|
|
0.03
|
|
|
|
(0.00)
|
|
|
|
(0.30)
|
|
|
Gain on sale of equity
interest in unconsolidated investee
|
|
|
0.04
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
|
Gain on change in equity
interest in unconsolidated investee
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
-
|
|
|
|
(0.00)
|
|
|
|
(0.29)
|
|
|
Gain on deconsolidation of
consolidated subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.35)
|
|
|
|
-
|
|
|
|
(0.38)
|
|
|
Tax effect
|
|
|
0.06
|
|
|
|
0.28
|
|
|
|
0.00
|
|
|
|
0.17
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
per share
|
|
$
|
0.16
|
|
|
$
|
(0.19)
|
|
|
$
|
0.26
|
|
|
$
|
0.12
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
|
98,259
|
|
|
|
97,656
|
|
|
|
95,840
|
|
|
|
97,456
|
|
|
|
95,519
|
|
|
- Diluted
|
|
|
98,259
|
|
|
|
97,656
|
|
|
|
105,648
|
|
|
|
97,456
|
|
|
|
96,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
|
98,261
|
|
|
|
97,656
|
|
|
|
95,840
|
|
|
|
97,483
|
|
|
|
95,519
|
|
|
- Diluted
|
|
|
99,615
|
|
|
|
97,656
|
|
|
|
105,648
|
|
|
|
99,346
|
|
|
|
96,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2011 GUIDANCE:
|
Q4 2011
|
FY 2011
|
|
Revenue (GAAP)
|
$575,000-$625,000
|
$2,300,000-2,350,000
|
|
Revenue (non-GAAP)
|
$675,000-$725,000 (a)
|
$2,400,000-$2,450,000
(b)
|
|
Gross margin (GAAP)
|
7%-9%
|
9%-11%
|
|
Gross margin
(non-GAAP)
|
10%-12% (c)
|
12%-14% (d)
|
|
Net income per diluted share
(GAAP)
|
($0.60)-($0.35)
|
($5.90)-($5.65)
|
|
Net income per diluted share
(non-GAAP)
|
($0.15)-$0.10 (e)
|
($0.05)-$0.20 (f)
|
|
|
|
|
|
|
(a) Estimated non-GAAP amounts
above for Q4 2011 include the estimated revenue for a UPP
project and R&C leases of approximately $98.0
million.
|
|
|
|
(b) Estimated non-GAAP amounts
above for FY 2011 include the estimated revenue for a UPP
project and R&C leases of approximately $98.0
million.
|
|
|
|
(c) Estimated non-GAAP amounts
above for Q4 2011 reflect adjustments that include the gross margin
of approximately $21.0 million related to the non-GAAP revenue
adjustments that are discussed above. In addition, the estimated
non-GAAP amounts exclude estimated stock-based compensation expense
of approximately $3.6 million and estimated non-cash interest
expense of approximately $0.4 million.
|
|
|
|
(d) Estimated non-GAAP amounts
above for FY 2011 reflect adjustments that include the gross margin
of approximately $21.0 million related to the non-GAAP revenue
adjustments that are discussed above. In addition, the estimated
non-GAAP amounts exclude amortization of intangible assets of
approximately $0.4 million, estimated stock-based compensation
expense of approximately $14.5 million, estimated non-cash interest
expense of approximately $2.6 million and loss on change in
European government incentives of approximately $48.5
million.
|
|
|
|
(e) Estimated non-GAAP amounts
above for Q4 2011 reflect adjustments that include the gross margin
of approximately $21.0 million related to the non-GAAP revenue
adjustments that are discussed above. In addition, the estimated
non-GAAP amounts exclude estimated stock-based compensation expense
of approximately $12.3 million, estimated non-cash interest expense
of approximately $6.8 million, estimated Total investment-related
costs of approximately $1.1 million, amortization of intangible
assets of approximately $1.0 million and the related tax effects of
these non-GAAP adjustments.
|
|
|
|
(f) Estimated non-GAAP amounts
above for FY 2011 reflect adjustments that include the gross margin
of approximately $21.0 million related to the non-GAAP revenue
adjustments that are discussed above and a net gain related to the
sale of stack and change in equity interest in unconsolidated
investee of approximately $4.0 million. In addition, the estimated
non-GAAP amounts exclude goodwill and other intangible asset
impairment of approximately $349.8 million, amortization of
intangible assets of approximately $21.6 million, estimated
stock-based compensation expense of approximately $50.1 million,
estimated non-cash interest expense of approximately $27.9 million,
estimated Total investment-related costs of approximately $14.7
million, amortization of promissory notes of approximately $3.5
million, loss on change in European government incentives of
approximately $65.7 million, net gain on mark-to-market derivatives
of approximately $0.3 million and the related tax effects of these
non-GAAP adjustments.
|
|
|
The following supplemental data represents the individual
charges and credits that are excluded from SunPower's non-GAAP
financial measures for each period presented in the Condensed
Consolidated Statements of Operations contained herein.
|
SUPPLEMENTAL
DATA
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
October 2,
2011
|
|
|
Revenue
|
Cost of revenue
|
Operating expenses
|
Other income (expense),
net
|
Benefit from (provision
for) income taxes
|
Income from discontinued
operations, net of taxes
|
|
|
Utility and
power plants
|
Residential and
commercial
|
Utility and
power plants
|
Residential and
commercial
|
Research and
development
|
Selling, general
and administrative
|
Restructuring charges
|
|
Amortization of intangible
assets
|
$
-
|
$
-
|
$
63
|
$
-
|
$
-
|
$
6,619
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Stock-based compensation
expense
|
-
|
-
|
1,762
|
1,948
|
1,608
|
6,531
|
-
|
-
|
-
|
-
|
|
Goodwill and other intangible
asset impairment
|
|
|
|
|
|
349,758
|
-
|
-
|
-
|
-
|
|
Total investment related
costs
|
-
|
-
|
-
|
-
|
-
|
429
|
-
|
-
|
-
|
-
|
|
Amortization of promissory
notes
|
-
|
-
|
-
|
-
|
-
|
134
|
-
|
-
|
-
|
-
|
|
Loss on change in European
government incentives
|
-
|
-
|
-
|
-
|
-
|
-
|
637
|
-
|
-
|
-
|
|
Non-cash interest
expense
|
-
|
-
|
193
|
202
|
2
|
20
|
-
|
6,363
|
-
|
-
|
|
Mark-to-market
derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(472)
|
-
|
-
|
|
Gain on sale of equity interest
in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,328
|
-
|
-
|
|
Gain on change in equity interest in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Tax effect
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6,101
|
-
|
|
|
$
-
|
$
-
|
$
2,018
|
$
2,150
|
$
1,610
|
$
363,491
|
$
637
|
$
10,219
|
$
6,101
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 3,
2011
|
|
|
Revenue
|
Cost of
revenue
|
Operating
expenses
|
Other income
(expense),
net
|
Benefit from
(provision for) income taxes
|
Income from
discontinued operations, net of taxes
|
|
|
Utility
and
power plants
|
Residential
and commercial
|
Utility
and
power plants
|
Residential
and commercial
|
Research
and
development
|
Selling,
general
and administrative
|
Restructuring charges
|
|
Amortization of intangible
assets
|
$
-
|
$
-
|
$
65
|
$
2
|
$
-
|
$
6,801
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Stock-based compensation
expense
|
-
|
-
|
2,414
|
2,859
|
1,735
|
5,809
|
-
|
-
|
-
|
-
|
|
Total investment related
costs
|
-
|
-
|
-
|
-
|
-
|
13,123
|
-
|
-
|
-
|
-
|
|
Amortization of promissory
notes
|
-
|
-
|
-
|
-
|
-
|
698
|
1,364
|
-
|
-
|
-
|
|
Loss on change in European
government incentives
|
-
|
-
|
29,082
|
19,381
|
-
|
-
|
11,944
|
|
-
|
-
|
|
Non-cash interest
expense
|
-
|
-
|
601
|
155
|
-
|
2
|
-
|
6,249
|
-
|
-
|
|
Mark-to-market
derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
97
|
-
|
-
|
|
Gain on change in equity
interest in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(322)
|
-
|
-
|
|
Tax effect
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
27,416
|
-
|
|
|
$
-
|
$
-
|
$
32,162
|
$
22,397
|
$
1,735
|
$
26,433
|
$
13,308
|
$
6,024
|
$
27,416
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 3,
2010
|
|
|
Revenue
|
Cost of
revenue
|
Operating
expenses
|
Other income
(expense),
net
|
Benefit from
(provision for) income taxes
|
Income from
discontinued operations, net of taxes
|
|
|
Utility
and
power plants
|
Residential
and commercial
|
Utility
and
power plants
|
Residential
and commercial
|
Research
and
development
|
Selling,
general
and administrative
|
Restructuring charges
|
|
Amortization of intangible
assets
|
$
-
|
$
-
|
$
946
|
$
1,745
|
$
-
|
$
8,887
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Stock-based compensation
expense
|
-
|
-
|
2,442
|
1,941
|
1,886
|
9,396
|
-
|
-
|
-
|
-
|
|
Amortization of promissory
notes
|
-
|
-
|
-
|
-
|
-
|
6,022
|
-
|
-
|
-
|
-
|
|
Non-cash interest
expense
|
-
|
-
|
293
|
270
|
-
|
-
|
-
|
5,844
|
-
|
-
|
|
Mark-to-market
derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,967
|
-
|
-
|
|
Gain on deconsolidation of
consolidated subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(36,849)
|
-
|
-
|
|
Tax effect
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
377
|
-
|
|
Discontinued
operations
|
3,176
|
-
|
-
|
-
|
-
|
-
|
-
|
(887)
|
(719)
|
(1,570)
|
|
|
$
3,176
|
$
-
|
$
3,681
|
$
3,956
|
$
1,886
|
$
24,305
|
|
$
(28,925)
|
$
(342)
|
$
(1,570)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
ENDED
|
|
|
October 2,
2011
|
|
|
Revenue
|
Cost of
revenue
|
Operating
expenses
|
Other income
(expense),
net
|
Benefit from
(provision for) income taxes
|
Income from
discontinued operations, net of taxes
|
|
|
Utility
and
power plants
|
Residential
and commercial
|
Utility
and
power plants
|
Residential
and commercial
|
Research
and
development
|
Selling,
general
and administrative
|
Restructuring charges
|
|
Amortization of intangible
assets
|
$
-
|
$
-
|
$
230
|
$
195
|
$
-
|
$
20,189
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Stock-based compensation
expense
|
-
|
-
|
5,061
|
5,843
|
5,112
|
21,813
|
-
|
-
|
-
|
-
|
|
Goodwill and Intangible
Impairment
|
-
|
-
|
-
|
-
|
-
|
349,758
|
-
|
-
|
-
|
-
|
|
Total investment related
costs
|
-
|
-
|
-
|
-
|
-
|
13,552
|
-
|
-
|
-
|
-
|
|
Amortization of promissory
notes
|
-
|
-
|
-
|
-
|
-
|
2,122
|
1,364
|
-
|
-
|
-
|
|
Loss on change in European
government incentives
|
-
|
-
|
29,082
|
19,381
|
-
|
-
|
12,581
|
4,672
|
-
|
-
|
|
Non-cash interest
expense
|
-
|
-
|
1,179
|
1,006
|
2
|
22
|
-
|
18,903
|
-
|
-
|
|
Mark-to-market
derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(331)
|
-
|
-
|
|
Gain on sale of equity interest
in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,328
|
-
|
-
|
|
Gain on change in equity
interest in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(322)
|
-
|
-
|
|
Tax effect
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
16,482
|
-
|
|
|
$
-
|
$
-
|
$
35,552
|
$
26,425
|
$
5,114
|
$
407,456
|
$
13,945
|
$
27,250
|
$
16,482
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 3,
2010
|
|
|
Revenue
|
Cost of
revenue
|
Operating
expenses
|
Other income
(expense),
net
|
Benefit from
(provision for) income taxes
|
Income from
discontinued operations, net of taxes
|
|
|
Utility
and
power plants
|
Residential
and commercial
|
Utility
and
power plants
|
Residential
and commercial
|
Research
and
development
|
Selling,
general
and administrative
|
Restructuring charges
|
|
Amortization of intangible
assets
|
$
-
|
$
-
|
$
2,409
|
$
5,994
|
$
-
|
$
19,636
|
$
-
|
$
-
|
$
-
|
$
-
|
|
Stock-based compensation
expense
|
-
|
-
|
5,265
|
5,759
|
5,822
|
21,218
|
-
|
-
|
-
|
-
|
|
Amortization of promissory
notes
|
-
|
-
|
-
|
-
|
-
|
8,941
|
-
|
-
|
-
|
-
|
|
Non-cash interest
expense
|
-
|
-
|
969
|
1,165
|
-
|
-
|
-
|
20,041
|
-
|
-
|
|
Mark-to-market
derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(28,885)
|
-
|
-
|
|
Gain on change in equity
interest in unconsolidated investee
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(28,348)
|
-
|
-
|
|
Gain on deconsolidation of
consolidated subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(36,849)
|
-
|
-
|
|
Tax effect
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
16,245
|
-
|
|
Discontinued
operations
|
11,081
|
-
|
-
|
-
|
-
|
(22)
|
-
|
2,740
|
(4,333)
|
(9,466)
|
|
|
$
11,081
|
$
-
|
$
8,643
|
$
12,918
|
$
5,822
|
$
49,773
|
$
-
|
$
(71,301)
|
$
11,912
|
$
(9,466)
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE SunPower Corp.