SunPower Reports Second-Quarter 2009 Results
-- Q2 2009 revenue of $298 million, GAAP EPS of $0.26 and non-GAAP EPS of $0.24 -- Raised $458 million in a successful equity and convertible debt offering -- Implemented a regional panel manufacturing strategy -- Launched the company's new T5 fixed-tilt commercial roof mounting system -- Substantially completed a 25 megawatt project for Florida Power & Light -- Expanded to approximately 600 SunPower dealers worldwide -- Signed a $100 million commercial project financing agreement with Wells Fargo Bank
* Press Release
* Source: SunPower Corporation
* On Thursday July 23, 2009, 4:05 pm EDT
SAN JOSE, Calif., July 23 /PRNewswire-FirstCall/ -- SunPower Corp. (Nasdaq: SPWRA - News, SPWRB - News) today announced financial results for its 2009 second quarter which ended June 28, 2009. Revenue for the 2009 second quarter was $298 million which compares to revenues of $214 million in the first quarter of 2009 and $383 million in the second quarter of 2008. The company's Components and Systems segments accounted for 63% and 37% of second-quarter 2009 revenue, respectively.
"Our second-quarter results reflect the continued success of our diversified segment and market strategy as we benefited from the further growth in our dealer network and executed on our large scale project commitments," said Tom Werner, SunPower's CEO. "Additionally, our operational focus during the quarter enabled us to show progress in reducing inventory levels and in controlling variable expenses. Our long-term strategy to build our brand based on superior experience, technology and return is paying off. As a result, we have successfully adjusted pricing to maintain market share and our price premium.
"Overall, we recorded solid second-quarter results in a demand driven market, consistent with our operating plan. In all of our markets, we are encouraged by the improving industry trends we are seeing in both end demand and financing and we are well positioned for further growth in the second half of the year and 2010. Our manufacturing costs are competitive today and we are ahead of plan to achieve our cost reduction goals. Customers continue to choose SunPower due to our superior roof top and power plant experience, industry leading performance of our solar panels and tracking technology, and our ability to drive attractive project returns for our customers."
On a Generally Accepted Accounting Principle (GAAP) basis for the 2009 second quarter, SunPower reported gross margin of 19.6%, operating income of $9.9 million and net income per share of $0.26. GAAP net income per diluted share for the second quarter of 2009 includes a $21.2 million, or $0.21 per diluted share, non-taxable gain related to the company's recent securities offering and a $5.9 million, or $0.04 per diluted share for non-cash interest charges associated with the adoption of the new FSP APB 14-1 accounting rule, which impacts how companies account for interest expense on convertible bonds.
On a non-GAAP basis, adjusted to exclude non-cash charges for amortization of intangible assets of $4.1 million, stock-based compensation of $11.6 million and non-cash interest expense of $5.9 million, SunPower reported total gross margin of 22.6%. Gross margin for the second quarter was negatively impacted by approximately $12 million from lower factory utilization due to the company's planned transition to a demand driven manufacturing strategy, which successfully focused on reducing inventory levels. Operating income for the quarter was $26.8 million and net income per diluted share was $0.24. This compares with first quarter 2009 non-GAAP gross margin of 24.3%, operating income of $11.5 million and $0.05 net income per diluted share. For the 2009 second quarter, the Components segment non-GAAP gross margin was 24.6% and Systems segment gross margin was 18.9%.
Diluted shares outstanding for the second quarter of 2009 reflect the impact of the company's recent capital raise completed May 5, 2009.
2009 Guidance
The company adjusted its fiscal year 2009 total company non-GAAP guidance as follows: total revenue of $1.35 billion to $1.7 billion, which compares to previous guidance of $1.3 billion to $1.7 billion, net income per diluted share of $1.15 to $1.60 and production of approximately 400 megawatts. The company's 2009 capital expenditure outlook remains unchanged at $250 million to $300 million. Full year 2009 non-GAAP earnings per share guidance was adjusted to reflect the capital raise completed issuance of equity and convertible debt in May 2009.
"Our current pipeline and backlog gives us confidence that we will be able to meet our second half 2009 guidance. This confidence stems from a number of large systems we expect to have financed in the third quarter, as well as the positive trends we are seeing in the commercial and residential segments," said Dennis Arriola, SunPower's CFO.
For fiscal year 2009, the company expects the following total company GAAP results: revenue of $1.35 billion to $1.7 billion and net income per diluted share of $0.45 to $0.90. GAAP earnings per share guidance includes a $0.21 per share one-time, non-taxable gain related to the company's recent offering and an approximately $0.12 expense for non-cash charges related to the company's previous adoption of FASB accounting rule FSB APB 14-1.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP figures are reconciled to the closest GAAP equivalent figures on the final page of this press release. Please note that the company has posted supplemental information and slides related to its second-quarter 2009 performance on the Events and Presentations section of the SunPower Investor Relations page at investors.sunpowercorp.com.
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