SunPower Loss Widens – Analyst Blog

SunPower Corporation (SPWRA) reported a first-quarter loss per share of 4 cents, a penny more than the Zacks Consensus Estimate of a 3-cent loss. However, on a GAAP basis, the company reported a quarterly EPS of 13 cents, compared to a 12-cent loss in the year-ago quarter. The first quarter of fiscal 2010 GAAP results, however, were boosted year over year due to a 33 cents per share tax benefit.

 

 

SunPower generated revenues of $347 million in the reported quarter, compared with $212 million in the first quarter of 2009 and $548 million in the fourth quarter of 2009. The company’s Components and Systems segments accounted for 81% and 19% of quarterly revenues, respectively.

 

SunPower’s quarterly gross margin on a GAAP basis was 20.7% with an operating loss of $2.9 million. In the year-ago quarter, the company’s gross margin was 15.2%, with an operating loss of $18 million.

 

On an adjusted basis, SunPower reported a quarterly gross margin of 22.5% with an operating income of $13.5 million. This is higher than the first quarter 2009 adjusted gross margin of 17.2%, with an operating loss of $4.4 million.

 

SunPower in the reported quarter registered a gross margin of 25.7% in the Components segment while the Systems segment clocked a gross margin of 8.3%. Systems was impacted by weather-related seasonality, delayed projects as well as unabsorbed costs related to deferred revenues as a result of the company’s acquisition of SunRay Renewable Ventures during the quarter.

 

 

At the end of the reported period, SunPower had cash and cash equivalents of $499.2 million, compared with $615.9 million at fiscal-end 2009. Total debt increased to $1.1 billion from $785.5 million at fiscal-end 2009.

 

 

SunPower in fiscal 2010 expects revenues in the range of $2.00 billion – $2.25 billion with an adjusted EPS of $1.25 – $1.65. Presently the Zacks Consensus Estimate for fiscal 2010 stands at $1.01.