SAN JOSE, Calif., Oct. 22, 2009 /PRNewswire/ -- SunPower Corp. (NASDAQ: SPWRA)(NASDAQ: SPWRB) today announced financial results for its 2009 third quarter which ended September 27, 2009. Revenue for the 2009 third quarter was $466 million which compares to $298 million in the second quarter of 2009 and $378 million in the third quarter of 2008. The company's Components and Systems segments accounted for 64% and 36% of third-quarter 2009 revenue, respectively.
"Our third-quarter results demonstrate the value of our diversified market and vertical integration strategy as we benefitted from our growing dealer channel and successfully executed on our large scale project commitments," said Tom Werner, SunPower's CEO. "We further expanded our dealer partner network into countries such as France, Korea and Canada, and added new partners to our existing markets. As we build our utility and power plant business around the world, our superior technology performance and rapid deployment capability continues to make SunPower a preferred partner with customers and financiers.
"Operationally, our global Engineering, Procurement and Construction team achieved a new record in the third quarter with more than 60 megawatts (MW) of SunPower power plants under construction. The 25-MW DeSoto power plant, commissioned for Florida Power & Light, has now surpassed Nellis Air Force Base as the largest operating solar photovoltaic power plant in North America. In Europe, the financing of our Montalto project, the largest power plant in Italy, demonstrates SunPower's bankability as a fully integrated supplier. With strong market demand continuing, all of our manufacturing facilities are now fully operational, resulting in unit cost reductions in line with our plan," concluded Werner.
On a Generally Accepted Accounting Principles (GAAP) basis for the 2009 third quarter, SunPower reported gross margin of 19.1%, operating income of $34.6 million and net income per diluted share of $0.13. GAAP net income per share for the third quarter of 2009 includes $5.3 million, or $0.03 per share, of non-cash interest charges associated with the adoption of the new accounting guidance, 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 $13.1 million and non-cash interest expense of $5.3 million, SunPower reported total gross margin of 20.7%. Operating income for the quarter was $52.1 million and net income per share was $0.42. This compares with second-quarter 2009 non-GAAP gross margin of 22.6%, operating income of $26.8 million and $0.24 net income per share. For the 2009 third quarter, the Components segment non-GAAP gross margin was 23.4% and Systems segment gross margin was 16.0%.
2009 Guidance
The company updated its fiscal year 2009 total company non-GAAP guidance as follows: total revenue of $1.425 billion to $1.50 billion, net income per diluted share of $1.15 to $1.25, capital expenditures of $200 million to $225 million, and production of approximately 400 MW.
"The company's continued focus on working capital management is showing positive results as we successfully managed inventory levels and ended the quarter with a stronger balance sheet and more than $800 million in cash and investments," said Dennis Arriola, SunPower's CFO. "Although the financing markets remain challenging, we're starting to see some improvement in the availability of financing for our projects. By starting the fourth quarter with a solid backlog of business and a growing pipeline of opportunities, we are confident that SunPower will finish the year strongly and is well positioned for growth in 2010."
For fiscal year 2009, the company expects the following total company GAAP results: revenue of $1.425 billion to $1.50 billion and net income per diluted share of $0.50 to $0.60. GAAP earnings per share guidance for 2009 includes a $0.21 per share one-time, non-taxable gain related to the company's second-quarter 2009 capital raise and approximately $0.13 per share for non-cash charges related to the company's adoption of new accounting guidance.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP 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 2009 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 MW on an alternating current (ac) basis.
About SunPower
Founded in 1985, SunPower Corp. (NASDAQ: SPWRA)(NASDAQ: SPWRB) designs, manufactures and delivers the planet's most powerful solar technology broadly available today. Residential, business, government and utility customers rely on the company's experience and proven results to maximize return on investment. With headquarters 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 "expected," "plan," "scheduled," "growing," "build," "continues," "will," "continuing," "guidance," "improvement," "backlog," "pipeline," "growth," "improvement," and "expects" to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) completion of the Montalto project; (b) construction schedule for Fab 3; (c) the company's dealer channel; (d) the company's utility and power plant business; (e) the company's status as a preferred partner with customers and financiers; (f) market demand; (g) the company's cost reduction plan; (h) GAAP and non-GAAP fiscal year 2009 total revenue and net income per diluted share; (i) availability of financing for projects; (j) backlog of business and pipeline of opportunities; (k) 2009 expected production; and (l) non-cash interest charges associated with the adoption of the new accounting guidance. 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) the company's ability to obtain and maintain an adequate supply of raw materials and components, as well as the price it pays for such items; (ii) general business and economic conditions, including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of governmental and related economic incentives promoting the use of solar power; (v) the improved availability of third-party financing arrangements for the company's customers; (vi) construction difficulties or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to compete with other companies and competing technologies; (x) unanticipated changes in the GAAP expense for non-cash charges related to the adoption of new accounting guidance; and (xi) other risks described in the company's Annual Report on Form 10-K for the year ended December 28, 2008, its Quarterly Report on Form 10-Q for the quarter ended June 29, 2009, 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.
Segment Reporting Information
For third quarter 2009 reporting purposes, the Systems segment generally represents products and services sold directly to the system owner. Additionally, both SunPower and third-party solar panels sold through the Systems segment channels are recorded as Systems segment revenue. The Components segment primarily represents products sold to installers and resellers.
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to the company's convertible debt offering, and its related tax effects. Management does not consider these charges in evaluating the core operational activities of SunPower. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate SunPower's current performance. Most analysts covering SunPower use the non-GAAP measures as well. 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. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in SunPower's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data and may be different from non-GAAP measures used by other companies.
Fiscal Periods
The Company reports on a fiscal-year basis and ends its quarters on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. Fiscal year 2009 consists of 53 weeks while fiscal year 2008 consists of 52 weeks. The third quarter of fiscal 2009 ended on September 27, 2009 and the third quarter of fiscal 2008 ended on September 29, 2008.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Sep. 27, Dec. 28,
2009 2008
---- ----
ASSETS
Cash and cash equivalents $472,126 $202,331
Restricted cash 320,788 175,277
Investments 9,222 40,756
Accounts receivable, net 243,528 194,222
Costs and estimated earnings in
excess of billings 73,519 30,326
Inventories 239,211 251,542
Prepaid expenses and other assets 197,131 175,005
Advances to suppliers 137,853 162,610
Property, plant and equipment, net 695,409 629,247
Goodwill and other intangible assets, net 227,444 236,210
--------- ---------
Total assets $2,616,231 $2,097,526
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $232,547 $263,241
Accrued and other liabilities 195,561 191,140
Long-term debt 188,915 54,598
Convertible debt 530,956 357,173
Billings in excess of costs and
estimated earnings 17,484 11,806
Customer advances 97,142 110,394
--------- ---------
Total liabilities 1,262,605 988,352
Stockholders' equity 1,353,626 1,109,174
--------- ---------
Total liabilities and
stockholders' equity $2,616,231 $2,097,526
========= =========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------------- ------------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Revenue:
Systems $168,412 $108,724 $193,330 $383,233 $642,774
Components 297,895 188,920 184,170 594,505 391,178
------- ------- ------- ------- -------
466,307 297,644 377,500 977,738 1,033,952
Cost of revenue:
Cost of systems
revenue 144,859 91,793 158,829 325,003 511,316
Cost of components
revenue 232,164 147,388 113,358 457,240 271,288
------- ------- ------- ------- -------
377,023 239,181 272,187 782,243 782,604
Gross margin 89,284 58,463 105,313 195,495 251,348
Operating expenses:
Research and
Development 8,250 6,853 6,049 23,067 15,504
Selling, general
and administrative 46,473 41,755 46,075 130,511 123,141
------- ------- ------- ------- -------
Total operating
expenses 54,723 48,608 52,124 153,578 138,645
------- ------- ------- ------- -------
Operating income 34,561 9,855 53,189 41,917 112,703
Other income (expense):
Gain on purchased
options - 21,193 - 21,193 -
Interest and other
income (expense),
net (9,269) (5,956) (8,784) (27,319) (17,597)
------- ------- ------- ------- -------
Other income
(expense), net (9,269) 15,237 (8,784) (6,126) (17,597)
------- ------- ------- ------- -------
Income before income
taxes and equity in
earnings of
unconsolidated
investees 25,292 25,092 44,405 35,791 95,106
Income tax provision 15,088 4,054 21,856 10,580 31,275
------- ------- ------- ------- -------
Income before equity
in earnings of
unconsolidated
investees 10,204 21,038 22,549 25,211 63,831
Equity in earnings of
unconsolidated
investees,
net of taxes 2,627 3,133 2,132 7,005 4,006
------- ------- ------- ------- -------
Net income $12,831 $24,171 $24,681 $32,216 $67,837
======= ======= ======= ======= =======
Net income per share of
class A and class B
common stock:
- Basic $0.14 $0.27 $0.30 $0.36 $0.84
- Diluted $0.13 $0.26 $0.29 $0.35 $0.80
Weighted-average shares:
- Basic 94,668 90,873 80,465 89,764 79,614
- Diluted 96,319 98,412 84,064 91,513 83,477
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Cash flows from
operating activities:
Net income $12,831 $24,171 $24,681 $32,216 $67,837
Adjustments to
reconcile net income
to net cash provided
by operating activities:
Stock-based
compensation 13,074 11,647 18,911 34,204 52,026
Depreciation 21,414 20,569 13,688 60,348 35,741
Amortization of
other intangible
assets 4,146 4,098 4,201 12,296 12,552
Impairment of
long-lived assets 190 489 (2,353) 1,997 3,136
Non-cash interest
expense 5,250 5,915 4,038 16,186 12,717
Amortization of
debt issuance costs 733 1,184 537 2,454 1,611
Gain on purchased
options - (21,193) - (21,193) -
Equity in earnings of
unconsolidated
investees (2,627) (3,133) (2,132) (7,005) (4,006)
Excess tax benefits
from stock-based
award activity (12,134) (2,610) (19,260) (14,744) (33,899)
Deferred income
taxes and other
tax liabilities 10,151 (3,505) 19,658 277 29,738
Changes in operating
assets and
liabilities, net of
effect of
acquisitions:
Accounts
receivable (18,794) (65,422) 47,808 (43,285) (55,324)
Costs and
estimated
earnings in
excess of
billings (60,787) 23,168 (7,556) (41,416) (17,700)
Inventories 28,977 87,807 19,498 20,914 (48,301)
Prepaid expenses
and other assets 13,938 (35,291) (4,604) (9,440) (29,636)
Advances to
suppliers 3,435 13,449 15,461 24,877 19,102
Accounts payable
and other accrued
liabilities 98,997 (101,114) (5,853) (31,345) 76,513
Billings in excess
of costs and
estimated
earnings (33,479) 42,968 (21,178) 4,877 (60,064)
Customer advances (5,553) 774 41,754 (13,639) 45,884
------- ------- ------- ------- -------
Net cash
provided by
operating
activities 79,762 3,971 147,299 28,579 107,927
Cash flows from
investing activities:
Increase in restricted
cash and cash
equivalents (103,247) (33,151) (26,202) (145,583) (42,153)
Purchases of
property, plant
and equipment (38,426) (59,566) (55,224) (150,093)(150,302)
Proceeds from
sale of
equipment
to third-party 1,976 7,902 - 9,878 -
Purchases of
available-for-sale
securities - - (14,778) - (65,748)
Proceeds from sales
or maturities of
available-for-sale
securities 9,867 1,501 12,027 29,545 133,948
Cash paid for
acquisitions, net of
cash acquired - - (4,827) - (18,311)
Cash paid for
investments in joint
ventures and other
non-public companies - - (2,000) - (24,625)
------- ------- ------- ------- -------
Net cash used in
investing
activities (129,830) (83,314) (91,004) (256,253)(167,191)
Cash flows from
financing activities:
Proceeds from
issuance of
long-term debt,
net of issuance
costs 54,701 29,773 - 137,735 -
Proceeds from
issuance of
convertible debt,
net of issuance
costs - 225,018 - 225,018 -
Proceeds from
offering of class A
common stock, net of
offering expenses (114) 218,895 - 218,781 -
Cash paid for
repurchased
convertible debt (7,687) (67,949) - (75,636) -
Cash paid for
purchased options - (97,336) - (97,336) -
Proceeds from
warrant transactions - 71,001 - 71,001 -
Proceeds from
exercise of
stock options 570 442 1,451 1,408 3,786
Excess tax benefits
from stock-based
award activity 12,134 2,610 19,260 14,744 33,899
Purchases of stock
for tax withholding
obligations on vested
restricted stock (586) (763) (1,659) (3,708) (5,853)
------- ------- ------- ------- -------
Net cash provided
by financing
activities 59,018 381,691 19,052 492,007 31,832
Effects of exchange rate
changes on cash and
equivalents 6,341 5,377 (8,273) 5,462 (1,166)
------- ------- ------- ------- -------
Net increase (decrease)
in cash and cash
equivalents 15,291 307,725 67,074 269,795 (28,598)
Cash and cash
equivalents
at beginning of period 456,835 149,110 189,542 202,331 285,214
------- ------- ------- ------- -------
Cash and cash
equivalents
at end of period $472,126 $456,835 $256,616 $472,126 $256,616
======= ======= ======= ======= =======
Non-cash transactions:
Additions to property,
plant and equipment
included in accounts
payable and other
accrued liabilities $- $- $42,942 $- $46,780
Non-cash interest
expense capitalized
and added to the
cost of qualified
assets 873 1,510 2,547 4,456 6,367
Issuance of common
stock for purchase
acquisition - 1,471 3,054 1,471 3,054
Change in goodwill
relating to adjustments
to acquired net assets - - - - 231
(In thousands, except per share data)
THREE MONTHS NINE MONTHS
ENDED ENDED
--------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
(Presented on a GAAP Basis)
Gross margin $89,284 $58,463 $105,313 $195,495 $251,348
Operating income $34,561 $9,855 $53,189 $41,917 $112,703
Net income per share
of class A and
class B common stock:
-Basic $0.14 $0.27 $0.30 $0.36 $0.84
-Diluted $0.13 $0.26 $0.29 $0.35 $0.80
THREE MONTHS NINE MONTHS
ENDED ENDED
--------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
(Presented on a non-GAAP Basis)
Gross margin $96,753 $67,128 $110,093 $215,745 $276,812
Operating income $52,146 $26,840 $73,259 $90,522 $179,961
Net income per share
of class A and
class B common stock:
-Basic $0.42 $0.25 $0.59 $0.75 $1.62
-Diluted $0.42 $0.24 $0.57 $0.73 $1.55
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 non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to its convertible debt offering, and the related tax effects of these non-GAAP adjustments. The specific non-GAAP measures listed below are gross margin, operating income and net income per share. Management believes that each of these non-GAAP measures (gross margin, operating income and net income 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 non-cash 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 amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense and a gain on purchased options related to its convertible debt offering. 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. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results 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.
o Non-GAAP gross margin. The use of this non-GAAP financial measure allows management to evaluate the gross margin of the company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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.
o Non-GAAP operating income. The use of this non-GAAP financial measure allows management to evaluate the operating results of the company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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 the company's core businesses and to compare results of operations on a more consistent basis against that of other companies in the industry.
o Non-GAAP net income per share. Management presents this non-GAAP financial measure to enable investors and analysts to assess the company's operating results and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense, a gain on purchased options related to its convertible debt offering 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. It should be noted that diluted weighted-average shares are determined on a GAAP basis and the resulting share count is used for computing both GAAP and Non-GAAP diluted net income per share.
Non-Cash Items
o Amortization of intangible assets. SunPower incurs amortization of intangible assets as a result of acquisitions, which includes in-process research and development, purchased technology, patents and tradenames. 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.
o 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.
o Impairment of long-lived assets. SunPower incurred an impairment of long-lived assets in the first quarter of fiscal 2008 totaling $5.5 million, which relates to the discontinuation of its imaging detector product line and for the write-off of certain solar manufacturing equipment which became obsolete due to new processes. The costs associated with a $3.3 million write-off of certain solar product manufacturing equipment were recovered from the vendor in the third quarter of fiscal 2008. SunPower excluded this item because the expense is not reflective of its ongoing operating 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 expenses such as impairment of long-lived assets.
o Non-cash interest expense. Under new accounting guidance, SunPower separately accounts for the liability and equity components of its convertible debt in a manner that reflects interest expense equal to its non-convertible debt borrowing rate. 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. 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.
o Gain on purchased options related to SunPower's convertible debt offering. In connection with the issuance of its 4.75% senior convertible debentures in May 2009, SunPower entered into certain convertible debenture hedge transactions with respect to its class A common stock intended to reduce the potential dilution that would occur upon conversion of the debentures. The convertible debenture hedge transactions consisting of call option instruments are deemed to be a mark-to-market derivative during the period in which the over-allotment option in favor of the debenture underwriters is unexercised. SunPower entered into the underwriting agreement on April 28, 2009 and the debenture underwriters exercised the over-allotment option on April 29, 2009. During the one-day period that the underwriters' over-allotment option was outstanding, SunPower's class A common stock price increased substantially. SunPower excluded the $21.2 million gain relating to the purchased options 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 non-cash income from a gain on purchased options.
o 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 per share.
For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP results of operations 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
-------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
GAAP gross margin $89,284 $58,463 $105,313 $195,495 $251,348
Amortization of
intangible assets 2,802 2,795 2,947 8,390 9,066
Stock-based
compensation expense 4,302 4,630 4,875 9,755 13,718
Impairment of
long-lived assets - - (3,286) - 2,203
Non-cash interest expense 365 1,240 244 2,105 477
------ ------ ------- ------- -------
Non-GAAP gross margin $96,753 $67,128 $110,093 $215,745 $276,812
====== ====== ======= ======= =======
GAAP operating income $34,561 $9,855 $53,189 $41,917 $112,703
Amortization of
intangible assets 4,146 4,098 4,201 12,296 12,552
Stock-based
compensation expense 13,074 11,647 18,911 34,204 52,026
Impairment of
long-lived assets - - (3,286) - 2,203
Non-cash interest expense 365 1,240 244 2,105 477
------ ------ ------- ------- -------
Non-GAAP operating income $52,146 $26,840 $73,259 $90,522 $179,961
====== ====== ======= ======= =======
NET INCOME PER SHARE:
THREE MONTHS ENDED NINE MONTHS ENDED
-------------------------- ----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Basic:
GAAP net income per share $0.14 $0.27 $0.30 $0.36 $0.84
Reconciling items:
Amortization of
intangible assets 0.04 0.04 0.05 0.14 0.16
Stock-based
compensation expense 0.13 0.13 0.23 0.38 0.64
Impairment of
long-lived assets - - (0.04) - 0.03
Non-cash interest expense 0.06 0.06 0.05 0.18 0.16
Gain on purchased options - (0.23) - (0.24) -
Tax effect 0.05 (0.02) - (0.07) (0.21)
------ ------ ------- ------- -------
Non-GAAP net
income per share $0.42 $0.25 $0.59 $0.75 $1.62
====== ====== ======= ======= =======
Diluted:
GAAP net income per share $0.13 $0.26 $0.29 $0.35 $0.80
Reconciling items:
Amortization of
intangible assets 0.04 0.04 0.05 0.13 0.15
Stock-based
compensation expense 0.14 0.11 0.22 0.37 0.62
Impairment of
long-lived assets - - (0.04) - 0.03
Non-cash interest expense 0.06 0.06 0.05 0.18 0.15
Gain on purchased options - (0.21) - (0.23) -
Tax effect 0.05 (0.02) - (0.07) (0.20)
------ ------ ------- ------- -------
Non-GAAP net income
per share $0.42 $0.24 $0.57 $0.73 $1.55
====== ====== ======= ======= =======
Weighted-average shares:
GAAP net income per share:
- Basic 94,668 90,873 80,465 89,764 79,614
- Diluted 96,319 98,412 84,064 91,513 83,477
Non-GAAP net income per share:
- Basic 94,668 90,873 80,465 89,764 79,614
- Diluted 96,319 98,412 84,064 91,513 83,477
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
September 27, 2009
------------------
Gross Margin Selling, Interest
Research general and other
and and income
Compo- develop- admini- (expense), Income tax
Systems nents ment strative net provision
------- ----- ------ -------- ------ ---------
Amortization
of intangible
assets $1,841 $961 $- $1,344 $- $-
Stock-based
compensation
expense 1,494 2,808 1,736 7,036 - -
Non-cash
interest
expense 87 278 - - 4,885 -
Tax effect - - - - - 4,969
----- ----- ----- ----- ----- -----
$3,422 $4,047 $1,736 $8,380 $4,885 $4,969
===== ===== ===== ===== ===== =====
June 28, 2009
-------------
Gross Margin Selling, Interest
Research general and other
and and income
Compo- develop- admini- (expense), Income tax
Systems nents ment strative net provision
------- ----- ------ -------- ------ ---------
Amortization
of intangible
assets $1,841 $954 $- $1,303 $- $-
Stock-based
compensation
expense 1,474 3,156 1,482 5,535 - -
Non-cash
interest
expense 347 893 - - 4,675 -
Gain on
purchased
options - - - - (21,193) -
Tax effect - - - - - (1,873)
----- ----- ----- ----- ----- -----
$3,662 $5,003 $1,482 $6,838 $(16,518) $(1,873)
===== ===== ===== ===== ===== =====
September 28, 2008
------------------
Gross Margin Selling, Interest
Research general and other
and and income
Compo- develop- admini- (expense), Income tax
Systems nents ment strative net provision
------- ----- ------ -------- ------ ---------
Amortization
of intangible
assets $1,841 $1,106 $- $1,254 $- $-
Stock-based
compensation
expense 2,911 1,964 987 13,049 - -
Impairment of
long-lived
assets (1,343) (1,943) - - - -
Non-cash
interest
expense 100 144 - - 3,794 -
Tax effect - - - - - (337)
----- ----- ----- ----- ----- -----
$3,509 $1,271 $987 $14,303 $3,794 $(337)
===== ===== ===== ===== ===== =====
NINE MONTHS ENDED
September 27, 2009
------------------
Gross Margin Selling, Interest
Research general and other
and and income
Compo- develop- admini- (expense), Income tax
Systems nents ment strative net provision
------- ----- ------ -------- ------ ---------
Amortization
of intangible
assets $5,523 $2,867 $- $3,906 $- $-
Stock-based
compensation
expense 3,266 6,489 4,649 19,800 - -
Non-cash
interest
expense 664 1,441 - - 14,081 -
Gain on
purchased
options - - - - (21,193) -
Tax effect - - - - - (6,451)
----- ----- ----- ----- ----- -----
$9,453 $10,797 $4,649 $23,706 $(7,112) $(6,451)
===== ===== ===== ===== ===== =====
September 28, 2008
------------------
Gross Margin Selling, Interest
Research general and other
and and income
Compo- develop- admini- (expense), Income tax
Systems nents ment strative net provision
------- ----- ------ -------- ------ ---------
Amortization
of intangible
assets $5,850 $3,216 $- $3,486 $- $-
Stock-based
compensation
expense 7,661 6,057 2,770 35,538 - -
Impairment of
long-lived
assets - 2,203 - - - -
Non-cash
interest
expense 201 276 - - 12,240 -
Tax effect - - - - - (16,591)
----- ----- ----- ----- ----- -----
$13,712 $11,752 $2,770 $39,024 $12,240 $(16,591)
===== ===== ===== ===== ===== =====
First Call Analyst:
FCMN Contact:
SOURCE: SunPower Corp.
CONTACT: Investors, Bob Okunski, +1-408-240-5447,
Bob.Okunski@sunpowercorp.com
Web Site: http://www.sunpowercorp.com/