For fiscal year 2011, the company projects revenues to be in the range of
"The definitive sale agreement signed with
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 2010 Analyst Day on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpowercorp.com/events.cfm.
Editors' Note:
The capacity of power plants in this release is described in approximate megawatts on a direct current (DC) basis unless otherwise noted. On an alternating current (AC) basis, the Solare Roma power plants is approximately 13-megawatts in total, and the final phases of the Montalto solar park is 44 megawatts.
About
Founded in 1985,
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 "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) the forecasted revenues, GAAP and non-GAAP gross margin, and GAAP and non-GAAP EPS for 2011; (b) sale of Solare Roma power plant expected to be completed by the end of 2010 and the company's providing ongoing operations and maintenance services; (c) the completion of financing of the final phase of Montalto solar plants by the end of 2010; and (d) the company meeting its fourth quarter 2010 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) potential difficulties associated with operating the joint venture with AUO and integrating the SunRay business, and the company's ability to achieve the anticipated synergies and manufacturing benefits from these transactions; (ii) 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; (iii) general business and economic conditions, including seasonality of the industry; (iv) growth trends in the solar power industry; (v) the continuation of governmental and related economic incentives promoting the use of solar power, particularly such incentives affecting the markets in which the company sells solar panels and constructs commercial systems and power plants; (vi) the significant investment required to construct power plants and the company's ability to sell or otherwise monetize power plants; (vii) the improved availability of financing arrangements for the company's utilities projects, including for the Montalto power plants, and the company's customers; (viii) construction difficulties or potential delays, including obtaining land use rights, permits, license, other governmental approvals, and transmission access and upgrades; (ix) increasing competition in the industry and lower average selling prices; (x) the joint venture's ability to ramp new production lines in Fab 3 and the company's ability to realize expected manufacturing efficiencies throughout its manufacturing operations; (xi) manufacturing difficulties that could arise; (xii) the success of the company's ongoing research and development efforts and the acceptance of the company's new products and services; (xiii) the company's international operations; (xiv) the company's liquidity, substantial indebtedness, and its ability to obtain additional financing; (xv) the company's ability to protect its intellectual property; (xvi) evolving regional permitting, financing, grid interconnection, technical, and other customer or regulatory requirements, and the company's ability to satisfy such requirements; (xvii) unanticipated problems with deploying solar systems on the sites; (xviii) possible impairment of goodwill; (xix) possible consolidation of the joint venture AUO SunPower; and (xx) other risks described in the company's Annual Report on Form 10-K for the year ended January 3, 2010 and Quarterly Report on Form 10-Q for the quarter ended October 3, 2010, 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.
About
To supplement its consolidated financial forecasts presented in accordance with GAAP,
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 charges including amortization of intangible assets, stock-based compensation and interest expense. 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
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 and promissory notes, stock-based compensation, interest expense, and the tax effects of these non-GAAP adjustments. In addition, investors and analysts can compare
Non-Cash Items
o Amortization of intangible assets.
o Stock-based compensation. Stock-based compensation relates primarily to
o Amortization of promissory notes. Included in the total consideration for the acquisition of SunRay completed on
o Non-cash interest expense.
In addition,
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 Forecast to Non-GAAP Forecast" set forth at the end of this release.
SUNPOWER CORPORATION |
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RECONCILIATIONS OF GAAP FORECAST TO NON-GAAP FORECAST |
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(Unaudited) |
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STATEMENT OF OPERATIONS DATA: |
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2011 |
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(As a percentage of revenue) |
Forecast |
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GAAP total gross margin |
19%-21% |
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Non-GAAP total gross margin (a) |
20%-22% |
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(a) Estimated non-GAAP amounts above reflect adjustments that exclude the estimated amortization of intangible assets of $0.3-$0.5 million, estimated stock-based compensation expense of $18.0-$18.2 million and estimated non-cash interest expense of $2.7-$3.0 million. |
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2011 |
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Forecast |
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GAAP diluted net income per share |
$0.35-$0.65 |
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Non-GAAP diluted net income per share (b) |
$1.75-$2.05 |
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(b) Estimated non-GAAP amounts above reflect adjustments that exclude the estimated amortization of intangible assets of $0.28-$0.29 and promissory notes of $0.03, estimated stock-based compensation expense of $0.63, estimated non-cash interest expense of $0.28-$0.31, and the related tax effects of $0.15. In addition, weighted average shares is not calculated under the if-converted method. |
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SOURCE
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