SAN JOSE, Calif., June 5, 2008 - In response to San Jose Mayor Chuck Reed's challenge to solar companies to create opportunities for more San Jose homeowners to install solar electric power systems, SunPower Corporation (Nasdaq: SPWR) today announced that San Jose, Calif., residents who finance SunPower solar systems through a SunPower financing partner are not required to pay an initial deposit. SunPower, a San Jose-based manufacturer of high-efficiency solar cells, solar panels and solar systems, is making this offer available through the company's premier dealer network, starting today through September 1, 2008.
San Jose homeowners wishing to take advantage of the offer should call 1.877.SUN.0123 , or visit www.sunpowercorp.com. Interested parties will receive a return phone call from a SunPower premier dealer in their area, who will work with SunPower financing partners, such as New Resource Bank of San Francisco, to provide information on financing options and applicable terms and conditions. New Resource Bank and other SunPower financing partners can offer qualified homeowners financing for 100 percent of the purchase, making a SunPower solar system even more affordable.
"SunPower offers the most efficient solar power systems on the market today. Generating up to 50 percent more power than conventional systems, a SunPower system can greatly reduce a homeowner's electricity bill and significantly reduce their impact on the environment," said Julie Blunden, vice president at SunPower. "We are very pleased to be working with our premier dealers and financing partners to respond to the Mayor's challenge and offer our residential systems with no upfront deposit required."
SunPower Corporation (Nasdaq: SPWR) designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers. SunPower high-efficiency solar cells and solar panels generate up to 50 percent more power than conventional solar technologies and have a uniquely attractive, all-black appearance. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe and Asia. For more information, visit www.sunpowercorp.com. SunPower is a majority-owned subsidiary of Cypress Semiconductor Corp. (NYSE: CY).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not represent historical facts. The company uses words and phrases such as "will," "to serve," "to meet," intend," "expected," "believe," "plan," "expect," "to achieve," "to realize," "to increase," and similar expressions to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the company's plans and expectations regarding (a) the company's first meaningful reduction in average silicon cost, during the second fiscal quarter of 2008, contributing to the company's estimated 510 to 610 basis point improvement in Component segment's gross margin; (b) SunPower's market leadership continuing to be driven through the company's focus on brand, technology, cost and people; © the company's vertical integration strategy providing visibility and flexibility to serve a variety of end-markets, responding quickly to both new market opportunities as well as risks; (d) the company meeting the needs of the market with industry-leading solar technology across the entire customer spectrum; (e) the company leveraging its proprietary technology by aggressively expanding its solar cell production by more than 150% in 2008 compared to 2007; (f) unit cost reduction being driven by scale, combined with lower silicon costs, higher efficiencies, thinner wafers and on-going quality and cost improvements in the company's factories; (g) capacity ramp at Fab 2 completing by the end of 2009; (h) 100% of solar cell lines using thinner wafers by year-end 2008; (i) 100% of the company's solar cell production being secured with contracted silicon through 2010; (j) the company's future silicon supply expectations and capacity expansion plans, (k) the company's silicon supply costs declining by approximately 10% during 2008 compared to 2007; (l) cost improvements amplifying the company's silicon utilization benefits achieved through higher cell efficiency and thinner wafers; (m) the company's achieving its planned improvements in its cost structure; (n) the company reaching its target financial model of 30% gross margin, 10% operating expenses and 20% operating margin, on a non-GAAP basis, no later than the first quarter of 2009; (o) the company realizing its mission of reducing installed systems costs by 50% by 2012; (p) the company achieving certain GAAP and non-GAAP results, including (1) total revenue and diluted net income per share for fiscal year 2008, (2) total revenue for fiscal year 2009, (3) total revenue, gross margin, and diluted net income per share for the second quarter of fiscal year 2008, (4) the average tax rate for 2008, and (5) Components segment and Systems segment revenue and gross margin for the second quarter of fiscal year 2008; and (q) the Components segment benefiting from the continued manufacturing ramp of the company's next-generation technology and lower silicon cost and the Systems segment benefiting from an increase in allocation of SunPower panels to the segment during the second quarter of fiscal year 2008. These forward-looking statements are based on information available to the company as of the date of this release and management's current expectations, forecasts and assumptions, and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond the company's control. In particular, risks and uncertainties that could cause actual results to differ include (i) the company's ability to obtain a adequate supply of polysilicon, ingots and wafers to manufacture its products and the price it pays for such materials; (ii) business and economic conditions and growth trends in the solar power industry; (iii) the continuation of governmental and related economic incentives promoting the use of solar power; (iv) increases in the available supply of third party solar panels, (v) the continued availability of third-party financing arrangements for the company's customers; (vi) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (vii) unforeseen manufacturing equipment delays at the company's fabrication facilities and panel factories; (viii) the company's ability to utilize thinner wafers, reduce kerf loss and otherwise achieve anticipated improvements in polysilicon usage efficiency; (ix) production difficulties that could arise; (x) the success of the company's ongoing research and development efforts; (xi) the company's ability to compete with other companies and competing technologies; (xii) the potential renegotiation of or non-performance by parties to the company's supply and customer contracts; (xiii) the price and availability of third-party cells and solar panels; (xiv) liquidated damages or customer refunds for late installations arising on large scale solar projects (xv) unanticipated changes in the mix of balance of systems sales; and (xvi) other risks described in the company's Quarterly Report on Form 10-Q for the quarter ended March 30, 2008, 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 is a registered trademark of SunPower Corp. Cypress is a registered trademark of Cypress Semiconductor Corp. All other trademarks are the property of their respective owners.