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Solar PV Corporate News Release
Panasonic Solar Promotes First Group of Authorized Installers to Premium Level
Jul 26, 2017
Benefiting from the Leading Edge Technology, TZS Announced Mono-Crystalline Wafer Price Modification
Jul 18, 2017
Canadian Solar Reports First Quarter 2017 Results
Jun 06, 2017
JinkoSolar Announces First Quarter 2017 Financial Results
Jun 05, 2017
Hanwha Q CELLS Reports
May 25, 2017
JA Solar Announces First Quarter 2017 Results
May 24, 2017
Yingli Green Energy Reports Fourth Quarter and Full Year 2016 Results
Apr 13, 2017
Hanwha Q CELLS Reports Fourth Quarter and Full Year 2016 Results
Mar 23, 2017
JA Solar Announces Fourth Quarter and Fiscal Year 2016 Results
Mar 16, 2017
Higher yield of solar wafers and enhanced solar cell efficiency with new HeraGlaze coating by Heraeus
Mar 01, 2017
Heraeus enables significant higher efficiency gains with three new metallization pastes
Mar 01, 2017
First Solar, Inc. Announces Fourth Quarter & Full Year 2016 Financial Results
Feb 22, 2017
SunPower Reports Fourth Quarter 2016 Results
Feb 16, 2017
Trina Solar Announces Third Quarter 2016 Results
Nov 23, 2016
Canadian Solar Reports Third Quarter 2016 Results
Nov 21, 2016
JASolar Announces Third Quarter 2016 Financial Results
Nov 17, 2016
JinkoSolar Announces Third Quarter 2016 Financial Results
Nov 16, 2016
SunPower Reports Third Quarter 2016 Results
Nov 10, 2016
First Solar, Inc. Announces Third Quarter 2016 Financial Results
Nov 03, 2016
Hanwha Q CELLS Reports Second Quarter 2016 Results
Aug 23, 2016
Yingli Green Energy Reports Second Quarter 2016 Results
Aug 23, 2016
Canadian Solar Reports Second Quarter 2016 Results
Aug 18, 2016
JA Solar Announces Second Quarter 2016 Results
Aug 17, 2016
SunPower Reports Second Quarter 2016 Results
Aug 10, 2016
First Solar, Inc. Announces Second Quarter 2016 Financial Results
Aug 04, 2016
First Solar, Inc. Announces First Quarter 2016 Financial Results
Apr 27, 2016
JinkoSolar Announces Fourth Quarter and Full Year 2015 Financial Results
Mar 01, 2016
First Solar, Inc. Announces Fourth Quarter & Full Year 2015 Financial Results
Feb 24, 2016
SunPower Corp. announced financial results for its fourth quarter and fiscal year ended Jan. 3, 2016
Feb 18, 2016
Trina Solar Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company
Dec 14, 2015
Hanwha Q CELLS Reports Third Quarter 2015 Results
Nov 19, 2015
JinkoSolar Announces Third Quarter 2015 Financial Results
Nov 19, 2015
JA Solar Announces Third Quarter 2015 Results
Nov 17, 2015
SunPower Announces Fiscal Year 2016 Guidance
Nov 12, 2015
SunEdison Reports Third Quarter 2015 Results
Nov 10, 2015
Canadian Solar Reports Third Quarter 2015 Results
Nov 10, 2015
Yingli Green Energy Reports Second Quarter 2015 Results
Sep 08, 2015
Hanwha Q CELLS Reports Second Quarter 2015 Results
Aug 27, 2015
TSMC to Cease Solar Manufacturing Operations
Aug 25, 2015
JinkoSolar Announces Better-Than-Expected Second Quarter 2015 Financial Results
Aug 20, 2015
Trina Solar Announces $43.1 million of Net Profits for Second Quarter 2015 Results
Aug 18, 2015
First Solar, Inc. Announces Second Quarter 2015 Financial Results with $896 million of Net sales.
Aug 05, 2015
Sunpower announced financial results of 377 million net profits for its second fiscal quarter ended June 28, 2015.
Jul 29, 2015
8point3 Energy Partners LP, a YieldCo Formed by First Solar, Inc. and SunPower Corporation, Announces Pricing of its Ini
Jun 19, 2015
JA Solar and Essel Infraprojects Limited Sign MOU on 500MW PV Joint Venture
May 25, 2015
First Solar, Inc. Announces First Quarter 2015 Financial Results with net loss of USD 62 million
May 01, 2015
Israeli Parliament Solar Project Adopts JA Solar Modules
Apr 07, 2015
JA Solar Supplies Modules Again to First Large-Scale Solar Farm in Central America
Mar 16, 2015
Hyundai offers compact 250W high-performance modules for UK rooftop market
Mar 12, 2015
JA Solar Launching 1500V PV Module
Mar 09, 2015
Trina Solar Announces New Efficiency Records for Silicon Solar Cells
Mar 05, 2015
Canadian Solar Reports Fourth Quarter and Full Year 2014 Results
Mar 05, 2015
JA Solar Makes Breakthrough in South Pacific Market in 2014
Feb 05, 2015
First Solar Achieves Efficiency, Durability Milestones
Feb 05, 2015
JA Solar Reaches 100MWp of PV Module Shipments to Solarcentury for UK Projects in 2014
Jan 05, 2015
JA Solar Supplies 100MW of Modules to First Large-Scale Solar Farm in Pakistan
Jan 05, 2015
Hanwha Solarone Files Shareholder Circular for Acquisition of Hanwha Q CELLS
Dec 29, 2014
Motech and Topcell Announced the Signing of Merger Agreement
Dec 26, 2014
JA Solar Supplies 100MW of Modules to First Large-Scale Solar Farm in Pakistan
Dec 08, 2014
Yingli Green Energy Reports Third Quarter 2014 Results
Nov 25, 2014
Trina Solar Announces Third Quarter 2014 Results
Nov 24, 2014
Hanwha SolarOne Reports Third Quarter 2014 Results
Nov 21, 2014
JA Solar Announces Third Quarter 2014 Results
Nov 19, 2014
Trina Solar Announces New Efficiency Records for Silicon Solar Cells
Nov 17, 2014
JA Solar Sets Power Output Record of over 280W for Multi-Si 60-cells Solar Modules
Nov 17, 2014
SunPower Announces Fiscal Year 2015 Guidance
Nov 13, 2014
WINAICO launches patented micro-crack preventing HeatCap technology at PV Taiwan
Oct 22, 2014
Trina Solar Announces Fourth Quarter and Full Year 2014 Results
Jan 01, 1970
The USD appreciation pushes down the price of mono PV components

SunPower Reports Third Quarter 2016 Results

SAN JOSE, Calif., Nov. 9, 2016 - SunPower Corp. (NASDAQ:SPWR) today announced financial results for its third quarter ended October 2, 2016 and significant cost reduction initiatives to position the company for sustained profitability.

 ($ Millions, except percentages and per-share data)

3rd Quarter

2016

2nd Quarter

2016

3rd Quarter

2015

GAAP revenue

$729.3

$420.5

$380.2

GAAP gross margin

17.7%

9.8%

16.5%

GAAP net loss

($40.5)

($70.0)

($56.3)

GAAP net loss per diluted share

($0.29)

($0.51)

($0.41)

Non-GAAP revenue1

$770.1

$401.8

$441.4

Non-GAAP gross margin1

20.0%

13.1%

17.7%

Non-GAAP net income (loss)1

$97.0

($30.1)

$20.5

Non-GAAP net income (loss) per diluted share1

$0.68

($0.22)

$0.13

Adjusted EBITDA1

$148.2

$29.9

$54.2

 

1Information about SunPower's use of non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP Financial Measures" below.

 "Our solid third quarter results reflect continued execution of our diversified downstream strategy as we met or exceeded our key financial targets for the quarter," said Tom Werner, SunPower president and CEO. "During the quarter, we continued to see strong demand for our SunPower Equinox residential complete solution while further building out our Helix™ solution footprint in the commercial space. We also executed on our construction commitments in our power plant segment, including the sale of our 49 percent ownership stake in our 102-megawatt (MW) Henrietta project to 8point3™ Energy Partners, and launched our third-generation Oasis® power plant complete solution that seamlessly integrates both hardware and software to maximize energy production at a given site. Operationally, we met our goals on yield and panel output and are pleased with the ramp of our P-Series product which benefits from the decline in industry cell pricing.

"While prospects for long term solar industry growth remain strong, we are seeing a significant near term market dislocation in the solar market that we expect will impact our financial performance through 2017. Our core strategy of developing innovative, complete customer solutions based on differentiated technology and deploying these solutions across a diversified portfolio of applications and geographic markets remains unchanged. However, given the current market environment, we have made the decision to implement a companywide cost reduction program, along with other proactive strategic initiatives, to focus on improving cash flow through the current market dislocation while positioning the company to succeed in the next phase of industry growth. We intend to conclude our cost reduction analysis in the near future and will formally announce our restructuring program on December 7, 2016."  

The company will implement the following initiatives:  

Reduce capacity to lower inventory, improve cash flow and match to profitable demand

Cost reduction programs that are expected to improve margins and reduce 2017 annual operating expenses to approximately $350 million

Target 2017 capital expenditures of approximately $100 million, a reduction of more than 50 percent compared to 2016

Initiatives to improve liquidity with the goal of generating positive cash flow from operations through the end of 2017 and exiting the year with approximately $300 million in cash

SunPower will host a conference call on December 7, 2016 to provide additional details related to the cost initiatives listed above, estimated charges related to its expected restructuring program and to provide 2017 guidance.

Total and SunPower have also agreed to deepen their solar market cooperation through a number of strategic initiatives, including the signing of a four-year, up to 200-MW supply agreement to support the solarization of Total facilities around the world. This agreement covers the supply of 150 MW of E-series panels with an option to purchase up to another 50 MW of P-Series panels, and includes pre-payment in the amount of approximately $90 million. Also, the companies are currently in discussions to expand their global power plant partnership to include potential Total project ownership opportunities in such markets as Japan, South Africa and France.

"With this cost reduction program, as well as continued strong support from Total, we believe we will be able to reduce our cost structure, more prudently allocate our product and technology investments, appropriately size our manufacturing to balance production with near term demand, and improve cash flow," continued Werner. "Combined with our realignment initiatives announced last quarter, we believe we will be well positioned for sustained profitability when market conditions improve."

"While we are pleased with our third quarter performance, we felt it was important to be proactive in positioning the company to address the difficult near term industry conditions," said Chuck Boynton, SunPower chief financial officer. "We are very focused on prudently managing our working capital and maximizing cost reduction to improve cash flow and fund our strategic plans. We believe that these initiatives will position us well to capitalize on long term industry growth."

Additionally, third quarter fiscal 2016 non-GAAP results include net adjustments that, in the aggregate, decreased non-GAAP net loss by $137.6 million, including $19.3 million related to 8point3 Energy Partners, $2.1 million related to sale of operating lease assets, $15.9 million related to stock-based compensation expense, $3.0 million related to amortization of intangible assets, $57.8 million related to goodwill impairment, $31.2 million related to restructuring expense, $0.6 million related to other adjustments, and $7.7 million related to tax effect.

Financial Outlook

As a result of near-term industry conditions and its announced cost reduction program, the company is updating its 2016 financial guidance. Specifically, the company continues to expect above market growth in its residential business but anticipates a slight moderation of the previously forecasted rate of this growth in this segment for the fourth quarter. Additionally, fourth quarter performance in the commercial segment will be impacted by the timing of certain public sector projects which have been delayed until the first half of 2017. In power plant, the pricing environment remains challenging and the company's focus is to deliver more than 400 MW of committed projects by the end of 2016. Operationally, the company expects its fiscal year 2016 performance to reflect higher than expected factory underutilization charges resulting from additional capacity reductions as well as the impact from its current cost reduction initiatives.

On a GAAP basis, the company now expects 2016 revenue of $2.43 billion to $2.63 billion, gross margin of 8 percent to 10 percent and net loss of $295 million to $320 million. Fiscal year 2016 GAAP guidance includes the impact of the company's HoldCo asset strategy and revenue and timing deferrals due to real estate accounting, but excludes the impact of any charges related to the company's planned cost reduction initiatives. 

The company's updated 2016 non-GAAP financial guidance is as follows:  revenue of $2.6 billion to $2.8 billion, gross margin of 9 percent to 11 percent, Adjusted EBITDA of $185 million to $210 million, capital expenditures of $220 million to $240 million and gigawatts (GW) deployed in the range of 1.325 GW to 1.355 GW.  

The company's fourth quarter fiscal 2016 GAAP guidance is as follows: revenue of $0.9 billion to $1.1 billion, gross margin of zero percent to 2 percent and net loss of $100 million to $125 million. Fourth quarter 2016 GAAP guidance includes the impact of the company's HoldCo asset strategy and revenue and timing deferrals due to real estate accounting, but excludes the impact of any charges related to the company's planned cost reduction initiatives. On a non-GAAP basis, the company expects revenue of $1.0 billion to $1.2 billion, gross margin of 1 percent to 3 percent, Adjusted EBITDA of $0 to $25 million and megawatts deployed in the range of 235 MW to 265 MW. 

In light of the circumstances noted above, the company's previously issued 2017 guidance should no longer be considered current. The company expects to issue revised 2017 guidance once its restructuring proposal is finalized and announced in December.

The company will host a conference call for investors this afternoon to discuss its third quarter 2016 performance at 1:30 p.m. Pacific Time.  The call will be webcast and can be accessed from SunPower's website at http://investors.sunpower.com/events.cfm.

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 2016 performance on the Events and Presentations section of SunPower's Investor Relations page at http://investors.sunpower.com/events.cfm.  The capacity of power plants in this release is described in approximate megawatts on a direct current (dc) basis unless otherwise noted.

About SunPower

As one of the world's most innovative and sustainable energy companies, SunPower Corp. (NASDAQ:SPWR) provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower's more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, and North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) our positioning for future success, gains in market share, competitive advantage, and our ability to succeed in the next phase of industry growth and profitably capitalize on future market growth; (b) our expectations for the solar industry and the markets we serve, including near-term market conditions, the long-term fundamentals for solar power, and prospects for long-term industry growth; (c) our plans to develop and implement a company-wide cost reduction program; (d) our expectations for the timing, success and financial impact of our planned cost reduction and other initiatives, and our expected restructuring program, including impact on our balance sheet, long-term cash flow and annual operating expenses; (e) our ability to reduce costs, match capacity to profitable demand, lower inventory, improve cash flow, reduce capital expenditures, improve liquidity, allocate investments, appropriately size our manufacturing, manage our working capital, and fund our strategic plans, and to meet any of our goals in respect of any of the foregoing measures; (f) our project pipeline;  (g) 8point3's role within our company strategy; (h) the ramp of our Helix solution and P-Series products; (i) our ability to productively expand our cooperation and partnership with Total; (j) our fourth quarter fiscal 2016 guidance, including GAAP revenue, gross margin, and net income (loss), as well as non-GAAP revenue, gross margin, Adjusted EBITDA, and MW deployed; and (k) full year fiscal 2016 guidance, including GAAP revenue, gross margin and net loss, as well as non-GAAP revenue, gross margin, capital expenditures, Adjusted EBITDA, and gigawatts deployed.  These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (3) regulatory changes and the availability of economic incentives promoting use of solar energy; (4) challenges inherent in constructing certain of our large projects; (5) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (6) fluctuations in our operating results; (7) maintaining or increasing our manufacturing capacity and containing manufacturing difficulties that could arise; (8) challenges managing our joint ventures and partnerships; (9) challenges executing on our HoldCo and YieldCo strategies, including the risk that 8point3 Energy Partners may be unsuccessful; (10) fluctuations or declines in the performance of our solar panels and other products and solutions; (11) our ability to identify and successfully implement concrete actions to meet our cost reduction targets, reduce capital expenditures, and implement the planned realignment of our manufacturing operations and power plant segment; and (12) the outcomes of previously disclosed litigation.  A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."  Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com.  All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

©2016 SunPower Corporation. All rights reserved. SUNPOWER, the SUNPOWER logo, HELIX and OASIS are trademarks or registered trademarks of SunPower Corporation in the U.S. and other countries as well. Other marks are the property of their respective owners.

 

SUNPOWER CORPORATION

 CONSOLIDATED BALANCE SHEETS 

 (In thousands) 

 (Unaudited) 

Oct. 2,

Jan. 3,

2016

2016

Assets

Current assets:

Cash and cash equivalents

$            383,868

$            954,528

Restricted cash and cash equivalents, current portion

27,476

24,488

Accounts receivable, net

223,836

190,448

Costs and estimated earnings in excess of billings

25,399

38,685

Inventories

447,114

382,390

Advances to suppliers, current portion

72,968

85,012

Project assets - plants and land, current portion

828,842

479,452

Prepaid expenses and other current assets

336,683

359,517

Total current assets

2,346,186

2,514,520

Restricted cash and cash equivalents, net of current portion

51,615

41,748

Restricted long-term marketable securities

-

6,475

Property, plant and equipment, net

1,125,014

731,230

Solar power systems leased and to be leased, net

618,755

531,520

Project assets - plants and land, net of current portion

111,282

5,072

Advances to suppliers, net of current portion

241,126

274,085

Long-term financing receivables, net

471,334

334,791

Goodwill and other intangible assets, net

46,965

119,577

Other long-term assets

84,393

297,975

Total assets

$         5,096,670

$         4,856,993

Liabilities and Equity

Current liabilities:

Accounts payable

$            515,775

$            514,654

Accrued liabilities

280,032

313,497

Billings in excess of costs and estimated earnings

99,465

115,739

Short-term debt

535,226

21,041

Customer advances, current portion

12,669

33,671

Total current liabilities

1,443,167

998,602

Long-term debt

455,769

478,948

Convertible debt

1,112,813

1,110,960

Customer advances, net of current portion

296

126,183

Other long-term liabilities

656,013

564,557

Total liabilities

3,668,058

3,279,250

Redeemable noncontrolling interests in subsidiaries

102,242

69,104

Equity:

Preferred stock

-

-

Common stock

138

137

Additional paid-in capital

2,407,764

2,359,917

Accumulated deficit

(943,563)

(747,617)

Accumulated other comprehensive loss

(12,847)

(8,023)

Treasury stock, at cost

(176,219)

(155,265)

Total stockholders' equity

1,275,273

1,449,149

Noncontrolling interests in subsidiaries

51,097

59,490

Total equity

1,326,370

1,508,639

Total liabilities and equity

$         5,096,670

$         4,856,993

 

SUNPOWER CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27, 

Oct. 2,

Sep. 27, 

2016

2016

2015

2016

2015

Revenue:

Residential 

$           170,345

$           177,715

$           163,563

$           499,867

$           471,092

Commercial

139,954

97,846

84,983

290,041

197,030

Power Plant

419,047

144,891

131,672

744,765

533,987

Total revenue

729,346

420,452

380,218

1,534,673

1,202,109

Cost of revenue:

Residential 

138,836

138,959

126,411

395,955

366,162

Commercial

132,618

89,523

72,337

267,367

178,059

Power Plant

328,684

150,676

118,826

649,312

433,545

Total cost of revenue

600,138

379,158

317,574

1,312,634

977,766

Gross margin

129,208

41,294

62,644

222,039

224,343

Operating expenses:

Research and development

28,153

31,411

24,973

92,270

66,701

Selling, general and administrative

80,070

84,683

81,109

262,544

239,843

Restructuring charges

31,202

117

726

31,415

6,056

Total operating expenses

139,425

116,211

106,808

386,229

312,600

Operating loss

(10,217)

(74,917)

(44,164)

(164,190)

(88,257)

Other income (expense), net:

Interest income

630

806

448

2,133

1,498

Interest expense

(15,813)

(13,950)

(8,796)

(42,644)

(32,994)

Gain on settlement of preexisting relationships in connection with acquisition

203,252

-

-

203,252

-

Loss on equity method investment in connection with acquisition

(90,946)

-

-

(90,946)

-

Goodwill impairment

(147,365)

-

-

(147,365)

-

Other, net

(5,169)

(5,822)

(3,601)

(17,223)

8,761

Other expense, net

(55,411)

(18,966)

(11,949)

(92,793)

(22,735)

Loss before income taxes and equity in earnings of unconsolidated investees

(65,628)

(93,883)

(56,113)

(256,983)

(110,992)

Provision for income taxes

(7,049)

(6,648)

(36,224)

(16,878)

(37,916)

Equity in earnings of unconsolidated investees

16,770

8,350

5,052

24,356

9,107

Net loss  

(55,907)

(92,181)

(87,285)

(249,505)

(139,801)

  Net loss attributable to noncontrolling interests and redeemable noncontrolling interests

15,362

22,189

30,959

53,559

80,403

Net loss attributable to stockholders

$           (40,545)

$           (69,992)

$           (56,326)

$         (195,946)

$           (59,398)

Net loss per share attributable to stockholders:

- Basic

$               (0.29)

$               (0.51)

$               (0.41)

$                (1.42)

$                (0.44)

- Diluted

$               (0.29)

$               (0.51)

$               (0.41)

$                (1.42)

$                (0.44)

Weighted-average shares:

- Basic

138,209

138,084

136,473

137,832

134,294

- Diluted

138,209

138,084

136,473

137,832

134,294

 

SUNPOWER CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

Cash flows from operating activities:

Net loss

$           (55,907)

$           (92,181)

$      (87,285)

$         (249,505)

$         (139,801)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

39,827

40,898

37,364

122,842

97,369

Stock-based compensation

15,907

16,475

14,898

48,902

42,484

Non-cash interest expense

308

309

517

963

5,768

Non-cash restructuring charges

17,926

-

-

17,926

-

Gain on settlement of preexisting relationships in connection with acquisition

(203,252)

-

-

(203,252)

-

Loss on equity method investment in connection with acquisition

90,946

-

-

90,946

-

Goodwill impairment

147,365

-

-

147,365

-

Equity in earnings of unconsolidated investees

(16,770)

(8,350)

(5,052)

(24,356)

(9,107)

Excess tax benefit from stock-based compensation

(1,222)

-

(18,363)

(1,222)

(25,090)

Deferred income taxes

1,210

2,018

26,115

2,059

25,748

Gain on sale of residential lease portfolio to 8point3 Energy Partners LP

-

-

-

-

(27,915)

Other, net

2,006

909

563

3,805

1,940

Changes in operating assets and liabilities, net of effect of acquisitions:

Accounts receivable

(13,268)

(35,856)

226,900

(36,563)

292,102

Costs and estimated earnings in excess of billings

7,278

23,826

9,380

13,579

148,018

Inventories

13,901

(96,799)

(56,427)

(101,146)

(187,153)

Project assets

(1,262)

(254,007)

(188,073)

(434,645)

(499,847)

Prepaid expenses and other assets

21,316

93,743

(16,785)

70,025

12,640

Long-term financing receivables, net

(41,424)

(51,108)

(39,160)

(136,543)

(108,418)

Advances to suppliers

4,434

28,656

4,706

45,003

29,800

Accounts payable and other accrued liabilities

(156,279)

82,051

8,608

(144,202)

(62,921)

Billings in excess of costs and estimated earnings

7,170

(49,915)

(13,298)

(15,879)

(3,968)

Customer advances

(8,556)

(760)

(8,527)

(14,440)

(21,009)

Net cash used in operating activities

(128,346)

(300,091)

(103,919)

(798,338)

(429,360)

Cash flows from investing activities:

Decrease (increase) in restricted cash and cash equivalents

(10,108)

(941)

748

(12,855)

(27,659)

Purchases of property, plant and equipment

(56,151)

(46,280)

(63,574)

(149,475)

(132,352)

Cash paid for solar power systems, leased and to be leased

(18,261)

(22,918)

(22,587)

(64,417)

(64,419)

Cash paid for solar power systems

-

(2,282)

-

(2,282)

(10,007)

Proceeds from sales or maturities of marketable securities

6,210

-

-

6,210

-

Proceeds from (payments to) 8point3 Energy Partners LP attributable to real estate projects and residential lease portfolio

-

130

22,754

(9,838)

363,928

Cash paid for acquisitions, net of cash acquired

(24,003)

-

(59,021)

(24,003)

(59,021)

Cash paid for investments in unconsolidated investees

(737)

(557)

3,000

(11,046)

(4,092)

Cash paid for intangibles

-

-

(2,875)

-

(3,401)

Net cash provided by (used in) investing activities

(103,050)

(72,848)

(121,555)

(267,706)

62,977

Cash flows from financing activities:

Cash paid for repurchase of convertible debt

-

-

(79)

-

(324,352)

Proceeds from settlement of 4.50% Bond Hedge

-

-

-

-

74,628

Payments to settle 4.50% Warrants

-

-

-

-

(574)

Repayment of bank loans and other debt

(7,685)

(162)

(38)

(15,572)

(15,857)

Proceeds from issuance of non-recourse residential financing, net of issuance costs

89,634

24,889

27,834

142,862

82,664

Repayment of non-recourse residential financing

(34,541)

(1,101)

(256)

(36,707)

(41,058)

Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects

34,558

33,083

41,796

91,723

133,732

Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects

(6,514)

(1,596)

(2,223)

(13,419)

(6,790)

Proceeds from issuance of non-recourse power plant and commercial financing, net of issuance costs

168,794

354,052

21,356

602,286

229,066

Repayment of non-recourse power plant and commercial financing

(220,186)

(51)

-

(257,538)

(226,578)

Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values

-

-

-

-

29,300

Proceeds from exercise of stock options

-

-

289

-

467

Excess tax benefit from stock-based compensation

1,222

-

18,363

1,222

25,090

Purchases of stock for tax withholding obligations on vested restricted stock

(1,282)

(795)

(2,081)

(20,953)

(42,407)

Net cash provided by (used in) financing activities

24,000

408,319

104,961

493,904

(82,669)

Effect of exchange rate changes on cash and cash equivalents

1,173

(467)

351

1,480

(4,242)

Net increase (decrease) in cash and cash equivalents

(206,223)

34,913

(120,162)

(570,660)

(453,294)

Cash and cash equivalents, beginning of period

590,091

555,178

623,043

954,528

956,175

Cash and cash equivalents, end of period

$           383,868

$           590,091

$      502,881

$           383,868

$           502,881

Non-cash transactions:

Assignment of residential lease receivables to third parties

$                1,246

$                1,379

$          1,053

$                3,722

$                2,742

Costs of solar power systems, leased and to be leased, sourced from existing inventory

14,092

14,806

16,867

43,983

47,295

Costs of solar power systems, leased and to be leased, funded by liabilities

6,226

6,282

8,229

6,226

8,229

Costs of solar power systems under sale-leaseback financing arrangements, sourced from project assets

-

7,375

-

7,375

6,076

Property, plant and equipment acquisitions funded by liabilities

85,994

73,247

43,083

85,994

43,083

Net reclassification of cash proceeds offset by project assets in connection with the deconsolidation of assets sold to the 8point3 Group

34,862

-

5,061

43,588

5,061

Exchange of receivables for an investment in an unconsolidated investee

-

2,890

-

2,890

-

Sale of residential lease portfolio in exchange for non-controlling equity interests in the 8point3 Group

-

-

-

-

68,273

Acquisition of intangible assets funded by liabilities

-

-

6,512

-

6,512

Acquisition funded by liabilities

100,550

-

-

100,550

-

 

Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures, as described below. The specific non-GAAP measures listed below are: revenue; gross margin; net income; net income per diluted share; and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in each of these key elements of the company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, each of these non-GAAP financial measures provides investors with another method to assess the company's operating results in a manner that is focused on its ongoing, core operating performance, absent the effects of these items. Management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Many of the analysts covering the company also use these non-GAAP measures in their analyses. Given management's use of these non-GAAP measures, the company believes these measures are important to investors in understanding the company's operating results as seen through the eyes of management. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; the non-GAAP measures should be reviewed together with the GAAP measures 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.

Non-GAAP revenue includes adjustments relating to 8point3, utility and power plant projects, the sale of operating lease assets, and sale-leaseback transactions, each as described below. In addition to those same adjustments, Non-GAAP gross margin includes adjustments relating to stock-based compensation, amortization of intangible assets, non-cash interest expense, and FPSC arbitration ruling, each as described below. In addition to those same adjustments, non-GAAP net income and non-GAAP net income per diluted share are adjusted for adjustments relating to restructuring expense, goodwill impairment, IPO-related costs, other items, and the tax effect of these non-GAAP adjustments as described below. In addition to the same adjustments as non-GAAP net income, Adjusted EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for income taxes, and depreciation.

Non-GAAP Adjustments Based on International Financial Reporting Standards ("IFRS")

The company's non-GAAP results include adjustments to recognize revenue and profit under IFRS that are consistent with the adjustments made in connection with the company's reporting process as part of its status as a consolidated subsidiary of Total S.A., a foreign public registrant which reports under IFRS.  Differences between GAAP and IFRS reflected in the company's non-GAAP results are further described below. In these situations, management believes that IFRS enables investors to better evaluate the company's revenue and profit generation performance, and assists in aligning the perspectives of our management and noncontrolling shareholders with those of Total S.A., our controlling shareholder.

  • 8point3. In 2015, 8point3 Energy Partners LP ("8point3 Energy Partners"), a joint YieldCo vehicle, was formed by the company and First Solar, Inc. ("First Solar" and, together with the company, the "Sponsors") to own, operate and acquire solar energy generation assets. Class A shares of 8point3 Energy Partners are now listed on the NASDAQ Global Select Market under the trading symbol "CAFD."  Immediately after the IPO, the company contributed a portfolio of 170 MW of its solar generation assets (the "SPWR Projects") to 8point3 Operating Company, LLC ("OpCo"), 8point3 Energy Partners' primary operating subsidiary.  In exchange for the SPWR Projects, the company received cash proceeds as well as equity interests in several 8point3 Energy Partners affiliated entities: primarily common and subordinated units representing a 40.7% stake in OpCo and a 50.0% economic and management stake in 8point3 Holding Company, LLC ("Holdings"), the parent company of the general partner of 8point3 Energy Partners and the owner of incentive distribution rights in OpCo.  Holdings, OpCo, 8point3 Energy Partners and their respective subsidiaries are referred to herein as the "8point3 Group" or "8point3."

The company includes adjustments related to the sales of projects contributed to 8point3 based on the difference between the fair market value of the consideration received and the net carrying value of the projects contributed, of which, a portion is deferred in proportion to the company's retained equity stake in 8point3. The deferred profit is subsequently recognized over time. With certain exceptions such as for projects already in operation, the company's revenue is equal to the fair market value of the consideration received, and cost of goods sold is equal to the net carrying value plus a partial deferral of profit proportionate with the retained equity stake. Under GAAP, these sales are recognized under either real estate, lease, or consolidation accounting guidance depending upon the nature of the individual asset contributed, with outcomes ranging from no, partial, or full profit recognition. IFRS profit, less deferrals associated with retained equity, is recognized for sales related to the residential lease portfolio. Revenue recognition for other projects sold to 8point3 is deferred until these projects reach commercial operations. Equity in earnings of unconsolidated investees also includes the impact of the company's share of 8point3's earnings related to sales of projects receiving sales recognition under IFRS but not GAAP.  

  • Utility and power plant projects. The company includes adjustments related to the revenue recognition of certain utility and power plant projects based on percentage-of-completion accounting and, when relevant, the allocation of revenue and margin to the company's project development efforts at the time of initial project sale. Under GAAP, such projects are accounted for under real estate accounting guidance, under which no separate allocation to the company's project development efforts occurs and the amount of revenue and margin that is recognized may be limited in circumstances where the company has certain forms of continuing involvement in the project. Over the life of each project, cumulative revenue and gross margin will eventually be equivalent under both GAAP and IFRS; however, revenue and gross margin will generally be recognized earlier under IFRS. Within each project, the relationship between the adjustments to revenue and gross margins is generally consistent. However, as the company may have multiple utility and power plant projects in differing stages of progress at any given time, the relationship in the aggregate will occasionally appear otherwise.
  • Sale of operating lease assets. The company includes adjustments related to the revenue recognition on the sale of certain solar assets subject to an operating lease (or of solar assets that are leased by or intended to be leased by the third-party purchaser to another party) based on the net proceeds received from the purchaser. Under GAAP, these sales are accounted for as borrowing transactions in accordance with lease accounting guidance. Under such guidance, revenue and profit recognition is based on rental payments made by the end lessee, and the net proceeds from the purchaser are recorded as a non-recourse borrowing liability, with imputed interest expense recorded on the liability. This treatment continues until the company has transferred the substantial risks of ownership, as defined by lease accounting guidance, to the purchaser, at which point the sale is recognized.
  • Sale-leaseback transactions. The company includes adjustments related to the revenue recognition on certain sale-leaseback transactions based on the net proceeds received from the buyer-lessor. Under GAAP, these transactions are accounted for under the financing method in accordance with real estate accounting guidance. Under such guidance, no revenue or profit is recognized at the inception of the transaction, and the net proceeds from the buyer-lessor are recorded as a financing liability. Imputed interest is recorded on the liability equal to the company's incremental borrowing rate adjusted solely to prevent negative amortization.

Other Non-GAAP Adjustments

  • Stock-based compensation. Stock-based compensation relates primarily to the company's equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. Management believes that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.
  • Amortization of intangible assets. The company incurs amortization of intangible assets as a result of acquisitions, which includes patents, purchased technology, project pipeline assets, and in-process research and development. Management believes that it is appropriate to exclude these amortization charges from the company's non-GAAP financial measures as they arise from prior acquisitions, are not reflective of ongoing operating results, and do not contribute to a meaningful evaluation of a company's past operating performance.
  • Non-cash interest expense. The company incurs non-cash interest expense related to the amortization of items such as original issuance discounts on its debt.  The company excludes non-cash interest expense because the expense does not reflect its financial results in the period incurred. Management believes that this adjustment for non-cash interest expense provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without non-cash interest expense.
  • Goodwill impairment. In the third quarter of 2016, the company performed an interim goodwill impairment evaluation, due to current market circumstances, including a decline in the company's stock price which resulted in the market capitalization of the company being below its book value.  The company's preliminary calculation determined that the implied fair value of goodwill for all reporting units was zero and therefore recorded a goodwill impairment loss of $147.4 million, which includes $89.6 million of goodwill recognized in the third quarter of 2016 in connection with the company's acquisition of the remaining 50% of AUOSP, a joint venture for the purpose of manufacturing solar cells in which the company previously owned 50%. No adjustment to non-GAAP financial measures was made for the portion of the impairment charge derived from AUOSP, resulting in a non-GAAP adjustment of $57.8 million. Management believes that it is appropriate to exclude this impairment charge from the company's non-GAAP financial measures as it arises from prior acquisitions, is not reflective of ongoing operating results, and does not contribute to a meaningful evaluation of a company's past operating performance. The impact of the AUOSP acquisition to the company's GAAP and non-GAAP income statements in the third quarter of 2016 was $22.7 million, including a $203.2 million gain on settling preexisting relationships offset by a $90.9 million loss on the prior equity method investment and $89.6 million of goodwill impairment.
  • Restructuring expense. The company incurs restructuring expenses related to reorganization plans aimed towards realigning resources consistent with the company's global strategy and improving its overall operating efficiency and cost structure.  Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have historically occurred infrequently. Although the company has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from the company's non-GAAP financial measures as they are not reflective of ongoing operating results or contribute to a meaningful evaluation of a company's past operating performance.
  • Arbitration ruling. On January 28, 2015, an arbitral tribunal of the International Court of Arbitration of the International Chamber of Commerce declared a binding partial award in the matter of an arbitration between First Philippine Electric Corporation ("FPEC") and First Philippine Solar Corporation ("FPSC") against SunPower Philippines Manufacturing, Ltd. ("SPML"), the Company's wholly-owned subsidiary. The tribunal found SPML in breach of its obligations under its supply agreement with FPSC, and in breach of its joint venture agreement with FPEC. The second partial and final awards dated July 14, 2015 and September 30, 2015, respectively, reduced the estimated amounts to be paid to FPEC, and on July 22, 2016, SPML entered into a settlement with FPEC and FPSC and paid a total of $50.5 million in settlement of all claims between the parties. As a result, the Company recorded its best estimate of probable loss related to this case at the time of the initial ruling and updated the estimate as circumstances warranted. As this loss is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
  • IPO-related costs. Costs incurred related to the IPO of 8point3 included legal, accounting, advisory, valuation, and other expenses, as well as modifications to or terminations of certain existing financing structures in preparation for the sale to 8point3.  As these costs are non-recurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
  • Other. The company combines amounts previously disclosed under separate captions into "Other" when amounts do not have a significant impact on the presented fiscal periods. Management believes that these adjustments provide investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
  • Tax effect. This amount is used to present each of the adjustments described above on an after-tax basis in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. The company's non-GAAP tax amount is based on estimated cash tax expense and reserves. The company forecasts its annual cash tax liability and allocates the tax to each quarter in a manner generally consistent with its GAAP methodology. This approach is designed to enhance investors' ability to understand the impact of the company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense.
  • Adjusted EBITDA adjustments. When calculating Adjusted EBITDA, in addition to adjustments described above, the company excludes the impact during the period of the following items:
    • Cash interest expense, net of interest income
    • Provision for income taxes
    • Depreciation

Management presents this non-GAAP financial measure to enable investors to evaluate the company's performance, including compared with the performance of other companies.

For more information about these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP Measures to Non-GAAP Measures" set forth at the end of this release, 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

(In thousands, except percentages and per share data)

(Unaudited)

Adjustments to Revenue:

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

GAAP revenue

$           729,346

$           420,452

$           380,218

$       1,534,673

$        1,202,109

Adjustments based on IFRS:

8point3

33,301

(1,400)

59,619

16,727

59,619

Utility and power plant projects

37

(40,085)

1,567

13,490

(13,016)

Sale of operating lease assets

7,424

10,183

-

28,010

-

Sale-leaseback transactions

-

12,646

-

12,646

-

Non-GAAP revenue

$           770,108

$           401,796

$           441,404

$       1,605,546

$        1,248,712

Adjustments to Gross margin:

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

GAAP gross margin

$           129,208

$             41,294

$             62,644

$           222,039

$           224,343

Adjustments based on IFRS:

8point3

13,788

(210)

18,296

8,936

18,296

Utility and power plant projects

47

4,128

(516)

7,732

(16,095)

Sale of operating lease assets

2,085

2,966

-

8,163

-

Sale-leaseback transactions

85

2,988

-

3,073

-

Other adjustments:

Stock-based compensation expense

6,029

5,464

4,210

15,618

10,035

Amortization of intangible assets

2,567

1,530

601

5,111

601

Non-cash interest expense

283

284

487

886

1,646

Arbitration ruling

-

(5,852)

(7,500)

(5,852)

(6,459)

Other

-

-

-

-

159

Non-GAAP gross margin

$           154,092

$             52,592

$             78,222

$           265,706

$           232,526

GAAP gross margin (%)

17.7%

9.8%

16.5%

14.5%

18.7%

Non-GAAP gross margin (%)

20.0%

13.1%

17.7%

16.5%

18.6%

Adjustments to Net income (loss):

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

GAAP net loss attributable to stockholders

$           (40,545)

$           (69,992)

$           (56,326)

$         (195,946)

$           (59,398)

Adjustments based on IFRS:

8point3

19,320

18,039

19,371

48,078

14,683

Utility and power plant projects

47

4,128

(516)

7,732

(16,095)

Sale of operating lease assets

2,098

2,979

-

8,197

-

Sale-leaseback transactions

277

2,988

-

3,265

-

Other adjustments:

Stock-based compensation expense

15,907

16,475

14,898

48,902

42,484

Amortization of intangible assets

3,018

3,168

1,098

14,351

2,094

Non-cash interest expense

308

309

517

963

5,768

Goodwill impairment

57,765

-

-

57,765

-

Restructuring expense

31,202

117

726

31,415

6,056

Arbitration ruling

-

(5,852)

(7,500)

(5,852)

(6,459)

IPO-related costs

-

35

1,233

35

26,364

Other

(20)

(12)

16

(31)

175

Tax effect

7,655

(2,454)

46,959

6,885

51,696

Non-GAAP net income (loss) attributable to stockholders

$             97,032

$           (30,072)

$             20,476

$             25,759

$              67,368

Adjustments to Net income (loss) per diluted share:

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

Net income (loss) per diluted share

Numerator:

GAAP net loss available to common stockholders1

$           (40,545)

$           (69,992)

$           (56,326)

$         (195,946)

$           (59,398)

Non-GAAP net income (loss) available to common stockholders1

$             97,032

$           (30,072)

$             20,808

$             25,759

$              68,762

Denominator:

GAAP weighted-average shares

138,209

138,084

136,473

137,832

134,294

Effect of dilutive securities:

Stock options

-

-

18

-

32

Restricted stock units

384

-

1,170

684

1,882

Upfront warrants (held by Total)

3,179

-

6,531

4,962

6,880

Warrants (under the CSO2015)

-

-

-

-

1,218

0.75% debentures due 2018

-

-

12,026

-

12,026

Non-GAAP weighted-average shares1

141,772

138,084

156,218

143,478

156,332

GAAP net loss per diluted share

$                (0.29)

$                (0.51)

$                (0.41)

$                (1.42)

$                (0.44)

Non-GAAP net income (loss) per diluted share

$                  0.68

$                (0.22)

$                  0.13

$                  0.18

$                  0.44

1In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.0% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share.  If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-GAAP net income (loss) per diluted share.

Adjusted EBITDA:

THREE MONTHS ENDED

NINE MONTHS ENDED

Oct. 2,

Jul. 3,

Sep. 27,

Oct. 2,

Sep. 27,

2016

2016

2015

2016

2015

GAAP net loss attributable to stockholders

$           (40,545)

$           (69,992)

$           (56,326)

$         (195,946)

$           (59,398)

Adjustments based on IFRS:

8point3

19,320

18,039

19,371

48,078

14,683

Utility and power plant projects

47

4,128

(516)

7,732

(16,095)

Sale of operating lease assets

2,098

2,979

-

8,197

-

Sale-leaseback transactions

277

2,988

-

3,265

-

Other adjustments:

Stock-based compensation expense

15,907

16,475

14,898

48,902

42,484

Amortization of intangible assets

3,018

3,168

1,098

14,351

2,094

Non-cash interest expense

308

309

517

963

5,768

Goodwill impairment

57,765

-

-

57,765

-

Restructuring expense

31,202

117

726

31,415

6,056

Arbitration ruling

-

(5,852)

(7,500)

(5,852)

(6,459)

IPO-related costs

-

35

1,233

35

26,364

Other

(20)

(12)

16

(31)

175

Cash interest expense, net of interest income

14,990

13,144

8,348

40,318

27,463

Provision for income taxes

7,049

6,648

36,224

16,878

37,916

Depreciation

36,809

37,730

36,142

108,365

95,566

Adjusted EBITDA

$           148,225

$             29,904

$             54,231

$           184,435

$           176,617

 

Q4 2016, and FY 2016 GUIDANCE

(in thousands except percentages)

Q4 2016

FY 2016

Revenue (GAAP)

$900,000-$1,100,000

$2,430,000-$2,630,000

Revenue (non-GAAP) (1)

$1,000,000-$1,200,000

$2,600,000-$2,800,000

Gross margin (GAAP)

0%-2%

8%-10%

Gross margin (non-GAAP) (2)

1%-3%

9%-11%

Net loss (GAAP)

$100,000-$125,000

$295,000-$320,000

Adjusted EBITDA (3)

$0-$25,000

$185,000-$210,000

 

(1)

Estimated non-GAAP amounts above for Q4 2016 include net adjustments that increase (decrease) revenue by approximately $15 million related to utility and power plant projects, ($30) million related to sale of operating lease assets, and $115 million related to sale-leaseback transactions. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase revenue by approximately $15 million related to 8point3, $30 million related to utility and power plant projects, and $125 million related to sale-leaseback transactions.

(2)

Estimated non-GAAP amounts above for Q4 2016 include net adjustments that increase (decrease) gross margin by approximately $15 million related to utility and power plant projects, ($10) million related to sale of operating lease assets, $10 million related to sale-leaseback transactions, $4 million related to stock-based compensation expense, and $1 million related to amortization of intangible assets. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase (decrease) gross margin by approximately $10 million related to 8point3, $20 million related to utility and power plant projects, $15 million related to sale-leaseback transactions, $20 million related to stock-based compensation expense, $6 million related to amortization of intangible assets, $1 million related to non-cash interest expense, and ($6) million related to arbitration ruling.

(3)

Estimated Adjusted EBITDA amounts above for Q4 2016 include net adjustments that increase (decrease) net loss by approximately ($15) million related to utility and power plant projects, $10 million related to sale of operating lease assets, ($10) million related to sale-leaseback transactions, ($15) million related to stock-based compensation expense, ($3) million related to amortization of intangible assets, ($1) million related to non-cash interest expense, ($5) million related to restructuring, ($20) million related to interest expense, ($6) million related to income taxes, and ($60) million related to depreciation. Estimated Adjusted EBITDA amounts above for fiscal 2016 include net adjustments that increase (decrease) net loss by approximately ($48) million related to 8point3, ($20) million related to utility and power plant projects, ($15) million related to sale-leaseback transactions, ($65) million related to stock-based compensation expense, ($9) million related to amortization of intangible assets, ($9) million related to non-cash interest expense, ($58) million related to goodwill impairment, ($36) million related to restructuring, $6 million related to arbitration ruling, ($60) million related to interest expense, ($23) million related to income taxes, and ($168) million related to depreciation.

The following supplemental data represent the adjustments, individual charges and credits that are included or excluded from SunPower's non-GAAP revenue, gross margin, net income (loss) and net income (loss) per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.

SOURCE SunPower Corp.

For further information: Investors, Bob Okunski, 408-240-5447, Bob.Okunski@sunpower.com; Media, Natalie Wymer, 408-457-2348, Natalie.Wymer@sunpower.com

 

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