SunPower Corp (NASDAQ:SPWR) today reported third-quarter results that beat its forecasts, with a net loss coming in at USD 54.2 million (EUR 46.6m), better than the USD 120 million-100 million it guided for in August.
The net loss in the three months to October 1, 2017 improved from USD 93.8 million in the preceding quarter, although it widened from USD 40.5 million a year ago.
The US solar company, which is majority owned by Total SA (EPA:FP), achieved a gross margin of 3.3% in the period, compared to its forecast for a negative 3% to negative 1%.
| |
Q3 2017 |
Q2 2017 |
Q3 2016 |
| GAAP revenue |
USD 477.2m |
USD 337.4m |
USD 729.3m |
| GAAP gross margin |
3.3% |
4.5% |
17.7% |
| GAAP net loss |
(USD 54.2m) |
(USD 93.8m) |
(USD 40.5m) |
| Non-GAAP revenue |
USD 533.6m |
USD 341.5m |
USD 770.1m |
| Non-GAAP gross margin |
12.8% |
12.2% |
23.6% |
| Non-GAAP net profit (loss) |
USD 29.5m |
(USD 49.3m) |
USD 124.4m |
| Adjusted EBITDA |
USD 67.3m |
USD 13.5m |
USD 175.6m |
| Operating cash flow |
(USD 26.6m) |
(USD 161.8m) |
(USD 128.3m) |
President and chief executive Tom Werner said SunPower exceeded its forecasts thanks to its diversified model and solid execution. The distributed generation business performed well, the CEO said, with the commercial segment realising benefits from investments over the last year and the residential business seeing continued robust demand. In the power plant segment the company benefitted from the completion and sale of its 69-MW Gala project, and expects to sell its 100-MW El Pelicano project in Chile this year.
"Operationally, we achieved our cost reduction targets for the quarter and our Fabs remain 100 percent utilized," Werner said. The company is on track to complete its restructuring programme in the first half of next year and is committed to returning to long-term sustained profitability from the second half of 2018, he added.
"Our focus continues to be on maximizing cash flow through project sales, reducing operating expenses and the potential monetization of non-core assets," Werner further said.
With respect to the Section 201 trade action, SunPower's position is that as a US-based company it should be differentially treated or excluded from all remedies.
FORECASTS.
The fourth-quarter guidance assumes the expected sale of the El Pelicano project and the impact of third-quarter recognition of some projects originally expected to close in the fourth quarter.
| |
Q4 2017 |
2017 |
| GAAP revenue |
USD 635m-685m |
USD 1.85bn-1.9bn |
| GAAP gross margin |
6.5% - 8.5% |
|
| GAAP profit (loss) |
(UDS 80m-55m) |
|
| Non-GAAP revenue |
USD 800m-850m |
USD 2.1m-2.15bn |
| Non-GAAP gorss margin |
13% - 15% |
|
| EBITDA |
75m-100m |
USD 165m-190m |
| MW Deployed |
420-450 |
1,370-1,400 |
The company provided an estimate for full-year adjusted EBITDA, seeing it in the range of USD 165 million to USD 190 million, having previously forecast just positive 2017 adjusted EBITDA. It expects positive operating cash flow for the full year.
(USD 1 = EUR 0.859)
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SunPower panels at Toyota Motor North America HQ in Texas. Source: SunPower (www.us.sunpower.com).
