SunPower Corp (NASDAQ:SPWR) returned to a non-GAAP net profit of USD 9.8 million (EUR 8.5m) in its third-quarter through October 3 but the GAAP result was in the red.
The non-GAAP profit for the period, which stands against a loss of USD 6.5 million a year before, excludes net adjustments related to a mark-to-market loss on equity investments, a stock-based compensation expense and a loss related to non-recurring items. When those are taken into account, the GAAP result from continuing operations is burdened by USD 94 million, coming to a loss of USD 84.4 million.
SunPower’s revenue in the three months rose by 17.8% in annual terms to USD 323.6 million.
The table below gives more details about SunPower’s performance in the reporting period.
Amounts in US dollars
GAAP gross margin from continuing operations
Adjusted EBITDA (loss)
GAAP net profit (loss)
Non-GAAP net profit (loss)
SunPower enjoyed strong demand for its solar and storage solutions in both residential and commercial markets. With its client base and residential bookings on the rise, the Residential and Light Commercial (RLC) business brought revenues of USD 281.6 million, up from USD 197.7 million a year earlier. With its 92 MW, the residential market was responsible for most of the company’s total recognised MWs, amounting to 121 MW.
"Our decision to increase our focus on the residential market was validated by strong sequential third quarter solar and storage demand and deployment, combined with continued margin expansion," said Peter Faricy, CEO of SunPower.
Revenues at the Commercial and Industrial Solutions (CIS) segment, however, almost halved to USD 40.3 million and ended the quarter with an adjusted loss before interest, tax, depreciation and amortisation of USD 8 million. Due to the inferior results, SunPower said it is “considering strategic options” for the CIS business, with specifics to be provided in the closing quarter of 2021.
“Our cash position is strong, and there is potential to further reduce our cost of capital. The strength of our balance sheet will also enable us to look toward new product and digital investment, leading to continued growth and market share expansion," commented CFO Manavendra Sial.
Including the CIS and Legacy business, SunPower revised downwards its guidance for revenues and adjusted EBITDA in 2021. It previously expected to book revenues of USD 1.41 billion-1.49 billion and adjusted EBITDA of between USD 110 million and USD 130 million. The company explained that the lowered forecast reflects CIS project delays and decreased revenues from Light Commercial.
Between 345 MW and 375 MW are expected to be recognised by the residential business in 2021, with customer additions seen at 55,000-60,000.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.