SAN JOSE, Calif., March 18, 2010 /PRNewswire via COMTEX News Network/ -- SunPower Corp. (Nasdaq: SPWRA, SPWRB) today announced financial results for its 2009 fourth quarter and fiscal year 2009 which ended January 3, 2010. Revenue for the 2009 fourth quarter was $548 million which compares to $465 million in the third quarter of 2009 and $398 million in the fourth quarter of 2008. The company's Components and Systems segments accounted for 62% and 38% of fourth-quarter 2009 revenue, respectively. The company also issued a press release reporting the results of its audit committee investigation concurrent with this release.
"Our 2009 year-end results reflect the continued success of our portfolio strategy to channels and geographic markets as we further expanded our global dealer presence and completed construction of more than 40 megawatts (MW) of large scale power plant projects during the fourth quarter," said Tom Werner, SunPower's CEO. "In the past four years, we have invested heavily in our long-term strategy of building our brand and channel, and this investment continues to pay off. In the residential channel, our strong brand enabled us to double the number of dealer partners in 2009 and we are selling our high-efficiency systems to approximately 1,000 dealer partners in eight countries. Additionally, as a result of our rapid growth and expanding customer base, we have started to re-align our business units into Residential and Commercial (R&C) and Utilities and Power Plants (UPP). As part of this strategy, we have appointed Jim Pape, former vice president of North America for Trane Commercial Systems, to lead our R&C business group. With more than 25 years of management experience, we are excited to have Jim join the team.
"In the systems segment, we added to our industry-leading installed base by delivering on our engineering, procurement and construction (EPC) commitments, installing more than 100 MW of rooftop and ground mounted systems in 2009. In the fourth quarter, we completed the largest Italian photovoltaic (PV) power plant to date at 24 MW, installed 10 MW for Florida Power & Light at the Kennedy Space Center, and substantially completed our 8-MW project for Exelon in Chicago. We are also encouraged by the continued improvement in credit conditions as evidenced by the recent financing of our 19-MW project with Xcel Energy in Colorado.
"Additionally, our global UPP pipeline continues to grow as customers are choosing SunPower for our industry-leading technology, bankability, significant EPC experience, and ability to offer a competitive levelized cost of energy. With the acquisition of SunRay Renewable Energy, we will significantly increase our demand visibility by adding more than 1,200 MW of Europe, Middle East and Africa (EMEA) power plant opportunities to our pipeline with more than 80 MW planned for delivery in Italy in 2010. This acquisition of the premiere European developer and financing team complements our established European team, enabling us to offer our customers a world-class utility power plant development expertise in both the United States and Europe. Looking forward, we see demand remaining strong for 2010 across all segments. Our recent wins with Toshiba and Southern California Edison position us well for multi-year supply agreements in our UPP business on top of our continued success in R&C," Werner concluded.
On a Generally Accepted Accounting Principles (GAAP) basis for the 2009 fourth quarter, SunPower reported gross margin of 20.3%, operating income of $43.0 million and net income per diluted share of $0.09. This compares to gross margin of 21.5%, operating income of $46.2 million and net income per diluted share of $0.20 in the third quarter of 2009. As a result of the restatement, the fourth quarter of 2009 includes a $2.6 million benefit, or $0.02 earnings per share. The company's fourth-quarter GAAP results include $3.6 million, or $0.03 per diluted share, in expenses related to its recently completed accounting investigation.
On a non-GAAP basis for the fourth quarter of 2009, SunPower reported a total gross margin of 21.7%. Operating income for the quarter was $60.3 million and net income per share was $0.47. The company's fourth-quarter non-GAAP results include $3.6M million, or $0.03 per diluted share, in expenses related to the completed accounting investigation. As a result of the restatement, the fourth quarter of 2009 includes a $2.6 million benefit, or $0.02 earnings per share. In the third quarter 2009, the company reported non-GAAP gross margin of 23.1%, operating income of $63.8 million and $0.46 net income per share. For the 2009 fourth quarter, the Components segment non-GAAP gross margin was 21.5% and Systems segment gross margin was 21.9%. Non-GAAP figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release.
"We improved our working capital efficiency during the fourth quarter reducing inventories by 12%, generating positive operating cash flow and ending the year with more than $925 million in cash and investments," said Dennis Arriola, SunPower's CFO. "Despite the difficult industry conditions in the first half of 2009, we grew revenue by 6% versus 2008. With the completion of the audit committee investigation, our efforts will focus on strengthening the trust with our stakeholders, customers and employees while driving increased shareholder value.
"Looking forward, our acquisition of SunRay positions us for more predictable growth in the second half of 2010 and into 2011. By extending into the development business, we expect to expand our gross profits as we monetize these power plants. We will strategically use our balance sheet to accelerate the development of these projects. This strategy will significantly shift the timing of revenue of these projects from the first half of the year to the second half of 2010," concluded Arriola.
2010 Guidance
For fiscal year 2010, the company's non-GAAP guidance is as follows: revenue of $2.0 billion to $2.25 billion, net income per diluted share of $1.25 to $1.65, capital expenditures of $375 million to $475 million, and solar cell production of approximately 550 MW. For fiscal year 2010, the company's GAAP guidance is as follows: revenue of $2.00 billion to $2.25 billion and net income per diluted share of $0.05 to $0.35.
For the first quarter of 2010, the company's non-GAAP guidance is as follows: revenue of $330 million to $350 million and net income per diluted share of approximately $0.05. Guidance for the first quarter of 2010 includes the negative impact of $3.3 million or $0.03 per diluted share in SunRay acquisition costs and $5.3 million or $0.04 per diluted share in costs associated with the company's accounting investigation.
For the first quarter of 2010, the company's GAAP guidance is as follows: revenue of $330 million to $350 million and net income per diluted share of approximately breakeven. Guidance includes the negative impact from the company's accounting investigation and SunRay acquisition referenced above.
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 fourth quarter 2009 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpowercorp.com/events.cfm. The capacity of power plants in this release is described in approximate MW on an alternating current (ac) basis while supply agreements are expressed in direct current (dc).
About SunPower
Founded in 1985, SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers the planet's most powerful solar technology broadly available today. Residential, business, government and utility customers rely on the company's experience and proven results to maximize return on investment. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia. For more information, visit www.sunpowercorp.com.
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 "pipeline," "to be completed," "rapid," "growth," "expanding," "continues," "grow," "opportunities," "planed," "looking forward," "see," "demand," "remaining," "position," "continued," "predictable," "will," "guidance," and "expects" to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) acquisition of SunRay and increase in business pipeline of 1.2 gigawatt pipeline of opportunities in Europe, Middle East and Africa, including including more than 80 MW planned for delivery in Italy in 2010; (b) 200 MW, 5-year supply agreement with Southern California Edison; (c) construction schedule for 19-MW power plant for Xcel Energy; (d) rapid growth, expanding customer base, growing global UPP pipeline, and strong demand for 2010 across all segments; (e) improving credit conditions and bankability of SunPower projects; (f) the company's ability to offer competitive levelized cost of energy; (g) possible multi-year supply agreements in the company's UPP business and continued success in R&C; (h) increasing shareholder value; (i) predictable growth and expanding gross margins when the company monetizes power plants; (j) using the company's balance sheet to accelerate project development; (k) shifting revenue from first half of 2010 to second half of 2010; (l) GAAP and non-GAAP fiscal year 2010 revenue and net income per diluted share; (m) 2010 capital expenditures and solar cell production; (n) GAAP and non-GAAP first quarter 2010 revenue and net income per diluted share; and (o) estimated SunRay acquisition costs and accounting investigation costs. 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) the company's ability to obtain and maintain an adequate supply of raw materials and components, as well as the price it pays for such items; (ii) general business and economic conditions, including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of governmental and related economic incentives promoting the use of solar power, particularly in Europe, Middle East, and Africa within the acquired pipeline; (v) the improved availability of third-party financing arrangements for the company's customers; (vi) construction difficulties or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to compete with other companies and competing technologies; (x) the company's ability to sell or otherwise monetize power plants; (xi) SCE's exercising early termination rights to purchase less than 200 megawatts during the term of the agreement; (xii) the satisfaction of closing conditions and the possibility that SunRay acquisition may not be completed; (xiii) potential difficulties associated with integrating the combined businesses; and (xiv) other risks described in the company's Annual Report on Form 10-K for the year ended December 28, 2008, its Quarterly Report on Form 10-Q for the quarter ended September 27, 2009, 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.
Segment Reporting Information
For fourth quarter 2009 reporting purposes, the Systems segment generally represents products and services sold directly to the system owner. Additionally, both SunPower and third-party solar panels sold through the Systems segment channels are recorded as Systems segment revenue. The Components segment primarily represents products sold to installers and resellers.
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to the company's convertible debt offering, and its related tax effects. Management does not consider these charges in evaluating the core operational activities of SunPower. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate SunPower's current performance. Most analysts covering SunPower use the non-GAAP measures as well. Given management's use of these non-GAAP measures, SunPower believes these measures are important to investors in understanding SunPower's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in SunPower's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data and may be different from non-GAAP measures used by other companies.
Fiscal Periods
The Company reports on a fiscal-year basis and ends its quarters on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. Fiscal year 2009 consists of 53 weeks while fiscal year 2008 consists of 52 weeks. The third quarter of fiscal 2009 ended on September 27, 2009 and the third quarter of fiscal 2008 ended on September 29, 2008.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
ASSETS
Cash and cash equivalents $615,879 $202,331
Restricted cash 310,658 175,277
Investments 172 40,756
Accounts receivable, net 248,833 194,222
Costs and estimated earnings in excess of
billings 26,062 29,750
Inventories 202,301 248,255
Prepaid expenses and other assets 196,022 170,851
Advances to suppliers 190,628 162,610
Property, plant and equipment, net 682,344 622,484
Goodwill and other intangible assets, net 223,137 236,210
------- -------
Total assets $2,696,036 $2,082,746
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $234,692 $259,429
Accrued and other liabilities 190,830 186,831
Bank loans 248,953 54,598
Convertible debt 536,574 357,173
Billings in excess of costs and estimated
earnings 17,346 15,634
Customer advances 92,120 110,394
------ -------
Total liabilities 1,320,515 984,059
Stockholders' equity 1,375,521 1,098,687
--------- ---------
Total liabilities and stockholders' equity $2,696,036 $2,082,746
========== ==========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Revenue:
Systems $207,630 $167,466 $110,421
Components 340,308 297,895 188,920
------- ------- -------
547,938 465,361 299,341
Cost of
revenue:
Cost of
systems
revenue 165,164 142,070 96,036
Cost of
components
revenue 271,797 223,461 162,627
------- ------- -------
436,961 365,531 258,663
Gross margin 110,977 99,830 40,678
Operating
expenses:
Research and
development 8,575 8,250 6,937
Selling,
general and
administrative 59,733 45,332 42,775
------ ------ ------
Total
operating
expenses 68,308 53,582 49,712
------ ------ ------
Operating
income (loss) 42,669 46,248 (9,034)
Other income
(expense):
Gain on
purchased
options - - 21,193
Interest and
other income
(expense),
net (11,436) (9,269) (5,956)
------- ------ ------
Other income
(expense),
net (11,436) (9,269) 15,237
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees 31,233 36,979 6,203
Provision for
(benefit
from) income
taxes 25,485 19,962 (5,223)
------ ------ ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees 5,748 17,017 11,426
Equity in
earnings of
unconsolidated
investees,
net of taxes 2,924 2,627 3,133
----- ----- -----
Net income
(loss) $8,672 $19,644 $14,559
====== ======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $0.09 $0.21 $0.16
- Diluted $0.09 $0.20 $0.16
Weighted-
average
shares:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Revenue:
Systems $103,953 $174,976
Components 107,690 223,109
------- -------
211,643 398,085
Cost of
revenue:
Cost of
systems
revenue 95,324 139,730
Cost of
components
revenue 84,084 146,608
------ -------
179,408 286,338
Gross margin 32,235 111,747
Operating
expenses:
Research and
development 7,880 5,970
Selling,
general and
administrative 42,404 50,599
------ ------
Total
operating
expenses 50,284 56,569
------ ------
Operating
income (loss) (18,049) 55,178
Other income
(expense):
Gain on
purchased
options - -
Interest and
other income
(expense),
net (12,094) (21,739)
------- -------
Other income
(expense),
net (12,094) (21,739)
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees (30,143) 33,439
Provision for
(benefit
from) income
taxes (19,196) 13,250
------- ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees (10,947) 20,189
Equity in
earnings of
unconsolidated
investees,
net of taxes 1,245 8,271
----- -----
Net income
(loss) $(9,702) $28,460
======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $(0.12) $0.34
- Diluted $(0.12) $0.33
Weighted-
average
shares:
- Basic 83,749 83,244
- Diluted 83,749 85,356
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Revenue:
Systems $589,470 $823,307
Components 934,813 614,287
------- -------
1,524,283 1,437,594
Cost of
revenue:
Cost of
systems
revenue 498,594 659,752
Cost of
components
revenue 741,969 428,221
------- -------
1,240,563 1,087,973
Gross margin 283,720 349,621
Operating
expenses:
Research and
development 31,642 21,474
Selling,
general and
administrative 190,244 173,740
------- -------
Total
operating
expenses 221,886 195,214
------- -------
Operating
income (loss) 61,834 154,407
Other income
(expense):
Gain on
purchased
options 21,193 -
Interest and
other income
(expense),
net (38,755) (38,338)
------- -------
Other income
(expense),
net (17,562) (38,338)
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees 44,272 116,069
Provision for
(benefit
from) income
taxes 21,028 40,618
------ ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees 23,244 75,451
Equity in
earnings of
unconsolidated
investees,
net of taxes 9,929 14,077
----- ------
Net income
(loss) $33,173 $89,528
======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $0.36 $1.10
- Diluted $0.36 $1.05
Weighted-
average
shares:
- Basic 91,050 80,522
- Diluted 92,746 83,947
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Cash flows
from
operating
activities:
Net income
(loss) $8,672 $19,644 $14,559
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 12,790 13,074 12,076
Depreciation 24,282 21,414 20,569
Amortization
of other
intangible
assets 4,178 4,146 4,098
Impairment
of
investments
and long-
lived
assets (554) 190 489
Non-cash
interest
expense 5,744 5,250 5,915
Amortization
of debt
issuance
costs 687 733 1,184
Gain on
purchased
options - - (21,193)
Equity in
earnings of
unconsolidated
investees (2,924) (2,627) (3,133)
Excess tax
benefits
from stock-
based award
activity (10,522) (7,127) -
Deferred
income
taxes and
other tax
liabilities 24,583 15,025 (12,782)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions: - - -
Accounts
receivable (7,225) (18,794) (65,422)
Costs and
estimated
earnings in
excess of
billings 47,602 (60,071) 21,257
Inventories 25,964 21,695 92,130
Prepaid
expenses
and other
assets (6,476) 15,465 (33,751)
Advances to
suppliers (53,068) 3,435 13,746
Accounts
payable and
other
accrued
liabilities 19,193 93,380 (79,695)
Billings in
excess of
costs and
estimated
earnings (130) (33,479) 34,440
Customer
advances (4,770) (5,553) 2,094
------ ------ -----
Net cash
provided by
(used in)
operating
activities 88,026 85,800 6,581
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents 10,128 (103,247) (33,151)
Purchases of
property,
plant and
equipment (18,187) (37,957) (59,566)
Proceeds
from sale
of
equipment
to third-
party 83 1,976 7,902
Purchases of
available-
for-sale
securities - - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 9,604 9,867 1,501
Cash paid
for
acquisitions,
net of cash
acquired - - -
Cash paid
for
investments
in joint
ventures
and other
non-public
companies (903) (1,500) -
---- ------ ---
Net cash
provided by
(used in)
investing
activities 725 (130,861) (83,314)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 54,008 54,701 29,773
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs - - 225,018
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses - (114) 218,895
Cash paid
for
repurchased
convertible
debt - (7,687) (67,949)
Cash paid
for
purchased
options - - (97,336)
Proceeds
from
warrant
transactions - - 71,001
Proceeds
from
exercise of
stock
options 121 570 442
Excess tax
benefits
from stock-
based award
activity 10,522 7,127 -
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (619) (586) (763)
---- ---- ----
Net cash
provided by
financing
activities 64,032 54,011 379,081
Effects of
exchange
rate
changes on
cash and
equivalents (9,030) 6,341 5,377
------ ----- -----
Net increase
(decrease)
in cash and
cash
equivalents 143,753 15,291 307,725
Cash and
cash
equivalents
at
beginning
of period $472,126 456,835 149,110
-------- -------
Cash and
cash
equivalents
at end of
period $615,879 $472,126 $456,835
======== ======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $7,320 $ - $ -
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 508 873 1,510
Issuance of
common
stock for
purchase
acquisition - - 1,471
Issuance of
common
stock for
repurchased
convertible
debt - - -
Change in
goodwill
relating to
adjustments
to acquired
net assets - - -
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Cash flows
from
operating
activities:
Net income
(loss) $(9,702) $28,460
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 9,054 18,194
Depreciation 18,365 18,376
Amortization
of other
intangible
assets 4,052 4,210
Impairment
of
investments
and long-
lived
assets 1,318 4,475
Non-cash
interest
expense 5,021 4,192
Amortization
of debt
issuance
costs 537 537
Gain on
purchased
options - -
Equity in
earnings of
unconsolidated
investees (1,245) (8,271)
Excess tax
benefits
from stock-
based award
activity - (12,089)
Deferred
income
taxes and
other tax
liabilities (17,003) (8,467)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable 40,931 (2,251)
Costs and
estimated
earnings in
excess of
billings (3,178) 30,869
Inventories (86,049) (60,282)
Prepaid
expenses
and other
assets 11,671 (32,157)
Advances to
suppliers 7,993 (17,805)
Accounts
payable and
other
accrued
liabilities (24,798) 73,440
Billings in
excess of
costs and
estimated
earnings 88 5,501
Customer
advances (10,180) (5,759)
------- ------
Net cash
provided by
(used in)
operating
activities (53,125) 41,173
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (9,185) (65,237)
Purchases of
property,
plant and
equipment (52,101) (115,163)
Proceeds
from sale
of
equipment
to third-
party - -
Purchases of
available-
for-sale
securities - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 18,177 21,885
Cash paid
for
acquisitions,
net of cash
acquired - (0)
Cash paid
for
investments
in joint
ventures
and other
non-public
companies - -
--- ---
Net cash
provided by
(used in)
investing
activities (43,109) (158,515)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 51,232 54,598
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs - -
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses - -
Cash paid
for
repurchased
convertible
debt - (1,187)
Cash paid
for
purchased
options - -
Proceeds
from
warrant
transactions - -
Proceeds
from
exercise of
stock
options 396 1,342
Excess tax
benefits
from stock-
based award
activity - 12,089
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (2,359) (829)
------ ----
Net cash
provided by
financing
activities 49,269 66,013
Effects of
exchange
rate
changes on
cash and
equivalents (6,256) (2,955)
------ ------
Net increase
(decrease)
in cash and
cash
equivalents (53,221) (54,285)
Cash and
cash
equivalents
at
beginning
of period 202,331 256,616
-------
Cash and
cash
equivalents
at end of
period $149,110 $202,331
======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $18,780 $ -
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 2,073 2,563
Issuance of
common
stock for
purchase
acquisition - -
Issuance of
common
stock for
repurchased
convertible
debt - 40
Change in
goodwill
relating to
adjustments
to acquired
net assets - 945
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Cash flows
from
operating
activities:
Net income
(loss) $33,173 $89,528
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 46,994 70,220
Depreciation 84,630 54,473
Amortization
of other
intangible
assets 16,474 16,762
Impairment
of
investments
and long-
lived
assets 1,443 7,611
Non-cash
interest
expense 21,930 16,909
Amortization
of debt
issuance
costs 3,141 2,148
Gain on
purchased
options (21,193) -
Equity in
earnings of
unconsolidated
investees (9,929) (14,077)
Excess tax
benefits
from stock-
based award
activity (17,649) (40,696)
Deferred
income
taxes and
other tax
liabilities 9,823 17,363
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (50,510) (57,575)
Costs and
estimated
earnings in
excess of
billings 5,610 9,256
Inventories 53,740 (95,712)
Prepaid
expenses
and other
assets (13,091) (59,284)
Advances to
suppliers (27,894) 1,297
Accounts
payable and
other
accrued
liabilities 4,538 150,078
Billings in
excess of
costs and
estimated
earnings 919 (53,595)
Customer
advances (18,409) 40,125
------- ------
Net cash
provided by
(used in)
operating
activities 123,740 154,831
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (135,455) (107,390)
Purchases of
property,
plant and
equipment (167,811) (265,905)
Proceeds
from sale
of
equipment
to third-
party 9,961 -
Purchases of
available-
for-sale
securities - (65,748)
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 39,149 155,833
Cash paid
for
acquisitions,
net of cash
acquired - (18,311)
Cash paid
for
investments
in joint
ventures
and other
non-public
companies (2,403) (24,625)
------ -------
Net cash
provided by
(used in)
investing
activities (256,559) (326,146)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 193,256 54,598
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs 225,018 -
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses 218,781 -
Cash paid
for
repurchased
convertible
debt (75,636) (1,187)
Cash paid
for
purchased
options (97,336) -
Proceeds
from
warrant
transactions 71,001 -
Proceeds
from
exercise of
stock
options 1,529 5,128
Excess tax
benefits
from stock-
based award
activity 17,649 40,696
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (4,327) (6,682)
------ ------
Net cash
provided by
financing
activities 549,935 92,553
Effects of
exchange
rate
changes on
cash and
equivalents (3,568) (4,121)
------ ------
Net increase
(decrease)
in cash and
cash
equivalents 413,548 (82,883)
Cash and
cash
equivalents
at
beginning
of period 202,331 285,214
-------
Cash and
cash
equivalents
at end of
period $615,879 $202,331
======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $ - $21,722
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 4,964 8,930
Issuance of
common
stock for
purchase
acquisition 1,471 3,054
Issuance of
common
stock for
repurchased
convertible
debt - 40
Change in
goodwill
relating to
adjustments
to acquired
net assets - 1,176
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
(Presented on a GAAP Basis)
Gross margin $110,977 $99,830 $40,678
Operating
income
(loss) $42,669 $46,248 $(9,034)
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.09 $0.21 $0.16
-Diluted $0.09 $0.20 $0.16
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
(Presented on a GAAP Basis)
Gross margin $32,235 $111,747
Operating
income
(loss) $(18,049) $55,178
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $(0.12) $0.34
-Diluted $(0.12) $0.33
(In
thousands,
except per
share data)
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
(Presented on a GAAP Basis)
Gross margin $283,720 $349,621
Operating
income
(loss) $61,834 $154,407
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.36 $1.10
-Diluted $0.36 $1.05
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
(Presented on a non-GAAP Basis)
Gross margin $118,661 $107,299 $49,270
Operating
income
(loss) $60,271 $63,833 $8,380
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.48 $0.50 $0.09
-Diluted $0.47 $0.46 $0.09
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
(Presented on a non-GAAP Basis)
Gross margin $36,424 $120,165
Operating
income
(loss) $(4,443) $77,899
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $(0.09) $0.68
-Diluted $(0.09) $0.66
(In
thousands,
except per
share data)
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
(Presented on a non-GAAP Basis)
Gross margin $311,654 $383,503
Operating
income
(loss) $128,041 $244,386
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $1.03 $2.22
-Diluted $1.01 $2.13
About SunPower's Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to its convertible debt offering, and the related tax effects of these non-GAAP adjustments. The specific non-GAAP measures listed below are gross margin, operating income and net income per share. Management believes that each of these non-GAAP measures (gross margin, operating income and net income per share) are useful to investors by enabling them to better assess changes in each of these key elements of SunPower's results of operations across different reporting periods on a consistent basis, independent of these non-cash items. Thus, each of these non-GAAP financial measures provides investors with another method for assessing SunPower's operating results in a manner that is focused on its ongoing core operating performance, absent the effects of amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense and a gain on purchased options related to its convertible debt offering. Management also uses these non-GAAP measures internally to assess the business and financial performance of current and historical results, for strategic decision making, forecasting future results and evaluating the company's current performance. Many of the analysts covering SunPower also use these non-GAAP measures in their analyses. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results 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.
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 items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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 SunPower's revenue generation performance relative to the direct costs of revenue of its core businesses.
o Non-GAAP operating income. The use of this non-GAAP financial measure allows management to evaluate the operating results of the company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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 understand the results of operations of the company's core businesses and to compare results of operations on a more consistent basis against that of other companies in the industry.
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, stock-based compensation, impairment of long-lived assets, interest expense, a gain on purchased options related to its convertible debt offering and the tax effects of these non-GAAP adjustments. In addition, investors and analysts can compare SunPower's operating results on a more consistent basis against that of other companies in the industry. It should be noted that diluted weighted-average shares are determined on a GAAP basis and the resulting share count is used for computing both GAAP and Non-GAAP diluted net income per share.
Non-Cash Items
o Amortization of intangible assets. SunPower incurs amortization of intangible assets as a result of acquisitions, which includes in-process research and development, purchased technology, patents and trade names. SunPower excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from prior acquisitions and have no direct correlation to the operation of SunPower's core businesses.
o Stock-based compensation. Stock-based compensation relates primarily to SunPower stock awards such as stock options and restricted stock. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are difficult to predict. As a result of this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure the company's core performance against the performance of other companies without the variability created by stock-based compensation.
o Impairment of long-lived assets. SunPower incurred an impairment of long-lived assets in the first quarter of fiscal 2008, which relates to the discontinuation of its imaging detector product line. SunPower excluded this item because the expense is not reflective of its ongoing operating results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash expenses such as impairment of long-lived assets.
o Non-cash interest expense. Under new accounting guidance, SunPower separately accounts for the liability and equity components of its convertible debt in a manner that reflects interest expense equal to its non-convertible debt borrowing rate. As a result, SunPower incurs interest expense that is substantially higher than interest payable on its 1.25% senior convertible debentures and 0.75% senior convertible debentures. SunPower excludes non-cash interest expense because the expense is not reflective of its ongoing financial results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash interest expense.
o Gain on purchased options related to SunPower's convertible debt offering. In connection with the issuance of its 4.75% senior convertible debentures in May 2009, SunPower entered into certain convertible debenture hedge transactions with respect to its class A common stock intended to reduce the potential dilution that would occur upon conversion of the debentures. The convertible debenture hedge transactions consisting of call option instruments are deemed to be a mark-to-market derivative during the period in which the over-allotment option in favor of the debenture underwriters is unexercised. SunPower entered into the underwriting agreement on April 28, 2009 and the debenture underwriters exercised the over-allotment option on April 29, 2009. During the one-day period that the underwriters' over-allotment option was outstanding, SunPower's class A common stock price increased substantially. SunPower excluded the $21.2 million gain relating to the purchased options from its non-GAAP results because it was not realized in cash and it is not reflective of the company's ongoing financial results. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash income from a gain on purchased options.
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 results of operations measures to non-GAAP measures" set forth at the end of this release and 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
(Unaudited)
(In thousands, except per share data)
STATEMENT OF OPERATIONS DATA:
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
GAAP gross
margin $110,977 $99,830 $40,678
Amortization
of
intangible
assets 2,807 2,802 2,795
Stock-based
compensation
expense 4,243 4,302 4,557
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 634 365 1,240
--- --- -----
Non-GAAP
gross
margin $118,661 $107,299 $49,270
======== ======== =======
GAAP
operating
income
(loss) $42,669 $46,248 $(9,034)
Amortization
of
intangible
assets 4,178 4,146 4,098
Stock-based
compensation
expense 12,790 13,074 12,076
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 634 365 1,240
--- --- -----
Non-GAAP
operating
income
(loss) $60,271 $63,833 $8,380
======= ======= ======
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
GAAP gross
margin $32,235 $111,747
Amortization
of
intangible
assets 2,793 2,930
Stock-based
compensation
expense 896 5,171
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 500 317
--- ---
Non-GAAP
gross
margin $36,424 $120,165
======= ========
GAAP
operating
income
(loss) $(18,049) $55,178
Amortization
of
intangible
assets 4,052 4,210
Stock-based
compensation
expense 9,054 18,194
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 500 317
--- ---
Non-GAAP
operating
income
(loss) $(4,443) $77,899
======= =======
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
GAAP gross
margin $283,720 $349,621
Amortization
of
intangible
assets 11,197 11,996
Stock-based
compensation
expense 13,998 18,889
Impairment
of long-
lived
assets - 2,203
Non-cash
interest
expense 2,739 794
----- ---
Non-GAAP
gross
margin $311,654 $383,503
======== ========
GAAP
operating
income
(loss) $61,834 $154,407
Amortization
of
intangible
assets 16,474 16,762
Stock-based
compensation
expense 46,994 70,220
Impairment
of long-
lived
assets - 2,203
Non-cash
interest
expense 2,739 794
----- ---
Non-GAAP
operating
income
(loss) $128,041 $244,386
======== ========
NET INCOME PER SHARE:
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Basic:
------
GAAP net
income
(loss) per
share $0.09 $0.21 $0.16
Reconciling
items:
Amortization
of
intangible
assets 0.04 0.04 0.04
Stock-based
compensation
expense 0.13 0.14 0.13
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 0.06 0.06 0.06
Gain on
purchased
options - - (0.23)
Tax effect 0.16 0.05 (0.07)
---- ---- -----
Non-GAAP
net income
(loss) per
share $0.48 $0.50 $0.09
===== ===== =====
Diluted:
GAAP net
income
(loss) per
share $0.09 $0.20 $0.16
Reconciling
items:
Amortization
of
intangible
assets 0.04 0.04 0.04
Stock-based
compensation
expense 0.13 0.12 0.13
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 0.06 0.05 0.06
Gain on
purchased
options - - (0.23)
Tax effect 0.15 0.05 (0.07)
---- ---- -----
Non-GAAP
net income
(loss) per
share $0.47 $0.46 $0.09
===== ===== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
Non-GAAP
net income
(loss) per
share:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Basic:
------
GAAP net
income
(loss) per
share $(0.12) $0.34
Reconciling
items:
Amortization
of
intangible
assets 0.05 0.05
Stock-based
compensation
expense 0.11 0.22
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 0.06 0.05
Gain on
purchased
options - -
Tax effect (0.19) 0.02
----- ----
Non-GAAP
net income
(loss) per
share $(0.09) $0.68
====== =====
Diluted:
GAAP net
income
(loss) per
share $(0.12) $0.33
Reconciling
items:
Amortization
of
intangible
assets 0.05 0.05
Stock-based
compensation
expense 0.11 0.21
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 0.06 0.05
Gain on
purchased
options - -
Tax effect (0.19) 0.02
----- ----
Non-GAAP
net income
(loss) per
share $(0.09) $0.66
====== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 83,749 83,244
- Diluted 83,749 85,356
Non-GAAP
net income
(loss) per
share:
- Basic 83,749 83,244
- Diluted 83,749 85,356
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Basic:
------
GAAP net
income
(loss) per
share $0.36 $1.10
Reconciling
items:
Amortization
of
intangible
assets 0.18 0.21
Stock-based
compensation
expense 0.51 0.86
Impairment
of long-
lived
assets - 0.03
Non-cash
interest
expense 0.24 0.21
Gain on
purchased
options (0.23) -
Tax effect (0.03) (0.19)
----- -----
Non-GAAP
net income
(loss) per
share $1.03 $2.22
===== =====
Diluted:
GAAP net
income
(loss) per
share $0.36 $1.05
Reconciling
items:
Amortization
of
intangible
assets 0.18 0.20
Stock-based
compensation
expense 0.50 0.83
Impairment
of long-
lived
assets - 0.03
Non-cash
interest
expense 0.24 0.20
Gain on
purchased
options (0.23) -
Tax effect (0.04) (0.18)
----- -----
Non-GAAP
net income
(loss) per
share $1.01 $2.13
===== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 91,050 80,522
- Diluted 92,746 83,947
Non-GAAP
net income
(loss) per
share:
- Basic 91,050 80,522
- Diluted 92,746 83,947
The following supplemental data represents the individual charges and credits that are excluded from SunPower's non-GAAP financial measures for each period presented in the Condensed Consolidated Statements of Operations contained herein.
SUPPLEMENTAL DATA
(In thousands)
THREE MONTHS ENDED
------------------
January 3, 2010
---------------
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $966 $ -
Stock-based
compensation expense 1,004 3,239 1,647
Non-cash interest
expense 186 448 -
Tax effect - - -
--- --- ---
$3,031 $4,653 $1,647
====== ====== ======
THREE MONTHS ENDED
------------------
January 3, 2010
---------------
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,371 $ - $ -
Stock-
based
compensation
expense 6,900 - -
Non-cash
interest
expense - 5,110 -
Tax effect - - 14,540
--- --- ------
$8,271 $5,110 $14,540
====== ====== =======
September 27, 2009
------------------
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $961 $ -
Stock-based
compensation expense 1,494 2,808 1,736
Non-cash interest
expense 87 278 -
Tax effect - - -
--- --- ---
$3,422 $4,047 $1,736
====== ====== ======
September 27, 2009
------------------
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,344 $ - $ -
Stock-
based
compensation
expense 7,036 - -
Non-cash
interest
expense - 4,885 -
Tax effect - - 4,928
--- --- -----
$8,380 $4,885 $4,928
====== ====== ======
June 28, 2009
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $954 $ -
Stock-based
compensation expense 1,474 3,083 1,566
Non-cash interest
expense 347 893 -
Gain on purchased
options - - -
Tax effect - - -
--- --- ---
$3,662 $4,930 $1,566
====== ====== ======
June 28, 2009
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,303 $ - $ -
Stock-
based
compensation
expense 5,953 - -
Non-cash
interest
expense - 4,675 -
Gain on
purchased
options - (21,193) -
Tax effect - - (7,009)
--- --- ------
$7,256 $(16,518) $(7,009)
====== ======== =======
March 29, 2009
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $952 $ -
Stock-based
compensation expense 298 598 1,347
Non-cash interest
expense 230 270 -
Tax effect - - -
--- --- ---
$2,369 $1,820 $1,347
====== ====== ======
March 29, 2009
Interest
Selling, and Income
general other tax
income
and (expense), provision
administrative net (benefit)
Amortization
of
intangible
assets $1,259 $ - $ -
Stock-
based
compensation
expense 6,811 - -
Non-cash
interest
expense - 4,521 -
Tax effect - - (16,161)
--- --- -------
$8,070 $4,521 $(16,161)
====== ====== ========
December 28, 2008
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $1,089 $ -
Stock-based
compensation expense 3,084 2,087 1,218
Non-cash interest
expense 86 231 -
Tax effect - - -
--- --- ---
$5,011 $3,407 $1,218
====== ====== ======
December 28, 2008
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,280 $ - $ -
Stock-
based
compensation
expense 11,805 - -
Non-cash
interest
expense - 3,875 -
Tax effect - - 1,949
--- --- -----
$13,085 $3,875 $1,949
======= ====== ======
TWELVE MONTHS ENDED
January 3, 2010
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $7,364 $3,833 $ -
Stock-based
compensation expense 4,270 9,728 6,296
Non-cash interest
expense 850 1,889 -
Gain on purchased
options - - -
Tax effect - - -
--- --- ---
$12,484 $15,450 $6,296
======= ======= ======
TWELVE MONTHS ENDED
January 3, 2010
Selling, Interest Income
general and other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $5,277 $ - $ -
Stock-
based
compensation
expense 26,700 - -
Non-cash
interest
expense - 19,191 -
Gain on
purchased
options - (21,193) -
Tax effect - - (3,702)
--- --- ------
$31,977 $(2,002) $(3,702)
======= ======= =======
December 28, 2008
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $7,691 $4,305 $ -
Stock-based
compensation expense 10,745 8,144 3,988
Impairment of long-
lived assets - 2,203 -
Non-cash interest
expense 287 507 -
Tax effect - - -
--- --- ---
$18,723 $15,159 $3,988
======= ======= ======
December 28, 2008
Selling, Interest Income
general and other tax
income
and (expense),
administrative net provision
Amortization of
intangible
assets $4,766 $ - $ -
Stock-based
compensation
expense 47,343 - -
Impairment of
long-lived
assets - - -
Non-cash
interest
expense - 16,115 -
Tax effect - - (14,896)
--- --- -------
$52,109 $16,115 $(14,896)
======= ======= ========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $177,858 $(2,882) $174,976
Components 223,109 - 223,109
------- --- -------
400,967 (2,882) 398,085
------- ------ -------
Cost of revenue:
Cost of systems
revenue 142,591 (2,861) 139,730
Cost of components
revenue 147,045 (437) 146,608
------- ---- -------
289,636 (3,298) 286,338
Gross margin 111,331 416 111,747
Operating expenses:
Research and
development 5,970 - 5,970
Selling, general and
administrative 50,599 - 50,599
------ --- ------
Total operating
expenses 56,569 - 56,569
------ --- ------
Operating income 54,762 416 55,178
Other income
(expense), net (20,741) (998) (21,739)
------- ---- -------
Income before income
taxes and equity in
earnings of
unconsolidated
investees 34,021 (582) 33,439
Provision for income
taxes 12,742 508 13,250
------ --- ------
Income before equity
in earnings of
unconsolidated
investees 21,279 (1,090) 20,189
Equity in earnings of
unconsolidated
investees 10,071 (1,800) 8,271
------ ------ -----
Net income $31,350 $(2,890) $28,460
======= ======= =======
Net income per share
of class A and class
B common stock:
Basic $0.37 $(0.03) $0.34
Diluted $0.36 $(0.03) $0.33
Weighted-average
shares:
Basic 83,244 83,244
Diluted 85,356 85,356
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $820,632 $2,675 $823,307
Components 614,287 - 614,287
------- --- -------
1,434,919 2,675 1,437,594
--------- ----- ---------
Cost of
revenue:
Cost of
systems
revenue 653,907 5,845 659,752
Cost of
components
revenue 418,333 9,888 428,221
------- ----- -------
1,072,240 15,733 1,087,973
Gross margin 362,679 (13,058) 349,621
Operating
expenses:
Research and
development 21,474 - 21,474
Selling,
general and
administrative 173,740 - 173,740
------- --- -------
Total
operating
expenses 195,214 - 195,214
------- --- -------
Operating
income 167,465 (13,058) 154,407
Other income
(expense),
net (38,338) - (38,338)
------- --- -------
Income
before
income
taxes and
equity in
earnings of
unconsolidated
investees 129,127 (13,058) 116,069
Provision
for income
taxes 44,017 (3,399) 40,618
------ ------ ------
Income
before
equity in
earnings of
unconsolidated
investees 85,110 (9,659) 75,451
Equity in
earnings of
unconsolidated
investees 14,077 - 14,077
------ --- ------
Net income $99,187 $(9,659) $89,528
======= ======= =======
Net income
per share
of class A
and class B
common
stock:
Basic $1.22 $(0.12) $1.10
Diluted $1.17 $(0.12) $1.05
Weighted-
average
shares:
Basic 80,522 80,522
Diluted 83,947 83,947
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March
29, 2009
------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $106,097 $(2,144) $103,953
Components 107,690 - 107,690
------- --- -------
213,787 (2,144) 211,643
------- ------ -------
Cost of
revenue:
Cost of
systems
revenue 88,351 6,973 95,324
Cost of
components
revenue 77,688 6,396 84,084
------ ----- ------
166,039 13,369 179,408
Gross
margin 47,748 (15,513) 32,235
Operating
expenses:
Research
and
development 7,964 (84) 7,880
Selling,
general
and
administrative 42,283 121 42,404
------ --- ------
Total
operating
expenses 50,247 37 50,284
------ --- ------
Operating
income
(loss) (2,499) (15,550) (18,049)
Other
income
(expense)
Gain on
purchased
options - - -
Interest
and
other
income
(expense),
net (12,094) - (12,094)
------- --- -------
Other
income
(expense),
net (12,094) - (12,094)
------- --- -------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees (14,593) (15,550) (30,143)
Provision
for
(benefit
from)
income
taxes (8,562) (10,634) (19,196)
------ ------- -------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees (6,031) (4,916) (10,947)
Equity in
earnings
of
unconsolidated
investees 1,245 - 1,245
----- --- -----
Net
income
(loss) $(4,786) $(4,916) $(9,702)
======= ======= =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $(0.06) $(0.06) $(0.12)
Diluted $(0.06) $(0.06) $(0.12)
Weighted-
average
shares:
Basic 83,749 83,749
Diluted 83,749 83,749
Three Months Ended June 28,
2009
----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $108,724 $1,697 $110,421
Components 188,920 - 188,920
------- --- -------
297,644 1,697 299,341
------- ----- -------
Cost of
revenue:
Cost of
systems
revenue 91,793 4,243 96,036
Cost of
components
revenue 147,388 15,239 162,627
------- ------ -------
239,181 19,482 258,663
Gross
margin 58,463 (17,785) 40,678
Operating
expenses:
Research
and
development 6,853 84 6,937
Selling,
general
and
administrative 41,755 1,020 42,775
------ ----- ------
Total
operating
expenses 48,608 1,104 49,712
------ ----- ------
Operating
income
(loss) 9,855 (18,889) (9,034)
Other
income
(expense)
Gain on
purchased
options 21,193 - 21,193
Interest
and
other
income
(expense),
net (5,956) - (5,956)
------ --- ------
Other
income
(expense),
net 15,237 - 15,237
------ --- ------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees 25,092 (18,889) 6,203
Provision
for
(benefit
from)
income
taxes 4,054 (9,277) (5,223)
----- ------ ------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees 21,038 (9,612) 11,426
Equity in
earnings
of
unconsolidated
investees 3,133 - 3,133
----- --- -----
Net
income
(loss) $24,171 $(9,612) $14,559
======= ======= =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $0.27 $(0.11) $0.16
Diluted $0.26 $(0.10) $0.16
Weighted-
average
shares:
Basic 90,873 90,873
Diluted 98,412 92,640
Three Months Ended
September 27, 2009
------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $168,412 $(946) $167,466
Components 297,895 - 297,895
------- --- -------
466,307 (946) 465,361
------- ---- -------
Cost of
revenue:
Cost of
systems
revenue 144,859 (2,789) 142,070
Cost of
components
revenue 232,164 (8,703) 223,461
------- ------ -------
377,023 (11,492) 365,531
Gross
margin 89,284 10,546 99,830
Operating
expenses:
Research
and
development 8,250 - 8,250
Selling,
general
and
administrative 46,473 (1,141) 45,332
------ ------ ------
Total
operating
expenses 54,723 (1,141) 53,582
------ ------ ------
Operating
income
(loss) 34,561 11,687 46,248
Other
income
(expense)
Gain on
purchased
options - - -
Interest
and
other
income
(expense),
net (9,269) - (9,269)
------ --- ------
Other
income
(expense),
net (9,269) - (9,269)
------ --- ------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees 25,292 11,687 36,979
Provision
for
(benefit
from)
income
taxes 15,088 4,874 19,962
------ ----- ------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees 10,204 6,813 17,017
Equity in
earnings
of
unconsolidated
investees 2,627 - 2,627
----- --- -----
Net
income
(loss) $12,831 $6,813 $19,644
======= ====== =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $0.14 $0.07 $0.21
Diluted $0.13 $0.07 $0.20
Weighted-
average
shares:
Basic 94,668 94,668
Diluted 96,319 105,031
SUNPOWER CORPORATION
NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross margin $119,749 $416 $120,165
Operating income $77,483 $416 $77,899
Net income per share
of class A and class
B common stock:
Basic $0.71 $(0.03) $0.68
Diluted $0.69 $(0.03) $0.66
Weighted-average
shares:
Basic 83,244 83,244
Diluted 85,356 85,356
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross margin $396,561 $(13,058) $383,503
Operating income $257,444 $(13,058) $244,386
Net income per share
of class A and class
B common stock:
Basic $2.33 $(0.11) $2.22
Diluted $2.24 $(0.11) $2.13
Weighted-average
shares:
Basic 80,522 80,522
Diluted 83,947 83,947
(1) Includes retrospective application for adoption of new accounting
guidance for convertible debt instruments that may be settled in
cash upon conversion.
SUNPOWER CORPORATION
NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 29,
2009
-----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $51,864 $(15,440) $36,424
Operating
income
(loss) $11,536 $(15,979) $(4,443)
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.05 $(0.14) $(0.09)
Diluted $0.05 $(0.14) $(0.09)
Weighted-
average
shares:
Basic 83,749 83,749
Diluted 85,579 83,749
Three Months Ended June 28,
2009
----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $67,128 $(17,858) $49,270
Operating
income
(loss) $26,840 $(18,460) $8,380
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.25 $(0.16) $0.09
Diluted $0.24 $(0.15) $0.09
Weighted-
average
shares:
Basic 90,873 90,873
Diluted 98,412 92,640
Three Months Ended
September 27, 2009
------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $96,753 $10,546 $107,299
Operating
income
(loss) $52,146 $11,687 $63,833
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.42 $0.08 $0.50
Diluted $0.42 $0.04 $0.46
Weighted-
average
shares:
Basic 94,668 94,668
Diluted 96,319 105,031
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income $31,350 $(2,890) $28,460
Adjustments
to
reconcile
net income
to net cash
provided by
operating
activities:
Stock-
based
compensation 18,194 - 18,194
Depreciation 18,376 - 18,376
Amortization
of other
intangible
assets 4,210 - 4,210
Impairment
of
investments
and long-
lived
assets 4,475 - 4,475
Non-cash
interest
expense 4,192 - 4,192
Amortization
of debt
issuance
costs 537 - 537
Equity in
earnings
of
unconsolidated
investees (10,071) 1,800 (8,271)
Excess tax
benefits
from
stock-
based
award
activity (7,625) (4,464) (12,089)
Deferred
income
taxes and
other tax
liabilities (8,975) 508 (8,467)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable (2,251) - (2,251)
Costs and
estimated
earnings
in excess
of
billings 26,380 4,489 30,869
Inventories (50,698) (9,584) (60,282)
Prepaid
expenses
and other
assets (32,154) (3) (32,157)
Advances to
suppliers (17,805) - (17,805)
Accounts
payable
and other
accrued
liabilities 70,703 2,737 73,440
Billings in
excess of
costs and
estimated
earnings 2,641 2,860 5,501
Customer
advances (5,759) - (5,759)
------ --- ------
Net cash
provided
by
operating
activities 45,720 (4,547) 41,173
Cash flows
from
investing
activities:
Iincrease
in
restricted
cash and
cash
equivalents (65,237) - (65,237)
Purchases
of
property,
plant and
equipment (115,247) 84 (115,163)
Purchases
of
available-
for-sale
securities - - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 21,885 - 21,885
Cash paid
for
acquisitions,
net of
cash
acquired - - -
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
used in
investing
activities (158,599) 84 (158,515)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term debt,
net of
issuance
costs 54,598 - 54,598
Cash paid
for
repurchased
convertible
debt (1,187) - (1,187)
Proceeds
from
exercise
of stock
options 1,342 - 1,342
Excess tax
benefits
from
stock-
based
award
activity 7,625 4,464 12,089
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (829) - (829)
---- --- ----
Net cash
provided
by
financing
activities 61,549 4,464 66,013
Effects of
exchange
rate
changes on
cash and
equivalents (2,955) - (2,955)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (54,285) - (54,285)
Cash and
cash
equivalents
at
beginning
of period 256,616 - 256,616
------- --- -------
Cash and
cash
equivalents
at end of
period $202,331 $ - $202,331
======== === === ========
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 2,563 - 2,563
Issuance of
common
stock for
purchase
acquisition - - -
Issuance of
common
stock for
repurchased
convertible
debt 40 - 40
Change in
goodwill
relating
to
adjustments
to
acquired
net assets 945 - 945
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income $99,187 $(9,659) $89,528
Adjustments
to
reconcile
net
income to
net cash
provided
by
operating
activities:
Stock-
based
compensation 70,220 - 70,220
Depreciation 54,117 356 54,473
Amortization
of other
intangible
assets 16,762 - 16,762
Impairment
of
investments
and long-
lived
assets 7,611 - 7,611
Non-cash
interest
expense 16,909 - 16,909
Amortization
of debt
issuance
costs 2,148 - 2,148
Equity in
earnings
of
unconsolidated
investees (14,077) - (14,077)
Excess tax
benefits
from
stock-
based
award
activity (41,524) 828 (40,696)
Deferred
income
taxes and
other tax
liabilities 20,763 (3,400) 17,363
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable (57,575) - (57,575)
Costs and
estimated
earnings
in excess
of
billings 8,680 576 9,256
Inventories (98,999) 3,287 (95,712)
Prepaid
expenses
and other
assets (61,790) 2,506 (59,284)
Advances
to
suppliers 1,297 - 1,297
Accounts
payable
and other
accrued
liabilities 147,216 2,862 150,078
Billings
in excess
of costs
and
estimated
earnings (57,423) 3,828 (53,595)
Customer
advances 40,125 - 40,125
------ --- ------
Net cash
provided
by
operating
activities 153,647 1,184 154,831
Cash flows
from
investing
activities:
Iincrease
in
restricted
cash and
cash
equivalents (107,390) - (107,390)
Purchases
of
property,
plant and
equipment (265,549) (356) (265,905)
Purchases
of
available-
for-sale
securities (65,748) - (65,748)
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 155,833 - 155,833
Cash paid
for
acquisitions,
net of
cash
acquired (18,311) - (18,311)
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies (24,625) - (24,625)
------- --- -------
Net cash
used in
investing
activities (325,790) (356) (326,146)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 54,598 - 54,598
Cash paid
for
repurchased
convertible
debt (1,187) - (1,187)
Proceeds
from
exercise
of stock
options 5,128 - 5,128
Excess tax
benefits
from
stock-
based
award
activity 41,524 (828) 40,696
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (6,682) - (6,682)
------ --- ------
Net cash
provided
by
financing
activities 93,381 (828) 92,553
Effects of
exchange
rate
changes
on cash
and
equivalents (4,121) - (4,121)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (82,883) - (82,883)
Cash and
cash
equivalents
at
beginning
of period 285,214 - 285,214
------- --- -------
Cash and
cash
equivalents
at end of
period $202,331 $ - $202,331
======== === === ========
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $28,485 $(6,763) $21,722
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 8,930 - 8,930
Issuance
of common
stock for
purchase
acquisition 3,054 - 3,054
Issuance
of common
stock for
repurchased
convertible
debt 40 - 40
Change in
goodwill
relating
to
adjustments
to
acquired
net
assets 1,176 - 1,176
(1) Includes retrospective application for adoption of new accounting
guidance for convertible debt instruments that may be settled in
cash upon conversion.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 29, 2009
---------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $(4,786) $(4,916) $(9,702)
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 9,483 (429) 9,054
Depreciation 18,365 - 18,365
Amortization
of other
intangible
assets 4,052 - 4,052
Impairment
of
investments
and long-
lived
assets 1,318 - 1,318
Non-cash
interest
expense 5,021 - 5,021
Amortization
of debt
issuance
costs 537 - 537
Gain on
purchased
options - - -
Equity in
earnings
of
unconsolidated
investees (1,245) - (1,245)
Excess tax
benefits
from
stock-
based
award
activity - - -
Deferred
income
taxes and
other tax
liabilities (6,369) (10,634) (17,003)
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable 40,931 - 40,931
Costs and
estimated
earnings
in excess
of
billings (3,797) 619 (3,178)
Inventories (95,870) 9,821 (86,049)
Prepaid
expenses
and other
assets 11,913 (242) 11,671
Advances
to
suppliers 7,993 - 7,993
Accounts
payable
and other
accrued
liabilities (27,199) 2,401 (24,798)
Billings
in excess
of costs
and
estimated
earnings (4,612) 4,700 88
Customer
advances (8,860) (1,320) (10,180)
------ ------ -------
Net cash
provided
by (used
in)
operating
activities (53,125) - (53,125)
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (9,185) - (9,185)
Purchases
of
property,
plant and
equipment (52,101) - (52,101)
Proceeds
from sale
of
equipment
to third-
party - - -
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 18,177 - 18,177
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
provided
by (used
in)
investing
activities (43,109) - (43,109)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 51,232 - 51,232
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs - - -
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses - - -
Cash paid
for
repurchased
convertible
debt - - -
Cash paid
for
purchased
options - - -
Proceeds
from
warrant
transactions - - -
Proceeds
from
exercise
of stock
options 396 - 396
Excess tax
benefits
from
stock-
based
award
activity - - -
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (2,359) - (2,359)
------ --- ------
Net cash
provided
by
financing
activities 49,269 - 49,269
Effects of
exchange
rate
changes
on cash
and
equivalents (6,256) - (6,256)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (53,221) - (53,221)
Cash and
cash
equivalents
at
beginning
of period 202,331 - 202,331
------- --- -------
Cash and
cash
equivalents
at end of
period $149,110 $ - $149,110
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $22,571 $(3,791) $18,780
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 2,073 - 2,073
Issuance
of common
stock for
purchase
acquisition - - -
Three Months Ended June 28, 2009
--------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $24,171 $(9,612) $14,559
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 11,647 429 12,076
Depreciation 20,569 - 20,569
Amortization
of other
intangible
assets 4,098 - 4,098
Impairment
of
investments
and long-
lived
assets 489 - 489
Non-cash
interest
expense 5,915 - 5,915
Amortization
of debt
issuance
costs 1,184 - 1,184
Gain on
purchased
options (21,193) - (21,193)
Equity in
earnings
of
unconsolidated
investees (3,133) - (3,133)
Excess tax
benefits
from
stock-
based
award
activity (2,610) 2,610 -
Deferred
income
taxes and
other tax
liabilities (3,505) (9,277) (12,782)
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (65,422) - (65,422)
Costs and
estimated
earnings
in excess
of
billings 23,168 (1,911) 21,257
Inventories 87,807 4,323 92,130
Prepaid
expenses
and other
assets (35,291) 1,540 (33,751)
Advances
to
suppliers 13,449 297 13,746
Accounts
payable
and other
accrued
liabilities (101,114) 21,419 (79,695)
Billings
in excess
of costs
and
estimated
earnings 42,968 (8,528) 34,440
Customer
advances 774 1,320 2,094
--- ----- -----
Net cash
provided
by (used
in)
operating
activities 3,971 2,610 6,581
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (33,151) - (33,151)
Purchases
of
property,
plant and
equipment (59,566) - (59,566)
Proceeds
from sale
of
equipment
to third-
party 7,902 - 7,902
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 1,501 - 1,501
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
provided
by (used
in)
investing
activities (83,314) - (83,314)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 29,773 - 29,773
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs 225,018 - 225,018
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses 218,895 - 218,895
Cash paid
for
repurchased
convertible
debt (67,949) - (67,949)
Cash paid
for
purchased
options (97,336) - (97,336)
Proceeds
from
warrant
transactions 71,001 - 71,001
Proceeds
from
exercise
of stock
options 442 - 442
Excess tax
benefits
from
stock-
based
award
activity 2,610 (2,610) -
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (763) - (763)
---- --- ----
Net cash
provided
by
financing
activities 381,691 (2,610) 379,081
Effects of
exchange
rate
changes
on cash
and
equivalents 5,377 - 5,377
----- --- -----
Net
increase
(decrease)
in cash
and cash
equivalents 307,725 - 307,725
Cash and
cash
equivalents
at
beginning
of period 149,110 - 149,110
------- --- -------
Cash and
cash
equivalents
at end of
period $456,835 $ - $456,835
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 1,510 - 1,510
Issuance
of common
stock for
purchase
acquisition 1,471 - 1,471
Three Months Ended September 27, 2009
-------------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $12,831 $6,813 $19,644
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 13,074 - 13,074
Depreciation 21,414 - 21,414
Amortization
of other
intangible
assets 4,146 - 4,146
Impairment
of
investments
and long-
lived
assets 190 - 190
Non-cash
interest
expense 5,250 - 5,250
Amortization
of debt
issuance
costs 733 - 733
Gain on
purchased
options - - -
Equity in
earnings
of
unconsolidated
investees (2,627) - (2,627)
Excess tax
benefits
from
stock-
based
award
activity (12,134) 5,007 (7,127)
Deferred
income
taxes and
other tax
liabilities 10,151 4,874 15,025
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (18,794) - (18,794)
Costs and
estimated
earnings
in excess
of
billings (60,787) 716 (60,071)
Inventories 28,977 (7,282) 21,695
Prepaid
expenses
and other
assets 15,438 27 15,465
Advances
to
suppliers 3,435 - 3,435
Accounts
payable
and other
accrued
liabilities 98,997 (5,617) 93,380
Billings
in excess
of costs
and
estimated
earnings (33,479) - (33,479)
Customer
advances (5,553) - (5,553)
------ --- ------
Net cash
provided
by (used
in)
operating
activities 81,262 4,538 85,800
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (103,247) - (103,247)
Purchases
of
property,
plant and
equipment (38,426) 469 (37,957)
Proceeds
from sale
of
equipment
to third-
party 1,976 - 1,976
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 9,867 - 9,867
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies (1,500) - (1,500)
------ --- ------
Net cash
provided
by (used
in)
investing
activities (131,330) 469 (130,861)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 54,701 - 54,701
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs - - -
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses (114) - (114)
Cash paid
for
repurchased
convertible
debt (7,687) - (7,687)
Cash paid
for
purchased
options - - -
Proceeds
from
warrant
transactions - - -
Proceeds
from
exercise
of stock
options 570 - 570
Excess tax
benefits
from
stock-
based
award
activity 12,134 (5,007) 7,127
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (586) - (586)
---- --- ----
Net cash
provided
by
financing
activities 59,018 (5,007) 54,011
Effects of
exchange
rate
changes
on cash
and
equivalents 6,341 - 6,341
----- --- -----
Net
increase
(decrease)
in cash
and cash
equivalents 15,291 - 15,291
Cash and
cash
equivalents
at
beginning
of period 456,835 - 456,835
------- --- -------
Cash and
cash
equivalents
at end of
period $472,126 $ - $472,126
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 873 - 873
Issuance
of common
stock for
purchase
acquisition - - -
SOURCE SunPower Corp.
Copyright (C) 2010 PR Newswire. All rights reserved
SAN JOSE, Calif., March 18, 2010 /PRNewswire via COMTEX News Network/ -- SunPower Corp. (Nasdaq: SPWRA, SPWRB) today announced financial results for its 2009 fourth quarter and fiscal year 2009 which ended January 3, 2010. Revenue for the 2009 fourth quarter was $548 million which compares to $465 million in the third quarter of 2009 and $398 million in the fourth quarter of 2008. The company's Components and Systems segments accounted for 62% and 38% of fourth-quarter 2009 revenue, respectively. The company also issued a press release reporting the results of its audit committee investigation concurrent with this release.
"Our 2009 year-end results reflect the continued success of our portfolio strategy to channels and geographic markets as we further expanded our global dealer presence and completed construction of more than 40 megawatts (MW) of large scale power plant projects during the fourth quarter," said Tom Werner, SunPower's CEO. "In the past four years, we have invested heavily in our long-term strategy of building our brand and channel, and this investment continues to pay off. In the residential channel, our strong brand enabled us to double the number of dealer partners in 2009 and we are selling our high-efficiency systems to approximately 1,000 dealer partners in eight countries. Additionally, as a result of our rapid growth and expanding customer base, we have started to re-align our business units into Residential and Commercial (R&C) and Utilities and Power Plants (UPP). As part of this strategy, we have appointed Jim Pape, former vice president of North America for Trane Commercial Systems, to lead our R&C business group. With more than 25 years of management experience, we are excited to have Jim join the team.
"In the systems segment, we added to our industry-leading installed base by delivering on our engineering, procurement and construction (EPC) commitments, installing more than 100 MW of rooftop and ground mounted systems in 2009. In the fourth quarter, we completed the largest Italian photovoltaic (PV) power plant to date at 24 MW, installed 10 MW for Florida Power & Light at the Kennedy Space Center, and substantially completed our 8-MW project for Exelon in Chicago. We are also encouraged by the continued improvement in credit conditions as evidenced by the recent financing of our 19-MW project with Xcel Energy in Colorado.
"Additionally, our global UPP pipeline continues to grow as customers are choosing SunPower for our industry-leading technology, bankability, significant EPC experience, and ability to offer a competitive levelized cost of energy. With the acquisition of SunRay Renewable Energy, we will significantly increase our demand visibility by adding more than 1,200 MW of Europe, Middle East and Africa (EMEA) power plant opportunities to our pipeline with more than 80 MW planned for delivery in Italy in 2010. This acquisition of the premiere European developer and financing team complements our established European team, enabling us to offer our customers a world-class utility power plant development expertise in both the United States and Europe. Looking forward, we see demand remaining strong for 2010 across all segments. Our recent wins with Toshiba and Southern California Edison position us well for multi-year supply agreements in our UPP business on top of our continued success in R&C," Werner concluded.
On a Generally Accepted Accounting Principles (GAAP) basis for the 2009 fourth quarter, SunPower reported gross margin of 20.3%, operating income of $43.0 million and net income per diluted share of $0.09. This compares to gross margin of 21.5%, operating income of $46.2 million and net income per diluted share of $0.20 in the third quarter of 2009. As a result of the restatement, the fourth quarter of 2009 includes a $2.6 million benefit, or $0.02 earnings per share. The company's fourth-quarter GAAP results include $3.6 million, or $0.03 per diluted share, in expenses related to its recently completed accounting investigation.
On a non-GAAP basis for the fourth quarter of 2009, SunPower reported a total gross margin of 21.7%. Operating income for the quarter was $60.3 million and net income per share was $0.47. The company's fourth-quarter non-GAAP results include $3.6M million, or $0.03 per diluted share, in expenses related to the completed accounting investigation. As a result of the restatement, the fourth quarter of 2009 includes a $2.6 million benefit, or $0.02 earnings per share. In the third quarter 2009, the company reported non-GAAP gross margin of 23.1%, operating income of $63.8 million and $0.46 net income per share. For the 2009 fourth quarter, the Components segment non-GAAP gross margin was 21.5% and Systems segment gross margin was 21.9%. Non-GAAP figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release.
"We improved our working capital efficiency during the fourth quarter reducing inventories by 12%, generating positive operating cash flow and ending the year with more than $925 million in cash and investments," said Dennis Arriola, SunPower's CFO. "Despite the difficult industry conditions in the first half of 2009, we grew revenue by 6% versus 2008. With the completion of the audit committee investigation, our efforts will focus on strengthening the trust with our stakeholders, customers and employees while driving increased shareholder value.
"Looking forward, our acquisition of SunRay positions us for more predictable growth in the second half of 2010 and into 2011. By extending into the development business, we expect to expand our gross profits as we monetize these power plants. We will strategically use our balance sheet to accelerate the development of these projects. This strategy will significantly shift the timing of revenue of these projects from the first half of the year to the second half of 2010," concluded Arriola.
2010 Guidance
For fiscal year 2010, the company's non-GAAP guidance is as follows: revenue of $2.0 billion to $2.25 billion, net income per diluted share of $1.25 to $1.65, capital expenditures of $375 million to $475 million, and solar cell production of approximately 550 MW. For fiscal year 2010, the company's GAAP guidance is as follows: revenue of $2.00 billion to $2.25 billion and net income per diluted share of $0.05 to $0.35.
For the first quarter of 2010, the company's non-GAAP guidance is as follows: revenue of $330 million to $350 million and net income per diluted share of approximately $0.05. Guidance for the first quarter of 2010 includes the negative impact of $3.3 million or $0.03 per diluted share in SunRay acquisition costs and $5.3 million or $0.04 per diluted share in costs associated with the company's accounting investigation.
For the first quarter of 2010, the company's GAAP guidance is as follows: revenue of $330 million to $350 million and net income per diluted share of approximately breakeven. Guidance includes the negative impact from the company's accounting investigation and SunRay acquisition referenced above.
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 fourth quarter 2009 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpowercorp.com/events.cfm. The capacity of power plants in this release is described in approximate MW on an alternating current (ac) basis while supply agreements are expressed in direct current (dc).
About SunPower
Founded in 1985, SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers the planet's most powerful solar technology broadly available today. Residential, business, government and utility customers rely on the company's experience and proven results to maximize return on investment. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia. For more information, visit www.sunpowercorp.com.
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 "pipeline," "to be completed," "rapid," "growth," "expanding," "continues," "grow," "opportunities," "planed," "looking forward," "see," "demand," "remaining," "position," "continued," "predictable," "will," "guidance," and "expects" to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) acquisition of SunRay and increase in business pipeline of 1.2 gigawatt pipeline of opportunities in Europe, Middle East and Africa, including including more than 80 MW planned for delivery in Italy in 2010; (b) 200 MW, 5-year supply agreement with Southern California Edison; (c) construction schedule for 19-MW power plant for Xcel Energy; (d) rapid growth, expanding customer base, growing global UPP pipeline, and strong demand for 2010 across all segments; (e) improving credit conditions and bankability of SunPower projects; (f) the company's ability to offer competitive levelized cost of energy; (g) possible multi-year supply agreements in the company's UPP business and continued success in R&C; (h) increasing shareholder value; (i) predictable growth and expanding gross margins when the company monetizes power plants; (j) using the company's balance sheet to accelerate project development; (k) shifting revenue from first half of 2010 to second half of 2010; (l) GAAP and non-GAAP fiscal year 2010 revenue and net income per diluted share; (m) 2010 capital expenditures and solar cell production; (n) GAAP and non-GAAP first quarter 2010 revenue and net income per diluted share; and (o) estimated SunRay acquisition costs and accounting investigation costs. 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) the company's ability to obtain and maintain an adequate supply of raw materials and components, as well as the price it pays for such items; (ii) general business and economic conditions, including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of governmental and related economic incentives promoting the use of solar power, particularly in Europe, Middle East, and Africa within the acquired pipeline; (v) the improved availability of third-party financing arrangements for the company's customers; (vi) construction difficulties or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to compete with other companies and competing technologies; (x) the company's ability to sell or otherwise monetize power plants; (xi) SCE's exercising early termination rights to purchase less than 200 megawatts during the term of the agreement; (xii) the satisfaction of closing conditions and the possibility that SunRay acquisition may not be completed; (xiii) potential difficulties associated with integrating the combined businesses; and (xiv) other risks described in the company's Annual Report on Form 10-K for the year ended December 28, 2008, its Quarterly Report on Form 10-Q for the quarter ended September 27, 2009, 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.
Segment Reporting Information
For fourth quarter 2009 reporting purposes, the Systems segment generally represents products and services sold directly to the system owner. Additionally, both SunPower and third-party solar panels sold through the Systems segment channels are recorded as Systems segment revenue. The Components segment primarily represents products sold to installers and resellers.
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to the company's convertible debt offering, and its related tax effects. Management does not consider these charges in evaluating the core operational activities of SunPower. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate SunPower's current performance. Most analysts covering SunPower use the non-GAAP measures as well. Given management's use of these non-GAAP measures, SunPower believes these measures are important to investors in understanding SunPower's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in SunPower's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data and may be different from non-GAAP measures used by other companies.
Fiscal Periods
The Company reports on a fiscal-year basis and ends its quarters on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. Fiscal year 2009 consists of 53 weeks while fiscal year 2008 consists of 52 weeks. The third quarter of fiscal 2009 ended on September 27, 2009 and the third quarter of fiscal 2008 ended on September 29, 2008.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
ASSETS
Cash and cash equivalents $615,879 $202,331
Restricted cash 310,658 175,277
Investments 172 40,756
Accounts receivable, net 248,833 194,222
Costs and estimated earnings in excess of
billings 26,062 29,750
Inventories 202,301 248,255
Prepaid expenses and other assets 196,022 170,851
Advances to suppliers 190,628 162,610
Property, plant and equipment, net 682,344 622,484
Goodwill and other intangible assets, net 223,137 236,210
------- -------
Total assets $2,696,036 $2,082,746
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $234,692 $259,429
Accrued and other liabilities 190,830 186,831
Bank loans 248,953 54,598
Convertible debt 536,574 357,173
Billings in excess of costs and estimated
earnings 17,346 15,634
Customer advances 92,120 110,394
------ -------
Total liabilities 1,320,515 984,059
Stockholders' equity 1,375,521 1,098,687
--------- ---------
Total liabilities and stockholders' equity $2,696,036 $2,082,746
========== ==========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Revenue:
Systems $207,630 $167,466 $110,421
Components 340,308 297,895 188,920
------- ------- -------
547,938 465,361 299,341
Cost of
revenue:
Cost of
systems
revenue 165,164 142,070 96,036
Cost of
components
revenue 271,797 223,461 162,627
------- ------- -------
436,961 365,531 258,663
Gross margin 110,977 99,830 40,678
Operating
expenses:
Research and
development 8,575 8,250 6,937
Selling,
general and
administrative 59,733 45,332 42,775
------ ------ ------
Total
operating
expenses 68,308 53,582 49,712
------ ------ ------
Operating
income (loss) 42,669 46,248 (9,034)
Other income
(expense):
Gain on
purchased
options - - 21,193
Interest and
other income
(expense),
net (11,436) (9,269) (5,956)
------- ------ ------
Other income
(expense),
net (11,436) (9,269) 15,237
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees 31,233 36,979 6,203
Provision for
(benefit
from) income
taxes 25,485 19,962 (5,223)
------ ------ ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees 5,748 17,017 11,426
Equity in
earnings of
unconsolidated
investees,
net of taxes 2,924 2,627 3,133
----- ----- -----
Net income
(loss) $8,672 $19,644 $14,559
====== ======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $0.09 $0.21 $0.16
- Diluted $0.09 $0.20 $0.16
Weighted-
average
shares:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Revenue:
Systems $103,953 $174,976
Components 107,690 223,109
------- -------
211,643 398,085
Cost of
revenue:
Cost of
systems
revenue 95,324 139,730
Cost of
components
revenue 84,084 146,608
------ -------
179,408 286,338
Gross margin 32,235 111,747
Operating
expenses:
Research and
development 7,880 5,970
Selling,
general and
administrative 42,404 50,599
------ ------
Total
operating
expenses 50,284 56,569
------ ------
Operating
income (loss) (18,049) 55,178
Other income
(expense):
Gain on
purchased
options - -
Interest and
other income
(expense),
net (12,094) (21,739)
------- -------
Other income
(expense),
net (12,094) (21,739)
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees (30,143) 33,439
Provision for
(benefit
from) income
taxes (19,196) 13,250
------- ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees (10,947) 20,189
Equity in
earnings of
unconsolidated
investees,
net of taxes 1,245 8,271
----- -----
Net income
(loss) $(9,702) $28,460
======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $(0.12) $0.34
- Diluted $(0.12) $0.33
Weighted-
average
shares:
- Basic 83,749 83,244
- Diluted 83,749 85,356
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Revenue:
Systems $589,470 $823,307
Components 934,813 614,287
------- -------
1,524,283 1,437,594
Cost of
revenue:
Cost of
systems
revenue 498,594 659,752
Cost of
components
revenue 741,969 428,221
------- -------
1,240,563 1,087,973
Gross margin 283,720 349,621
Operating
expenses:
Research and
development 31,642 21,474
Selling,
general and
administrative 190,244 173,740
------- -------
Total
operating
expenses 221,886 195,214
------- -------
Operating
income (loss) 61,834 154,407
Other income
(expense):
Gain on
purchased
options 21,193 -
Interest and
other income
(expense),
net (38,755) (38,338)
------- -------
Other income
(expense),
net (17,562) (38,338)
Income (loss)
before income
taxes and
equity in
earnings of
unconsolidated
investees 44,272 116,069
Provision for
(benefit
from) income
taxes 21,028 40,618
------ ------
Income (loss)
before equity
in earnings
of
unconsolidated
investees 23,244 75,451
Equity in
earnings of
unconsolidated
investees,
net of taxes 9,929 14,077
----- ------
Net income
(loss) $33,173 $89,528
======= =======
Net income
(loss) per
share of
class A and
class B
common stock:
- Basic $0.36 $1.10
- Diluted $0.36 $1.05
Weighted-
average
shares:
- Basic 91,050 80,522
- Diluted 92,746 83,947
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Cash flows
from
operating
activities:
Net income
(loss) $8,672 $19,644 $14,559
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 12,790 13,074 12,076
Depreciation 24,282 21,414 20,569
Amortization
of other
intangible
assets 4,178 4,146 4,098
Impairment
of
investments
and long-
lived
assets (554) 190 489
Non-cash
interest
expense 5,744 5,250 5,915
Amortization
of debt
issuance
costs 687 733 1,184
Gain on
purchased
options - - (21,193)
Equity in
earnings of
unconsolidated
investees (2,924) (2,627) (3,133)
Excess tax
benefits
from stock-
based award
activity (10,522) (7,127) -
Deferred
income
taxes and
other tax
liabilities 24,583 15,025 (12,782)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions: - - -
Accounts
receivable (7,225) (18,794) (65,422)
Costs and
estimated
earnings in
excess of
billings 47,602 (60,071) 21,257
Inventories 25,964 21,695 92,130
Prepaid
expenses
and other
assets (6,476) 15,465 (33,751)
Advances to
suppliers (53,068) 3,435 13,746
Accounts
payable and
other
accrued
liabilities 19,193 93,380 (79,695)
Billings in
excess of
costs and
estimated
earnings (130) (33,479) 34,440
Customer
advances (4,770) (5,553) 2,094
------ ------ -----
Net cash
provided by
(used in)
operating
activities 88,026 85,800 6,581
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents 10,128 (103,247) (33,151)
Purchases of
property,
plant and
equipment (18,187) (37,957) (59,566)
Proceeds
from sale
of
equipment
to third-
party 83 1,976 7,902
Purchases of
available-
for-sale
securities - - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 9,604 9,867 1,501
Cash paid
for
acquisitions,
net of cash
acquired - - -
Cash paid
for
investments
in joint
ventures
and other
non-public
companies (903) (1,500) -
---- ------ ---
Net cash
provided by
(used in)
investing
activities 725 (130,861) (83,314)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 54,008 54,701 29,773
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs - - 225,018
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses - (114) 218,895
Cash paid
for
repurchased
convertible
debt - (7,687) (67,949)
Cash paid
for
purchased
options - - (97,336)
Proceeds
from
warrant
transactions - - 71,001
Proceeds
from
exercise of
stock
options 121 570 442
Excess tax
benefits
from stock-
based award
activity 10,522 7,127 -
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (619) (586) (763)
---- ---- ----
Net cash
provided by
financing
activities 64,032 54,011 379,081
Effects of
exchange
rate
changes on
cash and
equivalents (9,030) 6,341 5,377
------ ----- -----
Net increase
(decrease)
in cash and
cash
equivalents 143,753 15,291 307,725
Cash and
cash
equivalents
at
beginning
of period $472,126 456,835 149,110
-------- -------
Cash and
cash
equivalents
at end of
period $615,879 $472,126 $456,835
======== ======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $7,320 $ - $ -
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 508 873 1,510
Issuance of
common
stock for
purchase
acquisition - - 1,471
Issuance of
common
stock for
repurchased
convertible
debt - - -
Change in
goodwill
relating to
adjustments
to acquired
net assets - - -
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Cash flows
from
operating
activities:
Net income
(loss) $(9,702) $28,460
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 9,054 18,194
Depreciation 18,365 18,376
Amortization
of other
intangible
assets 4,052 4,210
Impairment
of
investments
and long-
lived
assets 1,318 4,475
Non-cash
interest
expense 5,021 4,192
Amortization
of debt
issuance
costs 537 537
Gain on
purchased
options - -
Equity in
earnings of
unconsolidated
investees (1,245) (8,271)
Excess tax
benefits
from stock-
based award
activity - (12,089)
Deferred
income
taxes and
other tax
liabilities (17,003) (8,467)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable 40,931 (2,251)
Costs and
estimated
earnings in
excess of
billings (3,178) 30,869
Inventories (86,049) (60,282)
Prepaid
expenses
and other
assets 11,671 (32,157)
Advances to
suppliers 7,993 (17,805)
Accounts
payable and
other
accrued
liabilities (24,798) 73,440
Billings in
excess of
costs and
estimated
earnings 88 5,501
Customer
advances (10,180) (5,759)
------- ------
Net cash
provided by
(used in)
operating
activities (53,125) 41,173
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (9,185) (65,237)
Purchases of
property,
plant and
equipment (52,101) (115,163)
Proceeds
from sale
of
equipment
to third-
party - -
Purchases of
available-
for-sale
securities - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 18,177 21,885
Cash paid
for
acquisitions,
net of cash
acquired - (0)
Cash paid
for
investments
in joint
ventures
and other
non-public
companies - -
--- ---
Net cash
provided by
(used in)
investing
activities (43,109) (158,515)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 51,232 54,598
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs - -
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses - -
Cash paid
for
repurchased
convertible
debt - (1,187)
Cash paid
for
purchased
options - -
Proceeds
from
warrant
transactions - -
Proceeds
from
exercise of
stock
options 396 1,342
Excess tax
benefits
from stock-
based award
activity - 12,089
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (2,359) (829)
------ ----
Net cash
provided by
financing
activities 49,269 66,013
Effects of
exchange
rate
changes on
cash and
equivalents (6,256) (2,955)
------ ------
Net increase
(decrease)
in cash and
cash
equivalents (53,221) (54,285)
Cash and
cash
equivalents
at
beginning
of period 202,331 256,616
-------
Cash and
cash
equivalents
at end of
period $149,110 $202,331
======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $18,780 $ -
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 2,073 2,563
Issuance of
common
stock for
purchase
acquisition - -
Issuance of
common
stock for
repurchased
convertible
debt - 40
Change in
goodwill
relating to
adjustments
to acquired
net assets - 945
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Cash flows
from
operating
activities:
Net income
(loss) $33,173 $89,528
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used in)
operating
activities:
Stock-based
compensation 46,994 70,220
Depreciation 84,630 54,473
Amortization
of other
intangible
assets 16,474 16,762
Impairment
of
investments
and long-
lived
assets 1,443 7,611
Non-cash
interest
expense 21,930 16,909
Amortization
of debt
issuance
costs 3,141 2,148
Gain on
purchased
options (21,193) -
Equity in
earnings of
unconsolidated
investees (9,929) (14,077)
Excess tax
benefits
from stock-
based award
activity (17,649) (40,696)
Deferred
income
taxes and
other tax
liabilities 9,823 17,363
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (50,510) (57,575)
Costs and
estimated
earnings in
excess of
billings 5,610 9,256
Inventories 53,740 (95,712)
Prepaid
expenses
and other
assets (13,091) (59,284)
Advances to
suppliers (27,894) 1,297
Accounts
payable and
other
accrued
liabilities 4,538 150,078
Billings in
excess of
costs and
estimated
earnings 919 (53,595)
Customer
advances (18,409) 40,125
------- ------
Net cash
provided by
(used in)
operating
activities 123,740 154,831
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (135,455) (107,390)
Purchases of
property,
plant and
equipment (167,811) (265,905)
Proceeds
from sale
of
equipment
to third-
party 9,961 -
Purchases of
available-
for-sale
securities - (65,748)
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 39,149 155,833
Cash paid
for
acquisitions,
net of cash
acquired - (18,311)
Cash paid
for
investments
in joint
ventures
and other
non-public
companies (2,403) (24,625)
------ -------
Net cash
provided by
(used in)
investing
activities (256,559) (326,146)
Cash flows
from
financing
activities:
Proceeds
from
issuance of
long-term
debt, net
of issuance
costs 193,256 54,598
Proceeds
from
issuance of
convertible
debt, net
of issuance
costs 225,018 -
Proceeds
from
offering of
class A
common
stock, net
of offering
expenses 218,781 -
Cash paid
for
repurchased
convertible
debt (75,636) (1,187)
Cash paid
for
purchased
options (97,336) -
Proceeds
from
warrant
transactions 71,001 -
Proceeds
from
exercise of
stock
options 1,529 5,128
Excess tax
benefits
from stock-
based award
activity 17,649 40,696
Purchases of
stock for
tax
withholding
obligations
on vested
restricted
stock (4,327) (6,682)
------ ------
Net cash
provided by
financing
activities 549,935 92,553
Effects of
exchange
rate
changes on
cash and
equivalents (3,568) (4,121)
------ ------
Net increase
(decrease)
in cash and
cash
equivalents 413,548 (82,883)
Cash and
cash
equivalents
at
beginning
of period 202,331 285,214
-------
Cash and
cash
equivalents
at end of
period $615,879 $202,331
======== ========
Non-cash
transactions:
Additions to
property,
plant and
equipment
included in
accounts
payable and
other
accrued
liabilities $ - $21,722
Non-cash
interest
expense
capitalized
and added
to the cost
of
qualified
assets 4,964 8,930
Issuance of
common
stock for
purchase
acquisition 1,471 3,054
Issuance of
common
stock for
repurchased
convertible
debt - 40
Change in
goodwill
relating to
adjustments
to acquired
net assets - 1,176
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
(Presented on a GAAP Basis)
Gross margin $110,977 $99,830 $40,678
Operating
income
(loss) $42,669 $46,248 $(9,034)
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.09 $0.21 $0.16
-Diluted $0.09 $0.20 $0.16
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
(Presented on a GAAP Basis)
Gross margin $32,235 $111,747
Operating
income
(loss) $(18,049) $55,178
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $(0.12) $0.34
-Diluted $(0.12) $0.33
(In
thousands,
except per
share data)
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
(Presented on a GAAP Basis)
Gross margin $283,720 $349,621
Operating
income
(loss) $61,834 $154,407
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.36 $1.10
-Diluted $0.36 $1.05
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
(Presented on a non-GAAP Basis)
Gross margin $118,661 $107,299 $49,270
Operating
income
(loss) $60,271 $63,833 $8,380
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $0.48 $0.50 $0.09
-Diluted $0.47 $0.46 $0.09
(In
thousands,
except per
share data)
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
(Presented on a non-GAAP Basis)
Gross margin $36,424 $120,165
Operating
income
(loss) $(4,443) $77,899
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $(0.09) $0.68
-Diluted $(0.09) $0.66
(In
thousands,
except per
share data)
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
(Presented on a non-GAAP Basis)
Gross margin $311,654 $383,503
Operating
income
(loss) $128,041 $244,386
Net income
(loss) per
share of
class A and
class B
common
stock:
-Basic $1.03 $2.22
-Diluted $1.01 $2.13
About SunPower's Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to its convertible debt offering, and the related tax effects of these non-GAAP adjustments. The specific non-GAAP measures listed below are gross margin, operating income and net income per share. Management believes that each of these non-GAAP measures (gross margin, operating income and net income per share) are useful to investors by enabling them to better assess changes in each of these key elements of SunPower's results of operations across different reporting periods on a consistent basis, independent of these non-cash items. Thus, each of these non-GAAP financial measures provides investors with another method for assessing SunPower's operating results in a manner that is focused on its ongoing core operating performance, absent the effects of amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense and a gain on purchased options related to its convertible debt offering. Management also uses these non-GAAP measures internally to assess the business and financial performance of current and historical results, for strategic decision making, forecasting future results and evaluating the company's current performance. Many of the analysts covering SunPower also use these non-GAAP measures in their analyses. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results 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.
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 items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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 SunPower's revenue generation performance relative to the direct costs of revenue of its core businesses.
o Non-GAAP operating income. The use of this non-GAAP financial measure allows management to evaluate the operating results of the company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it 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 understand the results of operations of the company's core businesses and to compare results of operations on a more consistent basis against that of other companies in the industry.
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, stock-based compensation, impairment of long-lived assets, interest expense, a gain on purchased options related to its convertible debt offering and the tax effects of these non-GAAP adjustments. In addition, investors and analysts can compare SunPower's operating results on a more consistent basis against that of other companies in the industry. It should be noted that diluted weighted-average shares are determined on a GAAP basis and the resulting share count is used for computing both GAAP and Non-GAAP diluted net income per share.
Non-Cash Items
o Amortization of intangible assets. SunPower incurs amortization of intangible assets as a result of acquisitions, which includes in-process research and development, purchased technology, patents and trade names. SunPower excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from prior acquisitions and have no direct correlation to the operation of SunPower's core businesses.
o Stock-based compensation. Stock-based compensation relates primarily to SunPower stock awards such as stock options and restricted stock. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are difficult to predict. As a result of this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure the company's core performance against the performance of other companies without the variability created by stock-based compensation.
o Impairment of long-lived assets. SunPower incurred an impairment of long-lived assets in the first quarter of fiscal 2008, which relates to the discontinuation of its imaging detector product line. SunPower excluded this item because the expense is not reflective of its ongoing operating results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash expenses such as impairment of long-lived assets.
o Non-cash interest expense. Under new accounting guidance, SunPower separately accounts for the liability and equity components of its convertible debt in a manner that reflects interest expense equal to its non-convertible debt borrowing rate. As a result, SunPower incurs interest expense that is substantially higher than interest payable on its 1.25% senior convertible debentures and 0.75% senior convertible debentures. SunPower excludes non-cash interest expense because the expense is not reflective of its ongoing financial results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash interest expense.
o Gain on purchased options related to SunPower's convertible debt offering. In connection with the issuance of its 4.75% senior convertible debentures in May 2009, SunPower entered into certain convertible debenture hedge transactions with respect to its class A common stock intended to reduce the potential dilution that would occur upon conversion of the debentures. The convertible debenture hedge transactions consisting of call option instruments are deemed to be a mark-to-market derivative during the period in which the over-allotment option in favor of the debenture underwriters is unexercised. SunPower entered into the underwriting agreement on April 28, 2009 and the debenture underwriters exercised the over-allotment option on April 29, 2009. During the one-day period that the underwriters' over-allotment option was outstanding, SunPower's class A common stock price increased substantially. SunPower excluded the $21.2 million gain relating to the purchased options from its non-GAAP results because it was not realized in cash and it is not reflective of the company's ongoing financial results. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash income from a gain on purchased options.
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 results of operations measures to non-GAAP measures" set forth at the end of this release and 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
(Unaudited)
(In thousands, except per share data)
STATEMENT OF OPERATIONS DATA:
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
GAAP gross
margin $110,977 $99,830 $40,678
Amortization
of
intangible
assets 2,807 2,802 2,795
Stock-based
compensation
expense 4,243 4,302 4,557
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 634 365 1,240
--- --- -----
Non-GAAP
gross
margin $118,661 $107,299 $49,270
======== ======== =======
GAAP
operating
income
(loss) $42,669 $46,248 $(9,034)
Amortization
of
intangible
assets 4,178 4,146 4,098
Stock-based
compensation
expense 12,790 13,074 12,076
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 634 365 1,240
--- --- -----
Non-GAAP
operating
income
(loss) $60,271 $63,833 $8,380
======= ======= ======
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
GAAP gross
margin $32,235 $111,747
Amortization
of
intangible
assets 2,793 2,930
Stock-based
compensation
expense 896 5,171
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 500 317
--- ---
Non-GAAP
gross
margin $36,424 $120,165
======= ========
GAAP
operating
income
(loss) $(18,049) $55,178
Amortization
of
intangible
assets 4,052 4,210
Stock-based
compensation
expense 9,054 18,194
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 500 317
--- ---
Non-GAAP
operating
income
(loss) $(4,443) $77,899
======= =======
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
GAAP gross
margin $283,720 $349,621
Amortization
of
intangible
assets 11,197 11,996
Stock-based
compensation
expense 13,998 18,889
Impairment
of long-
lived
assets - 2,203
Non-cash
interest
expense 2,739 794
----- ---
Non-GAAP
gross
margin $311,654 $383,503
======== ========
GAAP
operating
income
(loss) $61,834 $154,407
Amortization
of
intangible
assets 16,474 16,762
Stock-based
compensation
expense 46,994 70,220
Impairment
of long-
lived
assets - 2,203
Non-cash
interest
expense 2,739 794
----- ---
Non-GAAP
operating
income
(loss) $128,041 $244,386
======== ========
NET INCOME PER SHARE:
THREE MONTHS ENDED
------------------
Jan. 3, Sep. 27, Jun. 28,
2010 2009 2009
---- ---- ----
(As (As
Restated) Restated)
Basic:
------
GAAP net
income
(loss) per
share $0.09 $0.21 $0.16
Reconciling
items:
Amortization
of
intangible
assets 0.04 0.04 0.04
Stock-based
compensation
expense 0.13 0.14 0.13
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 0.06 0.06 0.06
Gain on
purchased
options - - (0.23)
Tax effect 0.16 0.05 (0.07)
---- ---- -----
Non-GAAP
net income
(loss) per
share $0.48 $0.50 $0.09
===== ===== =====
Diluted:
GAAP net
income
(loss) per
share $0.09 $0.20 $0.16
Reconciling
items:
Amortization
of
intangible
assets 0.04 0.04 0.04
Stock-based
compensation
expense 0.13 0.12 0.13
Impairment
of long-
lived
assets - - -
Non-cash
interest
expense 0.06 0.05 0.06
Gain on
purchased
options - - (0.23)
Tax effect 0.15 0.05 (0.07)
---- ---- -----
Non-GAAP
net income
(loss) per
share $0.47 $0.46 $0.09
===== ===== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
Non-GAAP
net income
(loss) per
share:
- Basic 94,910 94,668 90,873
- Diluted 96,447 105,031 92,640
THREE MONTHS ENDED
------------------
Mar. 29, Dec. 28,
2009 2008
---- ----
(As (As
Restated) Restated)
Basic:
------
GAAP net
income
(loss) per
share $(0.12) $0.34
Reconciling
items:
Amortization
of
intangible
assets 0.05 0.05
Stock-based
compensation
expense 0.11 0.22
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 0.06 0.05
Gain on
purchased
options - -
Tax effect (0.19) 0.02
----- ----
Non-GAAP
net income
(loss) per
share $(0.09) $0.68
====== =====
Diluted:
GAAP net
income
(loss) per
share $(0.12) $0.33
Reconciling
items:
Amortization
of
intangible
assets 0.05 0.05
Stock-based
compensation
expense 0.11 0.21
Impairment
of long-
lived
assets - -
Non-cash
interest
expense 0.06 0.05
Gain on
purchased
options - -
Tax effect (0.19) 0.02
----- ----
Non-GAAP
net income
(loss) per
share $(0.09) $0.66
====== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 83,749 83,244
- Diluted 83,749 85,356
Non-GAAP
net income
(loss) per
share:
- Basic 83,749 83,244
- Diluted 83,749 85,356
TWELVE MONTHS ENDED
-------------------
Jan. 3, Dec. 28,
2010 2008
---- ----
(As
Restated)
Basic:
------
GAAP net
income
(loss) per
share $0.36 $1.10
Reconciling
items:
Amortization
of
intangible
assets 0.18 0.21
Stock-based
compensation
expense 0.51 0.86
Impairment
of long-
lived
assets - 0.03
Non-cash
interest
expense 0.24 0.21
Gain on
purchased
options (0.23) -
Tax effect (0.03) (0.19)
----- -----
Non-GAAP
net income
(loss) per
share $1.03 $2.22
===== =====
Diluted:
GAAP net
income
(loss) per
share $0.36 $1.05
Reconciling
items:
Amortization
of
intangible
assets 0.18 0.20
Stock-based
compensation
expense 0.50 0.83
Impairment
of long-
lived
assets - 0.03
Non-cash
interest
expense 0.24 0.20
Gain on
purchased
options (0.23) -
Tax effect (0.04) (0.18)
----- -----
Non-GAAP
net income
(loss) per
share $1.01 $2.13
===== =====
Weighted-
average
shares:
GAAP net
income
(loss) per
share:
- Basic 91,050 80,522
- Diluted 92,746 83,947
Non-GAAP
net income
(loss) per
share:
- Basic 91,050 80,522
- Diluted 92,746 83,947
The following supplemental data represents the individual charges and credits that are excluded from SunPower's non-GAAP financial measures for each period presented in the Condensed Consolidated Statements of Operations contained herein.
SUPPLEMENTAL DATA
(In thousands)
THREE MONTHS ENDED
------------------
January 3, 2010
---------------
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $966 $ -
Stock-based
compensation expense 1,004 3,239 1,647
Non-cash interest
expense 186 448 -
Tax effect - - -
--- --- ---
$3,031 $4,653 $1,647
====== ====== ======
THREE MONTHS ENDED
------------------
January 3, 2010
---------------
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,371 $ - $ -
Stock-
based
compensation
expense 6,900 - -
Non-cash
interest
expense - 5,110 -
Tax effect - - 14,540
--- --- ------
$8,271 $5,110 $14,540
====== ====== =======
September 27, 2009
------------------
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $961 $ -
Stock-based
compensation expense 1,494 2,808 1,736
Non-cash interest
expense 87 278 -
Tax effect - - -
--- --- ---
$3,422 $4,047 $1,736
====== ====== ======
September 27, 2009
------------------
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,344 $ - $ -
Stock-
based
compensation
expense 7,036 - -
Non-cash
interest
expense - 4,885 -
Tax effect - - 4,928
--- --- -----
$8,380 $4,885 $4,928
====== ====== ======
June 28, 2009
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $954 $ -
Stock-based
compensation expense 1,474 3,083 1,566
Non-cash interest
expense 347 893 -
Gain on purchased
options - - -
Tax effect - - -
--- --- ---
$3,662 $4,930 $1,566
====== ====== ======
June 28, 2009
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,303 $ - $ -
Stock-
based
compensation
expense 5,953 - -
Non-cash
interest
expense - 4,675 -
Gain on
purchased
options - (21,193) -
Tax effect - - (7,009)
--- --- ------
$7,256 $(16,518) $(7,009)
====== ======== =======
March 29, 2009
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $952 $ -
Stock-based
compensation expense 298 598 1,347
Non-cash interest
expense 230 270 -
Tax effect - - -
--- --- ---
$2,369 $1,820 $1,347
====== ====== ======
March 29, 2009
Interest
Selling, and Income
general other tax
income
and (expense), provision
administrative net (benefit)
Amortization
of
intangible
assets $1,259 $ - $ -
Stock-
based
compensation
expense 6,811 - -
Non-cash
interest
expense - 4,521 -
Tax effect - - (16,161)
--- --- -------
$8,070 $4,521 $(16,161)
====== ====== ========
December 28, 2008
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $1,841 $1,089 $ -
Stock-based
compensation expense 3,084 2,087 1,218
Non-cash interest
expense 86 231 -
Tax effect - - -
--- --- ---
$5,011 $3,407 $1,218
====== ====== ======
December 28, 2008
Interest
Selling, and Income
general other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $1,280 $ - $ -
Stock-
based
compensation
expense 11,805 - -
Non-cash
interest
expense - 3,875 -
Tax effect - - 1,949
--- --- -----
$13,085 $3,875 $1,949
======= ====== ======
TWELVE MONTHS ENDED
January 3, 2010
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $7,364 $3,833 $ -
Stock-based
compensation expense 4,270 9,728 6,296
Non-cash interest
expense 850 1,889 -
Gain on purchased
options - - -
Tax effect - - -
--- --- ---
$12,484 $15,450 $6,296
======= ======= ======
TWELVE MONTHS ENDED
January 3, 2010
Selling, Interest Income
general and other tax
income
and (expense),
administrative net provision
Amortization
of
intangible
assets $5,277 $ - $ -
Stock-
based
compensation
expense 26,700 - -
Non-cash
interest
expense - 19,191 -
Gain on
purchased
options - (21,193) -
Tax effect - - (3,702)
--- --- ------
$31,977 $(2,002) $(3,702)
======= ======= =======
December 28, 2008
Research
Gross Margin and
Systems Components development
Amortization of
intangible assets $7,691 $4,305 $ -
Stock-based
compensation expense 10,745 8,144 3,988
Impairment of long-
lived assets - 2,203 -
Non-cash interest
expense 287 507 -
Tax effect - - -
--- --- ---
$18,723 $15,159 $3,988
======= ======= ======
December 28, 2008
Selling, Interest Income
general and other tax
income
and (expense),
administrative net provision
Amortization of
intangible
assets $4,766 $ - $ -
Stock-based
compensation
expense 47,343 - -
Impairment of
long-lived
assets - - -
Non-cash
interest
expense - 16,115 -
Tax effect - - (14,896)
--- --- -------
$52,109 $16,115 $(14,896)
======= ======= ========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $177,858 $(2,882) $174,976
Components 223,109 - 223,109
------- --- -------
400,967 (2,882) 398,085
------- ------ -------
Cost of revenue:
Cost of systems
revenue 142,591 (2,861) 139,730
Cost of components
revenue 147,045 (437) 146,608
------- ---- -------
289,636 (3,298) 286,338
Gross margin 111,331 416 111,747
Operating expenses:
Research and
development 5,970 - 5,970
Selling, general and
administrative 50,599 - 50,599
------ --- ------
Total operating
expenses 56,569 - 56,569
------ --- ------
Operating income 54,762 416 55,178
Other income
(expense), net (20,741) (998) (21,739)
------- ---- -------
Income before income
taxes and equity in
earnings of
unconsolidated
investees 34,021 (582) 33,439
Provision for income
taxes 12,742 508 13,250
------ --- ------
Income before equity
in earnings of
unconsolidated
investees 21,279 (1,090) 20,189
Equity in earnings of
unconsolidated
investees 10,071 (1,800) 8,271
------ ------ -----
Net income $31,350 $(2,890) $28,460
======= ======= =======
Net income per share
of class A and class
B common stock:
Basic $0.37 $(0.03) $0.34
Diluted $0.36 $(0.03) $0.33
Weighted-average
shares:
Basic 83,244 83,244
Diluted 85,356 85,356
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $820,632 $2,675 $823,307
Components 614,287 - 614,287
------- --- -------
1,434,919 2,675 1,437,594
--------- ----- ---------
Cost of
revenue:
Cost of
systems
revenue 653,907 5,845 659,752
Cost of
components
revenue 418,333 9,888 428,221
------- ----- -------
1,072,240 15,733 1,087,973
Gross margin 362,679 (13,058) 349,621
Operating
expenses:
Research and
development 21,474 - 21,474
Selling,
general and
administrative 173,740 - 173,740
------- --- -------
Total
operating
expenses 195,214 - 195,214
------- --- -------
Operating
income 167,465 (13,058) 154,407
Other income
(expense),
net (38,338) - (38,338)
------- --- -------
Income
before
income
taxes and
equity in
earnings of
unconsolidated
investees 129,127 (13,058) 116,069
Provision
for income
taxes 44,017 (3,399) 40,618
------ ------ ------
Income
before
equity in
earnings of
unconsolidated
investees 85,110 (9,659) 75,451
Equity in
earnings of
unconsolidated
investees 14,077 - 14,077
------ --- ------
Net income $99,187 $(9,659) $89,528
======= ======= =======
Net income
per share
of class A
and class B
common
stock:
Basic $1.22 $(0.12) $1.10
Diluted $1.17 $(0.12) $1.05
Weighted-
average
shares:
Basic 80,522 80,522
Diluted 83,947 83,947
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March
29, 2009
------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $106,097 $(2,144) $103,953
Components 107,690 - 107,690
------- --- -------
213,787 (2,144) 211,643
------- ------ -------
Cost of
revenue:
Cost of
systems
revenue 88,351 6,973 95,324
Cost of
components
revenue 77,688 6,396 84,084
------ ----- ------
166,039 13,369 179,408
Gross
margin 47,748 (15,513) 32,235
Operating
expenses:
Research
and
development 7,964 (84) 7,880
Selling,
general
and
administrative 42,283 121 42,404
------ --- ------
Total
operating
expenses 50,247 37 50,284
------ --- ------
Operating
income
(loss) (2,499) (15,550) (18,049)
Other
income
(expense)
Gain on
purchased
options - - -
Interest
and
other
income
(expense),
net (12,094) - (12,094)
------- --- -------
Other
income
(expense),
net (12,094) - (12,094)
------- --- -------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees (14,593) (15,550) (30,143)
Provision
for
(benefit
from)
income
taxes (8,562) (10,634) (19,196)
------ ------- -------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees (6,031) (4,916) (10,947)
Equity in
earnings
of
unconsolidated
investees 1,245 - 1,245
----- --- -----
Net
income
(loss) $(4,786) $(4,916) $(9,702)
======= ======= =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $(0.06) $(0.06) $(0.12)
Diluted $(0.06) $(0.06) $(0.12)
Weighted-
average
shares:
Basic 83,749 83,749
Diluted 83,749 83,749
Three Months Ended June 28,
2009
----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $108,724 $1,697 $110,421
Components 188,920 - 188,920
------- --- -------
297,644 1,697 299,341
------- ----- -------
Cost of
revenue:
Cost of
systems
revenue 91,793 4,243 96,036
Cost of
components
revenue 147,388 15,239 162,627
------- ------ -------
239,181 19,482 258,663
Gross
margin 58,463 (17,785) 40,678
Operating
expenses:
Research
and
development 6,853 84 6,937
Selling,
general
and
administrative 41,755 1,020 42,775
------ ----- ------
Total
operating
expenses 48,608 1,104 49,712
------ ----- ------
Operating
income
(loss) 9,855 (18,889) (9,034)
Other
income
(expense)
Gain on
purchased
options 21,193 - 21,193
Interest
and
other
income
(expense),
net (5,956) - (5,956)
------ --- ------
Other
income
(expense),
net 15,237 - 15,237
------ --- ------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees 25,092 (18,889) 6,203
Provision
for
(benefit
from)
income
taxes 4,054 (9,277) (5,223)
----- ------ ------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees 21,038 (9,612) 11,426
Equity in
earnings
of
unconsolidated
investees 3,133 - 3,133
----- --- -----
Net
income
(loss) $24,171 $(9,612) $14,559
======= ======= =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $0.27 $(0.11) $0.16
Diluted $0.26 $(0.10) $0.16
Weighted-
average
shares:
Basic 90,873 90,873
Diluted 98,412 92,640
Three Months Ended
September 27, 2009
------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Revenue:
Systems $168,412 $(946) $167,466
Components 297,895 - 297,895
------- --- -------
466,307 (946) 465,361
------- ---- -------
Cost of
revenue:
Cost of
systems
revenue 144,859 (2,789) 142,070
Cost of
components
revenue 232,164 (8,703) 223,461
------- ------ -------
377,023 (11,492) 365,531
Gross
margin 89,284 10,546 99,830
Operating
expenses:
Research
and
development 8,250 - 8,250
Selling,
general
and
administrative 46,473 (1,141) 45,332
------ ------ ------
Total
operating
expenses 54,723 (1,141) 53,582
------ ------ ------
Operating
income
(loss) 34,561 11,687 46,248
Other
income
(expense)
Gain on
purchased
options - - -
Interest
and
other
income
(expense),
net (9,269) - (9,269)
------ --- ------
Other
income
(expense),
net (9,269) - (9,269)
------ --- ------
Income
(loss)
before
income
taxes
and
equity
in
earnings
of
unconsolidated
investees 25,292 11,687 36,979
Provision
for
(benefit
from)
income
taxes 15,088 4,874 19,962
------ ----- ------
Income
(loss)
before
equity
in
earnings
of
unconsolidated
investees 10,204 6,813 17,017
Equity in
earnings
of
unconsolidated
investees 2,627 - 2,627
----- --- -----
Net
income
(loss) $12,831 $6,813 $19,644
======= ====== =======
Net
income
(loss)
per
share of
class A
and
class B
common
stock:
Basic $0.14 $0.07 $0.21
Diluted $0.13 $0.07 $0.20
Weighted-
average
shares:
Basic 94,668 94,668
Diluted 96,319 105,031
SUNPOWER CORPORATION
NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross margin $119,749 $416 $120,165
Operating income $77,483 $416 $77,899
Net income per share
of class A and class
B common stock:
Basic $0.71 $(0.03) $0.68
Diluted $0.69 $(0.03) $0.66
Weighted-average
shares:
Basic 83,244 83,244
Diluted 85,356 85,356
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross margin $396,561 $(13,058) $383,503
Operating income $257,444 $(13,058) $244,386
Net income per share
of class A and class
B common stock:
Basic $2.33 $(0.11) $2.22
Diluted $2.24 $(0.11) $2.13
Weighted-average
shares:
Basic 80,522 80,522
Diluted 83,947 83,947
(1) Includes retrospective application for adoption of new accounting
guidance for convertible debt instruments that may be settled in
cash upon conversion.
SUNPOWER CORPORATION
NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 29,
2009
-----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $51,864 $(15,440) $36,424
Operating
income
(loss) $11,536 $(15,979) $(4,443)
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.05 $(0.14) $(0.09)
Diluted $0.05 $(0.14) $(0.09)
Weighted-
average
shares:
Basic 83,749 83,749
Diluted 85,579 83,749
Three Months Ended June 28,
2009
----------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $67,128 $(17,858) $49,270
Operating
income
(loss) $26,840 $(18,460) $8,380
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.25 $(0.16) $0.09
Diluted $0.24 $(0.15) $0.09
Weighted-
average
shares:
Basic 90,873 90,873
Diluted 98,412 92,640
Three Months Ended
September 27, 2009
------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Gross
margin $96,753 $10,546 $107,299
Operating
income
(loss) $52,146 $11,687 $63,833
Net
income
(loss)
per
share
of
class A
and
class B
common
stock:
Basic $0.42 $0.08 $0.50
Diluted $0.42 $0.04 $0.46
Weighted-
average
shares:
Basic 94,668 94,668
Diluted 96,319 105,031
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended December
28, 2008
---------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income $31,350 $(2,890) $28,460
Adjustments
to
reconcile
net income
to net cash
provided by
operating
activities:
Stock-
based
compensation 18,194 - 18,194
Depreciation 18,376 - 18,376
Amortization
of other
intangible
assets 4,210 - 4,210
Impairment
of
investments
and long-
lived
assets 4,475 - 4,475
Non-cash
interest
expense 4,192 - 4,192
Amortization
of debt
issuance
costs 537 - 537
Equity in
earnings
of
unconsolidated
investees (10,071) 1,800 (8,271)
Excess tax
benefits
from
stock-
based
award
activity (7,625) (4,464) (12,089)
Deferred
income
taxes and
other tax
liabilities (8,975) 508 (8,467)
Changes in
operating
assets and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable (2,251) - (2,251)
Costs and
estimated
earnings
in excess
of
billings 26,380 4,489 30,869
Inventories (50,698) (9,584) (60,282)
Prepaid
expenses
and other
assets (32,154) (3) (32,157)
Advances to
suppliers (17,805) - (17,805)
Accounts
payable
and other
accrued
liabilities 70,703 2,737 73,440
Billings in
excess of
costs and
estimated
earnings 2,641 2,860 5,501
Customer
advances (5,759) - (5,759)
------ --- ------
Net cash
provided
by
operating
activities 45,720 (4,547) 41,173
Cash flows
from
investing
activities:
Iincrease
in
restricted
cash and
cash
equivalents (65,237) - (65,237)
Purchases
of
property,
plant and
equipment (115,247) 84 (115,163)
Purchases
of
available-
for-sale
securities - - -
Proceeds
from sales
or
maturities
of
available-
for-sale
securities 21,885 - 21,885
Cash paid
for
acquisitions,
net of
cash
acquired - - -
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
used in
investing
activities (158,599) 84 (158,515)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term debt,
net of
issuance
costs 54,598 - 54,598
Cash paid
for
repurchased
convertible
debt (1,187) - (1,187)
Proceeds
from
exercise
of stock
options 1,342 - 1,342
Excess tax
benefits
from
stock-
based
award
activity 7,625 4,464 12,089
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (829) - (829)
---- --- ----
Net cash
provided
by
financing
activities 61,549 4,464 66,013
Effects of
exchange
rate
changes on
cash and
equivalents (2,955) - (2,955)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (54,285) - (54,285)
Cash and
cash
equivalents
at
beginning
of period 256,616 - 256,616
------- --- -------
Cash and
cash
equivalents
at end of
period $202,331 $ - $202,331
======== === === ========
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 2,563 - 2,563
Issuance of
common
stock for
purchase
acquisition - - -
Issuance of
common
stock for
repurchased
convertible
debt 40 - 40
Change in
goodwill
relating
to
adjustments
to
acquired
net assets 945 - 945
Twelve Months Ended December
28, 2008
----------------------------
As
Previously
Reported,
As
Adjusted As
(1) Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income $99,187 $(9,659) $89,528
Adjustments
to
reconcile
net
income to
net cash
provided
by
operating
activities:
Stock-
based
compensation 70,220 - 70,220
Depreciation 54,117 356 54,473
Amortization
of other
intangible
assets 16,762 - 16,762
Impairment
of
investments
and long-
lived
assets 7,611 - 7,611
Non-cash
interest
expense 16,909 - 16,909
Amortization
of debt
issuance
costs 2,148 - 2,148
Equity in
earnings
of
unconsolidated
investees (14,077) - (14,077)
Excess tax
benefits
from
stock-
based
award
activity (41,524) 828 (40,696)
Deferred
income
taxes and
other tax
liabilities 20,763 (3,400) 17,363
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable (57,575) - (57,575)
Costs and
estimated
earnings
in excess
of
billings 8,680 576 9,256
Inventories (98,999) 3,287 (95,712)
Prepaid
expenses
and other
assets (61,790) 2,506 (59,284)
Advances
to
suppliers 1,297 - 1,297
Accounts
payable
and other
accrued
liabilities 147,216 2,862 150,078
Billings
in excess
of costs
and
estimated
earnings (57,423) 3,828 (53,595)
Customer
advances 40,125 - 40,125
------ --- ------
Net cash
provided
by
operating
activities 153,647 1,184 154,831
Cash flows
from
investing
activities:
Iincrease
in
restricted
cash and
cash
equivalents (107,390) - (107,390)
Purchases
of
property,
plant and
equipment (265,549) (356) (265,905)
Purchases
of
available-
for-sale
securities (65,748) - (65,748)
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 155,833 - 155,833
Cash paid
for
acquisitions,
net of
cash
acquired (18,311) - (18,311)
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies (24,625) - (24,625)
------- --- -------
Net cash
used in
investing
activities (325,790) (356) (326,146)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 54,598 - 54,598
Cash paid
for
repurchased
convertible
debt (1,187) - (1,187)
Proceeds
from
exercise
of stock
options 5,128 - 5,128
Excess tax
benefits
from
stock-
based
award
activity 41,524 (828) 40,696
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (6,682) - (6,682)
------ --- ------
Net cash
provided
by
financing
activities 93,381 (828) 92,553
Effects of
exchange
rate
changes
on cash
and
equivalents (4,121) - (4,121)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (82,883) - (82,883)
Cash and
cash
equivalents
at
beginning
of period 285,214 - 285,214
------- --- -------
Cash and
cash
equivalents
at end of
period $202,331 $ - $202,331
======== === === ========
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $28,485 $(6,763) $21,722
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 8,930 - 8,930
Issuance
of common
stock for
purchase
acquisition 3,054 - 3,054
Issuance
of common
stock for
repurchased
convertible
debt 40 - 40
Change in
goodwill
relating
to
adjustments
to
acquired
net
assets 1,176 - 1,176
(1) Includes retrospective application for adoption of new accounting
guidance for convertible debt instruments that may be settled in
cash upon conversion.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 29, 2009
---------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $(4,786) $(4,916) $(9,702)
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 9,483 (429) 9,054
Depreciation 18,365 - 18,365
Amortization
of other
intangible
assets 4,052 - 4,052
Impairment
of
investments
and long-
lived
assets 1,318 - 1,318
Non-cash
interest
expense 5,021 - 5,021
Amortization
of debt
issuance
costs 537 - 537
Gain on
purchased
options - - -
Equity in
earnings
of
unconsolidated
investees (1,245) - (1,245)
Excess tax
benefits
from
stock-
based
award
activity - - -
Deferred
income
taxes and
other tax
liabilities (6,369) (10,634) (17,003)
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions: -
Accounts
receivable 40,931 - 40,931
Costs and
estimated
earnings
in excess
of
billings (3,797) 619 (3,178)
Inventories (95,870) 9,821 (86,049)
Prepaid
expenses
and other
assets 11,913 (242) 11,671
Advances
to
suppliers 7,993 - 7,993
Accounts
payable
and other
accrued
liabilities (27,199) 2,401 (24,798)
Billings
in excess
of costs
and
estimated
earnings (4,612) 4,700 88
Customer
advances (8,860) (1,320) (10,180)
------ ------ -------
Net cash
provided
by (used
in)
operating
activities (53,125) - (53,125)
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (9,185) - (9,185)
Purchases
of
property,
plant and
equipment (52,101) - (52,101)
Proceeds
from sale
of
equipment
to third-
party - - -
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 18,177 - 18,177
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
provided
by (used
in)
investing
activities (43,109) - (43,109)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 51,232 - 51,232
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs - - -
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses - - -
Cash paid
for
repurchased
convertible
debt - - -
Cash paid
for
purchased
options - - -
Proceeds
from
warrant
transactions - - -
Proceeds
from
exercise
of stock
options 396 - 396
Excess tax
benefits
from
stock-
based
award
activity - - -
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (2,359) - (2,359)
------ --- ------
Net cash
provided
by
financing
activities 49,269 - 49,269
Effects of
exchange
rate
changes
on cash
and
equivalents (6,256) - (6,256)
------ --- ------
Net
increase
(decrease)
in cash
and cash
equivalents (53,221) - (53,221)
Cash and
cash
equivalents
at
beginning
of period 202,331 - 202,331
------- --- -------
Cash and
cash
equivalents
at end of
period $149,110 $ - $149,110
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $22,571 $(3,791) $18,780
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 2,073 - 2,073
Issuance
of common
stock for
purchase
acquisition - - -
Three Months Ended June 28, 2009
--------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $24,171 $(9,612) $14,559
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 11,647 429 12,076
Depreciation 20,569 - 20,569
Amortization
of other
intangible
assets 4,098 - 4,098
Impairment
of
investments
and long-
lived
assets 489 - 489
Non-cash
interest
expense 5,915 - 5,915
Amortization
of debt
issuance
costs 1,184 - 1,184
Gain on
purchased
options (21,193) - (21,193)
Equity in
earnings
of
unconsolidated
investees (3,133) - (3,133)
Excess tax
benefits
from
stock-
based
award
activity (2,610) 2,610 -
Deferred
income
taxes and
other tax
liabilities (3,505) (9,277) (12,782)
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (65,422) - (65,422)
Costs and
estimated
earnings
in excess
of
billings 23,168 (1,911) 21,257
Inventories 87,807 4,323 92,130
Prepaid
expenses
and other
assets (35,291) 1,540 (33,751)
Advances
to
suppliers 13,449 297 13,746
Accounts
payable
and other
accrued
liabilities (101,114) 21,419 (79,695)
Billings
in excess
of costs
and
estimated
earnings 42,968 (8,528) 34,440
Customer
advances 774 1,320 2,094
--- ----- -----
Net cash
provided
by (used
in)
operating
activities 3,971 2,610 6,581
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (33,151) - (33,151)
Purchases
of
property,
plant and
equipment (59,566) - (59,566)
Proceeds
from sale
of
equipment
to third-
party 7,902 - 7,902
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 1,501 - 1,501
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies - - -
--- --- ---
Net cash
provided
by (used
in)
investing
activities (83,314) - (83,314)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 29,773 - 29,773
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs 225,018 - 225,018
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses 218,895 - 218,895
Cash paid
for
repurchased
convertible
debt (67,949) - (67,949)
Cash paid
for
purchased
options (97,336) - (97,336)
Proceeds
from
warrant
transactions 71,001 - 71,001
Proceeds
from
exercise
of stock
options 442 - 442
Excess tax
benefits
from
stock-
based
award
activity 2,610 (2,610) -
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (763) - (763)
---- --- ----
Net cash
provided
by
financing
activities 381,691 (2,610) 379,081
Effects of
exchange
rate
changes
on cash
and
equivalents 5,377 - 5,377
----- --- -----
Net
increase
(decrease)
in cash
and cash
equivalents 307,725 - 307,725
Cash and
cash
equivalents
at
beginning
of period 149,110 - 149,110
------- --- -------
Cash and
cash
equivalents
at end of
period $456,835 $ - $456,835
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 1,510 - 1,510
Issuance
of common
stock for
purchase
acquisition 1,471 - 1,471
Three Months Ended September 27, 2009
-------------------------------------
As
Previously As
Reported Restatement Restated
----------- ----------- ---------
Adjustments
-----------
Cash flows
from
operating
activities:
Net income
(loss) $12,831 $6,813 $19,644
Adjustments
to
reconcile
net
income
(loss) to
net cash
provided
by (used
in)
operating
activities:
Stock-
based
compensation 13,074 - 13,074
Depreciation 21,414 - 21,414
Amortization
of other
intangible
assets 4,146 - 4,146
Impairment
of
investments
and long-
lived
assets 190 - 190
Non-cash
interest
expense 5,250 - 5,250
Amortization
of debt
issuance
costs 733 - 733
Gain on
purchased
options - - -
Equity in
earnings
of
unconsolidated
investees (2,627) - (2,627)
Excess tax
benefits
from
stock-
based
award
activity (12,134) 5,007 (7,127)
Deferred
income
taxes and
other tax
liabilities 10,151 4,874 15,025
Changes in
operating
assets
and
liabilities,
net of
effect of
acquisitions:
Accounts
receivable (18,794) - (18,794)
Costs and
estimated
earnings
in excess
of
billings (60,787) 716 (60,071)
Inventories 28,977 (7,282) 21,695
Prepaid
expenses
and other
assets 15,438 27 15,465
Advances
to
suppliers 3,435 - 3,435
Accounts
payable
and other
accrued
liabilities 98,997 (5,617) 93,380
Billings
in excess
of costs
and
estimated
earnings (33,479) - (33,479)
Customer
advances (5,553) - (5,553)
------ --- ------
Net cash
provided
by (used
in)
operating
activities 81,262 4,538 85,800
Cash flows
from
investing
activities:
Decrease
(increase)
in
restricted
cash and
cash
equivalents (103,247) - (103,247)
Purchases
of
property,
plant and
equipment (38,426) 469 (37,957)
Proceeds
from sale
of
equipment
to third-
party 1,976 - 1,976
Proceeds
from
sales or
maturities
of
available-
for-sale
securities 9,867 - 9,867
Cash paid
for
investments
in joint
ventures
and other
non-
public
companies (1,500) - (1,500)
------ --- ------
Net cash
provided
by (used
in)
investing
activities (131,330) 469 (130,861)
Cash flows
from
financing
activities:
Proceeds
from
issuance
of long-
term
debt, net
of
issuance
costs 54,701 - 54,701
Proceeds
from
issuance
of
convertible
debt, net
of
issuance
costs - - -
Proceeds
from
offering
of class
A common
stock,
net of
offering
expenses (114) - (114)
Cash paid
for
repurchased
convertible
debt (7,687) - (7,687)
Cash paid
for
purchased
options - - -
Proceeds
from
warrant
transactions - - -
Proceeds
from
exercise
of stock
options 570 - 570
Excess tax
benefits
from
stock-
based
award
activity 12,134 (5,007) 7,127
Purchases
of stock
for tax
withholding
obligations
on vested
restricted
stock (586) - (586)
---- --- ----
Net cash
provided
by
financing
activities 59,018 (5,007) 54,011
Effects of
exchange
rate
changes
on cash
and
equivalents 6,341 - 6,341
----- --- -----
Net
increase
(decrease)
in cash
and cash
equivalents 15,291 - 15,291
Cash and
cash
equivalents
at
beginning
of period 456,835 - 456,835
------- --- -------
Cash and
cash
equivalents
at end of
period $472,126 $ - $472,126
-------- --- --------
Non-cash
transactions:
Additions
to
property,
plant and
equipment
included
in
accounts
payable
and other
accrued
liabilities $ - $ - $ -
Non-cash
interest
expense
capitalized
and added
to the
cost of
qualified
assets 873 - 873
Issuance
of common
stock for
purchase
acquisition - - -
SOURCE SunPower Corp.
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