Connect with us

Hi, what are you looking for?

CleanTechnica
US solar PV manufacturer SunPower reported its first quarterly earnings this week, revealing revenue well down on the previous quarter, but managed to scrape by without it being a complete disaster by reporting a "smaller than expected" first quarter net loss.

Clean Power

SunPower Manages To Find Good News In “Smaller Than Expected” First Quarter Loss

US solar PV manufacturer SunPower reported its first quarterly earnings this week, revealing revenue well down on the previous quarter, but managed to scrape by without it being a complete disaster by reporting a “smaller than expected” first quarter net loss.

US solar PV manufacturer SunPower reported its first quarterly earnings this week, revealing revenue well down on the previous quarter, but managed to scrape by without it being a complete disaster by reporting a “smaller than expected” first quarter net loss.

In the second half of 2016, SunPower warned investors that things were going to get rocky on the road ahead, with president and CEO Tom Werner explaining that “While prospects for long-term solar industry growth remain strong, we are seeing a significant near-term market dislocation in the solar market that we expect will impact our financial performance through 2017.” The company’s fourth quarter earnings were solid, but included a net loss of $471 million, well in excess of what the company had predicted.

Moving into 2017, and things were not much better. Revenue for the quarter was only $399.1 million, down 156% on the fourth quarter. The company’s gross margin fell from -3.1% to -7.8%, while the company’s operating cash flow dipped into the negative as well. However, it wasn’t all bad news, with the company reporting a net loss of only $134.5 million: “only” being the operative word, as it was less than the net loss attributable to the fourth quarter of $275.1 million, and down on analyst estimates.

“We executed well despite a challenging industry environment and achieved our financial goals for the first quarter,” said Tom Werner, SunPower president and CEO.

Announced back in December, SunPower initiated a restructuring program which would cut its global workforce by 25%, close a 700 MW manufacturing facility, and reduce 2017 capital expenditure. According to Werner, “Strategically, we are executing on our restructuring program, which we firmly believe will enable us to successfully navigate the current market transition while maximizing near-term cash flow.”

More good news was revealed in the revelation that its majority owner, France’s Total, will guarantee up to $100 million of the company’s $300 million credit revolver facility.

“Total is pleased that SunPower’s first quarter results were in line with its guidance,” said Julien Pouget, Senior Vice President Renewables, Total.  “In this context, by agreeing to provide SunPower access to additional liquidity over the next two years through a guarantee of up to $100 million of its revolving credit facility, Total is expressing its continued support for SunPower in the current challenging solar environment.”

Looking forward, SunPower is forecasting revenue for the second quarter between $275 million and $325 million, with a gross margin of between -3% and -1%, and a net loss of between $135 million and $110 million.

 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Comments

You May Also Like

Clean Power

Below, I’ll review our SunPower solar panels that we have on our roof here in Texas, 3+ months since they were first installed on...

Clean Power

Consumer attitudes towards domestic solar energy systems often pose barriers to widespread solar adoption. What can be done to help people understand the local...

Batteries

Rooftop solar is no longer for the well-to-do, but the income gap persists in home energy storage and that could skew participation in virtual...

Clean Power

As part of my family’s journey to learn more about residential renewable energy, I decided to look into solar panels for our house. We...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.