SUNPOWER CORPORATION (SPWRB, Financial) filed Quarterly Report for the period ended 2010-04-04.
Sunpower Corporation has a market cap of $520.8 million; its shares were traded at around $12.39 with a P/E ratio of 18.3 and P/S ratio of 0.4. SPWRB is in the portfolios of Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Systems Segment Revenue: Our systems revenue for the three months ended April 4, 2010 and March 29, 2009 was $64.6 million and $104.0 million, respectively, which accounted for 19% and 49%, respectively, of our total revenue. During the three months ended April 4, 2010, our systems revenue decreased 38% as compared to revenue earned in the three months ended March 29, 2009, due to some delayed projects as well as deferred revenue recognition on projects under construction in Italy until the projects are financed and sold to third parties. In the three months ended March 29, 2009, our Systems Segment suffered from difficult economic conditions resulting in near-term challenges in financing system projects.
Components Segment Revenue: Components revenue for the three months ended April 4, 2010 and March 29, 2009 was $282.7 million and $107.7 million, respectively, or 81% and 51%, respectively, of our total revenue. During the three months ended April 4, 2010, our components revenue increased 163% as compared to revenue earned in the three months ended March 29, 2009, primarily due to growing demand for our solar power products in the United States, France, Germany and Italy due to the growth of our third-party global dealer network and the decrease in systems revenue during the first quarter of fiscal 2010 as compared to the same period in 2009 which increased inventory available to be sold through our Components Segment. In the three months ended March 29, 2009, our Components Segment benefited from the growing demand for our solar power products in Italy. However, components revenue in the three months ended March 29, 2009 was lower than the internal forecast due to a long winter season in Europe, primarily in Germany, and challenging business conditions due to the uncertain economic environment and tight credit conditions which negatively influenced overall demand and timing of customers buying decisions.
Total Cost of Revenue: We had 16 and 12 solar cell manufacturing lines in our two facilities as of April 4, 2010 and March 29, 2009, respectively, with a total rated annual solar cell manufacturing capacity of 574 MWdc and 414 MWdc, respectively. During the three months ended April 4, 2010 and March 29, 2009, our two solar cell manufacturing facilities operated at approximately 91% and 73% capacity, respectively, producing 135.4 MWdc and 93.7 MWdc, respectively. During the three months ended April 4, 2010 and March 29, 2009, our total cost of revenue was $275.5 million and $179.4 million, respectively, which represents an increase of 54%. The increase in total cost of revenue corresponds with the increase of 64% in total revenue during the three months ended April 4, 2010 compared to the same period in fiscal 2009. As a percentage of total revenue, our total cost of revenue decreased to 79% in the three months ended April 4, 2010 compared to 85% in the three months ended March 29, 2009. This decrease in total cost of revenue as a percentage of total revenue is reflective of (i) decreased costs of polysilicon; and (ii) improved manufacturing economies of scale associated with markedly higher production volume. This decrease in total cost of revenue as a percentage of total revenue was partially offset by (i) Systems Segment unabsorbed overhead and labor costs incurred that are fixed in nature when systems revenue decreased 38% in the three months ended April 4, 2010 as compared to the same period in fiscal 2009; (ii) higher amortization of capitalized interest expense in the first quarter of fiscal 2010 compared to the same period in 2009; and (iii) higher expenses associated with stock-based compensation.
Systems Segment Gross Margin: Gross margin was $2.8 million and $8.6 million for the three months ended April 4, 2010 and March 29, 2009, respectively, or 4% and 8%, respectively, of systems revenue. Gross margin decreased due to deferred revenue recognition as a result of our acquisition of SunRay and unabsorbed overhead and labor costs incurred that are fixed in nature when systems revenue decreased 38% in the three months ended April 4, 2010 as compared to the same period in fiscal 2009. As part of management s cost optimization strategy, we are evaluating options to reduce fixed costs within the Systems Segment.
Components Segment Gross Margin: Gross margin was $68.9 million and $23.6 million for the three months ended April 4, 2010 and March 29, 2009, respectively, or 24% and 22%, respectively, of components revenue. Gross margin increased due to better silicon utilization, continued reduction in silicon costs and higher volume.
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Sunpower Corporation has a market cap of $520.8 million; its shares were traded at around $12.39 with a P/E ratio of 18.3 and P/S ratio of 0.4. SPWRB is in the portfolios of Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Sales outside the United States represented approximately 70% and 39% of our total revenue for the three months ended April 4, 2010 and March 29, 2009, respectively, representing a shift in the revenue by geography due to: (i) the then ongoing construction of a 25 MWac solar power plant in Desoto County, Florida for FPL in the first quarter of fiscal 2009 that was completed in the third quarter of fiscal 2009; and (ii) the continuous growth of our third-party global dealer network.Systems Segment Revenue: Our systems revenue for the three months ended April 4, 2010 and March 29, 2009 was $64.6 million and $104.0 million, respectively, which accounted for 19% and 49%, respectively, of our total revenue. During the three months ended April 4, 2010, our systems revenue decreased 38% as compared to revenue earned in the three months ended March 29, 2009, due to some delayed projects as well as deferred revenue recognition on projects under construction in Italy until the projects are financed and sold to third parties. In the three months ended March 29, 2009, our Systems Segment suffered from difficult economic conditions resulting in near-term challenges in financing system projects.
Components Segment Revenue: Components revenue for the three months ended April 4, 2010 and March 29, 2009 was $282.7 million and $107.7 million, respectively, or 81% and 51%, respectively, of our total revenue. During the three months ended April 4, 2010, our components revenue increased 163% as compared to revenue earned in the three months ended March 29, 2009, primarily due to growing demand for our solar power products in the United States, France, Germany and Italy due to the growth of our third-party global dealer network and the decrease in systems revenue during the first quarter of fiscal 2010 as compared to the same period in 2009 which increased inventory available to be sold through our Components Segment. In the three months ended March 29, 2009, our Components Segment benefited from the growing demand for our solar power products in Italy. However, components revenue in the three months ended March 29, 2009 was lower than the internal forecast due to a long winter season in Europe, primarily in Germany, and challenging business conditions due to the uncertain economic environment and tight credit conditions which negatively influenced overall demand and timing of customers buying decisions.
Total Cost of Revenue: We had 16 and 12 solar cell manufacturing lines in our two facilities as of April 4, 2010 and March 29, 2009, respectively, with a total rated annual solar cell manufacturing capacity of 574 MWdc and 414 MWdc, respectively. During the three months ended April 4, 2010 and March 29, 2009, our two solar cell manufacturing facilities operated at approximately 91% and 73% capacity, respectively, producing 135.4 MWdc and 93.7 MWdc, respectively. During the three months ended April 4, 2010 and March 29, 2009, our total cost of revenue was $275.5 million and $179.4 million, respectively, which represents an increase of 54%. The increase in total cost of revenue corresponds with the increase of 64% in total revenue during the three months ended April 4, 2010 compared to the same period in fiscal 2009. As a percentage of total revenue, our total cost of revenue decreased to 79% in the three months ended April 4, 2010 compared to 85% in the three months ended March 29, 2009. This decrease in total cost of revenue as a percentage of total revenue is reflective of (i) decreased costs of polysilicon; and (ii) improved manufacturing economies of scale associated with markedly higher production volume. This decrease in total cost of revenue as a percentage of total revenue was partially offset by (i) Systems Segment unabsorbed overhead and labor costs incurred that are fixed in nature when systems revenue decreased 38% in the three months ended April 4, 2010 as compared to the same period in fiscal 2009; (ii) higher amortization of capitalized interest expense in the first quarter of fiscal 2010 compared to the same period in 2009; and (iii) higher expenses associated with stock-based compensation.
Systems Segment Gross Margin: Gross margin was $2.8 million and $8.6 million for the three months ended April 4, 2010 and March 29, 2009, respectively, or 4% and 8%, respectively, of systems revenue. Gross margin decreased due to deferred revenue recognition as a result of our acquisition of SunRay and unabsorbed overhead and labor costs incurred that are fixed in nature when systems revenue decreased 38% in the three months ended April 4, 2010 as compared to the same period in fiscal 2009. As part of management s cost optimization strategy, we are evaluating options to reduce fixed costs within the Systems Segment.
Components Segment Gross Margin: Gross margin was $68.9 million and $23.6 million for the three months ended April 4, 2010 and March 29, 2009, respectively, or 24% and 22%, respectively, of components revenue. Gross margin increased due to better silicon utilization, continued reduction in silicon costs and higher volume.
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