SunPower revenue declines 26.6% Q-o-Q in Q2 2014

Tom Werner sunpower

SunPower has reported revenue of $508 million for the second quarter 2014, a 26.6 percent decline compared to the previous quarter and 11.9 percent decline from the same quarter in the previous year.

The Q1 results, according to company officials, had benefitted from the sale of a higher-margin power plant project.

During the second quarter SunPower executed global project business including Solar Star, said Tom Werner, SunPower president and CEO.

Tom Werner sunpower

North America business continued to drive the company’s performance during the quarter. In North America SunPower deployed 40 MW during the quarter.

Construction of the 579 MW Solar Star project is in progress, with 228 MW already connected to the grid.

SunPower also signed an agreement with Xcel Energy for a 60-MW project and expanded the company’s public sector business with a 19-MW project at Nellis Air Force Base.

The company has seen significant opportunity for its high efficiency solutions in the commercial business and residential segments.

With its recent $200 million solar loan funding agreement with Admirals Bank and available lease capacity through Google and Bank of America agreements, the company expects to meet the finance capacity to grow their residential business.

SunPower revenue and margin in the EMEA region were down sequentially.

Margins in APAC declined sequentially as a result of a higher mix of power plant and commercial projects, as well as pre-op and factory charges due to increased volumes in the region. The company expects APAC margins to return to historical levels of high teens to low 20s over the next few quarters.

The demand for SunPower global DG business grew during the quarter, with total deployments for residential segment reaching 108 MW.

For Q3, the company expects GAAP revenue of $2.55 billion to $2.7 billion; gross margin of 20% to 22%; and net income per diluted share of $0.75 to $1.05. The GAAP earnings remain dependent on the accounting treatment of Solar Star, Werner said.

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