SunPower Corporation (Nasdaq: SPWR), a California-based developer of solar systems, announced financial results for the first quarter 2008, showing an increase in revenue from the previous quarter and the same quarter a year ago.
Revenue for 1Q08, ending on March 30, 2008, was $273.7 million, up 22% from prior-quarter revenue of $224.3 million and up 92% from year-ago first-quarter revenue of $142.3 million, the company said.
The Components and Systems segments accounted for 35% and 65% of the company’s revenue, respectively.
For reporting purposes, the Systems segment generally represents products and services sold directly to the system owner, while the Components segment primarily represents products sold to installers and resellers.
On a GAAP basis, SunPower reported gross margin of 19.5%, total operating income of $14.8 million and diluted net income per share of $0.15.
Additionally, for the three months ended March 30, 2008, GAAP cost of revenue includes $2.2 million of one-time asset impairment charges relating to the discontinuation of an imaging detector product line and $3.3 million for write-offs of certain solar manufacturing equipment which became obsolete due to new processes.
Tom Werner, SunPower’s CEO, said, "During the first quarter of 2008, SunPower demonstrated the strength of its channel diversification. Our dealer network continued to expand, not only in the United States, but also in three key European markets as well: Germany, Italy and Spain. We now have more than 200 dealers serving residential and commercial rooftop markets globally with a rapidly increasing presence in Europe. In Asia, we expanded our customer footprint with our first volume shipments into Japan and shipment of components to Samsung in Korea."
"We expect SunPower’s silicon supply costs to decline by approximately 10% during 2008 compared to 2007," continued Werner. "This cost improvement will amplify our silicon utilization benefits achieved through higher cell efficiency and thinner wafers. We are on track to achieve our planned improvements in our cost structure, and therefore we expect to reach our target financial model of 30% gross margin, 10% operating expenses and 20% operating margin, on a non-GAAP basis, no later than the first quarter of 2009. We are also on track to realize our mission of reducing installed systems cost by 50% by 2012."
About SunPower
SunPower Corporation designs, manufactures and delivers solar-electric systems worldwide for residential, commercial and utility-scale power plant customers. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe and Asia. SunPower is a majority-owned subsidiary of Cypress Semiconductor Corp. (NYSE: CY).
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