SunPower, the U.S.-based solar firm, has recorded GAAP revenue of $662.7 million in the 3rd Quarter 2014, up 30.1 percent from the previous quarter, but registered a marginal growth of 0.9 percent from the respective quarter in 2013.
GAAP net income for the quarter is $32 million, growing at 129 percent from the 2nd quarter of 2014, but less 70 percent than the year before.
Non-GAAP revenue for the 3rd quarter 2014 was $704.2 million, up from $621.1 million in 2nd quarter and $619.5 million in the previous year.
Charles D. Boynton, chief financial officer and executive vice president, SunPower stated, “Non-GAAP revenue came in ahead of our forecast, primarily due to an acceleration of our Solar Star project, where we now have 309 megawatts connected to the grid.”
The company’s non-GAAP gross margin for the quarter was 16.7%, due to increasing demand and stable ASPs, Boynton added.
Regionally, North America was once again the biggest contributor. America’s margin was on plan, led by its large projects, as well as strong demand and margin contribution from residential.
EMEA margin was down sequentially, as the results were impacted by a $2 million VAT reserve, Boynton said.
Japan remained the key driver of its Asia Pacific business, accounting for 28 percent of total shipments in the third quarter.
During the quarter the company deployed 92 megawatts of residential products globally, including 42 in APAC, 11 in Europe and 38 in North America. It achieved a major milestone during the quarter by producing their one billionth solar cell, representing a cumulative output of more than three gigawatts.
Commenting on the GAAP revenue, Boynton said there is a potential for a significant acceleration in GAAP revenue and margin after it reaches certain level of cash receipts pending from the Solar Star project. The EPC retention receivable for Solar Star was moved from long-term to short-term AR, and the cash will be realized next year after the project is complete.
If the project goes as planned, the acceleration may occur in the fourth quarter, and if so, could increase GAAP revenue by approximately $450 million and GAAP earnings by $0.90 per share. “However, we have currently excluded it from our fourth quarter guidance due to uncertainty and the timing of the acceleration. This accounting treatment does not impact our non-GAAP results,” he added.
For Q4, the company expects non-GAAP revenue between $575 million and $625 million. On a GAAP basis, which does not include the Solar Star benefit, the company expects revenue of $675 million to $725 million.
Rajani Baburajan