Thursday, solar technology company SunPower Corp. (SPWRA, SPWRB) reported a drop in third quarter profit, hurt by one-time charges, despite higher revenues. Adjusted earnings, nevertheless, came in ahead of Street estimates. Looking further, the company revised its fiscal 2009 outlook.
The San Jose, California-based company reported net income for the third quarter of $12.83 million or $0.13 per share, compared to $24.68 million or $0.29 per share in the year-ago quarter.
Results for the quarter included non-cash charges for amortization of intangible assets of $4.1 million, stock-based compensation of $13.1 million and non-cash interest expense of $5.3 million.
Net income for the quarter included $5.3 million or $0.03 per share of non-cash interest charges associated with the adoption of the new accounting guidance, which impacts how companies account for interest expense on convertible bonds.
Excluding items, non-GAAP net income increased to $0.42 per share from $0.24 per share in the same quarter last year.
On average, thirty one analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts estimates typically exclude special items.
Revenues for the quarter increased to $466.31 million from $377.50 million in the prior-year quarter. Thirty three analysts had a revenue consensus of $420.09 million for the third quarter.
Systems segment revenue for the third quarter declined to $168.41 million from $193.33 million a year ago, while components segment revenue increased to $297.90 million from $184.17 million in the prior-year quarter. The company's components and systems segments accounted for 64% and 36% of third-quarter 2009 revenue, respectively.
Operating income for the quarter totaled $34.6 million, down from $53.19 million in the similar quarter of 2008. Non-GAAP operating income declined to $52.15 million from $73.26 million in the third quarter of 2008.
For the nine-month period, the company's net income dropped to $32.22 million or $0.35 per share from $67.84 million or $0.80 per share in the similar period last year.
Revenue for the period declined to $977.74 million from $1.03 billion in the prior-year period.
Looking forward to fiscal 2009, the company updated its total non-GAAP guidance with total revenue expected to be in a range of $1.425 billion to $1.50 billion and net income in the range of $1.15 to $1.25.
Analysts currently expect earnings of $1.21 per share on revenues of $1.43 billion for fiscal 2009.
Previously, the company had forecast non-GAAP revenue range of $1.35 billion - $1.7 billion and non-GAAP net income range of $1.15-$1.60 per share for fiscal 2009. The company had expected GAAP net income in the range of $0.45-$0.90 per share.
SPWRA closed Thursday's regular trading at $33.30, up $0.94 or 2.90%, on a volume of 3.15 million shares. In after hours, the stock lost $3.80 or 11.41%, trading at $29.50.
SPWRB closed Thursday's regular trading at $29.19, up $0.87 or 3.07%, on a volume of 0.73 million shares. In after hours, the stock lost $2.41 or 8.26%, trading at $26.78.
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