Exhibit 99.1
SUNPOWER REPORTS FIRST QUARTER 2006 RESULTS
SUNNYVALE, Calif., April 20 /PRNewswire-FirstCall/ -- SunPower Corporation
(Nasdaq: SPWR) today announced that revenue for the first quarter ended April 2,
2006, was $42.0 million, up 43% from the prior quarter's revenue of $29.3
million and up 278% from the year-ago first quarter revenue of $11.1 million.
GAAP net income for the quarter was $0.3 million, or breakeven net income
per share, compared to last quarter's net loss of $0.6 million or $0.01 loss per
share and the year-ago first quarter net loss of $7.2 million.
On a non-GAAP basis, excluding amortization of intangible assets and
stock-based compensation, the first quarter net income was $2.8 million or
diluted earnings per share of $0.04, compared to the prior quarter's net income
of $1.5 million and the year-ago first quarter net loss of $6.1 million.
Other first-quarter highlights included:
-- Continued capacity expansion at SunPower's SPML Philippines-based
solar cell manufacturing facility with the start-up of the company's
third manufacturing line. Line 3, which runs thinner 190-micron
wafers, is scheduled to be running at full capacity by the end of the
second quarter and brings SunPower's solar cell nameplate annual
manufacturing capacity to 75 megawatts.
-- Approval by SunPower's Board of Directors to proceed with construction
of the company's second solar cell manufacturing plant at SPML. Plant
2 will have a nameplate capacity of 200 MW and is scheduled to start
production from Line 5 in the first half of 2007.
-- Manufacture of the first 22%-efficient solar cells using the company's
improved Gen 2 (second generation) manufacturing process. These
prototype solar cells were produced in pilot-scale runs at SPML using
existing high-volume manufacturing equipment. Gen 2 technology is
planned for full implementation on Line 4, scheduled to start
production in the fourth quarter of 2006.
-- Began construction at SunPower's first solar panel manufacturing
facility, located close to SPML in the Philippines. The new
state-of-the-art panel factory will have an initial 30 MW nameplate
annual capacity and a footprint capable of expansion to 90 MW. Panel
production is scheduled to begin in the third quarter of 2006, and
will augment the company's existing outsourced panel production in
China.
-- Volume shipment of the company's new, higher-efficiency SPR-95,
SPR-215, and SPR-220 solar panels. These new models increase the power
ratings of what was already the highest efficiency product line in the
solar industry.
-- Certification of SunPower's new solar panel product line by TUV
Rheinland to the industry's most stringent standards, IEC 61215,
edition 2 and IEC 61345. These panels are the first worldwide to be
certified under these stringent standards.
-- Securing a $55 million, silicon supply contract. This incremental
supply agreement covers silicon supply over a 5-year period, beginning
in 2006, as a component of SunPower's diversified silicon supply
strategy.
Tom Werner, SunPower CEO, said "We are pleased to report another solid
quarter of operational results ahead of our announced objectives as well as a
number of achievements that extend our leadership in the technology arena.
"We continue to expand SunPower's manufacturing capacity ahead of plan,"
added Werner. "Our newest production line, Line 3, was turned on during the
first quarter and has already exceeded its design-yield objectives. This was an
important achievement since Line 3 exclusively runs our new thinner 190-micron
wafers. We are seeing the critical-mass benefits of our highly skilled work
force and disciplined operating systems that together enable the rapid transfer
of learning to our newer lines. We expect that this incremental capacity will
allow us to achieve another significant quarter-on-quarter top-line revenue
increase to $50- to $52 million for Q2, with expected, diluted non-GAAP net
income of share of $0.05 to $0.07.
"We are on plan to install Line 4 at SPML in the fourth quarter of this
year, and are pleased to announce that we have already made 22% solar cells
using the Gen 2 technology that we plan to utilize on Line 4," continued Werner.
"We expect that the 10% higher relative efficiency of Gen 2 technology together
with thinner wafers will allow SunPower to further improve our silicon
utilization efficiency on Line 4 to less than 7 grams of polysilicon raw
material per watt of solar power.
"Early achievement of these manufacturing and technology milestones gives
us the confidence to increase our 2006 top-line minimum revenue guidance from
$210 million to $220 million," Werner said.
"We are also pleased to report a number of significant achievements in our
solar panel assembly operation," Werner said. We recently announced that our
solar panel group had started volume shipments of an upgraded product line with
higher power ratings than our previous industry-leading products. Our customers
are thrilled to be getting even more watts per panel than before with the same
uniquely superior aesthetic appearance. We are proud that this product line was
the first worldwide to be certified to the rigorous new IEC standards and
believe this achievement further reinforces SunPower's technology leadership
position.
"We have begun construction of our first solar panel manufacturing line in
a building very close to the SPML solar cell factory. The new solar panel
operation will begin with a single 30 MW line but has the footprint to house two
more lines for a total potential capacity of 90 MW. Our plan at this new factory
is to develop and commercialize advanced, automated solar panel manufacturing
technology that leverages the inherent cost advantages of our all-back contact
solar cell architecture," Werner said.
About SunPower
SunPower Corp. designs and manufactures high efficiency silicon solar cells
and solar panels based on an all-back contact cell design. SunPower's solar
cells and panels generate up to 50 percent more power per unit area than
conventional solar technologies and have a uniquely attractive, all-black
appearance. For more information on SunPower or solar technology, please visit
the SunPower website at http://www.sunpowercorp.com . SunPower is a majority
owned subsidiary of Cypress Semiconductor Corp. (NYSE: CY).
Forward Looking Statements
Statements herein that are not historical facts and that refer to
SunPower's plans and expectations for revenue and income for the second quarter
and the full year of 2006 and the future, for construction and operation of its
manufacturing facilities and supply of polysilicon and ingots, are
forward-looking statements made pursuant to the Private Securities Litigation
Reform Act of 1995. Such statements are based on our current expectations as of
the date of the release, which could change or not materialize as expected. Our
actual results may differ materially due to a variety of uncertainties and risk
factors, including but not limited to business and economic conditions and
growth trends in the solar power industry, our ability to obtain adequate supply
of polysilicon and silicon ingots to manufacture our products and the price we
pay for such material, our ability to ramp new production lines, our ability to
realize expected manufacturing efficiencies, production difficulties that could
arise and other risks described in our Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission. Except as required by law,
we assume no obligation to update any such forward-looking statements. We use
words such as "believes," "plans" and "expects" and similar expressions to
identify forward- looking statements that include, but are not limited to,
statements related to future demand for our products, our expected revenue
growth, our production capabilities, profit and incremental capacity.
To supplement the consolidated financial results prepared under GAAP,
SunPower uses non-GAAP measures which are adjusted from the most directly
comparable GAAP results to exclude items related to amortization of intangibles
and stock-based compensation. Management does not consider these charges in
evaluating the core operational activities of the Company. Management uses these
non-GAAP measures internally to make strategic decisions, forecast future
results and evaluate the Company's current performance. Most analysts covering
SunPower use the non-GAAP measures as well. Given management's use of these
non-GAAP measures, SunPower believes these measures are important to investors
in understanding the Company's current and future operating results as seen
through the eyes of management. In addition, management believes these non-GAAP
measures are useful to investors in enabling them to better assess changes in
SunPower's core business across different time periods. These non-GAAP measures
are not in accordance with or an alternative for GAAP financial data and may be
different from non-GAAP measures used by other companies.
Fiscal Periods
The company operates on a fiscal calendar comprised of four thirteen-week
quarters that end at midnight Pacific Time on the Sunday nearest the calendar
quarter-end. For simplicity, the company labels its fiscal quarters as ending on
the calendar quarter date.
NOTE: SunPower is a registered trademark of SunPower Corp. Cypress is a
registered trademark of Cypress Semiconductor Corp. All other trademarks are the
property of their respective owners.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Mar. 31, Dec. 31,
2006 2005
---------- ----------
ASSETS
Cash and cash equivalents $ 117,118 $ 143,592
Accounts receivable, net 31,975 25,498
Inventories 17,310 13,147
Prepaid expenses and other assets 16,697 3,236
Property and equipment, net 127,486 110,559
Goodwill and other intangible assets, net 20,447 21,622
Total assets $ 331,033 $ 317,654
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 32,292 $ 21,604
Customer advances 38,828 37,400
Total liabilities 71,120 59,004
Stockholders' equity 259,913 258,650
Total liabilities and
stockholders' equity $ 331,033 $ 317,654
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(On a GAAP basis)
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
--------------------------------------
Mar. 31, Dec. 31, Mar. 31,
2006 2005 2005
---------- ---------- ----------
Revenues $ 41,958 $ 29,341 $ 11,092
Cost of revenues 36,266 24,720 13,093
Gross margin 5,692 4,621 (2,001)
Operating expenses:
Research and development 1,996 1,981 1,667
Selling, general and administrative 4,381 4,000 1,800
Total operating expenses 6,377 5,981 3,467
Operating loss (685) (1,360) (5,468)
Net interest income (expense), net 971 770 (1,769)
Income (loss) before income tax provision 286 (590) (7,237)
Income tax provision 31 50 --
Net income (loss) $ 255 $ (640) $ (7,237)
Basic and diluted net income (loss)
per share $ 0.00 $ (0.01)
Shares used in calculation of net
income (loss) per share:
- Basic 61,126 44,325
- Diluted 66,904 44,325
Reconciliation of net income (loss)
to non-GAAP net income (loss):
Net income (loss) $ 255 $ (640) $ (7,237)
Reconciling items:
Stock-based compensation expenses 1,412 924 --
Amortization of intangible assets 1,175 1,176 1,176
Non-GAAP net income (loss) $ 2,842 $ 1,460 $ (6,061)
Non-GAAP:
Basic net income per share $ 0.05 $ 0.03
Diluted net income per share $ 0.04 $ 0.02
Shares used in calculation of non-GAAP
net income per share:
Basic 61,126 44,325
Diluted 66,904 62,450
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(On a non-GAAP basis)
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
--------------------------------------
Mar. 31, Dec. 31, Mar. 31,
2006 2005 2005
---------- ---------- ----------
Revenues $ 41,958 $ 29,341 $ 11,092
Cost of revenues 34,897 23,530 11,917
Gross margin 7,061 5,811 (825)
Operating expenses:
Research and development 1,577 1,793 1,667
Selling, general and administrative 3,582 3,278 1,800
Total operating expenses 5,159 5,071 3,467
Operating income (loss) 1,902 740 (4,292)
Interest income (expense), net 971 770 (1,769)
Income (loss) before income tax
provision 2,873 1,510 (6,061)
Income tax provision 31 50 --
Net income (loss) $ 2,842 $ 1,460 $ (6,061)
Basic net income per share $ 0.05 $ 0.03
Diluted net income per share $ 0.04 $ 0.02
Shares used in calculation of non-GAAP
net income per share:
Basic 61,126 44,325
Diluted 66,904 62,450
See accompanying reconciliation of GAAP measures to non-GAAP measures.
SUNPOWER CORPORATION
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(In thousands, except per share data)
NET INCOME (LOSS) PER SHARE:
THREE MONTHS ENDED
-----------------------
Mar. 31, Dec. 31,
2006 2005
---------- ----------
Basic:
GAAP net income (loss) per share $ 0.00 $ (0.01)
Reconciling items:
Amortization of intangible assets 0.02 0.02
Stock-based compensation expense 0.03 0.02
Non-GAAP net income per share $ 0.05 $ 0.03
Diluted:
GAAP net income (loss) per share $ 0.00 $ (0.01)
Reconciling items:
Amortization of intangible assets 0.02 0.02
Stock-based compensation expense 0.02 0.01
Non-GAAP net income per share $ 0.04 $ 0.02
STATEMENT OF OPERATIONS DATA:
THREE MONTHS ENDED
------------------------------------
Mar. 31, Dec. 31, Mar. 31,
2006 2005 2005
---------- ---------- ----------
GAAP cost of revenue $ 36,266 $ 24,720 $ 13,093
Amortization of intangible assets (1,175) (1,176) (1,176)
Stock-based compensation (194) (14) --
Non-GAAP cost of revenue $ 34,897 $ 23,530 $ 11,917
GAAP research and development expense $ 1,996 $ 1,981 $ 1,667
Stock-based compensation (419) (188) --
Non-GAAP research and development
expense $ 1,577 $ 1,793 $ 1,667
GAAP selling, general and
administrative expense $ 4,381 $ 4,000 $ 1,800
Stock-based compensation (799) (722) --
Non-GAAP selling, general and
administrative expense $ 3,582 $ 3,278 $ 1,800
GAAP operating loss $ (685) $ (1,360) $ (5,468)
Amortization of intangible assets 1,175 1,176 1,176
Stock-based compensation 1,412 924 --
Non-GAAP operating income (loss) $ 1,902 $ 740 $ (4,292)
GAAP income (loss) before income tax
provision $ 286 $ (590) $ (7,237)
Amortization of intangible assets 1,175 1,176 1,176
Stock-based compensation 1,412 924 --
Non-GAAP income (loss) before income
tax provision $ 2,873 $ 1,510 $ (6,061)
CONTACT:
Julie Blunden
SunPower Corporation
+1-408-470-4277
Julie.blunden@sunpowercorp.com
Manny Hernandez
SunPower Corporation
+1-408-470-4274
SOURCE SunPower Corporation
-0- 04/20/2006
/CONTACT: Julie Blunden, +1-408-470-4277, or
Julie.blunden@sunpowercorp.com; or Manny Hernandez, +1-408-470-4274, both of
SunPower Corporation/
/Web site: http://www.sunpowercorp.com/
(SPWR CY)