SPWR - Earnings call transcript Q2 2018

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Operator

Good afternoon. Welcome to SunPower Corporations, Second Quarter 2018 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). turn over now Mr. would I the to call And at of Bob President Relations SunPower Okunski, Vice Investor Corporation. sir, you Thank you may begin.

Bob Okunski

Thank everyone to conference like to quarter I'd earnings call. you, XXXX our Sandra. second welcome

we will from back results our before XXXX review our CFO On the will Werner, Tom call start with for our and Tom Manavendra an by followed call financial review turning to off guidance. CEO; who the strategic operational Sial, quarter today second

call will website. a available a reminder, of this Relations our As on today of Investor be the replay later page

PowerPoint to slides location we who during of data statements During factors uncertainties slide today's website. this over posted will that, metrics XX-Q. same the Please set call statements. quarterly as that & that the today's we our this In SunPower, of those Tom we our posted of call are documents like Investor well. a described a our page CEO some Events those forward-looking To are enhance the see also press to Tom. which will Safe and our additional make XXXX I'd risks today's sheet have on supplemental slide Presentations of turn historical information and on regarding the Relations three. call reference detailing of to forward-looking may With presentation, reports we'll various Form in Werner, call, for these on Harbor subject affect that release, XX-K have begin

Tom Werner

strategic quarter joining an and XXXX will and call our you update initiatives. second we provide for Bob this performance On thank Thanks on our us. financial review

decision business, continued our key including to the structure some accelerate quarter, of NGT new our presentation. implementation panel strong corporate for and DG QX our investment execution, a Additionally of and and segmentation cell we the technology will highlight in status things

continued particular, board across with the with in highlight XXXX our our four. First [ph] as sales and business. for revenue margin like this business, in year-on-year. We grow slide In well In beat performance our residential up plan highlights, business QX, our strong to executed we growth I'd and forecasts we DG the U.S. to please QX exceeded quarter. continue EBITDA DG to turn the global the XX%

again Solutions We our also QX. and recent strength plan with Fab strong, saw Fab during including utilization. storage customers. X the with attach - Helix well our later. and Strong scale rates in included milestone for hit In bookings executed performed fortune XX Europe, the costs International our full yield upstream NGT core and is manufacturing on line SunPower contracts XX%. continued well for awards market, XX than meeting remains, ahead more on quarter DG booking for with targets in Silicon C&I Interest our we on Japan more our in first Development Fabs, NGT of up solution our enterprise of full quarter record two Technology We storage megawatts Australia. in business,

and of company to business our sale assets, the of stake completing including through our Enphase. generate our to We of microinverter sale and cash XpointX simplify continue sale the in the announcing ownership non-core

current lease transaction by making of this portfolio on end are XXX monetize of the phase sale our quarter. the We progress megawatt the expect good first and to of

segmentation to quarter and decision new our the we downstream by XXXX. of upstream made have to transition Finally, the first

market upstream will believe capitalize our faster and to our the DG for unit as further technology strong on turn us structure downstream review are As channels upstream now we focus to decision strengths businesses. on success. why increasing manufacturing, we to to for Please market that like our and as cost, different allow well mentioned last two position corporate our I very in business partnership and opportunity enable believe and the quarter, slide reduce five. more optimizing focused product model provide new in structure making will complete core DG. opportunities and corporate We briefly we well an solutions to us in future

to the competitive of model is our advantages our diversified One of in conditions. respond global to changes ability quickly market

structure, a exercising by are the implementing flexibility global DG on We this corporate new focused business. primarily

is and and asset The focused impacting PPA in utilization the increasingly segment. very demand capital. We policy plant to demand has owners is in demand decreased represented driven mainly pricing steadily, reduction Plant Power has project market are This significant than more between recent of reasons. significant cost in a seeing competition Plant on number are this profiles for panel Power we commodity changes pressure suppliers China, this increased caused solar of scale In XXXX. doing which a market put in and power factory by by margin with rates XX% standard efficiency, global reduction on and mature already for aggressive low pricing

Given this venture. model an Plant our Supply exclusively centered DZS decided Power to market exit Equipment and this P-Series be around will we market via joint addressing dynamic, from Development product

being fall. battery for the increase next and expect panel technologies our by customer DG high as over continues IBC products. efficiency This on hand, XX% other retail global economics P-Series we market is storage the five of to growth improving years, For electric significant driven customer such as premium market the cost with of expansion and demand price rates

and deployment industry our established portfolio, footprint global and key six, leading DG product the positioned markets will our our very high benefit Given we're efficiency drive well platform. global over we supply chain advantage We shows quarters, believe the reduce scale Side DG competitors. in in downstream to U.S. by cost four margin U.S. increasingly larger our our and as operational improvement that compared segment. leveraging past

for for up years. to technology panel in and moment Now, let's turn been XX in status choice residential levels SunPower's efficiency about of NGT industry. commercial have a Development, the is our of please customers seven. XX% to of the panels The Technology solar talk highest for light reliability slide IBC the the over

our customers energy performance a and cost wafers that at offering durability. manufacturing Our There new products par with NGT Higher significantly costs. efficiency a NGT cell the technology expect per technology, X-Series of contribute module SunPower, with technology This Silicon the in to to we due of is When watt superior for cost with on efficiency reduces localized the cost cost be to cost. higher will lower mono-PERC high of reduction. ramped, factors watt performance will that fully but low similar are number NGT per conversion. of manufacturing offer game changer effective

NGT six resultant MX legacy per inch compared cells platform a with based XX% our five of is almost wafer on unit. power inch produce all, more First wafers. The

manufacturing simplified XX% steps fewer enables with Our production flow technology that and cell tools, thereby reducing has fewer developed efficiency capital a expenditures.

production We our facilities Utilizing are of are transform E-Series over with new improves significantly Fabs greatly and expenditures existing time. Fab and to reduces technology NGP planning rather to already all retrofitting Greenfield capital flexibility. capacity NGT X building than

volume NGT market to be margin to accretive the value. in for XXXX. volumes expect QX proven structure with megawatt on We given plan upto XXX premium remain cost starting very We production competitive and

our roadmaps. new how segmentation. focus these on as under few to new and have of providing DG We slide would our fit time technology discussing on an takeaways. eight, amount pieces together strategy On fair to two I are our last our spent a like calls a we restructuring overview key

new value First inherent segmentation that increased cost in will unit structure with on financial easier the potential management drive our enable it value chain view highlight each for disclosures. The own financial respective each on transparency. will business growth. will partnerships our responsibility also believe P&L operational our additional BU separate level, and and and an new to this focus businesses have its model to of investors segment drive will greater as structure make value We

overhead to into operating structure will will we Bus, efficiency. the the believe us expense Finally, improve allow which BU corporate develop

In fact our XXXX. initiative our lien corporate by anticipation QX, change completed QX we in of recently in first

the margins. to technology upstream to we advantage growth as our briefly opportunity. call In to superior slide please DG I the we NGT Manu, One which discuss shareholder key maintain value; turn leading over expand to like enable global to will scaling us Before while DG this industry by by be we will materially efficiency initiatives nine. cornerstone enhance our would what technology see remain our market drive scale, downstream technology In XXXX. lowering term our business. costs will It long focused will the on turning

We expect U.S., share expanding and in the residential continue to commercial. both in

to offerings, our the see addition this path long in storage we to market. term clear margins expanding of a With

better customer. made will segmentation, resulting streamline Moving we closer simplify control accountability drive further to the and expense our increased business our in faster decisions and and to new

cash Finally, flow we EBITDA. improving to and remain committed

improve costs. fund With the review our plan on and example, made and balance bottom Manu our we’ve asset provide turn line financials. to operating over growth. I delever already the progress to will sales to necessary Manu? reducing to through significant like the For call to would the This that, resources

Manavendra Sial

Thanks Tom.

many how given Before speaking and I in effort about joining time look you to future. I I say to appreciate with the excited a take team I moment to started the of the am get and SunPower. forward want the by transition

Now our forecasts. for adjusted were let with We me review, quarter exceeded pleased and XX. the slide margin as results to financials; we review turn our the please EBITDA

to segments. project Power well Plants above and timing the business. guidance in was SunPower continued Our due was in up our non-GAAP revenue Solutions executed primarily as Equipment growth sequentially, all we

and commercial than On up more revenue above year-over-year side, were QX the XX% plan. DG was our bookings

strong business. business and very were benefited gross our also ahead of residential our Overall executed in North in We Commercial strength margin our residential sequential the margin U.S. we team as plan American year-over-year XX.X% margins was sequentially saw inline year-over-year. high our from consolidated performance and well. as non-GAAP

with America, year. In with also shipments, improve leased. XX% commercial forecasts. and consistent million Power of residential $XX primarily continued were than well margins saw Europe EBITDA million we cash ahead in higher Overall, were half and from margins supply Overall for was was was our we of our our to U.S. Non-GAAP line margin the of mentioned I year-over-year. $XX sequentially XX% as we performance forecasted the North globally, as million loan line for business, and DG megawatts quarter $XX this due of residential with transaction our OpEx resulting both In XX of non-controlling quarter our up in strong plan CapEx with to panel Plant results plan. the in XX%, sales portfolio. to residential, interest expect strong forecast. a breakeven lease Adjusted products Japan with QX. development our again was as in the In ahead deployed our second agreement. as out the segment, while We or were and

lower also to the anticipated due was Additionally to the our half megawatts. bill, than second impact QX deploy Section costs these these expected we as shit inventory to XXX tariff but of year

and Finally, our we on NGT decision our existing our are to NGT. with transition map pleased the to have made IBC road capacity progress

charges value of manufacturing the to in $XXX highlights we several for like years. few for next a As of recognized GAAP-impairment associated to approximately to equipment with non-cash million the a would to change In legacy our connection of segmentation slide evaluation result, - upgrade quarter related a the the quarter and the assets. NGT please to now turn structure, proposed our production manufacturing discuss this I our the we our operations over financial expect XX. with second

and microinverter we Enphase. and business business mentioned, our Tom as the XpointX continued liquidity sale of our our of the efforts we As to our improve simplify completed announced with sale to

we expect in we which complete development Additionally, Plant exclusive this to a partner with American to our North Power negotiations portfolio are quarter. acquire

the individual is approach, there a which including of on completion corporate to are footprint corporate a to lesser for new their efforts. Our approach lean by strategy initiatives encouraging BUs cost our P&L to on their need large plan, segmentation first the control support our the phase complements take businesses,

corporate now forward, see Going less than annual we million. expense run to overhead our $XX rate declining

first the XXX of to simplifying This our make second further this monetization significantly in of quarter. also progress megawatt the and sheet the the de-levering year, of including expect half P&L, phase balance sales to adding closing our while liquidity. our improve portfolio lease in will our We transparency

that will believe the priority drive construction project cash since continue million commercial back generate $XX the to to our of here efficient second and I as capital arrived call this I to will positive Tom. half flow my is turn that With generation space expertise for leverage provide to want finance our we distributed the guidance. business. year. a cash closed top Tom recently the In that, initiatives our closing, for I also reiterate in revolver to to We

Tom Werner

for year to Manu. guidance third Thanks I now in would quarter our XXXX. fiscal the like discuss

a for our QX impact a XXX of the as and estimated Section reminder, our XXXX assumes As guidance whole. tariffs

$XX slide We to expect Please around turn million. QX to tariffs be XX.

guidance net to loss Third million $XXX of X% quarter follows: fiscal and a to XXXX $XXX million, Revenue is gross minus $XXX X% GAAP of to of margin million. as $XXX million positive

Third timing of company $XXX positive MW and restructuring of the $XX charges GAAP real-estate guidance impact impact also the a related quarter range of the expects to to million million, of X%, On initiatives. XXX revenue accounting, X% to in as XXX of negative the $XX MW. and $XXX EBITDA as XXXX the million basis, margin of includes to megawatts deferrals gross company’s due revenue non-GAAP well to million to deployed

of as the previously announced related impact excludes guidance sales. proposed acquisition of SolarWorld asset financial quarter its Third potential Americas, timing impact proposed differences the as company's well to of the

quarter the charge $XX impairment assets. legacy second EBITDA assumes quarter Adjusted million to third manufacturing of related Additionally, approximate an guidance company's inventory

XXXX slide For please turn to XX.

to impairment turn million. charge XXXX balance I our fiscal the company unchanged. guidance For year quarter given the of the in $XXX On be fiscal year the questions. net for the GAAP now to $XX XXXX of $XXX company's is asset $XXX to The basis remains be call to would loss a $XXX million adjusted range second to non-GAAP of that, like in EBITDA expects range of million With company's over million. million, the expected

Operator

question first of Sachs. line our Lee a (Operator Brian from Instructions) Goldman comes with And

now line is open. Your

Brian Lee

the past guess Hey I guys, I the off basically or so. on Does comment. shift just, the first update thanks year a high process? up mean level pushing on know Could you IBC us you section that spent an away for you're, the exemption for XXX. or you of lot questions. you're you away giving taking in on know from know walking time DC

Tom Werner

mean NGT, that larger that. has product strong. petition No, a generation it lower out not and quite doing bringing investing next our does think We we’re on that Malaysia. we’re IBC our is exclusion in in remains Actually technology which substantially we're format cost

and We for your exclusion committee what exactly. although they interchange We actively we do We they the in a recently that the decision. are are exactly still asked criteria. nature and know working inter-agency hit productive do, had with to that limited on

just So we still expect technology. IBC investing exclusion and we’re in our still in

Brian Lee

if our what today, guess you fully X. staying lastly, on mentioned Okay, And line capacity I name come effective budget of the than that to transition the wrong, a I you CapEx transition, is bit so see NGT? to Thank I can E years being will X.X curious XXX questioning, the your the have capacity appreciate capacity for know make Will on little of you. know you that happens you convert and capacity transition next of will update. couple E-Series then IBC has I'm plate – until that you XXX X-Series. and speak and that correct gigawatt specifically, lower you me all what needed today. of have then be the the the to have offline temporarily you as that some over to

Tom Werner

for level of appreciate Okay, thanks the the detail. Brian question. I

and the make XXX a the So and and somewhere our XX% E-Series, that’s the harder, wattage extra to bit output plan XX% capacity is now to right quite there will higher. megawatts NGT convert between that’s higher,

to We've without a half can capacity, there's be don't think ago plus, the It’s pair built much half your silicone in question. for far. works. a that’s QX and so I think one big gap we by transition produced in be production few will so a of transition. actually third producing I weeks line lines volume efficient; pair. line is and That so in XX% the way line technology going

Fab of used because CapEx, to we feature of half aggressively, this can is E-Series we’ll In that time, make technology a its below well watt. the name that then years what run, to minimal would is long I but the call And to capacity, be, its terms $X.XX of get why be beating want you equipment, do update under the to if after going think X, Fab. well that we in and is a be and only reasons $X.XX the answer its had X-Series; of it so as to per equipment our we in more will the old; that's guess below to question a its NGT that well we I’ll can be yes. plate If it that, watt I lastly conversion and certainly among be two conversion or CapEx project of had convert implement

power, So less keep just to XX% $X.XX CapEx. cost to track, watt and XX% less XX% per more than

Brian Lee

$X.XX And the wattage a clarify, brown and number? that – we would watt you're want that's that be Thank that okay, would to off doing the be greenfield you CapEx just would then higher calculate or to fields for a NGT produces guys. the

Tom Werner

higher that, time with so for but our by greenfield we meet Yeah that is greenfield. it a the even improve, brown lower because be than will it'll number field is the my wattage, number, guess,

Brian Lee

you. thank Alright,

Tom Werner

[ph] the important projections. mostly two though, Thanks it’s the their of within successor why current it technology Brian. so that's revisions working GT is plus affects REV that know Yeah, of team on on that to REV and my X

Operator

next of from with Thank question Weinstein Michael line Suisse. you. the our And comes Credit

now is open. Your line

Michael Weinstein

you waiting the any six this what the Thanks do accelerating details from five for milestones for and the inch specific before so guys. challenges see to Are inch? switch at the far. point you to Hi expect CapEx NGT

Tom Werner

We curve. our at of A lifetime, where the those you technology have yield nine the yield, get electrical actually up etcetera, working still we're the not are certain as term silicone, mechanical the measure projections near statistical couple and efficiency, have we we perfect idea. have to we the panel yield in a So, milestone.

meaningful expect would how I'll and I is technology and you the ramp year, talk hit ones still say to technology working we’ll our ahead on follow have largely and so We technically. go funding, We're ask. unplanned for the this up funding just to completely unplanned so don't or about

through largely are not discussions year's raise advances most occurs We transition half for number doing with NGT. it allow the we're on I We so first any markets capital to that next plan or customer from the guidance partnerships; capacity this to upside pair, fund with line funding is both. do to would our gave planning The in us place in likely.

Michael Weinstein

Great, you and how thinking a sale the generation rule? the about recent think separate about do know distributed also leasing California question, strategy and Harbor now, IRS Safe versus you

Tom Werner

So term bias cash what we a you the want or always the think that always for a systems; And long for been we’re raise buy you is this loan always with and down, a so owning can seeing and “you a of there's SunPower. with to had loan for the loan with been that's doing us choose towards great customer,” bit already our better there's We've trend of the can either case cash so or that technology. will going economics year, a loan work course ITC trend.

toward will because wouldn't of I necessarily call ITC the end next Now that I start year. the think more that, seeing

next. might residential, I homes homes about ask talking The could I’m mention market, tell as you to that I well. want While about new new

business; California. number doing we're to in is New quite transitioning actually one It’s homes business. ruling, that so in market XXX% well that the

doubling business that it’s so to positive from We’re trend. ’XX, ’XX another

wanted your add answer then to to homes. happening and new on So I I that already, comment and see that I question, loan see first

Michael Weinstein

great, Okay you. thank

Operator

Pavel comes of with Raymond our And question Molchanov you. Thank a James. line next from

Your is line open. now

Pavel Molchanov

the taking guys. question Thanks for

about because has in industry You've the to in changed XX% your at during alluded months this fall two Hey, Chinese actions. two to pricing the commodity wide the Chinese premium all period? relative the month modules last module off

Tom Werner

Thanks Pavel.

we're the we coming a maintain can TCS premium. in as equipment modification say see sell joint because in and a we our our to segment on and it. and a down we selling we our products, what pricing; premium segments are P-Series venture react talk let’s costs would So there’s expansion bit predominantly a there's ramps, now plant and of then I is power

So business decrease plants. power we’re the insulated seeing high because value more DG that, most it's in from and there more In efficiencies. is of that

two is things service there, is So is more more there sales, channel one smaller is important. important,

highest business so premium responding, question efficiency, the the best have insulated. the would be there we expand we it's your But DG price say though allow mostly and I near We to same Plant the that, typically indefinitely. don't thing we respond term. its because do technology, in the movement somewhat Secondly, to Power some will are in to eventually the

Pavel Molchanov

about identical quick versus to a same simplifying we while converge? QX revenue, where And norm this quite for the reporting a the guidance, of you've in essentially follow revenue QX talked be Okay. the the expect up, financial where metrics and two thing. Should almost non-GAAP sets GAAP

Tom Werner

I’ll comment and then if Manu wants to add, he can.

residential answer whole yes. Power is cash sold the in real-estate like we're think are to residential revenue the and eliminates it the sale stuff. doing rec accounting of leases, the I to look XpointX all leases and the and a course selling exiting financials is Point will cost partial XpointX simplify selling What business,

plant significant and hit So sale residential the the project power sale of lease course of self-developed through a XpointX accounting. and simplification

watt. like that our – per to you've you in IPO with been and add time. we That’s more Want per revenue, us So watt. remember recognizing you to revenue goal watt, to look like anything? just we in P&L it’s can back almost I margin get like And margin a were per per long when since watt appreciate model

Tom Werner

a us of I only we a exit that add would lease or perspective of sale as our from an couple EBITDA the revenue the complete but we it yes, will is of thing from point view quarters Yeah take portfolio.

Pavel Molchanov

it. Appreciate enough. clear Okay,

Tom Werner

Pavel. Thanks

Operator

question comes Osborne the Cowen Jeff from line Company. and And Thank you. with of next our

now Your is line open.

Jeff Osborne

afternoon. good Hey,

you I the give know it but ones. was the guidance. Just two for you QX. – for I it, Section impact quick I did gave missed wondering might XXX have

Tom Werner

first at in then team my and split going out folks the second I'm half for work here give QX. can the you and to

First more half than spent the second was second of I’ll $XX that million half note the we half was that’s in R&D million, $XX and on year.

impact can on and that R&D soon is take $XX and we’ll course million our the invest we really, a that for it? it really exempts in American What QX, the so do have manufacturing. that us, ruling So hear of was tariffs significant, hope number we and you

Manavendra Sial

most It was because deminimis the… Tom, of

Tom Werner

Cash number?

Manavendra Sial

And number about $XX the cash was million.

Tom Werner

so it about, most of Yeah $XX million. the QX million was of $XX about

we maybe putting on can and follow is so remember this it standard, any inventory. clear up it's going Now up as into calls, now we are the of part

cash So P&L difference there's between a and cost cost.

Jeff Osborne

and it, that’s what’s how if just deal can update under the give sort of logistical What Is and ongoing you way? planning CapEx closes. the would goes then and Oregon, activity there hiring an any Got forward now the know us be? on you operation much

Tom Werner

Sure, SolarWorld so on challenges. already. we haven't. plan closing did We We've a few obviously had

that we’ve noted convert calls though quarter. material, the And our working this P-Series transaction I’ve to module manufacturing do the in the We not think therefore not size say to is of module on facility. part expect are previous I plan said the previously, And are close We I’ll again but the of is it they disclosed. those. the

it’s of some their cell the into make make fab, it that $XX that will million already $XX moves We are equipment There P-Series. from of the they exists, so and million capital of so not cell their all can the in or we facility, CapEx. that an incremental directly take the (inaudible) fab finishing into cell cell be

Jeff Osborne

thanks. Okay,

Operator

you. America comes next And the line Merrill Bank Dumoulin-Smith of Thank question with from Lynch. our of Julien

Your line is now open.

Julien Dumoulin-Smith

good afternoon. Hey,

Tom Werner

Hey Julien.

Manavendra Sial

Julien. Hey

Julien Dumoulin-Smith

Hey.

bit here, So go side funding of on just business, talked Plant? of outflows comment especially CapEx, here sort about of the potentially here. about the you thinking on the half for of the the talk except portfolio cash pieces the some business reconciling back against following basis inflows a You resi little the lease on up NGT scaling the relative sale, Can obviously NGT. a and think Can the the you at about how sort flows little Power cash moving cash sale potential. on bit about a and that just year; forward just you microinverter to

structure. to point, XXXX Are terms timeline in some minus sale and in talk etcetera. accelerated that that as well? the of cost the given ’XX of a sort deploy particularly any at supposed here, about talked in that plus minimum, you quarter, at maybe You can read this to to But onwards the microinverter you into

Tom Werner

Sure, I’ll take a and the top materially Manu them question of it. on little might add bit

First let divestitures. the me cover

those are on. I three have QX. though balancing we So lease, let for we use the number of expect not we close what of NGT. have to think I’ll power spending to in and guided we say proceeds And plant, used a how microinverter comment could all be ramp we from transactions. the of would it meaningfully Manu funds and out on

NGT works. of the technology terms acceleration, In

levels the first line. the getting we output getting to the up out yield are that expect So and half of we

to ramping next months expect happen and be the in We in QX. that or four three

making trade-offs decisions too going know numbers lines quarter internally The making. So the That some of we that next are certainly so maybe in potential so of date Julien, ramp first not of all point year, we is the timing are I to and off we transactions funding future. versus CapEx. yes, partnerships yes, there in and would line terms these use to three of technology. the are ready are in to, decision the will a of on next next also you distant

on the two. month add? you or I good these progress in make think to want Anything next we should

Manavendra Sial

the would got three view. of the think a I year half thing elements from about I add back only is, as you we the cash point of think

of performance year the in so proceeds positive business to as of operating of we’ll cash in We the we’ll from invest asset perspective, improved back some have the continue use included. half we and that business, XXXX, get the those have business that generation into sales NGT a will

We second have half. CapEx produced first significant headroom from in half a timing the perspective; and

Julien Dumoulin-Smith

be to NGT. capital towards to here? issue wouldn’t quickly, oriented you like really sounds reconcile to Just external want finance really It elements that organic you

Tom Werner

thanks Yes, Julien, right. Exactly. exactly that’s

Julien Dumoulin-Smith

Great.

Tom Werner

take to more going we’re question. Alrighty, one

Operator

with Thank the line comes from Colin the of you. Oppenheimer. Rusch question next And

Your line open. is now

Colin Rusch

you Thanks R&D we those lines initiatives so next Guys year into could of think and with how much. about year? can talk the trend and spending cadence about these balance the of this through

Tom Werner

call and or so spend think $XX and on typically each with that ramping. minus IBC associated that materially million plus some we There year technology, same COGS, We will our that technology stay take don’t is We separately. we it in quarter. call Sure. per out pre-op the NGT necessarily,

assumes that – continue think get way place But I make would get If have we tariffs expect going we excluded from I and to we we to excluded, this the likely that we R&D have run be would reduce. tariffs. by rate. to to where assuming and a So changes, are pay

Colin Rusch

much. Great, Thanks take thanks guys. the rest offline. so I’ll

Tom Werner

Colin, we very much. everybody, to plan Analyst I Okay thanks do remind want an Day.

the planning half for next year. currently are that of first We

forward Thank we for So call. you look so calling on talking earnings you our next to to much in.

Operator

gentlemen, Everyone great and you all you today's for in have disconnect. the This conclude day. may Ladies thank conference. and program a does participating

Sunpower (SPWRQ) 30 Jul 182018 Q2 Earnings call transcript