SunPower’s audit committee investigation continues

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

SunPower’s internal investigation into unsubstantiated accounting entries at its Philippine manufacturing base has made progress, according to the company. The discrepancies were announced in November 2009 and concerned the inclusion of some figures on the financial records for 2009 that may have been intended for inclusion on the 2008 books.

The investigation is being carried out by the company’s audit committee in collaboration with outside legal and accounting experts. If the findings of the committee investigation are in line with the suspected discrepancies, SunPower’s interim financial 2009 results will have to be revised.

The preliminary findings of the investigation revealed that the Philippines base may have overstated expenses in its cost of goods sold of approximately $1 million in the first quarter ending March 29, 2009. The figures may also show up an understatement of expenses in its cost of goods sold of approximately $14 million in the second quarter ending June 28, 2009 and around $2 million in the third quarter ending September 27, 2009.

Reported 2009 quarterly revenues and operating income came in at $213.8 million and a loss of $2.5 million, respectively for the first quarter. Figures for the subsequent two quarters were $297.6 million (income) and $9.9 million (loss) for the second quarter and $466.3 million (income) and $34.6 million (loss) in the third quarter. Revenue for the whole year was reported at $1,434.9 million, with a GAAP operating income of $167.5 million.

Commenting on the investigation, Barclays Capital’s Vishal Shah stated that the “incremental positive” of the review will remove any cloudiness regarding the company’s accounting.

Shah believes that the issue could have been overblown for three reasons (points below reproduced from Shah’s Barclays Capital Clean Technology report):

“(i) SPWRA outsources most module/wafer production and we do not expect the cell processing costs to be significantly different compared to Chinese players. Moreover, we believe street ests are already discounting this type of cost structure disadvantage,
(ii) ongoing accounting investigation relates to only 50% of the business, systems business should not be impacted;
(iii) accounting irregularity was mostly related to underutilization accounting.

Reiterate 1-OW: Several factors could lead to share price outperformance:

(i) weak investor sentiment;
(ii) potential resolution of accounting overhang;
(iii) company specific catalysts for outperformance – cost reduction from wafer/module outsourcing, lower third party module procurement costs for systems business, above-average 2H10 visibility are some of the catalysts that could potentially lead to earnings outperformance;
(iv) room for additional upside to street ests – we see ests approaching our ~$2 estimate;
(v) we expect entry barriers in the systems business, US utility markets to continue to increase and SunPower could benefit from strong positioning in these segments.”

22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.

Read Next

PV Tech Premium
September 21, 2021
Pressures on PV plant performance have led the solar industry to be more demanding and forensic of the data operational projects generate, as well as the power. Jules Scully explores the growing role software is playing in the utility-scale solar arena and how it must evolve further still to meet expectations.
September 21, 2021
A round-up of the latest news from the US PV sector, including project developments from Ørsted, Candela Renewables and CEP Renewables.
September 21, 2021
New York’s governor has proposed an expansion of the NY-Sun distributed solar incentive programme and revealed plans for two transmission projects that will transport renewable energy to New York City to help the state reach 70% renewable electricity by 2030.
September 21, 2021
German solar installer Enpal has raised €345 million (US$405 million) in debt financing to fund the deployment of more than 15,000 household solar PV systems
September 21, 2021
India added 521MW of rooftop solar in Q2 2021, an increase of 517% compared to the 85MW added in the same quarter last year despite a slight increase in costs, according to a Mercom India report.
September 21, 2021
Private equity firm American Securities has secured a deal to acquire US solar engineering, procurement and construction (EPC) provider Swinerton Renewable Energy and its operations and maintenance (O&M) subsidiary SOLV from Swinerton Incorporated.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021