Tier 1 module manufacturer and PV project developer, SunPower Corporation, said it expected to incur higher direct cash restructuring costs than previously guided when reporting fourth quarter results in early February, 2013.
In October, 2012, SunPower announced restructuring of its manufacturing operations in the Philippines to cut costs and better balance expected demand by lowering capacity and inventory with the loss of approximately 900 jobs.
At that time, SunPower expected restructuring charges totalling US$10 million to US$17 million, composed of severance benefits and other facility related costs.
The company has more than doubled the figure, guiding restructuring charges totalling between US$33.0 million and US$40.0 million in the quarter, maintaining that more that 90% of the charges would be in cash terms.
However, the company did not provide specific reasons for the increase.
SunPower had previously guided Q4 non-GAAP revenue in the range of US$700 million to US$900 million with a non-GAAP gross margin of 14% -16%. On a GAAP basis, revenue of US$650 million – US$850 million was guided with a gross margin of 2% to 4%.revenue.