SunPower Corporation took a massive third-quarter loss despite having higher revenue. It reported a net loss of $370.8 million, or $3.77 a share, compared to $20.1 million profit, or 21 cents a share, recorded in the same period in 2010.
Nearly all of its losses were caused by $349.8 million in charges related to impairment of goodwill and intangible assets. Revenue, meanwhile, managed to improve by 28 percent to $705.4 million from last year.
The California-based solar-panel maker also sharply cut its 2011 earnings outlook and announced a shuffling of executives as part of a company-wide reorganization to cutting cost and increase competitiveness.
Shares of SunPower dived 6.91 percent to $8.76 in Nasdaq yesterday.
For the year, the company is now projecting a 5-cent loss a share to a 20-cent profit a share and revenue of $2.4 billion to $2.45 billion. In August, the company’s revenue estimates to at least $2.8 billion.
«In order to better position SunPower for the future, we expect to implement a company-wide restructuring program in the fourth quarter to accelerate operating cost reduction and improve our overall operating efficiency, said Dennis Arriola, SunPower chief financial officer
«We currently expect this program to reduce operating expenses by as much as 10% in 2012, while growing the company.» he added.
Mr. Arriola plans to leave the company in March next year and Jim Pape, president of the residential and commercial business will leave the company later this month.
Howard Wenger, formerly president of utilities and power plants, has now been appointed president of regions, Jack Peurach, formerly executive vice president of research and development, as executive vice president of products, and Marty Neese, who is chief operating officer, will keep the post and take on additional responsibilities. (Oliver M. Bayani)