UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

Form 8-K

 
 
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2014
 
 
SunPower Corporation
(Exact name of registrant as specified in its charter)

 
 
001-34166
(Commission File Number)
 
Delaware
94-3008969
(State or other jurisdiction
of incorporation)
(I.R.S. Employer
Identification No.)

77 Rio Robles, San Jose, California 95134
(Address of principal executive offices, with zip code)

(408) 240-5500
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 





Item 2.02.
Results of Operations and Financial Condition.

On July 31, 2014, the Company issued the press release attached as Exhibit 99.1 hereto announcing its results of operations for the second fiscal quarter ended June 29, 2014.

The information contained in Item 2.02 and Item 9.01 of this report on Form 8-K and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01.
Financial Statements and Exhibits.

(d) Exhibits
 
Exhibit No.
Description
 
 
99.1
Press Release dated July 31, 2014




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
SUNPOWER CORPORATION
 
 
 
July 31, 2014
By:
/S/ CHARLES D. BOYNTON
 
Name:
Charles D. Boynton
 
Title:
Executive Vice President and
Chief Financial Officer





EXHIBIT INDEX
 
Exhibit No.
Description
 
 
99.1
Press Release dated July 31, 2014



ex99_1x07312014


Exhibit 99.1

FOR IMMEDIATE RELEASE

Contacts:

Investors
Bob Okunski
408-240-5447
Bob.Okunski@sunpowercorp.com

Media
Helen Kendrick
408-240-5585
Helen.Kendrick@sunpowercorp.com


SunPower Reports Second-Quarter 2014 Results

•
Q2 2014 GAAP Revenue of $508 Million, Non-GAAP Revenue of $621 Million
•
Q2 2014 GAAP Earnings Per Share of $0.09, Non-GAAP Earnings Per Share of $0.28


SAN JOSE, Calif., July 31, 2014 - SunPower Corp. (NASDAQ: SPWR) today announced financial results for its fiscal 2014 second quarter.

($ Millions, except percentages and per-share data)
2nd Quarter 2014
1st Quarter 2014
2nd Quarter 2013
GAAP revenue
$507.9
$692.4
$576.5
GAAP gross margin
18.5%
23.5%
18.7%
GAAP net income
$14.1
$65.0
$19.6
GAAP net income per diluted share
$0.09
$0.42
$0.15
Non-GAAP revenue1
$621.1
$683.7
$650.0
Non-GAAP gross margin1
19.5%
22.0%
19.5%
Non-GAAP net income1
$43.9
$75.3
$62.8
Non-GAAP net income per diluted share1
$0.28
$0.49
$0.48
1 
Information about SunPower's use of non-GAAP financial information is provided under "Use of Non-GAAP Financial Measures" below.

“SunPower’s second-quarter financial performance reflected solid execution as well as strong demand for our industry leading, high efficiency solar systems across all channels and geographic segments. By leveraging our vertically integrated value chain from upstream to customer, we are competitive with traditional generation in many markets,” said Tom Werner, SunPower president and CEO. “We are continuing to reduce our costs and with the ramp of our next generation technology and processes in Fab 4 starting in early 2015, we will further expand our cell efficiency leadership, lower manufacturing costs and increase capacity to meet the robust demand for our solutions.

“Regionally, our North America business continued to be a key driver of SunPower’s performance. Construction of the 579-megawatt (MW) ac Solar Star Projects for MidAmerican Solar is proceeding with more than one million panels installed to date, and 228 MW are connected to the grid. We also added to our power plant bookings and potential assets for our holdco strategy during the quarter, as we signed an agreement with Xcel Energy for a 60-MW project while expanding our public sector business with a 19-MW project at Nellis Air Force Base, our second project at this location. Demand for our high efficiency solutions in the commercial business remains strong; we added a number of new and repeat customers to our backlog during the quarter. We also saw significant strength in our residential lease and cash business as customers continue to choose SunPower for our high quality, superior performance and flexible financing options. With our recently announced $200 million




solar loan funding agreement with Admirals Bank and available lease capacity through our Google and Bank of America agreements, we have sufficient committed finance capacity to grow our residential business.

“Our EMEA distributed generation business performed well. Pricing is stable and demand for our products, including our next generation SunPower® X-Series Solar Panels with efficiencies of 21.5 percent, remains robust. We also connected 33 MW of power plant projects to the grid in South Africa during the quarter. With a strong backlog and a favorable pricing trend expected for the balance of the year, we are confident in our ability to meet our 2014 goals in EMEA.

“Demand in Asia Pacific remained strong and we recorded our best revenue quarter in this region to date. Japan remains a key market for us and accounted for more than 26 percent of our shipments in the second quarter. In China, we shipped 15 MW of our SunPower® C7 Tracker cell packages in the second quarter against our recent 70-MW cell order announced last quarter. Additionally, we are expanding our joint venture relationship with the TZ Group to other regions in China.

“With our vertically integrated strategy, more than 8-gigawatt pipeline and industry leading technology, we are well-positioned to capitalize on the further development of the global solar market,” concluded Werner.

“We met our revenue and profit goals for the quarter as we saw strong demand in all of our key markets,” said Chuck Boynton, SunPower CFO. “Additionally, we strengthened our balance sheet during the quarter by retiring our 4.75 percent convertible bonds and successfully closing our $400 million, seven- year 0.875 percent convertible offering. The result of these transactions is that we now have $1 billion in cash on the balance sheet, giving us the financial flexibility to support our holdco strategy and build Fab 4. In addition, we continued to monetize our assets to drive cash flow, recently closing our second financing with Hannon Armstrong. This financing gives us additional flexibility through a non-recourse debt structure that minimizes interest rate risk and maximizes the value of our existing lease assets. Finally, we continue to add projects to our backlog and pipeline for inclusion in our holdco strategy with potential assets now totaling more than 600 megawatts.”

Second-quarter fiscal 2014 non-GAAP results include net adjustments that increase net income by $29.8 million, including a $22.6 million gross margin adjustment related to the timing of revenue recognition from utility and power plant projects, $13.3 million in stock-based compensation expense, $5.3 million in non-cash interest expense, ($0.6) million of other adjustments and ($10.8) million in tax effect.

Third Quarter and Fiscal Year 2014 Financial Outlook
The company’s third quarter 2014 consolidated non-GAAP guidance is as follows: revenue of $600 million to $650 million, gross margin of 17 percent to 19 percent, net income per diluted share of $0.15 to $0.35 and megawatts recognized in the range of 325 megawatts to 360 megawatts. On a GAAP basis, the company expects revenue of $575 million to $625 million, gross margin of 18 percent to 20 percent and net income per diluted share of $0.00 to $0.20.

For fiscal year 2014, the company’s expectations are unchanged and are as follows: non-GAAP revenue of $2.50 billion to $2.65 billion, gross margin of 19 percent to 21 percent, net income per diluted share of $1.10 to $1.40, capital expenditures of $150 million to $170 million and gigawatts recognized in the range of 1.225 gigawatts to 1.3 gigawatts. On a GAAP basis, the company expects revenue of $2.55 billion to $2.70 billion, gross margin of 20 percent to 22 percent and net income per diluted share of $0.75 to $1.05.

The company will host a conference call for investors this afternoon to discuss its second-quarter 2014 performance at 1:30 p.m. Pacific Time. The call will be webcast and can be accessed from SunPower’s website at http://investors.sunpower.com/events.cfm.

This press release contains both GAAP and non-GAAP financial information. Non-GAAP historical figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release. Please note that the company has posted supplemental information and slides related to its second-quarter 2014 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm. The capacity of power plants in this release is described in approximate megawatts on a direct current (dc) basis unless otherwise noted.

About SunPower Corp.
SunPower Corp. (NASDAQ: SPWR) designs, manufactures and delivers the highest efficiency, highest reliability solar panels and systems available today. Residential, business, government and utility customers rely on the company’s quarter century of experience and guaranteed performance to provide maximum return on investment throughout the life of the solar system. Headquartered in San Jose, Calif., SunPower has offices in North America, Europe, Australia, Africa and Asia. For more information, visit www.SunPower.com.





Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) expanding our manufacturing capacity; (b) anticipated construction timelines and milestones for our major projects; (c) growing demand in residential leasing and financing arrangements and capacity relating to our residential lease program; (d) financing strategies for our solar power systems, including any Holdco strategies; (e) growing demand in EMEA and Asia; (f) our growing international project pipeline; (g) our joint venture initiatives in China; (h) our efforts to reduce panel manufacturing costs; (i) our positioning for long-term profitability; (j) strategically managing cash; (k) guidance for the third fiscal quarter of 2014, including non-GAAP revenue, gross margin, net income per diluted share and MW recognized and GAAP revenue, gross margin and net income (loss) per diluted share; (l) guidance for fiscal year 2014, including non-GAAP revenue, gross margin, net income per diluted share and GW recognized and GAAP revenue, gross margin and net income per diluted share; (m) reducing operating expenses; (n) generating free cash flow; (o) additional leasing capacity; and (p) optimization of our cost and capital structure. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the industry and downward pressure on average selling prices; (2) our liquidity, substantial indebtedness, and our ability to obtain additional financing for our projects and our customers; (3) risks relating to our residential lease business, including risks of customer default, challenges securing lease financing, and declining conventional electricity prices; (4) our ability to meet our cost reduction targets; (5) regulatory changes and the availability of economic incentives promoting use of solar energy; (6) challenges inherent in constructing and maintaining certain of our large projects, such as the Solar Star projects; (7) the success of our ongoing research and development efforts and commercialization of new products and services; (8) fluctuations in our operating results; (9) manufacturing difficulties that could arise; and (10) challenges managing our joint ventures. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events

SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.




SUNPOWER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
Jun. 29, 2014
 
Dec. 29, 2013
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
980,858

 
$
762,511

Restricted cash and cash equivalents, current portion
17,085

 
13,926

Accounts receivable, net
345,873

 
360,594

Costs and estimated earnings in excess of billings
31,863

 
31,787

Inventories
229,721

 
245,575

Advances to suppliers, current portion
78,767

 
58,619

Project assets - plants and land, current portion
10,622

 
69,196

Prepaid expenses and other current assets
830,611

 
646,270

Total current assets
2,525,400

 
2,188,478

 
 
 
 
Restricted cash and cash equivalents, net of current portion
23,761

 
17,573

Restricted long-term marketable securities
7,566

 
8,892

Property, plant and equipment, net
526,494

 
533,387

Solar power systems leased and to be leased, net
346,774

 
345,504

Project assets - plants and land, net of current portion
51,918

 
6,411

Advances to suppliers, net of current portion
317,028

 
324,695

Long-term financing receivables, net
230,119

 
175,273

Other long-term assets
292,912

 
298,477

Total assets
$
4,321,972

 
$
3,898,690

 
 
 
 
Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
428,874

 
$
443,969

Accrued liabilities
406,348

 
358,157

Billings in excess of costs and estimated earnings
249,070

 
308,650

Short-term debt
17,433

 
56,912

Convertible debt, current portion
235,222

 
455,889

Customer advances, current portion
38,431

 
36,883

Total current liabilities
1,375,378

 
1,660,460

 
 
 
 
Long-term debt
156,975

 
93,095

Convertible debt, net of current portion
700,079

 
300,079

Customer advances, net of current portion
158,089

 
167,282

Other long-term liabilities
529,170

 
523,991

Total liabilities
2,919,691

 
2,744,907

 
 
 
 
Redeemable noncontrolling interests in subsidiaries
27,841

 
—

 
 
 
 
Equity:
 

 
 

Preferred stock
—

 
—

Common stock
131

 
122

Additional paid-in capital
2,186,107

 
1,980,778

Accumulated deficit
(727,346
)
 
(806,492
)
Accumulated other comprehensive loss
(3,698
)
 
(4,318
)
Treasury stock, at cost
(106,741
)
 
(53,937
)
Total stockholders' equity
1,348,453

 
1,116,153

Noncontrolling interests in subsidiaries
25,987

 
37,630

Total equity
1,374,440

 
1,153,783

Total liabilities and equity
$
4,321,972

 
$
3,898,690





SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
$
333,048

 
$
471,023

 
$
367,609

 
$
804,071

 
$
851,731

EMEA
 
64,709

 
126,258

 
107,010

 
190,967

 
175,662

APAC
 
110,114

 
95,141

 
101,897

 
205,255

 
184,556

Total revenue
 
507,871

 
692,422

 
576,516

 
1,200,293

 
1,211,949

Cost of revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
257,781

 
350,313

 
285,939

 
608,094

 
702,020

EMEA
 
54,653

 
99,441

 
97,396

 
154,094

 
188,890

APAC
 
101,292

 
79,679

 
85,320

 
180,971

 
153,865

Total cost of revenue
 
413,726

 
529,433

 
468,655

 
943,159

 
1,044,775

Gross margin
 
94,145

 
162,989

 
107,861

 
257,134

 
167,174

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Research and development
 
16,581

 
16,746

 
13,035

 
33,327

 
26,205

Selling, general and administrative
 
71,499

 
73,928

 
62,035

 
145,427

 
132,127

Restructuring charges
 
(717
)
 
(461
)
 
928

 
(1,178
)
 
591

Total operating expenses
 
87,363

 
90,213

 
75,998

 
177,576

 
158,923

Operating income
 
6,782

 
72,776

 
31,863

 
79,558

 
8,251

  Other expense, net
 
(15,718
)
 
(17,905
)
 
(24,101
)
 
(33,623
)
 
(59,136
)
Income (loss) before income taxes and equity in earnings of unconsolidated investees
 
(8,936
)
 
54,871

 
7,762

 
45,935

 
(50,885
)
Benefit from (provision for) for income taxes
 
8,168

 
(13,620
)
 
(4,506
)
 
(5,452
)
 
(7,495
)
Equity in earnings of unconsolidated investees
 
1,936

 
1,783

 
1,009

 
3,719

 
676

Net income (loss)
 
1,168

 
43,034

 
4,265

 
44,202

 
(57,704
)
  Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
12,934

 
22,010

 
15,300

 
34,944

 
22,573

Net income (loss) attributable to stockholders
 
$
14,102

 
$
65,044

 
$
19,565

 
$
79,146

 
$
(35,131
)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per share attributable to stockholders:
 
 
 
 
 
 
 
 
 
 
- Basic
 
$
0.11

 
$
0.53

 
$
0.16

 
$
0.63

 
$
(0.29
)
- Diluted
 
$
0.09

 
$
0.42

 
$
0.15

 
$
0.52

 
$
(0.29
)
Weighted-average shares:
 
 
 
 
 
 
 
 
 
 
- Basic
 
129,747

 
122,196

 
120,943

 
125,972

 
120,248

- Diluted
 
156,333

 
160,434

 
133,973

 
154,886

 
120,248

 
 
 
 
 
 
 
 
 
 
 




SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
1,168

 
$
43,034

 
$
4,265

 
$
44,202

 
$
(57,704
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense
 
24,026

 
25,371

 
24,593

 
49,397

 
48,360

Stock-based compensation
 
13,348

 
14,867

 
10,505

 
28,215

 
19,021

Non-cash interest expense
 
5,322

 
5,170

 
12,181

 
10,492

 
24,071

Equity in earnings of unconsolidated investees
 
(1,936
)
 
(1,783
)
 
(1,009
)
 
(3,719
)
 
(676
)
Deferred income taxes and other tax liabilities
 
(14,551
)
 
17,985

 
2,423

 
3,434

 
7,147

Other, net
 
39

 
9

 
1,068

 
48

 
2,162

Changes in operating assets and liabilities, net of effect of acquisition:
 
 
 
 
 
 
 
 
 
 
Accounts receivable
 
(83,483
)
 
93,574

 
(167,794
)
 
10,091

 
(107,454
)
Costs and estimated earnings in excess of billings
 
(14,085
)
 
14,009

 
(4,073
)
 
(76
)
 
(4,922
)
Inventories
 
(2,067
)
 
4,043

 
32,316

 
1,976

 
26,710

Project assets
 
(24,159
)
 
22,491

 
3,957

 
(1,668
)
 
(31,293
)
Prepaid expenses and other assets
 
(45,204
)
 
(11,994
)
 
(119,125
)
 
(57,198
)
 
104,162

Long-term financing receivables, net
 
(22,513
)
 
(32,333
)
 
(23,694
)
 
(54,846
)
 
(49,492
)
Advances to suppliers
 
(5,218
)
 
(7,263
)
 
(3,486
)
 
(12,481
)
 
(7,805
)
Accounts payable and other accrued liabilities
 
(15,241
)
 
(16,972
)
 
70,517

 
(32,213
)
 
41,692

Billings in excess of costs and estimated earnings
 
57,429

 
(117,009
)
 
112,076

 
(59,580
)
 
109,379

Customer advances
 
(4,918
)
 
(2,727
)
 
(20,899
)
 
(7,645
)
 
(22,674
)
Net cash provided by (used in) operating activities
 
(132,043
)
 
50,472

 
(66,179
)
 
(81,571
)
 
100,684

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Decrease (increase) in restricted cash and cash equivalents
 
(7,054
)
 
(2,293
)
 
29

 
(9,347
)
 
17,826

Purchases of property, plant and equipment
 
(11,518
)
 
(8,800
)
 
(7,839
)
 
(20,318
)
 
(19,881
)
Cash paid for solar power systems, leased and to be leased
 
(9,948
)
 
(14,989
)
 
(23,387
)
 
(24,937
)
 
(65,075
)
Proceeds from sales or maturities of marketable securities
 
1,380

 
—

 
—

 
1,380

 
—

Proceeds from sale of equipment to third-party
 
—

 
—

 
6

 
—

 
17

Purchases of marketable securities
 
(30
)
 
—

 
(99,928
)
 
(30
)
 
(99,928
)
Cash paid for acquisitions, net of cash acquired
 
(5,894
)
 
—

 
—

 
(5,894
)
 
—

Cash paid for investments in unconsolidated investees
 
—

 
(5,013
)
 
(1,411
)
 
(5,013
)
 
(1,411
)
Net cash used in investing activities
 
(33,064
)
 
(31,095
)
 
(132,530
)
 
(64,159
)
 
(168,452
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of convertible debt, net of issuance costs
 
395,275

 
—

 
296,283

 
395,275

 
296,283

Cash paid for repurchase of convertible debt
 
(42,101
)
 
(1
)
 
—

 
(42,102
)
 
—

Proceeds from settlement of 4.75% Bond Hedge
 
—

 
68,842

 
—

 
68,842

 
—

Payments to settle 4.75% Warrants
 
—

 
(81,077
)
 
—

 
(81,077
)
 
—

Proceeds from settlement of 4.50% Bond Hedge
 
110

 
—

 
—

 
110

 
—

Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
34,306

 
39,108

 
—

 
73,414

 
—

Proceeds from issuance of project loans, net of issuance costs
 
—

 
—

 
32,554

 
—

 
56,615

Assumption of project loan by customer
 
—

 
(40,672
)
 
—

 
(40,672
)
 
—

Proceeds from residential lease financing
 
—

 
—

 
17,458

 
—

 
56,548

Repayment of residential lease financing
 
(8,473
)
 
(7,213
)
 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
—

 
16,685

 
6,907

 
16,685

 
40,757

Repayment of sale-leaseback financing
 
—

 
(779
)
 
(5,124
)
 
(779
)
 
(5,124
)
Contributions from noncontrolling interests and redeemable noncontrolling interests
 
22,226

 
30,552

 
31,551

 
52,778

 
43,866

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(519
)
 
(1,117
)
 
—

 
(1,636
)
 
—

Proceeds from exercise of stock options
 
562

 
68

 
24

 
630

 
49

Purchases of stock for tax withholding obligations on vested restricted stock
 
(9,298
)
 
(43,506
)
 
(5,444
)
 
(52,804
)
 
(16,183
)
Repayment of bank loans, project loans and other debt
 
(718
)
 
(7,850
)
 
(101,211
)
 
(8,568
)
 
(281,712
)
Net cash provided by (used in) financing activities
 
391,370

 
(26,960
)
 
272,998

 
364,410

 
191,099

Effect of exchange rate changes on cash and cash equivalents
 
(146
)
 
(187
)
 
684

 
(333
)
 
(258
)
Net increase (decrease) in cash and cash equivalents
 
226,117

 
(7,770
)
 
74,973

 
218,347

 
123,073

Cash and cash equivalents, beginning of period
 
754,741

 
762,511

 
505,587

 
762,511

 
457,487

Cash and cash equivalents, end of period
 
$
980,858

 
$
754,741

 
$
580,560

 
$
980,858

 
$
580,560

 
 
 
 
 
 
 
 
 
 
 
Non-cash transactions:
 
 
 
 
 
 
 
 
 
 
Assignment of financing receivables to a third party financial institution
 
$
2,760

 
$
1,496

 
$
11,265

 
$
4,256

 
$
45,234

Costs of solar power systems, leased and to be leased, sourced from existing inventory
 
6,783

 
7,120

 
14,178

 
13,903

 
29,714

Costs of solar power systems, leased and to be leased, funded by liabilities
 
1,867

 
1,634

 
1,708

 
1,867

 
1,708

Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets
 
—

 
15,269

 
4,333

 
15,269

 
24,399

Property, plant and equipment acquisitions funded by liabilities
 
9,326

 
5,544

 
6,356

 
9,326

 
6,356

Issuance of common stock upon conversion of convertible debt
 
188,229

 
34

 
—

 
188,263

 
—






SUNPOWER CORPORATION
REVENUE BY SIGNIFICANT CATEGORY
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
Solar power products1
 
$
237,212

 
$
238,578

 
$
238,403

 
$
475,790

 
$
424,283

Solar power systems2
 
224,852

 
403,755

 
299,610

 
628,607

 
704,525

Residential leases3
 
32,679

 
38,732

 
28,673

 
71,411

 
63,923

Other revenue4
 
13,128

 
11,357

 
9,830

 
24,485

 
19,218

 
 
$
507,871

 
$
692,422

 
$
576,516

 
$
1,200,293

 
$
1,211,949


1 
Solar power products represents direct sales of panels, balance of system components, and inverters to dealers, systems integrators, and residential, commercial, and utility customers in all regions.

2 
Solar power systems represents revenue recognized in connection with our construction and development contracts.

3 
Residential leases represents revenue recognized on solar power systems leased to customers under our solar lease program.

4 
Other revenue includes revenue related to our solar power services and solutions, such as post-installation systems monitoring and maintenance and commercial power purchase agreements.








Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures, as described below. Management adjusts for these items because it does not consider such items when evaluating the core operational activities of the company. The specific non-GAAP measures listed below are revenue, gross margin, net income, net income per diluted share, earnings before interest, taxes, depreciation and amortization (EBITDA), and free cash flow. Management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in each of these key elements of the company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, each of these non-GAAP financial measures provides investors with another method to assess the company's operating results in a manner that is focused on its ongoing, core operating performance, absent the effects of these items. Management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Many of the analysts covering the company also use these non-GAAP measures in their analyses. Given management's use of these non-GAAP measures, the company believes these measures are important to investors in understanding the company's operating results as seen through the eyes of management. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; the non-GAAP measures should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

Non-GAAP revenue includes adjustments relating to utility and power plant projects as described below. Non-GAAP gross margin includes adjustments relating to utility and power plant projects, stock-based compensation, non-cash interest expense, and other items as described below. In addition to those same adjustments, non-GAAP net income and non-GAAP net income per diluted share are adjusted for the tax effect of these non-GAAP adjustments as described below. In addition to the same adjustments as non-GAAP gross margin, EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for (benefit from) income taxes, and depreciation. Free cash flow includes adjustments relating to investing cash flows and lease financings as described below.

Non-GAAP Adjustments

•
Utility and power plant projects. The company includes adjustments related to the revenue recognition of utility and power plant projects based on the separately-identifiable components of transactions in order to reflect the substance of the transactions. This treatment is consistent with accounting rules relating to such projects under International Financial Reporting Standards (IFRS). On a GAAP basis, such projects are accounted for under U.S. GAAP real estate accounting guidance. Management calculates separate revenue and cost of revenue amounts each fiscal period in accordance with the two treatments above and the aggregate difference for the company’s affected projects is included in the relevant reconciliation tables below. Over the life of each project, cumulative revenue and gross margin will be equivalent under the two treatments; however, revenue and gross margin will generally be recognized earlier under the company’s non-GAAP treatment than under the company’s GAAP treatment. Among other factors, this is due to the attribution of non-GAAP revenue and margin to the company’s project development efforts at the time of initial project sale as required under IFRS accounting rules, whereas no separate attribution to this element occurs under U.S. GAAP real estate accounting guidance. Within each project, the relationship between the adjustments to revenue and gross margins is generally consistent. However, as the company may have multiple utility and power plant projects in progress at any given time, the relationship in the aggregate will occasionally appear otherwise. Management believes that this adjustment for utility and power plant projects enables investors to evaluate the company's revenue generation performance relative to the direct costs of revenue of its core businesses.

•
Stock-based compensation. Stock-based compensation relates primarily to the company’s equity incentive awards. Stock-based compensation is a non-cash expense that varies from period to period and is dependent on market forces that are difficult to predict. Due to this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.

•
Non-cash interest expense. The company separately accounted for the fair value liabilities of the embedded cash conversion option and the over-allotment option on its 4.5% senior cash convertible debentures issued in 2010 as an original issue discount and a corresponding derivative conversion liability. As a result, the company incurs interest expense that is substantially higher than interest payable on its 4.5% senior cash convertible debentures. The company excludes non-cash interest expense because the expense does not reflect its financial results in the period incurred. In




addition, in connection with the Liquidity Support Agreement with Total executed on February 28, 2012, the company issued warrants to Total to acquire 9,531,677 shares of its common stock. The fair value of the warrants was recorded as debt issuance costs and amortized over the expected life of the agreement. As a result, the Company incurred non-cash interest expense associated with the amortization of the warrants. Management believes that this adjustment for non-cash interest expense provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without non-cash interest expense.

•
Other. Beginning in the first quarter of fiscal 2013, the company combined amounts previously disclosed under separate captions into “Other” when such amounts no longer have a significant impact on the current fiscal period. Management believes that these adjustments provide investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.

The adjustments recorded in “Other” for the second quarter of fiscal 2014 are primarily driven by adjustments which would have previously been disclosed under “Restructuring charges.”

•
Tax effect. This amount is used to present each of the adjustments described above on an after-tax basis in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. The company's non-GAAP tax amount is based on estimated cash tax expense and reserves. The company forecasts its annual cash tax liability and allocates the tax to each quarter in proportion to earnings for that period. This approach is designed to enhance investors’ ability to understand the impact of the company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense.

•
EBITDA adjustments. When calculating EBITDA, in addition to adjustments described above, the company excludes the impact during the period of the following items:

•
Cash interest expense, net of interest income
•
Provision for (benefit from) income taxes
•
Depreciation

Management presents this non-GAAP financial measure to enable investors with a basis to evaluate the company's performance, including compared with the performance of other companies.

•
Free cash flow adjustments. When calculating free cash flow, the company includes the impact during the period of the following items:

•
Net cash used in investing activities
•
Proceeds from issuance of non-recourse debt financing, net of issuance costs
•
Proceeds from residential lease financing
•
Repayment of residential lease financing
•
Proceeds from sale-leaseback financing
•
Repayment of sale-leaseback financing
•
Contributions from noncontrolling interests and redeemable noncontrolling interests
•
Distributions to noncontrolling interests and redeemable noncontrolling interests

Management presents this non-GAAP financial measure to enable investors with a basis to evaluate the company's performance, including compared with the performance of other companies.

For more information about these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP Measures to Non-GAAP Measures" set forth at the end of this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.





SUNPOWER CORPORATION
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except percentages and per share data)
(Unaudited)

Adjustments to Revenue: 
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
GAAP revenue
 
$
507,871

 
$
692,422

 
$
576,516

 
$
1,200,293

 
$
1,211,949

Utility and power plant projects
 
113,195

 
(8,709
)
 
74,200

 
104,486

 
13,399

Other
 
—

 
—

 
(672
)
 
—

 
(672
)
Non-GAAP revenue
 
$
621,066

 
$
683,713

 
$
650,044

 
$
1,304,779

 
$
1,224,676


Adjustments to Gross margin: 
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
GAAP gross margin
 
$
94,145

 
$
162,989

 
$
107,861

 
$
257,134

 
$
167,174

Utility and power plant projects
 
22,614

 
(16,608
)
 
16,142

 
6,006

 
84,280

Stock-based compensation expense
 
3,350

 
3,556

 
2,517

 
6,906

 
4,227

Non-cash interest expense
 
699

 
700

 
593

 
1,399

 
1,121

Other
 
24

 
—

 
(630
)
 
24

 
173

Non-GAAP gross margin
 
$
120,832

 
$
150,637

 
$
126,483

 
$
271,469

 
$
256,975

 
 
 
 
 
 
 
 
 
 
 
GAAP gross margin (%)
 
18.5
%
 
23.5
%
 
18.7
%
 
21.4
%
 
13.8
%
Non-GAAP gross margin (%)
 
19.5
%
 
22.0
%
 
19.5
%
 
20.8
%
 
21.0
%

Adjustments to Net income (loss): 
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
GAAP net income (loss) attributable to stockholders
 
$
14,102

 
$
65,044

 
$
19,565

 
$
79,146

 
$
(35,131
)
Utility and power plant projects
 
22,614

 
(16,608
)
 
16,142

 
6,006

 
84,280

Stock-based compensation expense
 
13,348

 
14,867

 
10,505

 
28,215

 
19,021

Non-cash interest expense
 
5,323

 
5,170

 
12,181

 
10,493

 
24,071

Other
 
(654
)
 
(445
)
 
825

 
(1,099
)
 
2,645

Tax effect
 
(10,824
)
 
7,317

 
3,594

 
(3,507
)
 
(4,854
)
Non-GAAP net income attributable to stockholders
 
$
43,909

 
$
75,345

 
$
62,812

 
$
119,254

 
$
90,032


Adjustments to Net income (loss) per diluted share:
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
Net income (loss) per diluted share
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
GAAP net income (loss) available to common stockholders1
 
$
14,653

 
$
67,679

 
$
19,758

 
$
80,328

 
$
(35,131
)
Non-GAAP net income available to common stockholders1
 
$
44,460

 
$
77,980

 
$
62,812

 
$
122,885

 
$
90,032

 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
GAAP weighted-average shares
 
156,333

 
160,434

 
133,973

 
154,886

 
120,248

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
Stock options
 
—

 
—

 
—

 
—

 
100

Restricted stock units
 
—

 
—

 
—

 
—

 
3,789

Upfront Warrants (held by Total)
 
—

 
—

 
—

 
—

 
3,455

0.75% debentures due 2018
 
—

 
—

 
(4,276
)
 
—

 
—

0.875% debentures due 2018
 
—

 
—

 
—

 
(857
)
 
—

4.75% debentures due 2014
 
—

 
—

 
—

 
5,021

 
—

Non-GAAP weighted-average shares1
 
156,333

 
160,434

 
129,697

 
159,050

 
127,592

 
 
 
 
 
 
 
 
 
 
 
GAAP net income (loss) per diluted share
 
$
0.09

 
$
0.42

 
$
0.15

 
$
0.52

 
$
(0.29
)
Non-GAAP net income per diluted share
 
$
0.28

 
$
0.49

 
$
0.48

 
$
0.77

 
$
0.71

1 
In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.75% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share. If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-GAAP net income (loss) per diluted share.

Revenue by Significant Category:
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
GAAP Solar power products
 
$
237,212

 
$
238,578

 
$
238,403

 
$
475,790

 
$
424,283

Other
 
—

 
—

 
(672
)
 
—

 
(672
)
Non-GAAP Solar power products
 
$
237,212

 
$
238,578

 
$
237,731

 
$
475,790

 
$
423,611

GAAP Solar power systems
 
$
224,852

 
$
403,755

 
$
299,610

 
$
628,607

 
$
704,525

Utility and power plant projects
 
113,195

 
(8,709
)
 
74,200

 
104,486

 
13,399

Non-GAAP Solar power systems
 
$
338,047

 
$
395,046

 
$
373,810

 
$
733,093

 
$
717,924


EBITDA:
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
GAAP net income (loss) attributable to stockholders
 
$
14,102

 
$
65,044

 
$
19,565

 
$
79,146

 
$
(35,131
)
Utility and power plant projects
 
22,614

 
(16,608
)
 
16,142

 
6,006

 
84,280

Stock-based compensation expense
 
13,348

 
14,867

 
10,505

 
28,215

 
19,021

Non-cash interest expense
 
5,323

 
5,170

 
12,181

 
10,493

 
24,071

Other
 
(654
)
 
(445
)
 
825

 
(1,099
)
 
2,645

Cash interest expense, net of interest income
 
11,048

 
14,834

 
12,998

 
25,882

 
28,455

Provision for (benefit from) income taxes
 
(8,168
)
 
13,620

 
4,506

 
5,452

 
7,495

Depreciation
 
24,026

 
25,371

 
24,551

 
49,397

 
48,171

EBITDA
 
$
81,639

 
$
121,853

 
$
101,273

 
$
203,492

 
$
179,007


Free Cash Flow:
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
Jun. 29, 2014
 
Mar. 30, 2014
 
Jun. 30, 2013
 
Jun. 29, 2014
 
Jun. 30, 2013
Net cash provided by (used in) operating activities
 
$
(132,043
)
 
$
50,472

 
$
(66,179
)
 
$
(81,571
)
 
$
100,684

Net cash used in investing activities
 
(33,064
)
 
(31,095
)
 
(132,530
)
 
(64,159
)
 
(168,452
)
Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
34,306

 
39,108

 
—

 
73,414

 
—

Proceeds from residential lease financing
 
—

 
—

 
17,458

 
—

 
56,548

Repayment of residential lease financing
 
(8,473
)
 
(7,213
)
 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
—

 
16,685

 
6,907

 
16,685

 
40,757

Repayment of sale-leaseback financing
 
—

 
(779
)
 
(5,124
)
 
(779
)
 
(5,124
)
Contributions from noncontrolling interests and redeemable noncontrolling interests
 
22,226

 
30,552

 
31,551

 
52,778

 
43,866

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(519
)
 
(1,117
)
 
—

 
(1,636
)
 
—

Free cash flow
 
$
(117,567
)
 
$
96,613

 
$
(147,917
)
 
$
(20,954
)
 
$
68,279







Q3 2014 GUIDANCE
(in thousands except percentages and per share data)
Q3 2014
FY 2014
Revenue (GAAP)
$575,000-$625,000
$2,550,000-$2,700,000
Revenue (non-GAAP)1
$600,000-$650,000
$2,500,000-$2,650,000
Gross margin (GAAP)
18%-20%
20%-22%
Gross margin (non-GAAP)2
17%-19%
19%-21%
Net income per diluted share (GAAP)
$0.00-$0.20
$0.75-$1.05
Net income per diluted share (non-GAAP)3
$0.15-$0.35
$1.10-$1.40

1.
Estimated non-GAAP amounts above include a net increase (decrease) of $25 million for Q3 2014 and $(50) million for fiscal 2014 of revenue primarily related to utility and power plant projects.

2.
Estimated non-GAAP amounts above for Q3 2014 include net adjustments that increase gross margin by approximately $3 million related to stock-based compensation expense, and $1 million related to non-cash interest expense. Estimated non-GAAP amounts above for fiscal 2014 include net adjustments that increase (decrease) gross margin by approximately $(40) million related to the non-GAAP revenue adjustments that are discussed above, $12 million related to stock-based compensation expense, and $5 million related to non-cash interest expense.

3.
Estimated non-GAAP amounts above for Q3 2014 include net adjustments that increase (decrease) net income by approximately $15 million related to stock-based compensation expense, $6 million related to non-cash interest expense, $3 million related to other items, and $(1) million in tax effect. Estimated non-GAAP amounts above for fiscal 2014 include net adjustments that increase (decrease) net income by approximately $(40) million related to the non-GAAP revenue adjustments that are discussed above, $60 million related to stock-based compensation expense, $25 million related to non-cash interest expense, $8 million related to other items, and $2 million in tax effect.







SUPPLEMENTAL DATA
(In thousands, except percentages)

The following supplemental data represent the adjustments, individual charges and credits that are included or excluded from SunPower's non-GAAP revenue, gross margin, net income (loss) and net income (loss) per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.


THREE MONTHS ENDED

 
 
June 29, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income (loss) attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
333,048

 
$
64,709

 
$
110,114

 
$
75,267

 
22.6
%
 
$
10,056

 
15.5
%
 
$
8,822

 
8.0
%
 
 
 
 
 
 
 
 
 
 
 
$
14,102

Utility and power plant projects
 
113,195

 
—

 
—

 
22,614

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
22,614

Stock-based compensation expense
 
—

 
—

 
—

 
1,837

 
 
 
511

 
 
 
1,002

 
 
 
1,912

 
8,086

 
—

 
—

 
—

 
13,348

Non-cash interest expense
 
—

 
—

 
—

 
371

 
 
 
97

 
 
 
231

 
 
 
6

 
23

 
—

 
4,595

 
—

 
5,323

Other
 
—

 
—

 
—

 
24

 
 
 
—

 
 
 
—

 
 
 
—

 
1

 
(717
)
 
38

 
—

 
(654
)
Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(10,824
)
 
(10,824
)
Non-GAAP
 
$
446,243

 
$
64,709

 
$
110,114

 
$
100,113

 
22.4
%
 
$
10,664

 
16.5
%
 
$
10,055

 
9.1
%
 
 
 
 
 
 
 
 
 
 
 
$
43,909



 
 
March 30, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income (loss) attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
471,023

 
$
126,258

 
$
95,141

 
$
120,710

 
25.6
%
 
$
26,817

 
21.2
%
 
$
15,462

 
16.3
%
 
 
 
 
 
 
 
 
 
 
 
$
65,044

Utility and power plant projects
 
(8,709
)
 
—

 
—

 
(16,608
)
 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
(16,608
)
Stock-based compensation expense
 
—

 
—

 
—

 
2,071

 
 
 
655

 
 
 
830

 
 
 
1,797

 
9,514

 
—

 
—

 
—

 
14,867

Non-cash interest expense
 
—

 
—

 
—

 
421

 
 
 
124

 
 
 
155

 
 
 
7

 
23

 
—

 
4,440

 
—

 
5,170

Other
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
7

 
(461
)
 
9

 
—

 
(445
)
Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
7,317

 
7,317

Non-GAAP
 
$
462,314

 
$
126,258

 
$
95,141

 
$
106,594

 
23.1
%
 
$
27,596

 
21.9
%
 
$
16,447

 
17.3
%
 
 
 
 
 
 
 
 
 
 
 
$
75,345




 
 
June 30, 2013
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income (loss) attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
367,609

 
$
107,010

 
$
101,897

 
$
81,670

 
22.2
%
 
$
9,614

 
9.0
%
 
$
16,577

 
16.3
%
 
 
 
 
 
 
 
 
 
 
 
$
19,565

Utility and power plant projects
 
74,200

 
—

 
—

 
16,142

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
16,142

Stock-based compensation expense
 
—

 
—

 
—

 
1,136

 
 
 
618

 
 
 
763

 
 
 
1,225

 
6,763

 
—

 
—

 
—

 
10,505

Non-cash interest expense
 
—

 
—

 
—

 
291

 
 
 
132

 
 
 
170

 
 
 
19

 
23

 
—

 
11,546

 
—

 
12,181

Other
 
—

 
—

 
(672
)
 
42

 
 
 
—

 
 
 
(672
)
 
 
 
—

 
500

 
928

 
27

 
—

 
825

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
3,594

 
3,594

Non-GAAP
 
$
441,809

 
$
107,010

 
$
101,225

 
$
99,281

 
22.5
%
 
$
10,364

 
9.7
%
 
$
16,838

 
16.6
%
 
 
 
 
 
 
 
 
 
 
 
$
62,812



SIX MONTHS ENDED

 
 
June 29, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income (loss) attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
804,071

 
$
190,967

 
$
205,255

 
$
195,977

 
24.4
%
 
$
36,873

 
19.3
%
 
$
24,284

 
11.8
%
 
 
 
 
 
 
 
 
 
 
 
$
79,146

Utility and power plant projects
 
104,486

 
—

 
—

 
6,006

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
6,006

Stock-based compensation expense
 
—

 
—

 
—

 
3,908

 
 
 
1,166

 
 
 
1,832

 
 
 
3,709

 
17,600

 
—

 
—

 
—

 
28,215

Non-cash interest expense
 
—

 
—

 
—

 
792

 
 
 
221

 
 
 
386

 
 
 
13

 
46

 
—

 
9,035

 
—

 
10,493

Other
 
—

 
—

 
—

 
24

 
 
 
—

 
 
 
—

 
 
 
—

 
8

 
(1,178
)
 
47

 
—

 
(1,099
)
Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(3,507
)
 
(3,507
)
Non-GAAP
 
$
908,557

 
$
190,967

 
$
205,255

 
$
206,707

 
22.8
%
 
$
38,260

 
20.0
%
 
$
26,502

 
12.9
%
 
 
 
 
 
 
 
 
 
 
 
$
119,254



 
 
June 30, 2013
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income (loss) attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
851,731

 
$
175,662

 
$
184,556

 
$
149,711

 
17.6
%
 
$
(13,228
)
 
(7.5
)%
 
$
30,691

 
16.6
%
 
 
 
 
 
 
 
 
 
 
 
$
(35,131
)
Utility and power plant projects
 
13,399

 
—

 
—

 
84,280

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
84,280

Stock-based compensation expense
 
—

 
—

 
—

 
1,914

 
 
 
1,059

 
 
 
1,254

 
 
 
2,347

 
12,447

 
—

 
—

 
—

 
19,021

Non-cash interest expense
 
—

 
—

 
—

 
511

 
 
 
261

 
 
 
349

 
 
 
36

 
46

 
—

 
22,868

 
—

 
24,071

Other
 
—

 
—

 
(672
)
 
401

 
 
 
186

 
 
 
(414
)
 
 
 
—

 
1,854

 
591

 
27

 
—

 
2,645

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(4,854
)
 
(4,854
)
Non-GAAP
 
$
865,130

 
$
175,662

 
$
183,884

 
$
236,817

 
27.4
%
 
$
(11,722
)
 
(6.7
)%
 
$
31,880

 
17.3
%
 
 
 
 
 
 
 
 
 
 
 
$
90,032