View:
Download DOC
Download PDF
Download XLS
SPWR 10292014 8-K


 

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): October 29, 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 October 29, 2014, the Company issued the press release attached as Exhibit 99.1 hereto announcing its results of operations for the third fiscal quarter ended September 28, 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 October 29, 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
 
 
 
October 29, 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 October 29, 2014



ex99_1x10292014


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 Third Quarter 2014 Results

•
Q3 2014 GAAP Revenue of $663 Million, Non-GAAP Revenue of $704 Million
•
Q3 2014 GAAP Earnings Per Share of $0.20, Non-GAAP Earnings Per Share of $0.30


SAN JOSE, Calif., October 29, 2014 - SunPower Corp. (NASDAQ: SPWR) today announced financial results for its fiscal 2014 third quarter.

($ Millions, except percentages and per-share data)
3rd Quarter 2014
2nd Quarter 2014
3rd Quarter 2013
GAAP revenue
$662.7
$507.9
$657.1
GAAP gross margin
16.4%
18.5%
29.4%
GAAP net income
$32.0
$14.1
$108.4
GAAP net income per diluted share
$0.20
$0.09
$0.73
Non-GAAP revenue1
$704.2
$621.1
$619.5
Non-GAAP gross margin1
16.7%
19.5%
19.1%
Non-GAAP net income1
$46.4
$43.9
$58.8
Non-GAAP net income per diluted share1
$0.30
$0.28
$0.44
1 
Information about SunPower's use of non-GAAP financial information is provided under "Use of Non-GAAP Financial Measures" below.

“Our third-quarter results reflect another strong quarter of execution, driven by significant demand for both distributed generation and power plant systems,” said Tom Werner, SunPower president and CEO. “Solar power is increasingly competitive with traditional energy sources in a number of markets, and we are well positioned to capitalize on this large opportunity by virtue of our industry-leading technology, competitive cost structure, substantial project pipeline, and ongoing manufacturing capacity expansion.

“Regionally, North America was once again the biggest contributor. Construction of the 579-megawatt (MW) ac Solar Star Projects for MidAmerican Solar is on plan with 309-MW now connected to the grid. Construction of our 135-MW Quinto project is proceeding and we recently closed financing for the project, consistent with our holdco strategy. We also continue to see strong demand in the commercial sector as we booked more than 20-MW of power purchase agreements (PPA); including a 16-MW ground mounted solar project for the University of California at Davis. When complete, our UC Davis system will be the largest solar power plant on any U.S. university or college campus. These commercial system PPAs are also structured in a way that is consistent with our holdco strategy. We also added both new and repeat cash customers to our commercial backlog including a 10-MW expansion agreement with Verizon. In the residential channel, third quarter bookings were up more than 50 percent sequentially as customers continued to choose SunPower for their solutions to take advantage of our quality, performance and flexible financing options.





“In EMEA, we saw stable pricing against the backdrop of an evolving distributed generation market environment and continue to adapt our go-to-market plans accordingly. In the power plant channel, we were awarded a four project, 41-MW supply agreement for Compagnie du Vent, a subsidiary of French utility GDF SUEZ in connection with the recent French national tender program. With this supply agreement and our booked power plant projects, including the construction start of our 85-MW project in South Africa this quarter, we are confident in achieving our goals for this region,” continued Werner.

“Japan remained the key driver of our Asia Pacific business, accounting for 28 percent of total shipments in the third quarter. The very strong demand we see from Japan is a testament to the competitive advantage of our high efficiency technology in area-constrained sites and rooftops. In China, we continued to expand our activities through our SunPower® C7 Tracker (C7) joint venture and expect to install more than 30-MW of C7 power plant systems by the end of the year. With strong positions in both Japan and China, we expect Asia Pacific to continue to be a major market for SunPower going forward.

“Finally, on the operations side, we achieved a major milestone during the quarter as we produced our one billionth solar cell, representing a cumulative output of more than three gigawatts. We also continued to improve and scale our industry-leading solar panel technology. With the ramp of our next generation solar cell technology in Fab 4 starting next year, we expect to further reduce our competitive cost structure while adding capacity to meet the increasing demand for our high efficiency solar systems,” Werner concluded.

“Strong execution enabled us to meet or exceed our financial targets for the quarter as we continued to see increased demand for our technology across all markets,” said Chuck Boynton, SunPower CFO. “We exited the third quarter with total liquidity of $1.2 billion while successfully managing our working capital as inventory declined 15 percent sequentially. With our strong balance sheet, we have the resources needed to continue to strategically develop our holdco project portfolio while funding the ramp of Fab 4. We remain committed to optimizing our cash flow and further investing in our next generation research and development.”

Third-quarter fiscal 2014 non-GAAP results include net adjustments that, in the aggregate, increase net income by $14.4 million, including a ($0.7) million gross margin adjustment related to the timing of revenue recognition from utility and power plant projects, $13.7 million in stock-based compensation expense, $5.5 million in non-cash interest expense, $6.1 million of other adjustments and ($10.2) million in tax effect.

Fourth Quarter 2014 Financial Outlook
The company’s fourth quarter 2014 consolidated non-GAAP guidance is as follows: revenue of $575 million to $625 million, gross margin of 19 percent to 21 percent, net income per diluted share of $0.15 to $0.30 and megawatts recognized in the range of 300 megawatts to 340 megawatts. On a GAAP basis, the company expects revenue of $675 million to $725 million, gross margin of 22 percent to 24 percent and net income per diluted share of $0.20 to $0.35.

For fiscal year 2014, the company’s expectations are as follows: non-GAAP revenue of $2.58 billion to $2.63 billion, gross margin of 19 percent to 20 percent, net income per diluted share of $1.25 to $1.40, capital expenditures of $150 million to $170 million and gigawatts recognized in the range of 1.26 gigawatts to 1.3 gigawatts. On a GAAP basis, the company expects revenue of $2.535 billion to $2.585 billion, gross margin of 20 percent to 21 percent and net income per diluted share of $0.95 to $1.10.

Fourth quarter and fiscal year 2014 GAAP guidance excludes a potential timing benefit of approximately $450 million in revenue and $0.90 in earnings per share related to the real estate accounting treatment of our 579-MW Solar Star projects. This benefit may occur in the fourth quarter but was not included in the company’s current fourth quarter GAAP guidance due to the timing uncertainty of this benefit.

SunPower will provide the company’s fiscal year 2015 outlook at its Analyst Day to be held on November 13, 2014 in New York City starting at 10:00 a.m. Eastern Time. Please note that the entire event will be webcast and relevant materials will be posted to the company’s website prior to the commencement of the event. To listen to the webcast, investors are encouraged to visit the company’s Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm to register.

The company will host a conference call for investors this morning to discuss its third-quarter 2014 performance at 5:30 a.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 third-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, including our Fab 4 ramp up; (b) anticipated construction timelines and milestones for our major projects; (c) growing demand in our North America commercial business as well as 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 Asia, particularly in Japan; (f) our growing international project pipeline; (g) expansion of our joint venture initiatives in China; (h) our efforts to reduce panel manufacturing costs and improve our competitive cos structure; (i) our positioning for long-term profitability; (j) strategically managing cash; (k) guidance for the fourth 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 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) maintaining or increasing our manufacturing capacity, containing manufacturing costs, and other 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)
 
Sept. 28, 2014
 
Dec. 29, 2013
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
922,729

 
$
762,511

Restricted cash and cash equivalents, current portion
17,156

 
13,926

Accounts receivable, net
520,166

 
360,594

Costs and estimated earnings in excess of billings
46,256

 
31,787

Inventories
195,342

 
245,575

Advances to suppliers, current portion
87,837

 
58,619

Project assets - plants and land, current portion
25,244

 
69,196

Prepaid expenses and other current assets
795,119

 
646,270

Total current assets
2,609,849

 
2,188,478

 
 
 
 
Restricted cash and cash equivalents, net of current portion
23,894

 
17,573

Restricted long-term marketable securities
7,182

 
8,892

Property, plant and equipment, net
538,321

 
533,387

Solar power systems leased and to be leased, net
361,727

 
345,504

Project assets - plants and land, net of current portion
67,152

 
6,411

Advances to suppliers, net of current portion
314,054

 
324,695

Long-term financing receivables, net
252,382

 
175,273

Other long-term assets
233,977

 
298,477

Total assets
$
4,408,538

 
$
3,898,690

 
 
 
 
Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
440,613

 
$
443,969

Accrued liabilities
352,724

 
358,157

Billings in excess of costs and estimated earnings
349,090

 
308,650

Short-term debt
17,728

 
56,912

Convertible debt, current portion
240,213

 
455,889

Customer advances, current portion
37,274

 
36,883

Total current liabilities
1,437,642

 
1,660,460

 
 
 
 
Long-term debt
149,848

 
93,095

Convertible debt, net of current portion
700,079

 
300,079

Customer advances, net of current portion
153,493

 
167,282

Other long-term liabilities
520,116

 
523,991

Total liabilities
2,961,178

 
2,744,907

 
 
 
 
Redeemable noncontrolling interests in subsidiaries
28,588

 
—

 
 
 
 
Equity:
 

 
 

Preferred stock
—

 
—

Common stock
131

 
122

Additional paid-in capital
2,197,790

 
1,980,778

Accumulated deficit
(695,313
)
 
(806,492
)
Accumulated other comprehensive loss
(5,752
)
 
(4,318
)
Treasury stock, at cost
(109,937
)
 
(53,937
)
Total stockholders' equity
1,386,919

 
1,116,153

Noncontrolling interests in subsidiaries
31,853

 
37,630

Total equity
1,418,772

 
1,153,783

Total liabilities and equity
$
4,408,538

 
$
3,898,690





SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
$
517,799

 
$
333,048

 
$
442,091

 
$
1,321,870

 
$
1,293,822

EMEA
 
44,633

 
64,709

 
120,712

 
235,600

 
296,374

APAC
 
100,302

 
110,114

 
94,317

 
305,557

 
278,873

Total revenue
 
662,734

 
507,871

 
657,120

 
1,863,027

 
1,869,069

Cost of revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
414,615

 
257,781

 
306,024

 
1,022,709

 
1,008,044

EMEA
 
46,029

 
54,653

 
100,605

 
200,123

 
289,495

APAC
 
93,576

 
101,292

 
57,261

 
274,547

 
211,126

Total cost of revenue
 
554,220

 
413,726

 
463,890

 
1,497,379

 
1,508,665

Gross margin
 
108,514

 
94,145

 
193,230

 
365,648

 
360,404

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Research and development
 
17,291

 
16,581

 
14,903

 
50,618

 
41,108

Selling, general and administrative
 
68,394

 
71,499

 
63,229

 
213,821

 
195,356

Restructuring charges
 
188

 
(717
)
 
1,114

 
(990
)
 
1,705

Total operating expenses
 
85,873

 
87,363

 
79,246

 
263,449

 
238,169

Operating income
 
22,641

 
6,782

 
113,984

 
102,199

 
122,235

  Other expense, net
 
(15,366
)
 
(15,718
)
 
(32,762
)
 
(48,989
)
 
(91,898
)
Income (loss) before income taxes and equity in earnings of unconsolidated investees
 
7,275

 
(8,936
)
 
81,222

 
53,210

 
30,337

Benefit from (provision for) income taxes
 
8,320

 
8,168

 
4,575

 
2,868

 
(2,920
)
Equity in earnings of unconsolidated investees
 
1,689

 
1,936

 
1,585

 
5,408

 
2,261

Net income
 
17,284

 
1,168

 
87,382

 
61,486

 
29,678

  Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
14,749

 
12,934

 
21,004

 
49,693

 
43,577

Net income attributable to stockholders
 
$
32,033

 
$
14,102

 
$
108,386

 
$
111,179

 
$
73,255

 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to stockholders:
 
 
 
 
 
 
 
 
 
 
- Basic
 
$
0.24

 
$
0.11

 
$
0.89

 
$
0.87

 
$
0.61

- Diluted
 
$
0.20

 
$
0.09

 
$
0.73

 
$
0.72

 
$
0.55

Weighted-average shares:
 
 
 
 
 
 
 
 
 
 
- Basic
 
131,204

 
129,747

 
121,314

 
127,716

 
120,604

- Diluted
 
167,117

 
156,333

 
153,876

 
158,962

 
134,859

 
 
 
 
 
 
 
 
 
 
 




SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
17,284

 
$
1,168

 
$
87,382

 
$
61,486

 
$
29,678

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense
 
25,727

 
24,026

 
24,764

 
75,124

 
73,124

Stock-based compensation
 
13,725

 
13,348

 
12,082

 
41,940

 
31,103

Non-cash interest expense
 
5,499

 
5,322

 
12,311

 
15,991

 
36,382

Equity in earnings of unconsolidated investees
 
(1,689
)
 
(1,936
)
 
(1,585
)
 
(5,408
)
 
(2,261
)
Deferred income taxes and other tax liabilities
 
(5,327
)
 
(14,551
)
 
(4,830
)
 
(1,893
)
 
2,317

Gain on contract termination
 
—

 
—

 
(51,988
)
 
—

 
(51,988
)
Other, net
 
(23
)
 
39

 
1,050

 
25

 
3,212

Changes in operating assets and liabilities, net of effect of acquisition:
 
 
 
 
 
 
 
 
 
 
Accounts receivable
 
(56,025
)
 
(83,483
)
 
61,063

 
(45,934
)
 
(46,391
)
Costs and estimated earnings in excess of billings
 
(14,393
)
 
(14,085
)
 
(1,246
)
 
(14,469
)
 
(6,168
)
Inventories
 
21,884

 
(2,067
)
 
(65,253
)
 
23,860

 
(38,543
)
Project assets
 
(31,670
)
 
(24,159
)
 
(10,820
)
 
(33,338
)
 
(42,113
)
Prepaid expenses and other assets
 
(90,153
)
 
(45,204
)
 
15,628

 
(147,351
)
 
119,790

Long-term financing receivables, net
 
(22,263
)
 
(22,513
)
 
(21,943
)
 
(77,109
)
 
(71,435
)
Advances to suppliers
 
(6,097
)
 
(5,218
)
 
(5,930
)
 
(18,578
)
 
(13,735
)
Accounts payable and other accrued liabilities
 
16,837

 
(15,241
)
 
65,077

 
(15,376
)
 
106,769

Billings in excess of costs and estimated earnings
 
100,020

 
57,429

 
(81,600
)
 
40,440

 
27,779

Customer advances
 
(5,754
)
 
(4,918
)
 
(5,293
)
 
(13,399
)
 
(27,967
)
Net cash provided by (used in) operating activities
 
(32,418
)
 
(132,043
)
 
28,869

 
(113,989
)
 
129,553

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Decrease (increase) in restricted cash and cash equivalents
 
(203
)
 
(7,054
)
 
(2,882
)
 
(9,550
)
 
14,944

Purchases of property, plant and equipment
 
(25,190
)
 
(11,518
)
 
(5,579
)
 
(45,508
)
 
(25,460
)
Cash paid for solar power systems, leased and to be leased
 
(10,622
)
 
(9,948
)
 
(18,544
)
 
(35,559
)
 
(83,619
)
Cash paid for solar systems
 
(4,917
)
 
—

 
—

 
(4,917
)
 
—

Proceeds from sales or maturities of marketable securities
 
—

 
1,380

 
100,947

 
1,380

 
100,947

Proceeds from sale of equipment to third-party
 
—

 
—

 
628

 
—

 
645

Purchases of marketable securities
 
—

 
(30
)
 
—

 
(30
)
 
(99,928
)
Cash paid for acquisitions, net of cash acquired
 
(1,000
)
 
(5,894
)
 
—

 
(6,894
)
 
—

Cash paid for investments in unconsolidated investees
 
—

 
—

 
—

 
(5,013
)
 
(1,411
)
Net cash provided by (used in) investing activities
 
(41,932
)
 
(33,064
)
 
74,570

 
(106,091
)
 
(93,882
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of convertible debt, net of issuance costs
 
—

 
395,275

 
—

 
395,275

 
296,283

Cash paid for repurchase of convertible debt
 
(51
)
 
(42,101
)
 
—

 
(42,153
)
 
—

Proceeds from settlement of 4.75% Bond Hedge
 
—

 
—

 
—

 
68,842

 
—

Payments to settle 4.75% Warrants
 
—

 
—

 
—

 
(81,077
)
 
—

Proceeds from settlement of 4.50% Bond Hedge
 
4

 
110

 
—

 
114

 
—

Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
1,426

 
34,306

 
—

 
74,840

 
—

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

 
—

 
11,610

 
—

 
68,225

Assumption of project loan by customer
 
—

 
—

 
—

 
(40,672
)
 
—

Proceeds from residential lease financing
 
—

 
—

 
26,817

 
—

 
83,365

Repayment of residential lease financing
 
—

 
(8,473
)
 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
6,893

 
—

 
—

 
23,578

 
40,757

Repayment of sale-leaseback financing
 
(581
)
 
—

 
—

 
(1,360
)
 
(5,124
)
Contributions from noncontrolling interests and redeemable noncontrolling interests
 
22,534

 
22,226

 
29,535

 
75,312

 
73,401

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(1,172
)
 
(519
)
 
—

 
(2,808
)
 
—

Proceeds from exercise of stock options
 
309

 
562

 
49

 
939

 
98

Purchases of stock for tax withholding obligations on vested restricted stock
 
(3,196
)
 
(9,298
)
 
(1,401
)
 
(56,000
)
 
(17,584
)
Repayment of bank loans, project loans and other debt
 
(7,972
)
 
(718
)
 
(8,386
)
 
(16,540
)
 
(290,098
)
Net cash provided by financing activities
 
18,194

 
391,370

 
58,224

 
382,604

 
249,323

Effect of exchange rate changes on cash and cash equivalents
 
(1,973
)
 
(146
)
 
1,352

 
(2,306
)
 
1,094

Net increase (decrease) in cash and cash equivalents
 
(58,129
)
 
226,117

 
163,015

 
160,218

 
286,088

Cash and cash equivalents, beginning of period
 
980,858

 
754,741

 
580,560

 
762,511

 
457,487

Cash and cash equivalents, end of period
 
$
922,729

 
$
980,858

 
$
743,575

 
$
922,729

 
$
743,575

 
 
 
 
 
 
 
 
 
 
 
Non-cash transactions:
 
 
 
 
 
 
 
 
 
 
Assignment of financing receivables to a third party financial institution
 
$
2,163

 
$
2,760

 
$
22,166

 
$
6,419

 
$
67,400

Costs of solar power systems, leased and to be leased, sourced from existing inventory
 
11,905

 
6,783

 
13,627

 
25,808

 
43,341

Costs of solar power systems, leased and to be leased, funded by liabilities
 
2,389

 
1,867

 
2,315

 
2,389

 
2,315

Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets
 
2,064

 
—

 
—

 
17,333

 
24,399

Property, plant and equipment acquisitions funded by liabilities
 
12,146

 
9,326

 
5,628

 
12,146

 
5,628

Issuance of common stock upon conversion of convertible debt
 
—

 
188,229

 
—

 
188,263

 
—






SUNPOWER CORPORATION
REVENUE BY SIGNIFICANT CATEGORY
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
Solar power products1
 
$
209,864

 
$
237,212

 
$
223,952

 
$
685,654

 
$
648,235

Solar power systems2
 
402,244

 
224,852

 
378,477

 
1,030,851

 
1,083,002

Residential leases3
 
30,941

 
32,679

 
31,575

 
102,352

 
95,498

Other revenue4
 
19,685

 
13,128

 
23,116

 
44,170

 
42,334

 
 
$
662,734

 
$
507,871

 
$
657,120

 
$
1,863,027

 
$
1,869,069


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, gain on contract termination, 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.

•
Gain on contract termination. During the third quarter of fiscal 2013, the company agreed to terminate a contract with one of its suppliers. As a result, the company recorded a gain associated with the non-cash forfeiture of a previously recorded advance from the supplier. As this gain is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.

•
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 third quarter of fiscal 2014 are primarily driven by adjustments which would have previously been disclosed under “Restructuring charges” and “Change in European government incentives.”

•
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 provided by (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
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
GAAP revenue
 
$
662,734

 
$
507,871

 
$
657,120

 
$
1,863,027

 
$
1,869,069

Utility and power plant projects
 
41,475

 
113,195

 
(37,669
)
 
145,961

 
(24,270
)
Other
 
—

 
—

 
—

 
—

 
(672
)
Non-GAAP revenue
 
$
704,209

 
$
621,066

 
$
619,451

 
$
2,008,988

 
$
1,844,127


Adjustments to Gross margin: 
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
GAAP gross margin
 
$
108,514

 
$
94,145

 
$
193,230

 
$
365,648

 
$
360,404

Utility and power plant projects
 
(721
)
 
22,614

 
(26,323
)
 
5,285

 
57,957

Gain on contract termination
 
—

 
—

 
(51,987
)
 
—

 
(51,987
)
Stock-based compensation expense
 
3,972

 
3,350

 
2,925

 
10,878

 
7,152

Non-cash interest expense
 
699

 
699

 
591

 
2,098

 
1,712

Other
 
5,220

 
24

 
42

 
5,244

 
215

Non-GAAP gross margin
 
$
117,684

 
$
120,832

 
$
118,478

 
$
389,153

 
$
375,453

 
 
 
 
 
 
 
 
 
 
 
GAAP gross margin (%)
 
16.4
%
 
18.5
%
 
29.4
%
 
19.6
%
 
19.3
%
Non-GAAP gross margin (%)
 
16.7
%
 
19.5
%
 
19.1
%
 
19.4
%
 
20.4
%

Adjustments to Net income: 
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
GAAP net income attributable to stockholders
 
$
32,033

 
$
14,102

 
$
108,386

 
$
111,179

 
$
73,255

Utility and power plant projects
 
(721
)
 
22,614

 
(26,323
)
 
5,285

 
57,957

Gain on contract termination
 
—

 
—

 
(51,987
)
 
—

 
(51,987
)
Stock-based compensation expense
 
13,725

 
13,348

 
12,082

 
41,940

 
31,103

Non-cash interest expense
 
5,499

 
5,323

 
12,311

 
15,992

 
36,382

Other
 
6,106

 
(654
)
 
835

 
5,007

 
3,480

Tax effect
 
(10,199
)
 
(10,824
)
 
3,477

 
(13,706
)
 
(1,377
)
Non-GAAP net income attributable to stockholders
 
$
46,443

 
$
43,909

 
$
58,781

 
$
165,697

 
$
148,813


Adjustments to Net income per diluted share:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
Net income per diluted share
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
GAAP net income available to common stockholders1
 
$
33,442

 
$
14,653

 
$
111,614

 
$
113,770

 
$
73,999

Non-GAAP net income available to common stockholders1
 
$
46,994

 
$
44,460

 
$
58,781

 
$
169,879

 
$
148,813

 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
GAAP weighted-average shares
 
167,117

 
156,333

 
153,876

 
158,962

 
134,859

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
0.75% debentures due 2018
 
—

 
—

 
(12,026
)
 
—

 
(5,418
)
0.875% debentures due 2018
 
(8,203
)
 
—

 
—

 
(3,305
)
 
—

4.75% debentures due 2014
 
—

 
—

 
(8,712
)
 
3,347

 
—

Non-GAAP weighted-average shares1
 
158,914

 
156,333

 
133,138

 
159,004

 
129,441

 
 
 
 
 
 
 
 
 
 
 
GAAP net income per diluted share
 
$
0.20

 
$
0.09

 
$
0.73

 
$
0.72

 
$
0.55

Non-GAAP net income per diluted share
 
$
0.30

 
$
0.28

 
$
0.44

 
$
1.07

 
$
1.15

1 
In accordance with the if-converted method, net income 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 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 per diluted share.

Revenue by Significant Category:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 29, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
GAAP Solar power products
 
$
209,864

 
$
237,212

 
$
223,952

 
$
685,654

 
$
648,235

Other
 
—

 
—

 
—

 
—

 
(672
)
Non-GAAP Solar power products
 
$
209,864

 
$
237,212

 
$
223,952

 
$
685,654

 
$
647,563

GAAP Solar power systems
 
$
402,244

 
$
224,852

 
$
378,477

 
$
1,030,851

 
$
1,083,002

Utility and power plant projects
 
41,475

 
113,195

 
(37,669
)
 
145,961

 
(24,270
)
Non-GAAP Solar power systems
 
$
443,719

 
$
338,047

 
$
340,808

 
$
1,176,812

 
$
1,058,732


EBITDA:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 28, 2013
 
Sept. 28, 2014
 
Sept. 29, 2013
GAAP net income attributable to stockholders
 
$
32,033

 
$
14,102

 
$
108,386

 
$
111,179

 
$
73,255

Utility and power plant projects
 
(721
)
 
22,614

 
(26,323
)
 
5,285

 
57,957

Gain on contract termination
 
—

 
—

 
(51,987
)
 
—

 
(51,987
)
Stock-based compensation expense
 
13,725

 
13,348

 
12,082

 
41,940

 
31,103

Non-cash interest expense
 
5,499

 
5,323

 
12,311

 
15,992

 
36,382

Other
 
6,106

 
(654
)
 
835

 
5,007

 
3,480

Cash interest expense, net of interest income
 
11,476

 
11,048

 
16,292

 
37,358

 
44,747

Provision for (benefit from) income taxes
 
(8,320
)
 
(8,168
)
 
(4,575
)
 
(2,868
)
 
2,920

Depreciation
 
25,727

 
24,026

 
24,722

 
75,124

 
72,893

EBITDA
 
$
85,525

 
$
81,639

 
$
91,743

 
$
289,017

 
$
270,750


Free Cash Flow:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
 
Sept. 28, 2014
 
Jun. 29, 2014
 
Sept. 28, 2013
 
Sept. 28, 2014
 
Sept. 28, 2013
Net cash provided by (used in) operating activities
 
$
(32,418
)
 
$
(132,043
)
 
$
28,869

 
$
(113,989
)
 
$
129,553

Net cash provided by (used in) investing activities
 
(41,932
)
 
(33,064
)
 
74,570

 
(106,091
)
 
(93,882
)
Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
1,426

 
34,306

 
—

 
74,840

 
—

Proceeds from residential lease financing
 
—

 
—

 
26,817

 
—

 
83,365

Repayment of residential lease financing
 
—

 
(8,473
)
 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
6,893

 
—

 
—

 
23,578

 
40,757

Repayment of sale-leaseback financing
 
(581
)
 
—

 
—

 
(1,360
)
 
(5,124
)
Contributions from noncontrolling interests and redeemable noncontrolling interests
 
22,534

 
22,226

 
29,535

 
75,312

 
73,401

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(1,172
)
 
(519
)
 
—

 
(2,808
)
 
—

Free cash flow
 
$
(45,250
)
 
$
(117,567
)
 
$
159,791

 
$
(66,204
)
 
$
228,070







Q4 2014 GUIDANCE
(in thousands except percentages and per share data)
Q4 2014
FY 2014
Revenue (GAAP)
$675,000-$725,000
$2,535,000-$2,585,000
Revenue (non-GAAP)1
$575,000-$625,000
$2,580,000-$2,630,000
Gross margin (GAAP)
22%-24%
20%-21%
Gross margin (non-GAAP)2
19%-21%
19%-20%
Net income per diluted share (GAAP)
$0.20-$0.35
$0.95-$1.10
Net income per diluted share (non-GAAP)3
$0.15-$0.30
$1.25-$1.40

1.
Estimated non-GAAP amounts above include a net increase (decrease) of $(100) million for Q4 2014 and $45 million for fiscal 2014 of revenue primarily related to utility and power plant projects.

2.
Estimated non-GAAP amounts above for Q4 2014 include net adjustments that increase (decrease) gross margin by approximately $(40) to $(45) million related to the non-GAAP revenue adjustments that are discussed above, $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 $(35) to $(40) million related to the non-GAAP revenue adjustments that are discussed above, $14 million related to stock-based compensation expense, $3 million related to non-cash interest expense, and $5 million related to other items.

3.
Estimated non-GAAP amounts above for Q4 2014 include net adjustments that increase (decrease) net income by approximately $(40) to $(45) million related to the non-GAAP revenue adjustments that are discussed above, $14 million related to stock-based compensation expense, $6 million related to non-cash interest expense, $3 million related to other items, and $11 million in tax effect. Estimated non-GAAP amounts above for fiscal 2014 include net adjustments that increase (decrease) net income by approximately $(35) to $(40) million related to the non-GAAP revenue adjustments that are discussed above, $56 million related to stock-based compensation expense, $22 million related to non-cash interest expense, $8 million related to other items, and $(3) 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 and net income per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.


THREE MONTHS ENDED
 
 
September 28, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
517,799

 
$
44,633

 
$
100,302

 
$
103,184

 
19.9
%
 
$
(1,396
)
 
(3.1
)%
 
$
6,726

 
6.7
%
 
 
 
 
 
 
 
 
 
 
 
$
32,033

Utility and power plant projects
 
41,475

 
—

 
—

 
(721
)
 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
(721
)
Stock-based compensation expense
 
—

 
—

 
—

 
2,310

 
 
 
408

 
 
 
1,254

 
 
 
2,022

 
7,731

 
—

 
—

 
—

 
13,725

Non-cash interest expense
 
—

 
—

 
—

 
452

 
 
 
60

 
 
 
187

 
 
 
6

 
22

 
—

 
4,772

 
—

 
5,499

Other
 
—

 
—

 
—

 
(24
)
 
 
 
5,244

 
 
 
—

 
 
 
—

 
720

 
188

 
(22
)
 
—

 
6,106

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(10,199
)
 
(10,199
)
Non-GAAP
 
$
559,274

 
$
44,633

 
$
100,302

 
$
105,201

 
18.8
%
 
$
4,316

 
9.7
 %
 
$
8,167

 
8.1
%
 
 
 
 
 
 
 
 
 
 
 
$
46,443


 
 
June 29, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income 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



 
 
September 29, 2013
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
442,091

 
$
120,712

 
$
94,317

 
$
136,067

 
30.8
%
 
$
20,107

 
16.7
%
 
$
37,056

 
39.3
%
 
 
 
 
 
 
 
 
 
 
 
$
108,386

Utility and power plant projects
 
(37,669
)
 
—

 
—

 
(26,323
)
 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
(26,323
)
Gain on contract termination
 
—

 
—

 
—

 
(25,604
)
 
 
 
(9,395
)
 
 
 
(16,988
)
 
 
 
—

 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
—

 
—

 
—

 
1,295

 
 
 
803

 
 
 
827

 
 
 
1,390

 
7,767

 
—

 
—

 
—

 
12,082

Non-cash interest expense
 
—

 
—

 
—

 
291

 
 
 
107

 
 
 
193

 
 
 
19

 
23

 
—

 
11,678

 
—

 
12,311

Other
 
—

 
—

 
—

 
42

 
 
 
—

 
 
 
—

 
 
 
—

 
(324
)
 
1,114

 
3

 
—

 
835

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
3,477

 
3,477

Non-GAAP
 
$
404,422

 
$
120,712

 
$
94,317

 
$
85,768

 
21.2
%
 
$
11,622

 
9.6
%
 
$
21,088

 
22.4
%
 
 
 
 
 
 
 
 
 
 
 
$
58,781



NINE MONTHS ENDED

 
 
September 28, 2014
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
1,321,870

 
$
235,600

 
$
305,557

 
$
299,161

 
22.6
%
 
$
35,477

 
15.1
%
 
$
31,010

 
10.1
%
 
 
 
 
 
 
 
 
 
 
 
$
111,179

Utility and power plant projects
 
145,961

 
—

 
—

 
5,285

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
5,285

Stock-based compensation expense
 
—

 
—

 
—

 
6,218

 
 
 
1,574

 
 
 
3,086

 
 
 
5,731

 
25,331

 
—

 
—

 
—

 
41,940

Non-cash interest expense
 
—

 
—

 
—

 
1,244

 
 
 
281

 
 
 
573

 
 
 
19

 
68

 
—

 
13,807

 
—

 
15,992

Other
 
—

 
—

 
—

 
—

 
 
 
5,244

 
 
 
—

 
 
 
—

 
728

 
(990
)
 
25

 
—

 
5,007

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(13,706
)
 
(13,706
)
Non-GAAP
 
$
1,467,831

 
$
235,600

 
$
305,557

 
$
311,908

 
21.2
%
 
$
42,576

 
18.1
%
 
$
34,669

 
11.3
%
 
 
 
 
 
 
 
 
 
 
 
$
165,697



 
 
September 29, 2013
 
 
 
 
Revenue
 
Gross Margin
 
Operating expenses
 
Other
income
(expense),
net
 
Benefit
from
(provision
for)
income
taxes
 
Net income attributable to stockholders
 
 
AMERICAS
 
EMEA
 
APAC
 
AMERICAS
 
EMEA
 
APAC
 
Research
and
development
 
Selling,
general
and
administrative
 
Restructuring
charges
 
GAAP
 
$
1,293,822

 
$
296,374

 
$
278,873

 
$
285,778

 
22.1
%
 
$
6,879

 
2.3
 %
 
$
67,747

 
24.3
%
 
 
 
 
 
 
 
 
 
 
 
$
73,255

Utility and power plant projects
 
(24,270
)
 
—

 
—

 
57,957

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
57,957

Gain on contract termination
 
—

 
—

 
—

 
(25,604
)
 
 
 
(9,395
)
 
 
 
(16,988
)
 
 
 
—

 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
—

 
—

 
—

 
3,209

 
 
 
1,862

 
 
 
2,081

 
 
 
3,737

 
20,214

 
—

 
—

 
—

 
31,103

Non-cash interest expense
 
—

 
—

 
—

 
802

 
 
 
368

 
 
 
542

 
 
 
55

 
69

 
—

 
34,546

 
—

 
36,382

Other
 
—

 
—

 
(672
)
 
443

 
 
 
186

 
 
 
(414
)
 
 
 
—

 
1,530

 
1,705

 
30

 
—

 
3,480

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(1,377
)
 
(1,377
)
Non-GAAP
 
$
1,269,552

 
$
296,374

 
$
278,201

 
$
322,585

 
25.4
%
 
$
(100
)
 
—
 %
 
$
52,968

 
19.0
%
 
 
 
 
 
 
 
 
 
 
 
$
148,813