SunPower (SPWR) reported its 2Q15 earnings on July 28, 2015. The company reported $381 million in revenues, 25% less than $507.9 million reported in 2Q14.
Because SunPower generates over 40% of its revenues from designing and developing solar power plants, its revenues are generally volatile when considered on a quarterly basis. As well, the company transferred some of its operating assets to a newly formed joint yieldco, 8point3 Energy Partners (CAFD), with FirstSolar (FSLR). The asset transfer also dented the company’s revenues.
SunPower reported net income of $6.5 million, or $0.04 per share, in 2Q15 against $14.1 million, or $0.09 per share, in 2Q14. Later in this series, we’ll take a more detailed look at the company’s quarterly operational and financial performance.
SunPower (SPWR) is a major US manufacturer of high-efficiency crystalline silicon PV (photovoltaic) cells, panels, and roof tiles. The foundation for SunPower was built at Stanford University, where founder Richard Swansen first began researching solar power.
SunPower operates three business lines:
- Solar Power Components
- Solar Power Systems
- Residential Leases
Under the first line, the company designs and manufactures solar PV cells (TAN) and modules.
Under the second line, the company manufactures solar power systems, and designs, develops, and constructs solar power plants. SunPower competes with SunEdison (SUNE) and FirstSolar (FSLR) in this space. These companies generate over half of their respective revenues from the power plant business.
Under the last line, the company leases rooftop solar panels to households through a network of distributors. SolarCity (SCTY) is a major competitor of SPWR in this space.