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Form 8-K SUNPOWER CORP For: Feb 24

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February 24, 2015 8:06 AM EST


 

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): February 24, 2015
 
 
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 February 24, 2015, the Company issued the press release attached as Exhibit 99.1 hereto announcing its results of operations for the fourth fiscal quarter and fiscal year ended December 28, 2014.

The information furnished 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 February 24, 2015




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
 
 
 
February 24, 2015
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 February 24, 2015





Exhibit 99.1

FOR IMMEDIATE RELEASE

SunPower Contacts:

Investors
Bob Okunski
408-240-5447

Media
Helen Kendrick
408-240-5585


SunPower Reports Fourth Quarter and Fiscal Year 2014 Results

•
Q4 2014 GAAP Earnings Per Share of $0.83, Non-GAAP Earnings Per Share of $0.26
•
FY 2014 GAAP Earnings Per Share of $1.55, Non-GAAP Earnings Per Share of $1.33
•
Announced Intention to Form Joint YieldCo Vehicle with First Solar

SAN JOSE, Calif., Feb. 24, 2015 - SunPower Corp. (NASDAQ: SPWR) today announced financial results for its fourth quarter and fiscal year ended Dec. 28, 2014.

($ Millions, except percentages and per-share data)
4th Quarter 2014
3rd Quarter 2014
4th Quarter 2013
2014
2013
GAAP revenue
$1,164.2
$662.7
$638.1
$3,027.3
$2,507.2
GAAP gross margin
22.3%
16.4%
20.5%
20.6%
19.6%
GAAP net income
$134.7
$32.0
$22.3
$245.9
$95.6
GAAP net income per diluted share
$0.83
$0.20
$0.15
$1.55
$0.70
Non-GAAP revenue1
$609.7
$704.2
$758.2
$2,618.6
$2,602.3
Non-GAAP gross margin1
20.4%
16.7%
20.4%
19.6%
20.4%
Non-GAAP net income1
$39.4
$46.4
$72.2
$205.1
$221.0
Non-GAAP net income per diluted share1
$0.26
$0.30
$0.47
$1.33
$1.68
1 
Information about SunPower's use of non-GAAP financial information is provided under "Use of Non-GAAP Financial Measures" below.

“2014 was a very important year for SunPower in terms of our strategic development. We significantly expanded our international power plant market footprint while constructing the world’s largest solar power plant in California. On the distributed generation (DG) side of our business, we made a number of acquisitions and strategic investments that we believe position SunPower as a leader in the emerging smart energy eco-system,” said Tom Werner, SunPower president and CEO. “Exiting the year, we saw continued strength in both our power plant and DG businesses while executing well against our long term cost reduction roadmap. We also expect production of our first PV cell from our new Fab 4 facility mid-year 2015 as we continue our capacity expansion plans.
 
“Yesterday we announced another important strategic development, that we are in advanced negotiations to form a joint YieldCo vehicle with First Solar, Inc. into which each company expects to contribute a portfolio of selected solar generation assets. We believe that this joint venture will drive significant long-term value for our shareholders and we will provide additional details about the joint venture when they are finalized.

“North America was again our highest contributing region in the fourth quarter. Construction of the 579-megawatt (MW) ac Solar Star Projects for Berkshire Hathaway Energy and Southern California Edison is on plan with more than 412-MWac now




connected to the grid, and with substantial completion expected by the end of the second quarter. Construction of our 135-MW Quinto project is proceeding with expected completion by the end of this year,” continued Werner.

“The company continued to see significant demand in the commercial sector during the fourth quarter with strong repeat customer bookings as we added to our $1.4 billion pipeline. In the residential channel, bookings rose sequentially for cash, loan and lease. Customers clearly value our broad range of financing options that are tailored to their particular circumstances and desires.

“SunPower also announced several strategic investments during the quarter that enhanced our capabilities in what we call Smart Energy. Our exclusive commercial relationships with Sunverge Energy, Inc. in the area of residential battery storage and Tendril, Inc. in energy information and management software, position SunPower very well to offer comprehensive solar-based energy solutions that allow our customers greater control over their daily energy consumption and their overall energy bill. When combined with our recent acquisitions of SolarBridge Technologies, Inc. micro-inverter technology, and our new dealer operations software suite, we are rapidly broadening our differentiated residential Smart Energy platform.

“In EMEA, we saw volume increases and stable pricing in our distributed generation business and we are close to completing the restructuring of our European DG business aimed at improving profitability. In power plants, our strong position in France continues to yield promising momentum and solid bookings. In South Africa, construction of our 86-MWac Prieska project remains on plan as we ramp our 160-MW South African panel manufacturing facility to support our large scale project efforts in this region.

“We remain very positive on Asia Pacific. Our high efficiency panel technology with industry leading quality and reliability has allowed us to maintain a leading position in the Japanese rooftop market. In China, we are seeing significant traction through our manufacturing and project development joint ventures. With 250-MW of expected installations in 2015 and a pipeline of more than 4-GW, these two joint ventures uniquely position SunPower to participate meaningfully in the world’s largest solar power market,” Werner concluded.

“SunPower exited 2014 on a very strong note as our solid execution and demand for our high efficiency technology enabled us to meet or exceed our financial targets for the quarter,” said Chuck Boynton, SunPower CFO. “We ended the year with total liquidity of $1.2 billion and successfully managed our working capital needs. We continued to add assets to our holdco project portfolio during the quarter and were pleased to announce our intention to form a joint YieldCo vehicle with First Solar. We believe this strategic approach will enable both companies to maximize project economics, lower the cost of capital and generate significant long term shareholder returns.”

Fourth-quarter fiscal 2014 non-GAAP results include net adjustments that, in the aggregate, decrease net income by $95.3 million, including gross margin adjustments of ($196.0) million and $56.8 million related to the timing of revenue recognition from utility and power plant projects, and, loss on arbitration ruling, respectively, $13.7 million in stock-based compensation expense, $5.6 million in non-cash interest expense, $13.1 million in restructuring charges related to the November 2014 Restructuring Plan, $2.1 million of other adjustments and $9.4 million in tax effect.

First Quarter 2015 Financial Outlook
The company’s first quarter 2015 consolidated non-GAAP guidance is as follows: revenue of $410 million to $460 million, gross margin of 18 percent to 20 percent, net income per diluted share of $0.05 to $0.15 and megawatts recognized in the range of 240 megawatts to 270 megawatts. On a GAAP basis, the company expects revenue of $420 million to $470 million, gross margin of 18 percent to 20 percent and net loss per diluted share of $0.20 to $0.10.

SunPower believes that its underlying business fundamentals for 2015 remain strong. However, as a result of company’s announcement on February 23, 2015 of its intention to form a joint YieldCo vehicle with First Solar, the company is withdrawing its previously disclosed fiscal year 2015 guidance until such time the company can finalize the impact of the proposed YieldCo vehicle on its expected financial performance. The company will provide an update at a later date.

The company will host a conference call for investors this morning to discuss its fourth-quarter and fiscal year 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 fourth-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 cost structure; (i) our positioning for long-term profitability; (j) strategically managing cash; (k) guidance for the first fiscal quarter of 2015, 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) reducing operating expenses; (m) generating free cash flow; (n) additional leasing capacity; (o) optimization of our cost and capital structure and (p) our proposed yieldco joint venture with First Solar Inc.. 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)
 
Dec. 28, 2014
 
Dec. 29, 2013
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
956,175

 
$
762,511

Restricted cash and cash equivalents, current portion
18,541

 
13,926

Accounts receivable, net
504,316

 
360,594

Costs and estimated earnings in excess of billings
187,087

 
31,787

Inventories
208,573

 
245,575

Advances to suppliers, current portion
98,129

 
58,619

Project assets - plants and land, current portion
101,181

 
69,196

Prepaid expenses and other current assets
328,845

 
646,270

Total current assets
2,402,847

 
2,188,478

 
 
 
 
Restricted cash and cash equivalents, net of current portion
24,520

 
17,573

Restricted long-term marketable securities
7,158

 
8,892

Property, plant and equipment, net
585,344

 
533,387

Solar power systems leased and to be leased, net
390,913

 
345,504

Project assets - plants and land, net of current portion
15,475

 
6,411

Advances to suppliers, net of current portion
311,528

 
324,695

Long-term financing receivables, net
269,587

 
175,273

Goodwill and other intangible assets, net
37,981

 
—

Other long-term assets
311,829

 
298,477

Total assets
$
4,357,182

 
$
3,898,690

 
 
 
 
Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
419,919

 
$
443,969

Accrued liabilities
331,034

 
358,157

Billings in excess of costs and estimated earnings
83,440

 
308,650

Short-term debt
18,105

 
56,912

Convertible debt, current portion
245,325

 
455,889

Customer advances, current portion
31,788

 
36,883

Total current liabilities
1,129,611

 
1,660,460

 
 
 
 
Long-term debt
218,657

 
93,095

Convertible debt, net of current portion
700,079

 
300,079

Customer advances, net of current portion
148,896

 
167,282

Other long-term liabilities
555,344

 
523,991

Total liabilities
2,752,587

 
2,744,907

 
 
 
 
Redeemable noncontrolling interests in subsidiaries
28,566

 
—

 
 
 
 
Equity:
 

 
 





Preferred stock
—

 
—

Common stock
131

 
122

Additional paid-in capital
2,219,581

 
1,980,778

Accumulated deficit
(560,598
)
 
(806,492
)
Accumulated other comprehensive loss
(13,455
)
 
(4,318
)
Treasury stock, at cost
(111,485
)
 
(53,937
)
Total stockholders' equity
1,534,174

 
1,116,153

Noncontrolling interests in subsidiaries
41,855

 
37,630

Total equity
1,576,029

 
1,153,783

Total liabilities and equity
$
4,357,182

 
$
3,898,690






SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sep. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
$
1,001,571

 
$
517,799

 
$
382,650

 
$
2,323,441

 
$
1,676,472

EMEA
 
52,933

 
44,633

 
154,285

 
288,533

 
450,659

APAC
 
109,734

 
100,302

 
101,199

 
415,291

 
380,072

Total revenue
 
1,164,238

 
662,734

 
638,134

 
3,027,265

 
2,507,203

Cost of revenue:
 
 
 
 
 
 
 
 
 
 
AMERICAS
 
736,930

 
414,615

 
291,657

 
1,759,639

 
1,299,701

EMEA
 
50,612

 
46,029

 
129,921

 
250,735

 
419,416

APAC
 
117,217

 
93,576

 
85,888

 
391,764

 
297,014

Total cost of revenue
 
904,759

 
554,220

 
507,466

 
2,402,138

 
2,016,131

Gross margin
 
259,479

 
108,514

 
130,668

 
625,127

 
491,072

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Research and development
 
22,725

 
17,291

 
16,972

 
73,343

 
58,080

Selling, general and administrative
 
74,500

 
68,394

 
76,125

 
288,321

 
271,481

Restructuring charges
 
13,213

 
188

 
897

 
12,223

 
2,602

Total operating expenses
 
110,438

 
85,873

 
93,994

 
373,887

 
332,163

Operating income
 
149,041

 
22,641

 
36,674

 
251,240

 
158,909

  Other expense, net
 
(17,637
)
 
(15,366
)
 
(25,428
)
 
(66,626
)
 
(117,326
)
Income before income taxes and equity in earnings of unconsolidated investees
 
131,404

 
7,275

 
11,246

 
184,614

 
41,583

Benefit from (provision for) income taxes
 
(11,628
)
 
8,320

 
(8,985
)
 
(8,760
)
 
(11,905
)
Equity in earnings of unconsolidated investees
 
1,833

 
1,689

 
1,611

 
7,241

 
3,872

Net income
 
121,609

 
17,284

 
3,872

 
183,095

 
33,550

  Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
13,106

 
14,749

 
18,466

 
62,799

 
62,043

Net income attributable to stockholders
 
$
134,715

 
$
32,033

 
$
22,338

 
$
245,894

 
$
95,593

 
 
 
 
 
 
 
 
 
 
 
Net income per share attributable to stockholders:
 
 
 
 
 
 
 
 
 
 
- Basic
 
$
1.03

 
$
0.24

 
$
0.18

 
$
1.91

 
$
0.79

- Diluted
 
$
0.83

 
$
0.20

 
$
0.15

 
$
1.55

 
$
0.70

Weighted-average shares:
 
 
 
 
 
 
 
 
 
 
- Basic
 
131,393

 
131,204

 
121,464

 
128,635

 
120,819

- Diluted
 
164,075

 
167,117

 
151,337

 
162,751

 
138,980






SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
121,609

 
$
17,284

 
$
3,872

 
$
183,095

 
$
33,550

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense
 
33,671

 
25,727

 
25,067

 
108,795

 
98,191

Stock-based compensation
 
13,652

 
13,725

 
14,575

 
55,592

 
45,678

Non-cash interest expense
 
5,593

 
5,499

 
12,634

 
21,585

 
49,016

Equity in earnings of unconsolidated investees
 
(1,833
)
 
(1,689
)
 
(1,611
)
 
(7,241
)
 
(3,872
)
Gain on contract termination
 
—

 
—

 
—

 
—

 
(51,988
)
Excess tax benefit from stock-based compensation
 
(2,379
)
 
—

 
—

 
(2,379
)
 
—

Deferred income taxes and other tax liabilities
 
23,549

 
(5,327
)
 
(1,179
)
 
21,656

 
1,138

Other, net
 
1,567

 
(23
)
 
1,184

 
1,591

 
4,396

Changes in operating assets and liabilities, net of effect of acquisition:
 
 
 
 
 
 
 
 
 
 
Accounts receivable
 
14,429

 
(56,025
)
 
(7,365
)
 
(31,505
)
 
(53,756
)
Costs and estimated earnings in excess of billings
 
(140,831
)
 
(14,393
)
 
10,776

 
(155,300
)
 
4,608

Inventories
 
(25,107
)
 
21,884

 
32,300

 
(1,247
)
 
(6,243
)
Project assets
 
(34,909
)
 
(31,670
)
 
20,019

 
(68,247
)
 
(22,094
)
Prepaid expenses and other assets
 
352,896

 
(90,153
)
 
(80,667
)
 
205,545

 
39,123

Long-term financing receivables, net
 
(17,205
)
 
(22,263
)
 
(36,096
)
 
(94,314
)
 
(107,531
)
Advances to suppliers
 
(7,765
)
 
(6,097
)
 
(18,174
)
 
(26,343
)
 
(31,909
)
Accounts payable and other accrued liabilities
 
61,144

 
16,837

 
13,830

 
45,768

 
120,599

Billings in excess of costs and estimated earnings
 
(265,650
)
 
100,020

 
55,321

 
(225,210
)
 
83,100

Customer advances
 
(10,082
)
 
(5,754
)
 
(11,610
)
 
(23,481
)
 
(39,577
)
Net cash provided by (used in) operating activities
 
122,349

 
(32,418
)
 
32,876

 
8,360

 
162,429

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 




Decrease (increase) in restricted cash and cash equivalents
 
(2,012
)
 
(203
)
 
521

 
(11,562
)
 
15,465

Purchases of property, plant and equipment
 
(56,997
)
 
(25,190
)
 
(8,594
)
 
(102,505
)
 
(34,054
)
Cash paid for solar power systems, leased and to be leased
 
(15,415
)
 
(10,622
)
 
(13,616
)
 
(50,974
)
 
(97,235
)
Cash paid for solar systems
 
(8,540
)
 
(4,917
)
 
(21,257
)
 
(13,457
)
 
(21,257
)
Proceeds from sales or maturities of marketable securities
 
—

 
—

 
—

 
1,380

 
100,947

Proceeds from sale of equipment to third-party
 
—

 
—

 
—

 
—

 
645

Purchases of marketable securities
 
—

 
—

 
—

 
(30
)
 
(99,928
)
Cash paid for acquisitions, net of cash acquired
 
(28,184
)
 
(1,000
)
 
—

 
(35,078
)
 
—

Cash paid for investments in unconsolidated investees
 
(92,000
)
 
—

 
(16,350
)
 
(97,013
)
 
(17,761
)
Net cash used in investing activities
 
(203,148
)
 
(41,932
)
 
(59,296
)
 
(309,239
)
 
(153,178
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of convertible debt, net of issuance costs
 
—

 
—

 
—

 
395,275

 
296,283

Cash paid for repurchase of convertible debt
 
(97
)
 
(51
)
 
—

 
(42,250
)
 
—

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
 
17

 
4

 
—

 
131

 
—

Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
7,086

 
1,426

 
—

 
81,926

 
—

Repayment of non-recourse debt financing
 
(244
)
 
—

 
—

 
(244
)
 
—

Proceeds from issuance of project loans, net of issuance costs
 
61,537

 
—

 
14,169

 
61,537

 
82,394

Assumption of project loan by customer
 
—

 
—

 
(34,850
)
 
(40,672
)
 
(34,850
)
Proceeds from residential lease financing
 
—

 
—

 
13,027

 
—

 
96,392

Repayment of residential lease financing
 
—

 
—

 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
27,022

 
6,893

 
32,382

 
50,600

 
73,139

Repayment of sale-leaseback financing
 
(2,856
)
 
(581
)
 
(3,680
)
 
(4,216
)
 
(8,804
)




Contributions from noncontrolling interests and redeemable noncontrolling interests
 
25,371

 
22,534

 
26,607

 
100,683

 
100,008

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(2,285
)
 
(1,172
)
 
(335
)
 
(5,093
)
 
(335
)
Proceeds from exercise of stock options
 
113

 
309

 
58

 
1,052

 
156

Excess tax benefit from stock-based compensation
 
2,379

 
—

 
—

 
2,379

 
—

Purchases of stock for tax withholding obligations on vested restricted stock
 
(1,548
)
 
(3,196
)
 
(2,245
)
 
(57,548
)
 
(19,829
)
Repayment of bank loans, project loans and other debt
 
(533
)
 
(7,972
)
 
(388
)
 
(17,073
)
 
(290,486
)
Net cash provided by financing activities
 
115,962

 
18,194

 
44,745

 
498,566

 
294,068

Effect of exchange rate changes on cash and cash equivalents
 
(1,717
)
 
(1,973
)
 
611

 
(4,023
)
 
1,705

Net increase (decrease) in cash and cash equivalents
 
33,446

 
(58,129
)
 
18,936

 
193,664

 
305,024

Cash and cash equivalents, beginning of period
 
922,729

 
980,858

 
743,575

 
762,511

 
457,487

Cash and cash equivalents, end of period
 
$
956,175

 
$
922,729

 
$
762,511

 
$
956,175

 
$
762,511

 
 
 
 
 
 
 
 
 
 
 
Non-cash transactions:
 
 
 
 
 
 
 
 
 
 
Assignment of financing receivables to a third party financial institution
 
$
1,604

 
$
2,163

 
$
25,613

 
$
8,023

 
$
93,013

Costs of solar power systems, leased and to be leased, sourced from existing inventory
 
15,396

 
11,905

 
10,380

 
41,204

 
53,721

Costs of solar power systems, leased and to be leased, funded by liabilities
 
3,786

 
2,389

 
5,884

 
3,786

 
5,884

Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets
 
10,926

 
2,064

 
6,043

 
28,259

 
30,442

Property, plant and equipment acquisitions funded by liabilities
 
11,461

 
12,146

 
5,288

 
11,461

 
5,288






SUNPOWER CORPORATION
REVENUE BY SIGNIFICANT CATEGORY
(In thousands)
(Unaudited)
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
Solar power products1
 
$
257,998

 
$
209,864

 
$
269,725

 
$
943,652

 
$
917,960

Solar power systems2
 
865,845

 
402,244

 
316,970

 
1,896,696

 
1,399,972

Residential leases3
 
27,610

 
30,941

 
41,556

 
129,962

 
137,054

Other revenue4
 
12,785

 
19,685

 
9,883

 
56,955

 
52,217

 
 
$
1,164,238

 
$
662,734

 
$
638,134

 
$
3,027,265

 
$
2,507,203


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, loss on arbitration ruling, 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 adjustments relating to the November 2014 Restructuring Plan and 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. During the fourth quarter of fiscal 2014, the company met the requirements to recognize revenue and the corresponding costs for its Solar Star Projects in California under the full accrual method of U.S. GAAP real estate accounting guidance, resulting in the recognition of incremental GAAP revenue and margin of $429 million and $146 million, respectively. 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.

•
Loss on arbitration ruling. On January 28, 2015, an arbitral tribunal of the International Court of Arbitration of the International Chamber of Commerce declared a binding partial award in the matter of an arbitration between First Philippine Electric Corporation (“FPEC”) and First Philippine Solar Corporation (“FPSC”) against SunPower Philippines Manufacturing, Ltd. (“SPML”), our wholly-owned subsidiary. The tribunal found SPML in breach of its obligations under its supply agreement with FPSC, and in breach of its joint venture agreement with FPEC. As a result, in the fourth quarter of fiscal 2014, the company recorded its best estimate of probable loss related to this case. As this loss 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.





•
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.

•
November 2014 Restructuring Plan. In November 2014, the company approved a reorganization plan aimed towards realigning resources consistently with SunPower's global strategy and improving its overall operating efficiency and cost structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have historically occurred infrequently. Although SunPower has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from SunPower's non-GAAP financial measures as they are not reflective of ongoing operating results or contribute to a meaningful evaluation of a company's past operating performance.

•
Other. The company combines amounts previously disclosed under separate captions into “Other” when amounts do not 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 fourth quarter of fiscal 2014 are primarily driven by adjustments which would have previously been disclosed under “Amortization of intangible assets” and “Loss on change in equity interest in unconsolidated investee.”

•
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
•
Repayment of non-recourse debt financing
•
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
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
GAAP revenue
 
$
1,164,238

 
$
662,734

 
$
638,134

 
$
3,027,265

 
$
2,507,203

Utility and power plant projects
 
(554,577
)
 
41,475

 
120,058

 
(408,616
)
 
95,788

Other
 
—

 
—

 
—

 
—

 
(672
)
Non-GAAP revenue
 
$
609,661

 
$
704,209

 
$
758,192

 
$
2,618,649

 
$
2,602,319


Adjustments to Gross margin: 
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
GAAP gross margin
 
$
259,479

 
$
108,514

 
$
130,668

 
$
625,127

 
$
491,072

Utility and power plant projects
 
(195,997
)
 
(721
)
 
19,381

 
(190,712
)
 
77,338

Loss on arbitration ruling
 
56,806

 
—

 
—

 
56,806

 
—

Gain on contract termination
 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
3,443

 
3,972

 
3,664

 
14,321

 
10,816

Non-cash interest expense
 
661

 
699

 
699

 
2,759

 
2,411

Other
 
—

 
5,220

 
514

 
5,244

 
729

Non-GAAP gross margin
 
$
124,392

 
$
117,684

 
$
154,926

 
$
513,545

 
$
530,379

 
 
 
 
 
 
 
 
 
 
 
GAAP gross margin (%)
 
22.3
%
 
16.4
%
 
20.5
%
 
20.5
%
 
19.6
%
Non-GAAP gross margin (%)
 
20.4
%
 
16.7
%
 
20.4
%
 
19.6
%
 
20.4
%

Adjustments to Net income: 




 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
GAAP net income attributable to stockholders
 
$
134,715

 
$
32,033

 
$
22,338

 
$
245,894

 
$
95,593

Utility and power plant projects
 
(195,997
)
 
(721
)
 
19,381

 
(190,712
)
 
77,338

Loss on arbitration ruling
 
56,806

 
—

 
—

 
56,806

 
—

Gain on contract termination
 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
13,652

 
13,725

 
14,575

 
55,592

 
45,678

Non-cash interest expense
 
5,593

 
5,499

 
12,634

 
21,585

 
49,016

November 2014 restructuring plan
 
13,115

 
—

 
—

 
13,115

 
—

Other
 
2,106

 
6,106

 
1,370

 
7,113

 
4,850

Tax effect
 
9,424

 
(10,199
)
 
1,900

 
(4,282
)
 
523

Non-GAAP net income attributable to stockholders
 
$
39,414

 
$
46,443

 
$
72,198

 
$
205,111

 
$
221,011






Adjustments to Net income per diluted share:
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
Net income per diluted share
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
GAAP net income available to common stockholders1
 
$
136,124

 
$
33,442

 
$
22,889

 
$
252,524

 
$
96,888

Non-GAAP net income available to common stockholders1
 
$
39,964

 
$
46,994

 
$
75,496

 
$
209,843

 
$
221,011

 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
GAAP weighted-average shares
 
164,075

 
167,117

 
151,337

 
162,751

 
138,980

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
0.75% debentures due 2018
 
—

 
—

 
—

 
—

 
(7,070
)
0.875% debentures due 2018
 
(8,203
)
 
(8,203
)
 
—

 
(4,530
)
 
—

4.75% debentures due 2014
 
—

 
—

 
8,712

 
—

 
—

Non-GAAP weighted-average shares1
 
155,872

 
158,914

 
160,049

 
158,221

 
131,910

 
 
 
 
 
 
 
 
 
 
 
GAAP net income per diluted share
 
$
0.83

 
$
0.20

 
$
0.15

 
$
1.55

 
$
0.70

Non-GAAP net income per diluted share
 
$
0.26

 
$
0.30

 
$
0.47

 
$
1.33

 
$
1.68

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
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
GAAP Solar power products
 
$
257,998

 
$
209,864

 
$
269,725

 
$
943,652

 
$
917,960

Other
 
—

 
—

 
—

 
—

 
(672
)
Non-GAAP Solar power products
 
$
257,998

 
$
209,864

 
$
269,725

 
$
943,652

 
$
917,288

GAAP Solar power systems
 
$
865,845

 
$
402,244

 
$
316,970

 
$
1,896,696

 
$
1,399,972

Utility and power plant projects
 
(554,577
)
 
41,475

 
120,058

 
(408,616
)
 
95,788

Non-GAAP Solar power systems
 
$
311,268

 
$
443,719

 
$
437,028

 
$
1,488,080

 
$
1,495,760






EBITDA:
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
GAAP net income attributable to stockholders
 
$
134,715

 
$
32,033

 
$
22,338

 
$
245,894

 
$
95,593

Utility and power plant projects
 
(195,997
)
 
(721
)
 
19,381

 
(190,712
)
 
77,338

Loss on arbitration ruling
 
56,806

 
—

 
—

 
56,806

 
—

Gain on contract termination
 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
13,652

 
13,725

 
14,575

 
55,592

 
45,678

Non-cash interest expense
 
5,593

 
5,499

 
12,634

 
21,585

 
49,016

November 2014 Restructuring Plan
 
13,115

 
—

 
—

 
13,115

 
—

Other
 
2,106

 
6,106

 
1,370

 
7,113

 
4,850

Cash interest expense, net of interest income
 
11,006

 
11,476

 
11,536

 
48,364

 
56,283

Provision for (benefit from) income taxes
 
11,628

 
(8,320
)
 
8,985

 
8,760

 
11,905

Depreciation
 
32,282

 
25,727

 
24,553

 
107,406

 
97,446

EBITDA
 
$
84,906

 
$
85,525

 
$
115,372

 
$
373,923

 
$
386,122


Free Cash Flow:
 
 
THREE MONTHS ENDED
 
TWELVE MONTHS ENDED
 
 
Dec. 28, 2014
 
Sept. 28, 2014
 
Dec. 29, 2013
 
Dec. 28, 2014
 
Dec. 29, 2013
Net cash provided by (used in) operating activities
 
$
122,349

 
$
(32,418
)
 
$
32,876

 
$
8,360

 
$
162,429

Net cash used in investing activities
 
(203,148
)
 
(41,932
)
 
(59,296
)
 
(309,239
)
 
(153,178
)
Proceeds from issuance of non-recourse debt financing, net of issuance costs
 
7,086

 
1,426

 
—

 
81,926

 
—

Repayment of non-recourse debt financing
 
(244
)
 
—

 
—

 
(244
)
 
—

Proceeds from residential lease financing
 
—

 
—

 
13,027

 
—

 
96,392

Repayment of residential lease financing
 
—

 
—

 
—

 
(15,686
)
 
—

Proceeds from sale-leaseback financing
 
27,022

 
6,893

 
32,382

 
50,600

 
73,139

Repayment of sale-leaseback financing
 
(2,856
)
 
(581
)
 
(3,680
)
 
(4,216
)
 
(8,804
)
Contributions from noncontrolling interests and redeemable noncontrolling interests
 
25,371

 
22,534

 
26,607

 
100,683

 
100,008

Distributions to noncontrolling interests and redeemable noncontrolling interests
 
(2,285
)
 
(1,172
)
 
(335
)
 
(5,093
)
 
(335
)
Free cash flow
 
$
(26,705
)
 
$
(45,250
)
 
$
41,581

 
$
(92,909
)
 
$
269,651











Q1 2015 GUIDANCE
(in thousands except percentages and per share data)
Q1 2015
Revenue (GAAP)
$420,000-$470,000
Revenue (non-GAAP)1
$410,000-$460,000
Gross margin (GAAP)
18%-20%
Gross margin (non-GAAP)2
18%-20%
Net income per diluted share (GAAP)
$(0.20)-$(0.10)
Net income per diluted share (non-GAAP)3
$0.05-$0.15

1.
Estimated non-GAAP amounts above include a net decrease of $10 million for Q1 2015 of revenue primarily related to utility and power plant projects.

2.
Estimated non-GAAP amounts above for Q1 2015 include net adjustments that increase (decrease) gross margin by approximately $(5) 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.

3.
Estimated non-GAAP amounts above for Q1 2015 include net adjustments that increase (decrease) net income (loss) by approximately $(5) million related to the non-GAAP revenue adjustments that are discussed above, $15 million related to stock-based compensation expense, $6 million related to non-cash interest expense, $5 million related to the November 2014 restructuring plan, $3 million related to other items, and $6 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

 
 
December 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
 
$
1,001,571

 
$
52,933

 
$
109,734

 
$
264,641

 
26.4
%
 
$
2,321

 
4.4
%
 
$
(7,483
)
 
(6.8
)%
 
 
 
 
 
 
 
 
 
 
 
$
134,715

Utility and power plant projects
 
(554,577
)
 
—

 
—

 
(195,997
)
 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
(195,997
)
Loss on arbitration ruling
 
—

 
—

 
—

 
32,624

 
 
 
6,112

 
 
 
18,070

 
 
 
—

 
—

 
—

 
—

 
—

 
56,806

Stock-based compensation expense
 
—

 
—

 
—

 
1,897

 
 
 
388

 
 
 
1,158

 
 
 
1,983

 
8,226

 
—

 
—

 
—

 
13,652

Non-cash interest expense
 
—

 
—

 
—

 
380

 
 
 
71

 
 
 
210

 
 
 
6

 
21

 
—

 
4,905

 
—

 
5,593

November 2014 restructuring plan
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
13,115

 
—

 
—

 
13,115

Other
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
214

 
236

 
98

 
1,558

 
—

 
2,106

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
9,424

 
9,424

Non-GAAP
 
$
446,994

 
$
52,933

 
$
109,734

 
$
103,545

 
23.2
%
 
$
8,892

 
16.8
%
 
$
11,955

 
10.9
 %
 
 
 
 
 
 
 
 
 
 
 
$
39,414







 
 
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



 
 
December 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
 
$
382,650

 
$
154,285

 
$
101,199

 
$
90,993

 
23.8
%
 
$
24,364

 
15.8
%
 
$
15,311

 
15.1
%
 
 
 
 
 
 
 
 
 
 
 
$
22,338

Utility and power plant projects
 
120,058

 
—

 
—

 
19,381

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
19,381

Stock-based compensation expense
 
—

 
—

 
—

 
1,941

 
 
 
798

 
 
 
925

 
 
 
1,677

 
9,234

 
—

 
—

 
—

 
14,575

Non-cash interest expense
 
—

 
—

 
—

 
401

 
 
 
127

 
 
 
171

 
 
 
19

 
23

 
—

 
11,893

 
—

 
12,634

Other
 
—

 
—

 
—

 
514

 
 
 
—

 
 
 
—

 
 
 
—

 
(48
)
 
897

 
7

 
—

 
1,370

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
1,900

 
1,900

Non-GAAP
 
$
502,708

 
$
154,285

 
$
101,199

 
$
113,230

 
22.5
%
 
$
25,289

 
16.4
%
 
$
16,407

 
16.2
%
 
 
 
 
 
 
 
 
 
 
 
$
72,198







TWELVE MONTHS ENDED

 
 
December 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
 
$
2,323,441

 
$
288,533

 
$
415,291

 
$
563,802

 
24.3
%
 
$
37,798

 
13.1
%
 
$
23,527

 
5.7
%
 
 
 
 
 
 
 
 
 
 
 
$
245,894

Utility and power plant projects
 
(408,616
)
 
—

 
—

 
(190,712
)
 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
(190,712
)
Loss on arbitration ruling
 
—

 
—

 
—

 
32,624

 
 
 
6,112

 
 
 
18,070

 
 
 
—

 
—

 
—

 
—

 
—

 
56,806

Stock-based compensation expense
 
—

 
—

 
—

 
8,115

 
 
 
1,962

 
 
 
4,244

 
 
 
7,714

 
33,557

 
—

 
—

 
—

 
55,592

Non-cash interest expense
 
—

 
—

 
—

 
1,624

 
 
 
352

 
 
 
783

 
 
 
25

 
89

 
—

 
18,712

 
—

 
21,585

November 2014 restructuring plan
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
13,115

 
—

 
—

 
13,115

Other
 
—

 
—

 
—

 
—

 
 
 
5,244

 
 
 
—

 
 
 
214

 
964

 
(892
)
 
1,583

 
—

 
7,113

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
(4,282
)
 
(4,282
)
Non-GAAP
 
$
1,914,825

 
$
288,533

 
$
415,291

 
$
415,453

 
21.7
%
 
$
51,468

 
17.8
%
 
$
46,624

 
11.2
%
 
 
 
 
 
 
 
 
 
 
 
$
205,111







 
 
December 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
 
$
1,676,472

 
$
450,659

 
$
380,072

 
$
376,771

 
22.5
%
 
$
31,243

 
6.9
%
 
$
83,058

 
21.9
%
 
 
 
 
 
 
 
 
 
 
 
$
95,593

Utility and power plant projects
 
95,788

 
—

 
—

 
77,338

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
—

 
77,338

Gain on contract termination
 
—

 
—

 
—

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

 
—

 
—

 
—

 
—

 
(51,987
)
Stock-based compensation expense
 
—

 
—

 
—

 
5,150

 
 
 
2,660

 
 
 
3,006

 
 
 
5,414

 
29,448

 
—

 
—

 
—

 
45,678

Non-cash interest expense
 
—

 
—

 
—

 
1,203

 
 
 
495

 
 
 
713

 
 
 
74

 
92

 
—

 
46,439

 
—

 
49,016

Other
 
—

 
—

 
(672
)
 
957

 
 
 
186

 
 
 
(414
)
 
 
 
—

 
1,482

 
2,602

 
37

 
—

 
4,850

Tax effect
 
—

 
—

 
—

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
—

 
—

 
—

 
523

 
523

Non-GAAP
 
$
1,772,260

 
$
450,659

 
$
379,400

 
$
435,815

 
24.6
%
 
$
25,189

 
5.6
%
 
$
69,375

 
18.3
%
 
 
 
 
 
 
 
 
 
 
 
$
221,011





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