SunPower Says 2016 Revenue Will Surge Even If GAAP Says It Won't
- Non-GAAP sales may swell to $3.5 billion from selling plants
- Company working with accountants to develop new standards
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SunPower Corp. expects revenue to climb next year to as much as $3.5 billion -- if you disregard Generally Accepted Accounting Principles. If the rules are applied, sales will decline, to as low as $1.2 billion.
That huge swing is due to 8Point3 Energy Partners LP, a joint venture it formed with First Solar Inc. to buy completed solar farms. To accountants, those transactions look more like internal transfers, and the money from the deal is recognized over several years; for SunPower, a sale is a sale and the company wants investors to see the revenue immediately.