=====SunPower (SPWR) reported earnings Tue 9 Aug 2016 (a/h)

SunPower reports Q2 (Jun) results, beats on revs; Lowers guidance, announces restructuring due to industry conditions  :

• Reports Q2 (Jun) loss of $0.22 per share, may not be comparable to the Capital IQ Consensus of ($0.24); revenues rose 6.7% year/year to $401.8 mln vs the $347.7 mln Capital IQ Consensus.
• Industry Warnings
• "However, while the long-term fundamentals for solar power remain strong, we see a number of near-term industry challenges, primarily in our power plant segment, that we expect to impact our business and financial performance in the second half of 2016. The extension of the Investment Tax Credit, as well as the bonus depreciation credit, while beneficial to the long-term health of the industry, has reduced the urgency to complete new solar projects by the end of 2016,with many customers adopting a longer-term timeline for project completion. Additionally, near-term economic returns have deteriorated due to aggressive PPA pricing by new market entrants, including a number of large, global independent power companies. We are also seeing customer project IRRs rising in the near term as buyers have increased their hurdle rates due to industry conditions. Finally, the continued market disruption in the YieldCo environment has impacted our assumptions related to monetizing deferred profits. "As a result, we have proactively decided to streamline our power plant development segment while shifting investment to our distributed generation (DG) segments".
  
• Impact from Realignment
  As a result of the announced realignment, the company expects the following:
  
  • Workforce reduction of approximately 15 percent or 1,200 employees, primarily related to its Philippine facility closure 
  • Restructuring charges totaling $30-$45 million
  • Substantial portion of charges to be incurred in the third quarter of 2016 with more than 50 percent of the total charges to be cash
  • Annual operating expense reductions of approximately 10 percent
• Co issues downside guidance for Q3, sees Q3 revs of $750-850 mln, may not be comparable to $1.12 bln Capital IQ Consensus Estimate.
  
  • Gross margin of 16.5 percent to 18.5 percent
  • EBITDA of $115 million to $140 million
  • MWs deployed in the range of 380 MW to 420 MW. 
• Co issues downside guidance for FY16, sees FY16 revs of $3.0-3.2 bln, may not be comparable to $3.28 bln Capital IQ Consensus Estimate.
  
  • Gross margin of 10.5 percent to 12.5 percent
  • EBITDA of $275 million to $325 million
  • Capital expenditures of $225 million to $245 million
  • GW deployed in the range of 1.45 GW to 1.65 GW.