News | Energy Efficiency

http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/solar/sunpower-sees-q1-revenue-drop-total-takeover-still-on.html

SunPower saw its revenues drop dramatically in the first quarter, totalling just $451.5m compared to $937.1m the period before.

The solar company recently announced its intention to be acquired by French oil company Total, agreeing to a $42.5m termination fee if it pulls back from the deal.
If the deal with Total goes through, it will see the French company cements its foothold in the solar market, having recently upped its stake in Tenesol.
Tom Werner, SunPower president and CEO, said, ‘With Total’s $1bn credit support agreement, solar research and development investments and other resources available through its global network, we will be taking the next step in positioning our business for accelerated growth and long-term success. Our relationship with Total will improve our capital structure enabling SunPower to accelerate our power plant and commercial development businesses, and expand our manufacturing capacity with lower cash requirements.’
He also tried to put a positive spin on the revenue results. Werner said, ‘We met our margin and bottom line financial goals in the first quarter by adjusting our downstream channels and operating expenses.’
He added, ‘Our revenue was lower than plan as a result of changing market conditions in Europe. Operationally, we exceeded our manufacturing cost reduction targets for the quarter and remain on plan to achieve our efficiency adjusted panel cost per watt target of $1.08 in the fourth quarter of this year.’
Despite the drop in revenues, the quarter did see the company achieve in a key milestone by securing a $1.2bn US Department if Energy loan guarantee conditional commitment for its 250MW California Valley Solar Ranch.