SunPower Completes USAF Project - Analyst Blog

SunPower Corporation (SPWRA) along with its partner Colorado Springs Utilities announced the completion of a 6-megawatt solar photovoltaic power system at the U.S. Air Force Academy ("USAFA") in Colorado Springs, Colorado.

Colorado Springs Utilities provides electricity, natural gas, water and wastewater services to the Pikes Peak region. The municipality-owned utility is committed to protecting the environment while providing reliable and affordable utility services.

The project was funded in part by the American Recovery and Reinvestment Act of 2009 ("ARRA"). SunPower and USAFA will each own 50% of the renewable energy credits (RECs) and environmental benefits associated with the system. 

The system uses high-efficiency SunPower solar panels with the SunPower’s proprietory T0 Tracker system. The Tracker follows the sun's movement during the day, increasing sunlight capturing capacity by up to 25% over conventional fixed-tilt systems, while significantly reducing land requirement. The system has been designed to meet USAFA's stringent engineering design standards.

According to U.S. Environmental Protection Agency estimates, the system at the USAFA will avoid more than 9,400 tons of carbon dioxide emission each year, the equivalent of removing 40,900 cars from Colorado's highways over 25 years.

SunPower now expects full-year 2011 non-GAAP gross margins to be in the range of 17%–19%, down from the earlier forecast of 20%–22%. The margins for the second quarter of 2011 are expected to be even lower at 15%–17%.

GAAP loss for the second quarter is expected in the range of 50 cents–30 cents per share, and non-GAAP results are expected to lie between a loss of 5 cents per share and a profit of 10 cents per share.

Revenues for the second quarter of 2011 are now expected at $550 million–$600 million, an increase from the prior guidance of $500 million–$550 million.

For the full year, SunPower now expects GAAP results between a loss of 10 cents per share and a profit of 50 cents per share. The prior guidance stated a profit in the range of 70 cents–90 cents per share. On a non-GAAP basis, earnings for the full year are now expected at $1.20–$1.70 per share, sharply down from the prior outlook of $2.00–$2.20 per share. Revenue forecast for the year was maintained at $2.80 billion–$2.95 billion.

SunPower is a vertically integrated solar company with presence across the entire solar value chain. The company designs, develops, manufactures, markets and sells high-performance solar electric power technology products, systems and services worldwide for residential, commercial and utility-scale power plant customers.

The company’s semiconductor-based solar cells and solar panels, which convert sunlight into electricity, are manufactured using proprietary processes and technologies.

SunPower currently retains a short-term Zacks #5 Rank, which translates into a Strong Sell rating. This is in line with its peer Evergreen Solar Inc. (ESLR). Over the longer run we maintain our ‘Outperform’ recommendation on the company.

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