Breaking News

Lloyds Reaches $370 Million Settlement With Regulators Over Libor
Tweet TWEET

SunPower Reports Fourth-Quarter and Fiscal Year 2012 Results

         SunPower Reports Fourth-Quarter and Fiscal Year 2012 Results

Q4 2012 GAAP Revenue of $679 million, Non-GAAP Revenue of $785 million

2012 GAAP Revenue of $2.42 billion, Non-GAAP Revenue of $2.62 billion

PR Newswire

SAN JOSE, Calif., Feb. 7, 2013

SAN JOSE, Calif., Feb. 7, 2013 /PRNewswire/ --SunPower Corp. (NASDAQ: SPWR)
today announced financial results for its 2012 fourth quarter and fiscal year
ended Dec. 30, 2012.

                           4^th Quarter 3^rd Quarter 4^th            
($ Millions except                                   Quarter
per-share data)            2012         2012                 2012     2011
                                                     2011
GAAP revenue^(1)           $678.5       $648.9       $625.3  $2,417.5 $2,374.4
GAAP gross margin          6.9%         12.4%        6.8%    10.2%    9.5%
GAAP net loss^(2)          ($144.8)     ($48.5)      ($93.0) ($352.0) ($613.7)
GAAP net loss per diluted  ($1.22)      ($0.41)      ($0.94) ($3.01)  ($6.28)
share^(2)
Non-GAAP gross margin^(3)  18.7%        14.1%        11.3%   15.4%    13.2%
Non-GAAP net income (loss) $0.18        $0.03        $0.04   $0.18    $0.16
per diluted share^(3)
Megawatts (MW) produced    153          227          261     936      922

(1) GAAP revenue excludes $106.1 million and $186.4 million for the fourth
quarter of fiscal 2012 and the fourth quarter of fiscal 2011, respectively,
and includes $42.3 million for the third quarter of fiscal 2012, in revenue
related to the construction of utility power plant projects and construction
activities. Similarly, GAAP revenue excludes $204.8 million and $186.4 million
for fiscal 2012 and 2011, respectively, related to the construction of utility
power plant projects and construction activities. See details in the non-GAAP
measure disclosure included in this press release.
(2) GAAP results include approximately $179.3 million, $47.5 million and $93.0
million for the fourth quarter of fiscal 2012, the third quarter of fiscal
2012 and the fourth quarter of fiscal 2011, respectively, in net, pre-tax
charges and adjustments excluded from non-GAAP results. 2012 and 2011 GAAP
results include $371.3 million and $608.7 million, respectively, in net,
pre-tax charges and adjustments excluded from non-GAAP results.
(3) A reconciliation of GAAP to non-GAAP results is included at the end of
this press release.

"We exited 2012 with strong fourth-quarter results as we benefitted from our
diversified downstream channel strategy, solid execution on our cost roadmap
and increased customer demand for our high efficiency, industry leading
technology," said Tom Werner, SunPower president and CEO. "North America
remained our most significant market for the quarter as evidenced by our sale
of the 579 megawatt (MW) Antelope Valley Solar Projects (AVSP) to MidAmerican
Solar, a transaction that further reinforces our strong bankability.
Additionally, the California Valley SolarRanch (CVSR) project owned by NRG
Energyis now more than 75 percent complete and we remain on plan to finish
this project by the end of this year. In residential lease, our
fourth-quarter performance was solid and we see significant long-term global
growth opportunities in this segment due to our compelling value proposition,
low total system costs and downstream footprint. With our recently announced
$100 million residential leasing partnership with U.S. Bancorp, and additional
financings currently in process, we are well positioned in the North American
residential lease segment for 2013. In Asia, we expanded our presence in the
Japanese rooftop market as a result of our significant partnerships and signed
a joint venture in China to manufacture our SunPower C7 Tracker product for
power plant projects. In Europe, industry conditions remain challenging but
our cost reduction programs and ability to leverage our existing
infrastructure to further evolve our go-to-market strategy with innovative
programs will enable us to return to profitability in this region in the
second half of 2013.

"Operationally, we executed well on our accelerated cost reduction roadmap as
we beat our blended cost per watt goal for the fourth quarter and fiscal year
as overall manufacturing cost declined by more than 25 percent for 2012,"
continued Werner. "It was also a year where we extended our technology
leadership position with initial production of our 23.5 percent mean
efficiency, third-generation Maxeon solar cell, as well as the industry's
first 21 percent efficient solar panel. Customers continue to choose SunPower
due to our high efficiency technology, superior energy output and industry
leading quality which drives a competitive total system cost across all of our
end markets.

"2012 was a difficult year for the industry and I'm very pleased with our
competitive position. As we look into 2013, we enter the year with a solid
foundation to win in the power plant and rooftop segments. Importantly, with
the monetization of our AVSP projects, continued construction of our CVSR
installation and further expected gains in our residential business, we now
have significant revenue and margin visibility for our business for multiple
years. This visibility, combined with our diversified end market approach,
strong technology roadmap, cost reduction initiatives and solid balance sheet,
gives us confidence that 2013 will be a much stronger year financially for
SunPower," concluded Werner.

Key milestones achieved by the company since the third quarter of 2012
include:

  oSold 579-MW AVSP projects, the largest permitted PV development in the
    world, to MidAmerican Solar
  oAchieved more than 25 percent blended panel cost reduction in 2012
  oInstalled more than 180 MW to date for 250-MW CVSR project – 130-MW grid
    connected
  oSigned Chinese SunPower C7 Tracker concentrator joint venture agreement
  oStarted construction of two projects in South Africa totaling 33-MW
  oRecord volume to Japan – approximately 15 percent of shipments in the
    fourth quarter
  oFinalized agreement with U.S. Bancorp for $100 million in lease financing
    capacity
  oResidential lease program – 14,200 customers / 114 MW booked to date

"Our fourth quarter results reflect the continued execution of our long-term
strategic plan as we exceeded our margin targets for the quarter and
significantly strengthened our overall financial position," said Chuck
Boynton, SunPower CFO. "In addition, we successfully managed our working
capital during the fourth quarter as we further reduced inventory by $115
million while driving $40 million in free cash flow. For 2013, we will
continue our focus on prudently managing our balance sheet, and firmly believe
we can sustainably increase our earnings and free cash flow while building
significant shareholder value in our residential leasing program."

Fourth quarter fiscal 2012 GAAP results include pre-tax charges, expenses and
adjustments totaling approximately $179.3 million, including a $82.3 million
gross margin adjustment related to the timing of revenue recognition from
utility power plant projects and construction activities, $39.6 million in
restructuring charges related to various restructuring plans put in place to
restructure the company's global operations and improve overall operating
efficiency, $19.2 million in stock-based compensation, non-cash interest
expense and amortization of intangible expenses, $2.8 million related to
charges on manufacturing step reduction program, $14.1 million related to a
non-recurring impairment of idle equipment, $19.7 million related to
settlement in the class action lawsuit and $1.6 million related to
acquisition and integration costs. These adjustments and charges are excluded
from the company's non-GAAP results. Additionally, fourth-quarter GAAP
results exclude an adjustment of approximately $106.1 million in revenue
related to GAAP real estate accounting requirements.

First Quarter 2013 Financial Outlook

The company's first quarter 2013 consolidated non-GAAP guidance is as follows:
revenue of $475 million to $550 million, gross margin of 18 percent to 22
percent, earnings per diluted share of $0.05 to $0.20, capital expenditures of
$30 million to $40 million and MW recognized in the range of 150 MW to 170
MW. On a GAAP basis, the company expects revenue of $450 million to $525
million, gross margin of 3 percent to 7 percent and loss per diluted share of
$0.85 to $0.60.

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 2012 performance on the Events and Presentations section of the
SunPower Investor Relations page at
http://investors.sunpowercorp.com/events.cfm. The capacity of power plants in
this release is described in approximate megawatts on an alternating current
(ac) basis unless otherwise noted.

About SunPower

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.SunPowercorp.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that do not represent historical facts and may be
based on underlying assumptions. The company uses words and phrases such as
"on plan," "opportunity," "in process," "well positioned," "to manufacture,"
"will," "continue to," "to win," "expected," "visibility," "agreement with,"
"continued," "believe," "guidance," and similar expressions to identify
forward-looking statements in this press release, including forward-looking
statements regarding: (a) remaining on plan to complete the construction of
CVSR by end of 2013; (b) long term global growth opportunity for our
residential lease program, being well positioned for NA residential lease
segment in 2013 and expected gains in our residential business; (c) additional
financings currently in process for residential lease; (d) signing an
agreement to manufacture C7 in China; (e) returning to profitability in Europe
in the second half of 2013; (f) customers continuing to choose SunPower; (g)
entering 2013 with a solid foundation to win in power plant and rooftop
segments; (h) revenue and margin visibility for multiple years; (i) 2013 being
a much stronger year financially for SunPower; (j) agreement with US Bancorp
for lease financing capacity; (k) sustainably increasing earnings and free
cash flow, while building significant shareholder value in our leasing program
for 2013; and (l) forecasted GAAP and non-GAAP Q1 2013 revenues, GAAP and
non-GAAP gross margins, GAAP and non-GAAP earnings/loss per diluted share,
capital expenditures and MW recognized. Such forward-looking statements are
based on information available to the company as of the date of this release
and involve a number of risks and uncertainties, some beyond the company's
control, that could cause actual results to differ materially from those
anticipated by these forward-looking statements, including risks and
uncertainties such as: (i) increasing supply and competition in the industry
and lower average selling prices, impact on revenues, gross margins, and any
revaluation of inventory as a result of decreasing ASP or reduced demand; (ii)
the impact of regulatory changes and the continuation of governmental and
related economic incentives promoting the use of solar power, and the impact
of such changes on our revenues, financial results, and any potential
impairments or write off to our intangible assets, project assets and
long-lived assets; (iii) events that prevent or delay notice to proceed from
being issued for the Antelope Valley Solar Ranch phase 1 project (309 MW),
company's success in completing the design, construction and maintenance of
CVSR and Antelope Valley Solar Ranch, and any early termination in the
agreements between NRG or MidAmerican and SunPower for these projects, and any
liquidated damages that are payable under these agreements; (iv) the company's
ability to meet its cost reduction plans and reduce its operating expenses;
(v) the company's ability to obtain and maintain an adequate supply of raw
materials, components, and solar panels, as well as the price it pays for such
items, third parties' willingness to renegotiate or cancel above market
contracts, and the resolution of any disputes relating to suppliers; (vi)
general business and economic conditions, including seasonality of the solar
industry and growth trends in the solar industry; (vii) the company's ability
to obtain additional financing for its residential lease program and its
ability to grow the residential lease program in NA and globally; (viii)
construction difficulties or potential delays, including obtaining land use
rights, permits, license, other governmental approvals, and transmission
access and upgrades, and any litigation relating thereto; (ix) timeline for
revenue recognition and impact on the company's operating results; (x) the
significant investment required to construct power plants and the company's
ability to sell or otherwise monetize power plants; (xi) fluctuations in the
company's operating results and its unpredictability; (xii) the availability
of financing arrangements for the company's projects and the company's
customers; (xiii) potential difficulties associated with operating the joint
venture with AUO; (xiv) success in achieving cost reduction, and the company's
ability to remain competitive in its product offering, obtain premium pricing
while continuing to reduce costs and achieve lower targeted cost per watt;
(xv) the company's liquidity, substantial indebtedness, and its ability to
obtain additional financing; (xvi) manufacturing difficulties that could
arise;(xvii) the company's ability to achieve the expected benefits from its
relationship with Total; (xviii) the success of the company's ongoing research
and development efforts and the acceptance of the company's new products and
services; (xix) the company's ability to protect its intellectual property;
(xx) the company's exposure to foreign exchange, credit and interest rate
risk; (xxi) the joint venture in China's ability to obtain all required
government approvals and the company's ability to successfully operate the
joint venture in China; (xx) being able to manage market conditions in Europe
and reach profitability in Europe; (xxi) the accuracy of assumptions and
compliance with treasury cash grant and IRS guidance, and the timing and
amount of cash grant and investment tax credit received; (xxii) possible
consolidation of the joint venture AUO SunPower; and (xxiii) other risks
described in the company's Annual Report on Form 10-K for the year ended
January 1, 2012, Quarterly Reports on Form 10-Q for the quarters ended April
1, 2012, July 1, 2012 and September 30, 2012, and other filings with the
Securities and Exchange Commission. These forward-looking statements should
not be relied upon as representing the company's views as of any subsequent
date, and the company is under no obligation to, and expressly disclaims any
responsibility to, update or alter its forward-looking statements, whether as
a result of new information, future events or otherwise.



SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                 Dec. 30,       Jan. 1,
                                                 2012           2012
                                                                (1) (2)
ASSETS
Cash and cash equivalents                        $   457,487  $   725,618
Restricted cash and cash equivalents             46,964         79,555
Investments                                      10,885         9,145
Accounts receivable, net                         398,150        438,633
Costs and estimated earnings in excess of        36,395         54,854
billings
Inventories                                      291,386        445,501
Advances to suppliers                            351,405        327,521
Prepaid expenses and other assets                889,116        664,587
Property, plant and equipment, net               774,909        643,882
Project assets - plants and land                 83,507         58,857
Goodwill and other intangible assets, net        744            70,977
Total assets                                     $ 3,340,948   $ 3,519,130
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                 $   414,335  $   441,655
Accrued and other liabilities                    582,991        415,530
Billings in excess of costs and estimated        225,550        170,828
earnings
Bank loans and other debt                        390,361        366,395
Convertible debt                                 438,629        619,978
Customer advances                                295,730        230,019
Total liabilities                                2,347,596      2,244,405
Stockholders' equity                            993,352        1,274,725
Total liabilities and stockholders' equity       $ 3,340,948   $ 3,519,130

(1) As adjusted to reflect the balances of Tenesol S.A. beginning October 10,
2011, as required under the accounting guidelines for a transfer of an entity
under common control.

(2) As adjusted to conform to the current period presentation for solar power
systems leased and to be leased.





SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                                      
                    THREE MONTHS ENDED
                                                      TWELVE MONTHS ENDED
                    Dec. 30,    Sep. 30,   Jan. 1,    Dec. 30,    Jan. 1,
                    2012        2012       2012       2012        2012
                                           (1)                    (1)
Revenue:
AMERICAS            $520,200    $502,373   $323,460   $1,696,348  $1,266,347
EMEA                89,410      88,547     248,635    489,484     924,337
APAC                68,915      58,028     53,181     231,669     183,692
Total revenue       678,525     648,948    625,276    2,417,501   2,374,376
Cost of revenue:
AMERICAS            437,355     409,432    292,306    1,415,417   1,131,771
EMEA                137,071     111,622    247,712    559,993     868,330
APAC                57,222      47,121     42,980     195,693     148,057
Total cost of       631,648     568,175    582,998    2,171,103   2,148,158
revenue
Gross margin        46,877      80,773     42,278     246,398     226,218
Operating
expenses:
Research and        17,670      14,956     16,210     63,456      57,775
development
Selling, general    101,858     69,714     88,016     310,246     331,380
and administrative
Restructuring       39,634      10,544     7,458      100,823     21,403
charges
Goodwill and other
intangible asset    -           59,581     -          59,581      349,758
impairment
Total operating     159,162     154,795    111,684    534,106     760,316
expenses
Operating loss      (112,285)   (74,022)   (69,406)   (287,708)   (534,098)
Other income
(expense):
Gain (loss) on
sale of equity
interest in         -           -          (5,052)    -           5,937
unconsolidated
investee
Gain on share
lending             -           50,645     -          50,645      -
arrangement
Interest and other
income (expense),   (24,443)    (25,146)   (17,328)   (92,600)    (74,371)
net
Other income        (24,443)    25,499     (22,380)   (41,955)    (68,434)
(expense), net
Loss before income
taxes and equity
in earnings (loss)  (136,728)   (48,523)   (91,786)   (329,663)   (602,532)
of unconsolidated
investees
Benefit from
(provision for)     (9,300)     (593)      755        (21,842)    (17,208)
income taxes
Equity in earnings
(loss) of           1,257       578        (1,929)    (515)       6,003
unconsolidated
investees
Net loss            $(144,771)  $(48,538)  $(92,960)  $(352,020)  $(613,737)
Net loss per share
of common stock:
Net loss per share  $(1.22)     $(0.41)    $(0.94)    $(3.01)     $(6.28)
– basic
Net loss per share  $(1.22)     $(0.41)    $(0.94)    $(3.01)     $(6.28)
– diluted
Weighted-average
shares:
- Basic             119,148     118,952    98,527     117,093     97,724
- Diluted           119,148     118,952    98,527     117,093     97,724

(1) As adjusted to reflect the financial results of Tenesol S.A. beginning
October 10, 2011, as required under the accounting guidelines for a transfer
of an entity under common control.





SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
                    THREE MONTHS ENDED                TWELVE MONTHS ENDED
                    Dec. 30,    Sep. 30,   Jan. 1,    Dec. 30,    Jan. 1,
                    2012        2012       2012       2012        2012
                                           (1)                    (1)
Net loss            $          $        $        $          $ 
                    (144,771)  (48,538)  (92,960)   (352,020)  (613,737)
Components of
comprehensive
loss:
Translation         843         148        (2,666)    (959)       1,401
adjustment
Net unrealized
gain (loss) on      22          (2,611)    1,833      (10,716)    (175)
derivatives
Income taxes        (4)         490        (975)      2,012       2,276
Net change in
accumulated other   861         (1,973)    (1,808)    (9,663)     3,502
comprehensive
income (loss)
Total               $          $        $(94,768)  $          $ 
comprehensive loss  (143,910)  (50,511)             (361,683)  (610,235)

(1) As adjusted to reflect the financial results of Tenesol S.A. beginning
October 10, 2011, as required under the accounting guidelines for a transfer
of an entity under common control.





SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                    THREE MONTHS ENDED                TWELVE MONTHS ENDED
                    Dec. 30,    Sep. 30,   Jan. 1,    Dec. 30,    Jan. 1,
                    2012        2012       2012       2012        2012
                                (2)        (1) (2)    (2)         (1) (2)
Cash flows from
operating
activities:
Net loss            $(144,771)  $(48,538)  $(92,960)  $(352,020)  $(613,737)
Adjustments to
reconcile net loss
to net cash
provided by (used
in) operating
activities:
Stock-based         9,260       9,271      8,907      42,439      46,736
compensation
Depreciation        25,909      24,385     23,121     108,656     107,100
Loss on retirement
of property, plant  21,408      10,990     -          77,807      -
and equipment
Amortization of
other intangible    1,015       2,622      2,758      9,114       23,372
assets
Goodwill            -           46,734     -          46,734      309,457
impairment
Other intangible    -           12,847     -          12,847      40,301
asset impairment
Loss on sale of     -           -          -          -           191
investments
Gain on
mark-to-market      -           -          (12)       (4)         (343)
derivatives
Non-cash interest   8,841       13,990     7,515      38,177      28,627
expense
Amortization of
debt issuance       946         1,019      930        3,845       5,126
costs
Amortization of     -           -          -          -           3,486
promissory notes
Loss (gain) on
sale of equity
interest in         -           -          5,052      -           (5,937)
unconsolidated
investee
Gain on change in
equity interest in  -           -          -          -           (322)
unconsolidated
investee
Third-party
inventories         -           -          7,252      8,869       23,651
write-down
Project assets
write-down related
to change in        -           -          -          -           16,053
European
government
incentives
Gain on share
lending             -           (50,645)   -          (50,645)    -
arrangement
Equity in
(earnings) loss of  (1,257)     (578)      1,929      515         (6,003)
unconsolidated
investees
Deferred income
taxes and other     (4,442)     (2,553)    (13,525)   (4,332)     (14,385)
tax liabilities
Changes in
operating assets
and liabilities:
Accounts            (113,343)   (32,108)   71,970     11,522      23,383
receivable
Costs and
estimated earnings  29,167      3,027      44,469     18,458      41,165
in excess of
billings
Inventories         78,400      4,491      38,759     28,324      (81,994)
Project assets      78,520      (62,671)   9,129      (23,397)    (34,113)
Prepaid expenses    (100,720)   46,276     (59,643)   (136,121)   (182,687)
and other assets
Advances to         6,110       (11,673)   (30,957)   (23,883)    (40,492)
suppliers
Accounts payable
and other accrued   134,572     20,718     (18,176)   91,564      46,256
liabilities
Billings in excess
of costs and        85,926      (6,036)    107,143    54,723      121,488
estimated earnings
Customer advances   25,663      35,953     51,015     65,711      49,317
Net cash provided
by (used in)        141,204     17,521     164,676    28,903      (94,304)
operating
activities
Cash flows from
investing
activities:
Decrease
(increase) in
restricted cash     (21,750)    2,720      146,955    32,591      176,744
and cash
equivalents
Purchases of
property, plant     (25,753)    (16,389)   (45,984)   (104,786)   (131,512)
and equipment
Cash paid for
solar power         (49,791)    (49,249)   (11,631)   (150,446)   (11,631)
systems, leased
and to be leased
Proceeds from sale
of equipment to     5           -          13         424         514
third-party
Purchases of
marketable          -           (1,436)    (218)      (1,436)     (9,180)
securities
Proceeds from
sales or
maturities of       -           -          -          -           43,759
available-for-sale
securities
Cash received for
sale of investment  -           -          51,303     17,403      75,346
in unconsolidated
investee
Cash paid for
investments in      (3,817)     -          -          (13,817)    (80,000)
unconsolidated
investees
Net cash provided
by (used in)        (101,106)   (64,354)   140,438    (220,067)   64,040
investing
activities
Cash flows from
financing
activities:
Proceeds from
issuance of bank    25,000      -          -          150,000     489,221
loans, net of
issuance costs
Proceeds from
issuance of         -           13,830     -          27,617      -
project loans, net
of issuance costs
Proceeds from
residential lease   33,568      18,562     -          60,377      -
financing
Proceeds from
recovery of claim
in connection with  -           50,645     -          50,645      -
share lending
arrangement
Repayment of bank
loans, project      (27,651)    (25,295)   -          (154,078)   (377,124)
loans and other
debt
Cash paid for
repurchased                     -          -          (198,608)   -
convertible debt
Proceeds from
private offering
of common stock,    -           (65)       -          163,616     -
net of issuance
costs
Cash increase in
connection with
the transfer of     -           -          50,443     -           50,443
entities under
common control
Cash distributions
to Parent in
connection with     8,653       -          -          (169,637)   -
the transfer of
entities under
common control
Proceeds from
warrant             -           -          -          -           2,261
transactions
Proceeds from
exercise of stock   -           17         38         51          4,051
options
Purchases of stock
for tax
withholding         (261)       (226)      (1,194)    (5,691)     (11,744)
obligations on
vested restricted
stock
Net cash provided
by (used in)        39,309      57,468     49,287     (75,708)    157,108
financing
activities
Effect of exchange
rate changes on     954         241        (3,345)    (1,259)     (6,646)
cash and cash
equivalents
Net increase
(decrease) in cash  80,361      10,876     351,056    (268,131)   120,198
and cash
equivalents
Cash and cash
equivalents at      377,126     366,250    374,562    725,618     605,420
beginning of
period
Cash and cash
equivalents, end    $457,487    $377,126   $725,618   $457,487    $725,618
of period
Non-cash
transactions:
Assignment of
financing
receivables to a    $13,554     $7,736     $   -   $23,813     $   -
third party
financial
institution
Property, plant
and equipment
acquisitions        6,408       13,243     10,888     6,408       10,888
funded by
liabilities
Costs of solar
power systems,
leased and to be    37,625      38,591     10,158     117,692     10,158
leased, sourced
from existing
inventory
Costs of solar
power systems,
leased and to be    6,544       6,712      1,767      6,544       1,767
leased, funded by
liabilities
Non-cash interest
expense
capitalized and     612         411        327        1,773       2,423
added to the cost
of qualified
assets
Issuance of
warrants in
connection with     -           -          -          50,327      -
the Liquidity
Support Agreement

(1) As adjusted to reflect the financial results of Tenesol S.A. beginning
October 10, 2011, as required under the accounting guidelines for a transfer
of an entity under common control.
(2) As adjusted to conform to the current period presentation for solar power
systems leased and to be leased.





(In thousands, except per share
data)


            THREE MONTHS ENDED                 TWELVE MONTHS ENDED     THREE MONTHS ENDED           TWELVE MONTHS
                                                                                                    ENDED
            Dec. 30,    Sep. 30,   Jan. 1,     Dec. 30,    Jan. 1,     Dec. 30,  Sep.     Jan. 1,   Dec. 30,  Jan. 1,
                                                                                 30,
            2012        2012       2012        2012        2012        2012      2012     2012      2012      2012
                                   (1)                                                    (1)
            (Presented on a GAAP Basis)                                       (Presented on a non-GAAP Basis)
Gross       $46,877     $80,773    $42,278     $246,398    $226,218    $146,960  $85,464  $91,766   $403,994  $337,683
margin
Operating
income      $(112,285)  $(74,022)  $(69,406)   $(287,708)  $(534,098)  $58,654   $10,662  $(5,127)  $95,307   $18,673
(loss)
Net income (loss) per
share of common stock:
- Basic     $(1.22)     $(0.41)    $(0.94)     $(3.01)     $(6.28)     $0.18     $0.03    $0.04     $0.18     $0.16
- Diluted   $(1.22)     $(0.41)    $(0.94)     $(3.01)     $(6.28)     $0.18     $0.03    $0.04     $0.18     $0.16

(1) As adjusted to reflect the financial results of Tenesol S.A. beginning
October 10, 2011, as required under the accounting guidelines for a transfer
of an entity under common control.

About SunPower's Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with
GAAP, SunPower uses non-GAAP measures which are adjusted from the most
directly comparable GAAP results for certain items, as described below.In
addition, the presentation of non-GAAP gross margin and non-GAAP operating
income includes the results of discontinued operations. Management does not
consider these items in evaluating the core operational activities of
SunPower.The specific non-GAAP measureslisted below are gross margin,
operating income (loss) and net income (loss) per share. Management believes
that each of these non-GAAP measures (gross margin, operating income (loss)
and net income (loss) per share) are useful to investors by enabling them to
better assess changes in each of these key elements of SunPower's results of
operations across different reporting periods on a consistent basis,
independent of these items. Thus, each of these non-GAAP financial measures
provides investors withanother method for assessing SunPower's operating
results in a manner that is focused on its ongoing core operating performance,
absent the effects of these items. Management also uses these non-GAAP
measures internally to assess the business and financial performance of
current and historical results, for strategic decision making, forecasting
future results and evaluating the company's current performance.Many of the
analysts covering SunPower also use these non-GAAP measures in their analyses.
Given management's use of these non-GAAP measures, SunPower believes these
measures are important to investors in understanding SunPower's current and
future operating results as seen through the eyes of management.These
non-GAAP measures are not in accordance with or an alternative for GAAP
financial data, the non-GAAP measures should be reviewed together with the
GAAP measuresand are not intended to serve as a substitute for results under
GAAP, and may be different from non-GAAP measures used by other companies.

  oNon-GAAP gross margin. The use of this non-GAAP financial measure allows
    management to evaluate the gross margin of SunPower's core businesses and
    trends across different reporting periods on a consistent basis,
    independent of charges including amortization of intangible assets,
    stock-based compensation, charges on manufacturing step reduction program,
    certain losses due to change in European government incentives,
    acquisition and integration costs, and interest expense. In addition, the
    presentation of non-GAAP gross margin includes the revenue recognition of
    utility and power plant projects on a non-GAAP basis. This non-GAAP
    financial measure is an important component of management's internal
    performance measurement process as it is used to assess the currentand
    historical financial results of the business, for strategic decision
    making, preparing budgetsand forecasting future results. Management
    presents this non-GAAP financial measure to enable investors and analysts
    to evaluate SunPower's revenue generation performance relative to the
    direct costs of revenue of its core businesses.
  oNon-GAAP operating income (loss). The use of this non-GAAP financial
    measure allows management to evaluate the operating results of SunPower's
    core businesses and trends across different reporting periods on a
    consistent basis, independent of charges including goodwill and other
    intangible asset impairment , amortization of intangible assets and
    promissory notes, stock-based compensation, charges on manufacturing step
    reduction program, restructuring charges, acquisition and integration
    costs, certain losses due to change in European government incentives, and
    interest expense. In addition, the presentation of non-GAAP operating
    income (loss) includes the revenue recognition of utility and power plant
    projects on a non-GAAP basis. Non-GAAP operating income (loss) is an
    important component of management's internal performance measurement
    process as it is used to assess the current and historical financial
    results of the business, for strategic decision making, preparing budgets
    and forecasting future results. Management presents this non-GAAP
    financial measure to enable investors and analysts to understand the
    results of operations of SunPower's core businesses and to compare results
    of operations on a more consistent basis against that of other companies
    in the industry.
  oNon-GAAP net income (loss) per share. Management presents this non-GAAP
    financial measure to enable investors and analysts to assess SunPower's
    operating results and trends across different reporting periods on a
    consistent basis, independent of items including goodwill and other
    intangible asset impairment , amortization of intangible assets and
    promissory notes, stock-based compensation, charges on manufacturing step
    reduction program, restructuring charges, acquisition and integration
    costs, certain losses due to change in European government incentives,
    interest expense, net gains (losses) on mark-to-market derivative
    instruments, share lending arrangement , sale of or change in our equity
    interest in unconsolidated investee, and the tax effects of these non-GAAP
    adjustments. In addition, the presentation of non-GAAP net income (loss)
    includes the revenue recognition of utility and power plant projects on a
    non-GAAP basis. Management presents this non-GAAP financial measure to
    enable investors and analysts to compare SunPower's operating results on a
    more consistent basis against that of other companies in the industry.

Included items

  oRevenue and cost of revenue. The Company includes adjustments to Non-GAAP
    revenue and Non-GAAP cost of revenue related to the utility and power
    plant projects based on the separately identifiable components of the
    transactions in order to reflect the substance of the transactions. Such
    treatment is consistent with accounting rules under International
    Financial Reporting Standards (IFRS). On a GAAP basis, such revenue and
    costs of revenue are accounted for under U.S GAAP real estate accounting
    guidance. Management presents this non-GAAP financial measure to enable
    investors and analysts to evaluate SunPower's revenue generation
    performance relative to the direct costs of revenue of its core
    businesses.

Excluded Items

  oGoodwill and other intangible asset impairment. In the third quarters of
    2012 and 2011, the Company recorded goodwill and other intangible asset
    impairment of $59.6 million and $349.8 million, respectively, attributable
    to the change in public market valuation of the solar sector. SunPower
    excludes these items because these expenses are not reflective of ongoing
    operating results in the period incurred. These amounts arise from prior
    acquisitions and have no direct correlation to the operation of SunPower's
    core businesses.
  oAmortization of intangible assets. SunPower incurs amortization of
    intangible assets as a result of acquisitions, which includes in-process
    research and development, patents, project assets, purchased technology
    and trade names. SunPower excludes these items because these expenses are
    not reflective of ongoing operating results in the period incurred. These
    amounts arise from prior acquisitions and have no direct correlation to
    the operation of SunPower's core businesses.
  oStock-based compensation. Stock-based compensation relates primarily to
    SunPower stock awards such as stock options and restricted stock.
    Stock-based compensation is a non-cash expense that varies in amount from
    period to period and is dependent on market forces that are difficult to
    predict. As a result of this unpredictability, management excludes this
    item from its internal operating forecasts and models. Management believes
    that non-GAAP measures adjusted for stock-based compensation provide
    investors with a basis to measure the company's core performance against
    the performance of other companies without the variability created by
    stock-based compensation.
  oRestructuring charges. In the fourth quarter of fiscal 2011, the Company
    approved a company-wide restructuring program (the December 2011
    Restructuring Plan) in order to accelerate operating cost reduction and
    improve overall operating efficiency. In April 2012, as a result of
    continued cost reduction strategy, the Company approved a restructuring
    plan (the April 2012 Restructuring Plan) to consolidate its Philippine
    manufacturing operations into Fab 2 and begin repurposing Fab 1 in the
    second quarter of fiscal 2012. In October 2012, the Company approved a
    reorganization to accelerate operating cost reduction and improve overall
    operating efficiency (the October 2012 Restructuring Plan). 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.
  oCharges on manufacturing step reduction program. As part of its cost
    reduction roadmap, SunPower implemented a manufacturing step reduction
    program, which required the acceleration of depreciation on certain
    previously owned manufacturing equipment. The charges as a result of the
    acceleration of depreciation are excluded as they are non-cash in nature
    and not reflective of ongoing operating results. Excluding this data
    provides investors with a basis to compare the company's performance
    against the performance of other companies without such charges.
  oNon-recurring idle equipment impairment. In the fourth quarter of 2012,
    the Company changed the deployment plan for its next generation of solar
    cell technology, which made certain then temporarily idle equipment
    obsolete, and therefore, impaired those equipment. Such asset impairment
    is excluded from SunPower's non-GAAP financial measures as it is
    non-recurring and non-cash in nature and not reflective of ongoing
    operating results. Excluding this data provides investors with a basis to
    compare the company's performance against the performance of other
    companies without such charges.
  oClass action settlement. In December 2012, the Company reached an
    agreement in principle to settle the consolidated securities class action
    lawsuit for $19.7 million and recorded a charge of the same amount in the
    fourth quarter of 2012. The lawsuits arose from the Audit Committee's
    investigation announcement on November 16, 2009 regarding certain
    unsubstantiated accounting entries. The Company excludes this charge from
    its non-GAAP financial measures as it is non-recurring and not reflective
    of ongoing operating results. Excluding this data provides investors with
    a basis to compare the company's performance against the performance of
    other companies without such charges.
  oAcquisition and integration costs. SunPower excludes expenses such as
    legal, banking and other professional services incurred in connection with
    Total Gas& Power USA, SAS's investment in SunPower as well as integration
    costs related to Tenesol acquisition. SunPower excludes such charges
    because these expenses are not reflective of ongoing operating results in
    the period incurred. These amounts arise fromthe investment made by Total
    and the acquisition of Tenesol and have no direct correlation to the
    operation of SunPower's core businesses.
  oAmortization of promissory notes. Included in the total consideration for
    a prior acquisition completed on March 26, 2010 is $14 million in
    promissory notes to the acquiree's management shareholders issued by
    SunPower. Since the vesting and payment of the promissory notes are
    contingent on future employment, the promissory notes are considered
    deferred compensation and therefore are not included in the purchase price
    allocated to the net assets acquired. SunPower excludes this non-cash
    charge over the service period required under the terms of the promissory
    notes because these expenses are not reflective of ongoing operating
    results in the period incurred. These amounts arise from prior
    acquisitions and have no direct correlation to the operation of SunPower's
    core businesses.
  oLoss on change in European government incentives. On May 5, 2011, the
    Italian government announced a legislative decree which defined the
    revised feed-in-tariff ("FIT") and the transition process effective June
    1, 2011. The decree announced a decline in FIT and also set forth a limit
    on the construction of solar plants on agricultural land. Similarly, other
    European countries reduced government incentives for the solar market.
    Such changes had a materially negative effect on the market for solar
    systems in Europe and affected SunPower's financial results as follows:

       oRestructuring. In response to reductions in European government
         incentives, which have had a significant impact on the global solar
         market, on June13,2011, SunPower's Board of Directors approved a
         restructuring plan to realign its resources. As a result, SunPower
         recorded restructuring charges during fiscal 2011. 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.
       oWrite-down of project assets. Project assets consist primarily of
         capitalized costs relating to solar power system projects in various
         stages of development that we incur prior to the sale of the solar
         power system to a third party. These costs include costs for land and
         costs for developing and constructing a solar power system. The fair
         market value of these project assets declined due to SunPower's
         inability to develop, commercialize and sell active projects within
         Europe. Such charges are excluded from non-GAAP financial measures as
         they are related to a discrete event and are not reflective of
         ongoing operating results.
       oThird-party inventory charges. Charges relate to the write-down of
         third-party inventory and costs associated with the termination of
         above-market third-party solar cell supply contracts as the decline
         in European government incentives, primarily in Italy, has driven
         down demand and average selling price in certain areas of Europe.
         Such charges are excluded from non-GAAP financial measures as they
         are related to a discrete event and are not reflective of ongoing
         operating results.
       oLoss on foreign currency derivatives. SunPower has an active hedging
         program designed to reduce its exposure to movements in foreign
         currency exchange rates. As a part of this program, SunPower
         designates certain derivative transactions as effective cash flow
         hedges of anticipated foreign currency revenues and records the
         effective portion of changes in the fair value of such transactions
         in accumulated other comprehensive income (loss) until the
         anticipated revenues have occurred, at which point the associated
         income or loss would be recognized in revenue. In the first quarter
         of fiscal 2011, in connection with the decline in forecasted revenue
         surrounding the change in the Italian FIT, SunPower reclassified an
         amount held in accumulated other comprehensive income (loss) to other
         income (expense), net for certain previously anticipated transactions
         which did not occur or were now probable not to occur. SunPower
         excludes this item as it is not reflective of ongoing operating
         results and excluding this data provides investors with a basis to
         compare the company's performance against the performance of other
         companies without such transactions.

  oNon-cash interest expense. SunPower separately accounted for the liability
    and equity components of its convertible debt issued in 2007 in a manner
    that reflected interest expense equal to its non-convertible debt
    borrowing rate. In addition, SunPower measured the two share lending
    arrangements entered into in connection with its convertible debt issued
    in 2007 at fair value and amortized the imputed share lending costs in
    current and prior periods. As a result, SunPower incurs interest expense
    that is substantially higher than interest payable on its 1.25% senior
    convertible debentures and 0.75% senior convertible debentures.
    In addition, SunPower 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, SunPower incurs interest expense that is substantially higher than
    interest payable on its 4.5% senior cash convertible debentures. SunPower
    excludes non-cash interest expense because the expense is not reflective
    of its ongoing 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 is
    recorded as debt issuance costs and amortized over the expected life of
    the agreement. As a result, SunPower incurs non-cash interest expense
    associated with the amortization of the warrants. Excluding this data
    provides investors with a basis to compare the company's performance
    against the performance of other companies without non-cash interest
    expense.
  oGain (loss) on mark-to-market derivative instruments. In connection with
    the issuance of its 4.5% senior cash convertible debentures in 2010,
    SunPower entered into certain convertible debenture hedge and warrant
    transactions with respect to its class A common stock intended to reduce
    the potential cash payments that would occur upon conversion of the
    debentures. The convertible debenture hedge and warrant transactions
    consisting of call option instruments are deemed to be mark-to-market
    derivatives until such transactions settle or expire. As of December 23,
    2010, the warrant transactions were amended to be share-settled rather
    than cash-settled, therefore, the warrant transactions are not subject to
    mark-to-market accounting treatment subsequent to December 23, 2010. In
    addition, the embedded cash conversion option of the debt is deemed to be
    a mark-to-market derivative instrument during the period in which the cash
    convertible debt remains outstanding. Finally, the over-allotment option
    in favor of the debenture underwriters is deemed a mark-to-market
    derivative instrument during the period the over-allotment option remained
    unexercised, or from April 1, 2010 through April 5, 2010. SunPower
    excluded the net gain (loss) relating to the above mentioned derivative
    instruments from its non-GAAP results because it was not realized in cash
    and it is not reflective of the company's ongoing financial results.
    Excluding this data provides investors with a basis to compare the
    company's performance against the performance of other companies without a
    net non-cash gain (loss) on mark-to-market derivative instruments.
  oGain on share lending arrangement. The Company loaned 2.9 million shares
    of its class A common stock to Lehman Brothers International (Europe)
    Limited ("LBIE") in 2007. On September 15, 2008, Lehman Brothers Holding
    Inc. ("Lehman") filed bankruptcy and thus the Company recorded a $213.4
    million non-cash loss in the third quarter of 2008. In the fourth quarter
    of 2010, the Company entered into an assignment agreement with Deutsche
    Bank AG - London Branch ("Deutsche Bank") under which the Company assigned
    to Deutsche Bank its claims against LBIE in connection with the share
    lending arrangement for cash proceeds of $24.0 million. On July 3, 2012,
    pursuant to the February 2007 Share Lending Arrangement with LBIE and its
    2010 assignment of claims to Deutsche Bank after the 2008 bankruptcy
    filing of Lehman, the Company received $50.6 million of claim settlement
    in cash from Deutsche Bank for the shares loaned to LBIE, which shares
    were not returned to the Company following the bankruptcy of Lehman. The
    Company had excluded the $213.4 million non-cash loss in the third quarter
    of 2008 from its non-GAAP results of operations. The Company has also
    excluded the $24.0 million and $50.6 million of cash received from the
    sale of its claim against LBIE to Deutsche Bank in the fourth quarter of
    2010 and in the third quarter of 2012, respectively. Excluding the data
    related to the share lending arrangement provides investors with a basis
    to compare the Company's performance against the performance of other
    companies without such non-operational transactions.
  oGain on change in equity interest in unconsolidated investee. On June 30,
    2010, Woongjin Energy Co., Ltd ("Woongjin Energy") completed its initial
    public offering and the sale of 15.9 million new shares of common stock.
    In the second quarter of 2011, Woongjin Energy issued additional equity to
    other investors. SunPower did not participate in these common stock
    issuances by Woongjin Energy. As a result of the new common stock
    issuances by Woongjin Energy, SunPower's percentage equity interest in
    Woongjin Energy decreased and SunPower recognized a non-cash gain in both
    the second quarter of 2011 and 2010, representing the excess of the price
    over SunPower's per share carrying value of its shares. SunPower excluded
    the non-cash gain from its non-GAAP results because it was not realized in
    cash and it is not reflective of its ongoing financial results. Excluding
    this data provides investors with a basis to compare SunPower's
    performance against the performance of other companies without non-cash
    income from a gain on change in its equity interest in unconsolidated
    investees.
  oGain on sale of equity interest in unconsolidated investee. As noted in
    the "Gain on change in equity interest in unconsolidated investee" section
    above, SunPower previously excluded certain non-cash gains from its
    non-GAAP results.During the first quarter of 2012, SunPower sold its
    equity interests in Woongjin Energy. As the gain on sale was now realized
    in cash, SunPower recognized an incremental gain on sale in its non-GAAP
    results based on the cumulative amount of gains previously excluded from
    non-GAAP results and the proportional amount of equity interests sold.
  oTax effect. This amount is used to present each of the amounts described
    above on an after-tax basis with the presentation of non-GAAP net income
    (loss) per share. Beginning in the first quarter of 2012, the Company's
    non-GAAP tax amount is based on estimated cash tax expense and reserves.
    This approach is designed to enhance the ability of investors to
    understand 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. The Company forecasts its annual cash tax liability and allocates
    the tax to each quarter in proportion to earnings for that period.
    Non-GAAP tax amounts for periods prior to fiscal 2012 have not been
    adjusted to reflect this new methodology.

For more information on 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 and 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
(Unaudited)
(In thousands, except per share data)
STATEMENT OF OPERATIONS DATA:


               THREE MONTHS ENDED                                  TWELVE MONTHS ENDED
               Dec. 30,           Sep. 30,         Jan. 1,         Dec. 30,            Jan. 1,
               2012               2012             2012            2012                2012
                                                   (1)                                 (1)
GAAP AMERICAS  $               $             $            $                   $
revenue        520,200            502,373                         1,696,348          1,266,347
                                                   323,460
Utility and
power plant    106,052            (42,268)         186,423         204,811             186,423
projects
Non-GAAP       $               $             $            $                   $
AMERICAS       626,252            460,105                         1,901,159          1,452,770
revenue                                            509,883
GAAP EMEA      $              $             $            $                 $  
revenue        89,410              88,547                        489,484             924,337
                                                   248,635
Change in
European       -                  -                (649)           (193)               (649)
government
incentives
Non-GAAP EMEA  $              $             $            $                 $  
revenue        89,410              88,547                        489,291             923,688
                                                   247,986
GAAP total     $               $             $            $                   $
revenue        678,525            648,948                         2,417,501          2,374,376
                                                   625,276
Utility and
power plant    106,052            (42,268)         186,423         204,811             186,423
projects
Change in
European       -                  -                (649)           (193)               (649)
government
incentives
Non-GAAP       $               $             $            $                   $
total revenue  784,577            606,680                         2,622,119          2,560,150
                                                   811,050
GAAP AMERICAS  $              $             $            $                 $  
gross margin   82,845    15.9%     92,941 18.5%          9.6%   280,931    16.6%    134,576    10.6%
                                                   31,154
Utility and
power plant    82,294             (5,815)          39,386          107,163             39,386
projects
Amortization
of intangible  42                 42               42              167                 404
assets
Stock-based
compensation   1,438              1,589            1,015           6,181               5,974
expense
Acquisition
and            (12)               15               -               14                  -
integration
costs
Change in
European       -                  -                3,386           4,029               20,765
government
incentives
Charges on
manufacturing
step           1,667              3,958            -               8,095               -
reduction
program
Non-recurring
idle           7,001              -                -               7,001               -
equipment
impairment
Non-cash
interest       293                308              177             1,024               1,194
expense
Non-GAAP       $               $             $            $                 $  
AMERICAS       175,568   28.0%     93,038 20.2%          14.7%  414,605    21.8%    202,299    13.9%
gross margin                                       75,160
GAAP EMEA                                          $            $                 $   
gross margin   (47,661)  (53.3%)  (23,075) (26.1%)      0.4%   (70,509)  (14.4%)  56,007     6.1%
                                                   923
Amortization
of intangible  -                  751              795             2,341               858
assets
Stock-based
compensation   693                795              1,083           3,851               6,183
expense
Acquisition
and            (4)                5                -               6                   -
integration
costs
Change in
European       -                  -                2,509           3,171               31,634
government
incentives
Charges on
manufacturing
step           575                1,444            -               3,667               -
reduction
program
Non-recurring
idle           2,415              -                -               2,415               -
equipment
impairment
Non-cash
interest       101                112              165             526                 1,148
expense
Non-GAAP EMEA  $               $             $            $                 $   
gross margin   (43,881)  (49.1%)  (19,968) (22.6%)       2.2%   (54,532)  (11.1%)  95,830     10.4%
                                                   5,475
                                  -
GAAP APAC      $              $             $            $                $   
gross margin   11,693    17.0%     10,907 18.8%          19.2%  35,976     15.5%    35,635     19.4%
                                                   10,201
Amortization
of intangible  -                  -                -               -                   -
assets
Stock-based
compensation   453                368              185             1,578               1,030
expense
Acquisition
and            (4)                4                -               2                   -
integration
costs
Change in
European       -                  -                708             1,476               2,667
government
incentives
Charges on
manufacturing
step           582                1,034            -               2,150               -
reduction
program
Non-recurring
idle           2,447              -                -               2,447               -
equipment
impairment
Non-cash
interest       102                81               37              292                 222
expense
Non-GAAP APAC  $              $             $            $                $   
gross margin   15,273    22.2%     12,394 21.4%          20.9%  43,921     19.0%    39,554     21.5%
                                                   11,131
GAAP total     $              $             $            $                 $  
gross margin   46,877    6.9%      80,773 12.4%          6.8%   246,398    10.2%    226,218    9.5%
                                                   42,278
Utility and
power plant    82,294             (5,815)          39,386          107,163             39,386
projects
Amortization
of intangible  42                 793              837             2,508               1,262
assets
Stock-based
compensation   2,584              2,752            2,283           11,610              13,187
expense
Acquisition
and            (20)               24               -               22                  -
integration
costs
Change in
European       -                  -                6,603           8,676               55,066
government
incentives
Charges on
manufacturing
step           2,824              6,436            -               13,912              -
reduction
program
Non-recurring
idle           11,863             -                -               11,863              -
equipment
impairment
Non-cash
interest       496                501              379             1,842               2,564
expense
Non-GAAP       $               $             $            $                 $  
total gross    146,960   18.7%     85,464 14.1%          11.3%  403,994    15.4%    337,683    13.2%
margin                                             91,766
GAAP           $               $             $            $                 $  
operating      159,162            154,795                         534,106             760,316
expenses                                           111,684
Amortization
of intangible  (973)              (1,829)          (1,921)         (6,606)             (22,110)
assets
Stock-based
compensation   (6,676)            (6,519)          (5,013)         (30,829)            (31,938)
expense
Goodwill and
other
intangible     -                  (59,581)         -               (59,581)            (349,758)
asset
impairment
December 2011
Restructuring  140                (2,098)          (7,477)         (7,946)             (7,477)
Plan
Acquisition
and            (1,613)            (1,495)          (372)           (5,544)             (13,924)
integration
costs
Amortization
of promissory  -                  -                -               -                   (3,486)
notes
Change in
European       (962)              (224)            19              (1,271)             (12,562)
government
incentives
April 2012
Restructuring  (8,585)            (8,222)          -               (61,379)            -
Plan
October 2012
Restructuring  (30,227)           -                -               (30,227)            -
Plan
Non-recurring
idle           (2,226)            -                -               (2,226)             -
equipment
impairment
Class action   (19,700)           -                -               (19,700)            -
settlement
Non-cash
interest       (34)               (25)             (27)            (110)               (51)
expense
Non-GAAP       $              $             $            $                 $  
operating      88,306              74,802                       308,687             319,010
expenses                                           96,893
GAAP           $                $             $            $                  $ 
operating      (112,285)          (74,022)                        (287,708)          (534,098)
income (loss)                                      (69,406)
Utility and
power plant    82,294             (5,815)          39,386          107,163             39,386
projects
Goodwill and
other
intangible     -                  59,581           -               59,581              349,758
asset
impairment
December 2011
Restructuring  (140)              2,098            7,477           7,946               7,477
Plan
Amortization
of intangible  1,015              2,622            2,758           9,114               23,372
assets
Stock-based
compensation   9,260              9,271            7,296           42,439              45,125
expense
Acquisition
and            1,593              1,519            372             5,566               13,924
integration
costs
Amortization
of promissory  -                  -                -               -                   3,486
notes
Change in
European       962                224              6,584           9,947               67,628
government
incentives
April 2012
Restructuring  8,585              8,222            -               61,379              -
Plan
Charges on
manufacturing
step           2,824              6,436            -               13,912              -
reduction
program
October 2012
Restructuring  30,227             -                -               30,227              -
Plan
Non-recurring
idle           14,089             -                -               14,089              -
equipment
impairment
Class action   19,700             -                -               19,700              -
settlement
Non-cash
interest       530                526              406             1,952               2,615
expense
Non-GAAP       $              $             $            $                $   
operating      58,654              10,662                       95,307              18,673
income (loss)                                      (5,127)

(1) As adjusted to reflect the financial results of Tenesol S.A. beginning
October 10, 2011, as required under the accounting guidelines for a transfer
of an entity under common control.





NET INCOME (LOSS) PER SHARE:


                                   THREE MONTHS ENDED          TWELVE MONTHS
                                                               ENDED
                                   Dec.      Sep.     Jan. 1,  Dec.      Jan. 1,
                                   30,       30,               30,
                                   2012      2012     2012     2012      2012
Basic:
GAAP net income                    $(1.22)   $(0.41)  $(0.94)  $(3.01)   $(6.28)
(loss) per share
Reconciling
items:
Utility and
power plant                        0.69      (0.05)   0.39     0.91      0.40
project
Goodwill and
other intangible                   -         0.50     -        0.51      3.58
asset impairment
December 2011
Restructuring                      -         0.02     0.08     0.07      0.08
Plan
Amortization of
intangible                         0.01      0.02     0.03     0.08      0.24
assets
Stock-based
compensation                       0.08      0.08     0.07     0.36      0.45
expense
Acquisition and
integration                        0.01      0.01     -        0.05      0.14
costs
Amortization of                    -         -        -        -         0.04
promissory notes
Loss on change
in European                        0.01      -        0.07     0.08      0.74
government
incentives
April 2012
Restructuring                      0.07      0.07     -        0.52      -
Plan
Charges on
manufacturing                      0.03      0.06     -        0.12      -
step reduction
program
October 2012
Restructuring                      0.25      -        -        0.26      -
Plan
Non-recurring
idle equipment                     0.12      -        -        0.12      -
impairment
Class action                       0.17      -        -        0.17      -
settlement
Non-cash                           0.07      0.12     0.08     0.33      0.29
interest expense
Mark-to-market                     -         -        -        -         -
derivatives
Gain on sale of
equity interest
in                                 -         -        0.22     0.02      0.27
unconsolidated
investee
Gain on share
lending                            -         (0.43)   -        (0.43)    -
arrangement
Tax effect                         (0.11)    0.04     0.04     0.02      0.21
Non-GAAP net
income (loss)                      $0.18     $0.03    $0.04    $0.18     $0.16
per share
Diluted:
GAAP net income                    $(1.22)   $(0.41)  $(0.94)  $(3.01)   $(6.28)
(loss) per share
Reconciling
items:
Utility and
power plant                        0.69      (0.05)   0.40     0.91      0.40
project
Goodwill and
other intangible                   -         0.50     -        0.51      3.57
asset impairment
December 2011
Restructuring                      -         0.02     0.08     0.07      0.08
Plan
Amortization of
intangible                         0.01      0.02     0.03     0.08      0.24
assets
Stock-based
compensation                       0.08      0.08     0.07     0.36      0.46
expense
Acquisition and
integration                        0.01      0.01     -        0.05      0.14
costs
Amortization of                    -         -        -        -         0.04
promissory notes
Loss on change
in European                        0.01      -        0.07     0.08      0.74
government
incentives
April 2012
Restructuring                      0.07      0.07     -        0.52      -
Plan
Charges on
manufacturing                      0.03      0.06     -        0.12      -
step reduction
program
October 2012
Restructuring                      0.25      -        -        0.26      -
Plan
Non-recurring
idle equipment                     0.12      -        -        0.12      -
impairment
Class action                       0.17      -        -        0.17      -
settlement
Non-cash                           0.07      0.12     0.08     0.33      0.29
interest expense
Gain on sale of
equity interest
in                                 -         -        0.21     0.02      0.27
unconsolidated
investee
Gain on share
lending                            -         (0.43)   -        (0.43)    -
arrangement
Tax effect                         (0.11)    0.04     0.04     0.02      0.21
Non-GAAP net
income (loss)                      $0.18     $0.03    $0.04    $0.18     $0.16
per share
Weighted-average
shares:
GAAP net income
(loss) per
share:
- Basic                            119,148   118,952  98,527   117,093   97,724
- Diluted                          119,148   118,952  98,527   117,093   97,724
Non-GAAP net
income (loss)
per share:
- Basic                            119,148   118,952  98,527   117,093   97,724
- Diluted                          120,034   119,176  98,926   117,717   99,241
Q1 2013 GUIDANCE
(in thousands    Q1 2013
except per share
data)
Revenue (GAAP)   $450,000-$525,000
Revenue          $475,000-$550,000
(non-GAAP)       (a)
Gross margin     3%-7%
(GAAP)
Gross margin     18%-22% (b)
(non-GAAP)
Net loss per
diluted share    ($0.85)-($0.60)
(GAAP)
Net earnings per
diluted share    $0.05-$0.20 (c)
(non-GAAP)

(a) Estimated non-GAAP amounts above include a net adjustment of approximately
$25 million of the estimated revenue for utility and power plant projects for
Q1 2013.
(b) Estimated non-GAAP amounts above reflect adjustments that include the
gross margin of approximately $71 million related to the non-GAAP revenue
adjustments that are discussed above. In addition, the estimated non-GAAP
amounts exclude estimated stock-based compensation expense of approximately $3
million, and estimated non-cash interest expense of approximately $1 million.
(c) Estimated non-GAAP amounts above reflect adjustments that include the
gross margin of approximately $71 million related to the non-GAAP revenue
adjustments that are discussed above. In addition, the estimated non-GAAP
amounts estimated stock-based compensation expense of approximately $12
million, estimated restructuring charges of approximately $8 million,
estimated non-cash interest expense of approximately $12 million, estimated
acquisition and integration costs of approximately $1 million, and the related
tax effects of these non-GAAP adjustments.


The following supplemental data represents the adjustments, individual charges
and credits that are included and/or excluded from SunPower's non-GAAP
financial measures for each period presented in the Condensed Consolidated
Statements of Operations contained herein.

               SUPPLEMENTAL DATA
               (In thousands)
               THREE MONTHS ENDED
               December 30, 2012
               Revenue             Cost of revenue         Operating expenses                                   Benefit
                                                                                                           Other     from
                                                               Research    Selling,                      income     (provision
               AMERICAS  EMEA   APAC AMERICAS   EMEA    APAC   and          general         Restructuring (expense), for)
                                                               development and             charges       net       income
                                                                            administrative                           taxes
Utility and
power plant    $106,052  $ -    $ -  $(23,758)  $ -    $ -   $ -         $ -            $ -           $ -        $ -
projects
Amortization
of intangible  -         -      -    42         -       -      -            973             -              -          -
assets
Stock-based
compensation   -         -      -    1,438      693     453    1,085        5,591           -              -          -
expense
December 2011
Restructuring  -         -      -    -          -       -      -            -               (140)          -          -
Plan
Acquisition
and            -         -      -    (12)       (4)     (4)    -            1,613           -              -          -
integration
costs
Loss on change
in European    -         -      -    -          -       -      -            -               962            -          -
government
incentives
April 2012
Restructuring  -         -      -    -          -       -      -            -               8,585          -          -
Plan
Charges on
manufacturing  -         -      -    1,667      575     582    -            -               -              -          -
step reduction
program
October 2012
Restructuring  -         -      -    -          -       -      -            -               30,227         -          -
Plan
Non-recurring
idle equipment -         -      -    7,001      2,415   2,447  2,226        -               -              -          -
impairment
Class action   -         -      -    -          -       -      -            19,700          -              -          -
settlement
Non-cash
interest       -         -      -    293        101     102    5            29              -              8,311      -
expense
Tax effect     -         -      -    -          -       -      -            -               -              -          (12,823)
               $106,052  $ -    $ - $(13,329)  $3,780  $3,580 $3,316       $27,906         $39,634        $8,311     $(12,823)
               September 30, 2012
               Revenue             Cost of revenue         Operating expenses                                   Benefit
                                                                                                           Other     from
                                                               Research    Selling,                      income     (provision
               AMERICAS  EMEA   APAC AMERICAS   EMEA    APAC   and          general         Restructuring (expense), for)
                                                               development and             charges       net       income
                                                                            administrative                           taxes
Utility and
power plant    $(42,268) $ -    $ - $36,453    $ -    $ -   $ -          $ -            $ -            $ -        $ -
projects
Amortization
of intangible  -         -      -    42         751     -      -            1,829           -              -          -
assets
Stock-based
compensation   -         -      -    1,589      795     368    1,045        5,474           -              -          -
expense
Goodwill and
other
intangible     -         -      -    -          -       -      -            59,581          -              -          -
asset
impairment
December 2011
Restructuring  -         -      -    -          -       -      -            -               2,098          -          -
Plan
Acquisition
and            -         -      -    15         5       4      -            1,495           -              -          -
integration
costs
Loss on change
in European    -         -      -    -          -       -      -            -               224            -          -
government
incentives
April 2012
Restructuring  -         -      -    -          -       -      -            -               8,222          -          -
Plan
Charges on
manufacturing  -         -      -    3,958      1,444   1,034  -            -               -              -          -
step reduction
program
Non-cash
interest       -         -      -    308        112     81     3            22              -              13,464     -
expense
Mark-to-market -         -      -    -          -       -      -            -               -              -          -
derivatives
Loss on sale
of equity
interest in    -         -      -    -          -       -      -            -               -              -          -
unconsolidated
investee
Gain on share
lending        -         -      -    -          -       -      -            -               -              (50,645)   -
arrangement
Tax effect     -         -      -    -          -       -      -            -               -              -          4,532
               $(42,268) $ -    $ -  $42,365    $3,107  $1,487 $1,048       $68,401         $10,544        $(37,181)  $4,532
               January 1, 2012
               Revenue             Cost of revenue         Operating expenses                                   Benefit
                                                                                                           Other     from
                                                               Research    Selling,                      income     (provision
               AMERICAS  EMEA   APAC AMERICAS   EMEA    APAC   and          general         Restructuring (expense), for)
                                                               development and             charges       net       income
                                                                            administrative                           taxes
Utility and
power plant    $186,423  $ -    $ -  $(147,037) $ -    $ -   $ -          $ -            $ -            $ -       $ -
project
Amortization
of intangible  -         -      -    42         795     -      -            1,921           -              -          -
assets
Stock-based
compensation   -         -      -    1,015      1,083   185    1,054        3,959           -              -          -
expense
December 2011
Restructuring  -         -      -    -          -       -      -            -               7,477          -          -
Plan
Acquisition
and            -         -      -    -          -       -      -            372             -              -          -
integration
costs
Loss on change
in European    -         (649)  -    3,386      3,158   708    -            -               (19)           -          -
government
incentives
Non-cash
interest       -         -      -    177        165     37     4            23              -              7,109      -
expense
Mark-to-market -         -      -    -          -       -      -            -               -              (12)       -
derivatives
Loss on sale
of equity
interest in    -         -      -    -          -       -      -            -               -              21,589     -
unconsolidated
investee
Tax effect     -         -      -    -          -       -      -            -               -              -          4,203
               $186,423  $(649) $ -  $(142,417) $5,201  $930   $1,058       $6,275          $7,458         $28,686    $4,203
               TWELVE MONTHS ENDED
               December 30, 2012
               Revenue             Cost of revenue         Operating expenses                                   Benefit
                                                                                                           Other     from
                                                               Research    Selling,                      income     (provision
               AMERICAS  EMEA   APAC AMERICAS   EMEA    APAC   and          general         Restructuring (expense), for)
                                                               development and             charges       net       income
                                                                            administrative                           taxes
Utility and
power plant    $204,811  $ -    $ -  $(97,648)  $ -     $ -   $ -          $ -            $ -           $ -        $ -
projects
Amortization
of intangible  -         -      -    167        2,341   -      -            6,606           -              -          -
assets
Stock-based
compensation   -         -      -    6,181      3,851   1,578  5,005        25,824          -              -          -
expense
Goodwill and
other
intangible     -         -      -    -          -       -      -            59,581          -              -          -
asset
impairment
December 2011
Restructuring  -         -      -    -          -       -      -            -               7,946          -          -
Plan
Acquisition
and            -         -      -    14         6       2      -            5,544           -              -          -
integration
costs
Loss on change
in European    -         (193)  -    4,029      3,364   1,476  -            -               1,271          -          -
government
incentives
April 2012
Restructuring  -         -      -    -          -       -      -            -               61,379         -          -
Plan
Charges on
manufacturing  -         -      -    8,095      3,667   2,150  -            -               -              -          -
Step Reduction
Program
October 2012
Restructuring  -         -      -    -          -       -      -            -               30,227         -          -
Plan
Non-recurring
idle equipment -         -      -    7,001      2,415   2,447  2,226        -               -              -          -
impairment
Class action   -         -      -    -          -       -      -            19,700          -              -          -
settlement
Non-cash
interest       -         -      -    1,024      526     292    14           96              -              36,225     -
expense
Mark-to-market -         -      -    -          -       -      -            -               -              (4)        -
derivatives
Loss on sale
of equity
interest in    -         -      -    -          -       -      -            -               -              2,753      -
unconsolidated
investee
Gain on share
lending        -         -      -    -          -       -      -            -               -              (50,645)   -
arrangement
Tax effect     -         -      -    -          -       -      -            -               -              -          2,132
               $204,811  $(193) $ - $(71,137)  $16,170 $7,945 $7,245       $117,351        $100,823       $(11,671)  $2,132
               January 1, 2012
               Revenue             Cost of revenue         Operating expenses                                   Benefit
                                                                                                           Other     from
                                                               Research    Selling,                      income     (provision
               AMERICAS  EMEA   APAC AMERICAS   EMEA    APAC   and          general         Restructuring (expense), for)
                                                               development and             charges       net       income
                                                                            administrative                           taxes
Utility and
power plant    $186,423  $ -    $ - $(147,037) $ -     $ -    $ -         $ -             $ -            $ -        $ -
project
Amortization
of intangible  -         -      -    404        858     -      -            22,110          -              -          -
assets
Stock-based
compensation   -         -      -    5,974      6,183   1,030  6,166        25,772          -              -          -
expense
Goodwill and
other
intangible     -         -      -    -          -       -      -            349,758         -              -          -
asset
impairment
December 2011
Restructuring  -         -      -    -          -       -      -            -               7,477          -          -
Plan
Acquisition
and            -         -      -    -          -       -      -            13,924          -              -          -
integration
costs
Amortization
of promissory  -         -      -    -          -       -      -            2,122           1,364          -          -
notes
Loss on change
in European    -         (649)  -    20,765     32,283  2,667  -            -               12,562         4,672      -
government
incentives
Non-cash
interest       -         -      -    1,194      1,148   222    6            45              -              26,012     -
expense
Mark-to-market -         -      -    -          -       -      -            -               -              (343)      -
derivatives
Gain on sale
of equity
interest in    -         -      -    -          -       -      -            -               -              25,917     -
unconsolidated
investee
Gain on change
in equity
interest in    -         -      -    -          -       -      -            -               -              (322)      -
unconsolidated
investee
Tax effect     -         -      -    -          -       -      -            -               -              -          20,685
               $186,423  $(649) $ -  $(118,700) $40,472 $3,919 $6,172       $413,731        $21,403        $55,936    $20,685



SOURCE SunPower Corp.

Website: http://www.sunpowercorp.com
Contact: Investors, Bob Okunski, 408-240-5447, Bob.Okunski@sunpowercorp.com,
or Media, Helen Kendrick, 408-240-5585, Helen.Kendrick@sunpowercorp.com