SunPower Corp. on Feb. 14 reported fourth-quarter 2017 non-GAAP net income of $35.8 million, or 25 cents per share, a jump from $3.3 million, or 2 cents per share, in the fourth quarter of 2016.
The S&P Capital IQ normalized consensus EPS estimate for SunPower in the fourth quarter was 9 cents per share.
The company reported fourth-quarter 2017 adjusted EBITDA of $100.3 million, compared with $71.4 million in the comparable period in 2016. Non-GAAP revenue for the quarter dropped to $824 million from $1.10 billion in the same quarter of 2016.
For full year 2017, the company recorded a non-GAAP net loss of $34.4 million, or a loss of 25 cents per share, compared with non-GAAP net income of $85 million, or 60 cents per share in full year 2016.
Full-year 2017 total non-GAAP revenue was $2.13 billion, a decrease from $2.70 billion recorded in 2016. Adjusted EBITDA for 2017 slid to $189.7 million from $311.9 million in the previous year.
"In our distributed generation business, demand remained strong through the end of the year, enabling SunPower to gain share in both our residential and commercial segments. Our solid performance in commercial reflected the completion of a number of key projects including the 28-MW Vandenberg Solar I Project project while expanding our footprint in storage and booking of our first Helix storage project," said Tom Werner, SunPower president and CEO.
SunPower's operating cash flow during the fourth quarter increased to $47.9 million, from a loss of $26.6 million in the comparable period in 2016. Operating cash flow for full-year 2017 was a loss of $267.4 million, compared to a loss of $312.3 million in full-year 2016.
On a GAAP basis, SunPower recorded a fourth-quarter net loss of $568.7 million, or a loss of $4.07 per share, compared to a net loss of $275.1 million, or a loss of $1.99 per share, in the fourth quarter of 2016. SunPower's full-year 2017 GAAP net loss was $851.2 million, or a loss of $6.11 per share. For 2016, GAAP net loss was $471.1 million, or $3.41 per share.
Fourth-quarter 2017 non-GAAP results exclude adjustments that would have improved non-GAAP earnings by $604.4 million, according to the company, including $81.8 million related to cost of above market polysilicon, $9.3 million related to stock-based compensation expense, $8.8 million related to intangibles and $2.4 million of other non-GAAP adjustments.
The company generated GAAP revenue of $658.1 million for the last quarter of 2017, down from $1.03 billion in the same period of 2016. Full-year GAAP revenue was $1.87 billion, compared to $2.56 billion in 2016.
SunPower expects GAAP revenue for the first quarter of 2018 to be in the range of $280 million and $330 million, and full-year 2018 GAAP revenue between $1.60 billion and $2 billion. First-quarter adjusted EBITDA is expected to be between $5 million and $25 million.
"We expect to monetize more than 400 MW of SunPower leases that we currently hold on our balance sheet. Combined, both of these actions will materially improve our liquidity, deliver our balance sheet and simplify our financial statements," Werner said.