SunPower admitted to a material weakness in the company’s internal control over financial reporting. The company is also negotiating the terms and conditions of a consent and waiver to address the effects of the upcoming restatement under the company’s credit agreement with Bank of America.
According to a statement published by law firm Bragar Eagel & Squire, SunPower would be restating certain previously issued financial statements for fiscal year 2022 and the first two quarters of 2023.
SunPower had a net loss of US$30 million and total losses before inflation, taxes, depreciation and amortisation of US$3 million in Q2 2023.
In its latest announcement of the Q3 preliminary financial results, SunPower’s net loss increased to US$32 million, and reduced its 2023 guidance for net loss to the range of US$165 million and US$175 million.
SunPower CEO Peter Faricy said the reduced guidance was due to lower-than-expected consumer demand as well as delayed revenue recognition from longer cycle times.
“While the industry-wide softness continued into the third quarter, we saw positive signs in September and early October, including our highest-ever month for storage sales, strong growth in SunPower Financial, and improvement in consumer demand,” he added.
