On Wednesday, SunPower
Revenues for the third quarter were up 198% from Q3 2005 and 19% sequentially from Q2 2006. Operating income swung from a $1.4 million loss in Q3 2005 to a $6.4 million gain and improved 66% sequentially from Q2 2006. Net income also went from a $1.6 million loss in Q3 2005 to a $9.6 million gain, heavily influenced by a $4 million rise in net interest and other income.
With such tremendous growth and increased profitability, times are pretty bright for SunPower. Operations echo the financial results. Management just announced a new generation of solar cells, dubbed Gen 2, which will maintain the company's competitive edge. To meet demand, the company is also expanding both horizontally, with more manufacturing capacity, and vertically, with its new joint venture to produce silicon ingots. Further, new supply contracts with DC Chemical should allay fears of future supply shortages of polysilicon.
But SunPower does have some clouds hanging over its future. Evergreen Solar's
Other concerns that could darken future success include SunPower's reliance on its top three customers -- Conergy, Solon AG, and General Electric
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