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    SunPower replacing some third-party components in systems

    January 24, 2022 - SeeNews Renewables


      January 24 (Renewables Now) - SunPower Corp (NASDAQ:SPWR) is replacing certain third-party connectors in some of its systems, which will see the US solar company book USD 31 million (EUR 27.3m) of charges while it pursues recovery of costs from the suppliers.

      Due to a cracking issue that developed over time and in order to avoid potential longer-term complications for customers, SunPower is replacing connectors in its Light Commercial Value-Added Reseller (CVAR) and Commercial & Industrial Solutions (CIS) systems, with work to be completed largely during 2022, the company said on Thursday last week. It stressed that there have been no reports of safety incidents related to this issue, nor any degradation of performance. The measures the company is taking are proactive.

      SunPower will record supplier-quality related charges of USD 27 million in the fourth quarter of 2021 and of USD 4 million in the first quarter of 2022. It will seek recovery of costs from the suppliers.

      The company expects its GAAP revenue for the fourth quarter of 2021 to be within its forecast range of USD 361 million to USD 421 million, while, without the charge, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be at the low end of the USD 18 million-41 million guidance. Adjusted EBITDA was depressed by USD 6.5 million of residential EBITDA delayed into 2022 due to weather in California and COVID.

      The company said it is redoubling its focus on quality and announced the appointment of Derek Kuzak as executive vice president for supply chain, quality, and field operations. Kuzak was previously in charge of supply chain for Amazon’s private brands.

      In addition, SunPower said it remains in advanced talks for the sale of its CIS business and expects to reach a deal within weeks. The disposal is part of the company’s growing focus on its residential business.

      SunPower will report more details on its fourth-quarter performance on February 16.

      (USD 1 = EUR 0.881)


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