Clouds Hover Over SunPower

Another solar hit?

In what some are calling another solar flop, San Jose-based SunPower reported a sizeable quarterly loss, along with a management restructuring, and a plan to cut costs in the future by ten percent.  Given that this is a Silicon Valley solar company that has, in the past, received Government loans, the comparisons to the now-bankrupt Solyndra have already started.

But is it too early?  SunPower has backing not just from the Feds, but also from French energy giant Total. Its stock price (SPWR), admittedly sagging lately, actually got a boost from the latest earning report, but maybe investors see optimism where others see dark clouds.

The company release says its Chief Fiancial Officer is stepping down as part of a management reorganization. Even more worrisome, SunPower says it has to cut costs by about 10 percent in the future. That fairly screams layoffs.

We'll be tracking the company, and efforting an interview with CEO Tom Werner.

Scott is on Twitter:  @scottbudman

Contact Us