U.S Solar panel-maker giant SunPower Corporation (NASDAQ:SPWR) announced its quarterly results announcing smaller-than-predicted income, in the meantime company said it would raise efforts to cut back costs to help counter stimulating pricing in 2017.
Furthermore SunPower Chief Executive Tom Werner said that average selling price came down about 25% in the third quarter due to a disparity between supply and demand as Solar companies have struggled following hard competition pushed prices lower and as customers held off purchasing solar panels in the hope of a further weakening in prices.
“We do not expect price reductions to continue at this pace but we do believe that the panel price environment will remain very challenging into 2017,” Werner said.
Meanwhile the firm predicted the cost cuts to decrease 2017 annual operating expenditures to around $350 million. The company’s total operating expenses was $450.9 million for its financial year 2015.
In August this year, SunPower, publicized that it would cut down around 15% jobs as it readjusts its power plant business and manufacturing procedures this was company’s third full-year revenue and gigawatts forecast slash.
Also the company cut its adjusted revenue estimate to $2.6 billion-$2.8 billion from previously set $3 billion-$3.2 billion. As well SunPower said it is now looking to install 1.325-1.355 gigawatts (GW) that was less than previous prediction of 1.45-1.65 GW.
Moreover SunPower said it is planning to host a conference call on Dec. 7 to provide details related to its cost-cutting initiatives.
SunPower Corporation (NASDAQ:SPWR), revenue go up 91.8 percent to $729.3 million, boosted by its power plant business. Analysts on average were expecting revenue $801.7 million, according to Thomson Reuters I/B/E/S.
SunPower Corporation (NASDAQ:SPWR) is the second largest solar firm in U.S. to caution on prices. Before that leader in Solar First Solar Inc (FSLR), also recently said that a 30% slide in panel prices highlights massive challenges to the forthcoming year.