- SunPower (NASDAQ:SPWR) +4.3% premarket after announcing a restructuring plan it says will generate positive cash flow from operations through the end of FY 2017.
- SPWR says it plans to reduce its global workforce by ~25%, or 2,500 employees; cut 2017 operating expenses to less than $350M and capex by more than 50% to ~$100M; close its 700 MW nameplate capacity Fab 2 facility; and substantially decrease 2016 inventory to improve working capital and de-lever its balance sheet.
- As a result of the announced and previous initiatives, SPWR expects to record at least $150M in restructuring charges on a GAAP basis in Q4 and incur total restructuring charges of $225M-$275M through year-end 2017.
- SPWR also projects 2017 revenue of $1.8B-$2.3B on a GAAP basis and $2.1B-$2.6B on a non-GAAP basis, vs. analyst consensus $2.48B.