SunPower Corp. announced on October 30^ththe financial results for its third quarter ended September 29, 2013.

"SunPower's third-quarter results reflect strong execution of our diversified downstream strategy, as global demand for our high efficiency systems in both our power plant and distributed generation channels remains robust," said Tom Werner, SunPower president and CEO. "Operationally, we beat our cost reduction goals for the quarter while improving overall equipment effectiveness and average solar cell conversion efficiency. Due to strong demand for our unique, cost effective, high efficiency products, we have made the strategic decision to expand our solar cell manufacturing capacity by more than 25 percent. SunPower's planned 350-megawatts (MW) expansion will produce our next generation, step-reduced cell technology with initial silicon starting in early 2015. This will bring our total cell capacity to more than 1.8-gigawatts (GW) when fully ramped.

"Regionally, our North American business once again drove our performance, as construction of the 579-MW Solar Star projects for MidAmerican Solar remains on plan and we expect to start commercial operation of the California Valley Solar Ranch (CVSR) in the near future. We continue to see significant demand in our residential lease business and recently signed an additional $155 million in new lease capacity financing to fund our growth. With this new financing, our total lease capacity to date now exceeds $850 million. Additionally, we expanded our solar loan program during the quarter by signing an agreement with Digital Federal Credit Union for up to $100 million in financing capacity.

"Japan remains a key market for SunPower. In addition to our longstanding participation in the residential market, we are also increasing shipments to the commercial and power plant segments as evidenced by the recent signing of supply agreements totaling more than 90-MW for two power plants projects.

"Our performance in Europe was solid, as demand trends improved further and industry conditions were in line with our expectations. As a result, we increased revenue sequentially and met our margin targets for the quarter. In our emerging markets channel, we are continuing to expand our footprint as we partner with Total to monetize our growing international pipeline. For example, we recently announced that in partnership with Total S.A., we will construct a 70-MWdc merchant power plant in Chile, the largest merchant solar project in the world, with completion scheduled for 2015," concluded Werner.

Key milestones achieved by the company since the second quarter of 2013 include:

• Announced 350-MW cell capacity expansion for 2015 production
• Continued construction of 579-MW Solar Star projects for MidAmerican Solar
• Signed supply agreement with Shimizu for 69-MWdc power plant in Japan for Eurus Energy Corporation, a joint venture between Toyota Tsusho Corp. and Tokyo Electric Power
• Announced 70-MWdc merchant power plant in Chile in partnership with Total S.A.
• North American commercial project pipeline now exceeds $1 billion
• Started initial shipments for 65-MW of projects under French tender award
• Residential lease program – approximately 20,000 customers representing 159-MW to date
• Signed $155 million in new residential lease financing capacity with two partners
• Signed agreement with Digital Federal Credit Union for up to $100 million in solar loan financing
• All manufacturing facilities operating at full capacity

"SunPower's ability to leverage our downstream model, combined with the successful execution in our lease and projects business, enabled us to exceed our operational goals for the quarter," said Chuck Boynton, SunPower CFO. "Financially, we successfully managed our working capital needs, drove more than $150 million in free cash flow and ended the quarter with approximately $1 billion in available liquidity. Looking forward, we are well positioned for long-term profitability to continue to monetize our global project pipeline, expand our footprint in the distributed generation market and strategically manage our cash."

Third quarter fiscal 2013 GAAP results include pre-tax benefits (charges) and adjustments totaling approximately $53.1 million, including a $26.3 million gross margin adjustment related to the timing of revenue recognition from utility and power plant projects; $52.0 million gain on contract termination; $(12.1) million in stock-based compensation expense; $(12.3) million in non-cash interest expense and $(0.8) million of other adjustments. These benefits (charges) and adjustments are excluded from the company's non-GAAP results.

Fourth Quarter and Fiscal Year 2013 Financial Outlook
The company's fourth quarter 2013 consolidated non-GAAP guidance is as follows: revenue of $675 million to $725 million, gross margin of 17 percent to 19 percent, net income per diluted share of $0.15 to $0.35 and MW recognized in the range of 300 MW to 330 MW. On a GAAP basis, the company expects revenue of $575 million to $625 million, gross margin of 17 percent to 19 percent and net income (loss) per diluted share of ($0.10) to $0.10.

For fiscal year 2013, the company expects non-GAAP revenue of $2.52 billion to $2.57 billion, gross margin of 19 percent to 20 percent, net income per diluted share of $1.30 to $1.50, capital expenditures of $45 million to $55 million and GW recognized in the range of 1.0 GW to 1.03 GW. On a GAAP basis, the company expects revenue of $2.45 billion to $2.50 billion, gross margin of 18 percent to 19 percent and net income per diluted share of $0.45 to $0.65. SunPower remains on track to reduce its operational expenses year over year and expects to generate free cash flow, including lease financings of approximately $200 million while continuing to invest in its technology roadmap and manufacturing cost reduction initiatives.

The company will host a conference call for investors this afternoon to discuss its third quarter 2013 performance at 1:30 p.m. Pacific Time. The call will be webcast and can be accessed from SunPower's website at //investors.sunpowercorp.com/events.cfm.