SunPower, the No. 2 U.S. Solar panel maker, reported smaller-than-expected quarterly revenue, and the company said it would boost efforts to rein in costs.
The company, which said it was seeing a significant near-term market dislocation, expected the cost-cutting measures to improve margins and reduce 2017 annual operating expenses to about $350 million.
SunPower said it would host a conference call on Dec. 7 to provide additional details related to the cost-cutting initiatives.
The company on Wednesday also cut its full-year revenue forecast as it expects to deploy lower gigawatts.
The company trimmed its adjusted revenue forecast to $2.6 billion-$2.8 billion, from $3 billion-$3.2 billion it expected earlier.
SunPower, which said in August it would cut about 15% of its workforce as it realigns its power plant business and manufacturing operations, said it expected to deploy 1.325-1.355 gigawatts (GW), down from its previous forecast of 1.45-1.65 GW.
Net loss attributable to shareholders narrowed to $40.5 million, or 29 cents per share, in the third quarter ended Oct. 2, from $56.3 million, or 41 cents per share, a year earlier.
Excluding one-time items, the company earned 68 cents per share, way ahead of analysts’ average expectation of 38 cents.
The company, majority owned by French energy giant Total SA, said revenue jumped 91.8% to $729.3 million, largely helped by higher revenue from its power plant business.
Analysts on average had expected revenue $801.7 million, according to Thomson Reuters I/B/E/S.
Solar companies have been hard hit after customers delayed purchases of solar panels expecting a further decline in solar panel prices.
SunPower’s shares fell to a near 4-year low in regular trading following Republican Donald Trump’s surprise win in the U.S. Presidential election.
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Analysts said a Trump presidency and a Republican legislature could result in uncertainty in the solar industry and reduction in many Federal-level solar incentives.
