SunPower Corp.’s stock
SPWR,
tumbled 9% in after-hours trade Tuesday, after the company said it will restate certain past financial statements. The company said statements in its 10-K for the year through Jan. 1, in its 10-Q for the quarter through April 2, its 10[Q for the quarter through July 2, and any statements that are based on those can no longer be relied on. “In connection with the preparation of the financial statements, the company preliminarily determined that the value of consignment inventory of microinverter components at certain third-party locations had been overstated in the Affected Periods in the range of approximately $16 million to $20 million, resulting in the associated cost of revenue being understated,” the company said in a filing with the Securities and Exchange Commission. The company has not completed its review and the financial impact of the errors is preliminary and subject to change. Management has determined that the company’s disclosure controls and procedures and internal control over financial reporting were not effective as of Jan. 1, and its auditor, Ernst & Young, will revise its opinion to an adverse one for that period. The stock has fallen 72% in the year to date, while the S&P 500
SPX,
has gained 10.6%.
Read the full article here
