SunPower shed the uncertainty of its accounting probe on Thursday, but said financing for solar projects continues to be difficult despite the improving global economy.
SunPower sees solar cell prices falling 20 percent in 2010.
The company maintained that its relationships with banks held up well even after the news spread in November of the financial mishaps it discovered at its Philippines division. But it revealed that the difficulty getting funds for solar projects would push sales to the second half of 2010 instead of the first and second quarters.
The comments cast a continued pall over the solar business, both in the U.S. and Europe, where revenue has been strong in countries such as Germany, Italy and France.
SunPower said in response it would consider using its balance sheet to secure money for big projects, something it hasn’t done in the past. The company has $925 million in cash to use.
What’s more, it suggested prices for solar cells would continue to slide – by more than what other solar companies have projected. Prices should fall about 20 percent this year.
The company’s downcast assessment of the market came as it released fourth quarter earnings. Profit margins suffered, but sales were solid, suggesting an improving market, with growth continuing in Germany, France and Italy before cuts in feed-in tariffs take hold.
SunPower said the probe of its Philippines unit turned up fraudulent accounting entries from personnel there and forced it to reduce 2008 and 2009 profits by $17 million.
As to the banks, “they stuck with us,” said CFO Dennis Arriola. But they held off signing financing deal on solar farms in the fourth quarter and would continue to do so in the second quarter. In an already difficult market, that is not good news. SunPower stock slipped another 10 percent.
Posted by Mark Boslet 
