Sunpower receives warning for delayed quarterly reports
Post date: 28/11/2023 - 14:09
US solar company Sunpower Corp. has received a notice from the New York Stock Exchange Nasdaq for failure to file financial reports. The Nasdaq Stock Market LLC has given the company 60 calendar days from November 22 to submit a plan for how it intends to return to compliance with the listing rules. The deadline can be extended to a total of 180 days (until May 24, 2024). Sunpower had informed Nasdaq on November 13 that it would not be able to submit the quarterly figures on time »without unreasonable effort or expense.«
The reason for the delay is that Sunpower must first revise the figures for previous periods. The company had thus submitted a »Form 8-K«-notification to Nasdaq on October 24. Accordingly, both the figures for the fourth quarter of 2023 contained in the 2022 annual report and the publications of unaudited figures in the reports for Q1 and Q2 2023 contain statements that need to be reviewed. This relates to inventories of microinverters held by third parties that were overstated for the periods in question »in the range of approximately $16 million to $20 million«, which in turn resulted in understated cost of revenue.
As a result, management has concluded »that the Company's disclosure controls and procedures« had been »not effective« during the periods in question. Moreover, the auditing firm Ernst & Young LLP has determined that its report on internal controls included in Sunpower’s 2023 Annual Report will be revised and reissued.