SunPower investigates possible accounting errors

AP News
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Posted: Nov 16, 2009 6:20 PM

SunPower Corp. said Monday an investigation is under way into whether its manufacturing operations in the Philippines made unsubstantiated accounting entries during the first three quarters of 2009.

The maker of solar power products said some of the entries relate to its fiscal year ended Dec. 28, 2008.

Based on preliminary findings, SunPower said its audit committee has identified accounting entries that may have overstated expenses by about $1 million on the cost of goods sold in the first quarter of 2009. The entries also may have understated expenses by about $14 million in the second quarter and about $2 million in the third quarter of 2009.

SunPower said it estimates about $9 million of the identified accounting entries should have been recorded in 2008. It is working with its audit committee to determine if any restatements to its 2009 quarterly reports and 2008 annual results will be necessary, noting that until its probe is complete, there can't be any assurance that broader issues don't exist.

SunPower shares dropped $1.33, or 4.9 percent, to $25.90 in after-hours trading. During the regular session, they gained 81 cents, or 3 percent, to close at $27.23.