SunPower finds financial misstatements, sees $15M-$25M income decrease

SunPower disclosed this morning that its Audit Committee determined, based on the recommendation of management, that the company’s audited financial statements for the period ended January 1, 2023 and unaudited financial statements for the quarterly period ended April 2, 2023, July 2, 2023, and October 1, 2023 should no longer be relied upon. The company plans to restate, as soon as practicable, the financial statements. SunPower identified misstatements in the audited financial statements for the fiscal year ended January 1, 2023. These misstatements primarily relate t the capitalization of certain deferred costs that did not qualify for capitalization, the classification of certain sales commissions as cost of revenue rather than sales, general and administrative expense, and certain other individually immaterial adjustments. The company estimates that the impact of the aforementioned adjustments is a decrease to income from continuing operations before income taxes and equity in earnings of unconsolidated investees for the fiscal year ended January 1, 2023, in the range of approximately $15M to $25M.