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Sun Isn’t Shining on SunPower

November 18, 2009

Solar energy technology maker SunPower saw its share price tumble earlier this week after it announced the discovery of accounting irregularities in its Philippines manufacturing operations.

The company said there may have been unsubstantiated accounting entries made in the first three quarters of 2009. Those entries may have overstated expenses in the cost of goods sold by approximately $1 million in the first quarter, and understated expenses in the cost of goods sold by about $14 million in the second quarter and approximately $2 million in the third quarter. That’s a lot of understating and overstating.

The stock price fell over 18 percent Tuesday after the report late Monday afternoon, and it slipped a tad bit more on Wednesday.

Meanwhile the audit committee, management, and independent auditors are looking into the matter. The current state of virtual inaction on energy legislation in the Senate can’t be helping SunPower’s stock very much either, but accounting irregularities are the main concern right now.

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