SunPower swings to 2Q profit on big sales gain

In the three months ended June 29, the company earned $28.6 million, or 34 cents per share. That compares with a loss of $5.3 million, or 7 cents per share, during the same period a year earlier.

The most recent quarter included a $4 million amortization charge and an $18.6 million expense to cover stock-based compensation. Excluding those items, the company said it would have earned 61 cents per share.

Analysts surveyed by Thomson Financial predicted earnings of 51 cents per share, on average. Those forecasts typically exclude unusual charges and other special items.

Revenue jumped to $382.8 million from $173.8 million. Analysts forecast revenue of $343 million.

During the quarter, SunPower installed solar systems in Spain, dedicated a power project in South Korea and announced supply agreements in Italy and Florida. It also expanded its dealer base in Europe and the U.S., and silicon costs, the key ingredient in solar cells, dropped.

"With all of our silicon suppliers delivering according to contract, we expect our silicon supply costs to continue to decline and remain fully contracted for our silicon needs through 2010," Chief Executive Tom Werner said in a statement.

SunPower shares rose 73 cents to $80.88 per share in premarket trading.