By Sourasis Bose
(Reuters) -SunPower has identified misstatements in its fiscal 2022 results, the U.S. solar storage and energy provider said in a regulatory filing on Tuesday.
It expects a $15 million to $25 million decline in earnings from continuing operations before income taxes and certain other adjustments for the year ended January 1, 2023.
The deviations include the capitalization of certain deferred costs and the incorrect classification of sales commissions as costs of revenue.
The company's shares rose 6%, following peers, after previously falling more than 20% on the news.
Raymond James Pavel Molchanov said accounting rereports routinely span more than a year, increasing shareholders' need for clarity on the company's revenue and core profit expectations for 2024.
SunPower said in February it expected to generate positive operating cash flows in the second half of 2024, but did not provide core earnings figures.
The company had raised doubts about its ability to continue as a going concern in December, saying a breach of a key credit agreement could lead to lenders recalling certain loans.
The breach was due to a delay in filing quarterly results due to inventory-related issues.
SunPower said Tuesday that it has not yet completed its review of the 2022 budget results and cannot guarantee that the review will not produce more errors.
(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)
