Bright Days Await SunPower

09/13/06 - 11:16 AM EDT

Kevin Kelleher

SunPower has recently expanded from solar cells into solar panels in anticipation of a government-incentive free market, in which a company's brand is more of an asset. According to SolarBuzz, solar system revenue is expected to expand to $19 billion in 2010 from $7 billion in 2004.

"We believe in the long term it will be important for there to be brand recognition in the market," Hernandez said. "Today, everybody can sell the product, so it's important that we get recognized as solar product of choice."

Hernandez said SunPower will post revenue this quarter of between $60 million and $62 million, up from $55 million in the previous quarter and $22 million in the year-ago quarter. The company has been also been reeling in expenses, posting operating and net profit for the past two quarters.

And margins are expected to continue to improve: Analysts are forecasting a 15% operating margin in the fourth quarter, up from 12% in the second quarter. Hernandez said the company's longer-term target is for a 20% margin.

Holding Company Holds On

Say what you will about Internet Capital Group , but you must give the company points for persistence.

ICG, a company that was a high-flying Internet stock in 2000 as a holding company for money-losing start-ups -- yes, that was back when people said "B2B" with a straight face -- has stuck to its guns and, six years later, is a holding company for money-losing on-demand startups.

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