Executive Summary

Revenue inflected sharply with Q3 2014 net sales of $26.7M, up 25% year over year and 4.2x sequentially, driven by SPI’s debut in the China market and higher-margin projects .
Reported net loss of $7.7M (−$0.02) masked underlying profitability; management stated that absent a one-time $11.0M convertible bond conversion (non-cash $0.9M interest and $8.9M extinguishment loss), Q3 would have been ~$2.2M net income .
Liquidity improved materially: cash rose to $12.8M at 9/30/14, aided by two private placements totaling ~$73.26M announced during the quarter .
Strategic pipeline scaled: definitive agreements to acquire 26.57 MW of operating PV assets in Greece (closing shortly after Q3), multiple China EPC agreements, and entry into Japan via a new subsidiary—key potential stock catalysts around asset consolidation and execution .

What Went Well and What Went Wrong

Rapid top-line and gross profit improvement: net sales rose to $26.7M (Q3) from $6.3M (Q2) and $21.3M (Q3’13), with gross profit of $5.4M vs a gross loss in Q3’13, reflecting higher-margin project mix and China revenue contribution .
Balance sheet momentum and capital access: two private placements totaling ~$73.26M announced in Q3; cash increased to $12.8M from $5.9M at 6/30/14 and $0.3M at 3/31/14 .
Strategic expansion: agreements to acquire 26.57 MW of operating PV assets in Greece; numerous EPC/service agreements across China; established a Japan subsidiary to acquire the first project—broadening geographic footprint .

GAAP net loss widened to $7.7M due to non-cash charges tied to convertible bond extinguishment and interest; tax provision also increased in Q3 .
Operating expenses rose sequentially with rapid scale-up (Q3 OpEx $2.8M vs $1.2M in Q2), reflecting ramping activity after a period of dormancy .
No formal financial guidance was provided, limiting near-term visibility on revenue cadence, margins, or OpEx trajectory .

Metric	Q3 2013	Q1 2014	Q2 2014	Q3 2014
Revenue ($USD Millions)	$21.289	$3.613	$6.329	$26.651
Gross Profit ($USD Millions)	$(0.862)	$0.197	$0.560	$5.442
Gross Margin % (computed)	−4.0%	5.4%	8.8%	20.4%
Operating Income (Loss) ($M)	$(4.285)	$(1.090)	$(0.590)	$2.662
EBIT Margin % (computed)	−20.1%	−30.2%	−9.3%	10.0%
Net Income (Loss) ($M)	$(3.583)	$(0.832)	$(1.340)	$(7.707)
Net Income Margin % (computed)	−16.8%	−23.0%	−21.2%	−28.9%
Diluted EPS ($)	$(0.02)	$(0.00)	$(0.01)	$(0.02)
Weighted Avg Shares (M)	198.214	198.214	204.396	337.671

Notes: Margins are calculated from reported net sales/gross profit/operating income and net income in the cited filings .

KPI	Q1 2014	Q2 2014	Q3 2014
Cash & Cash Equivalents ($M)	$0.3 at 3/31/14	$5.9 at 6/30/14	$12.8 at 9/30/14
Private Placements Announced ($M)	$21.75 announced May 6	$21.75 completed; $25.0 new agreement	~$73.26 across two rounds in Q3

Wall Street consensus (S&P Global) for Q3 2014 EPS and revenue was unavailable due to missing S&P Global/CIQ mapping for SPI; estimate comparisons cannot be presented. Values would normally be retrieved from S&P Global.

No segment revenue breakdown was disclosed in the press release; revenue growth was attributed to China operations and higher-margin projects .

Metric	Period	Previous Guidance	Current Guidance	Change
—	—	—	No formal financial guidance provided	—

Note: No earnings call transcript for Q3 2014 was available in our document system; themes reflect management commentary in press releases.

Topic	Previous Mentions (Q1 2014)	Previous Mentions (Q2 2014)	Current Period (Q3 2014)	Trend
Capital raising / balance sheet	Announced $21.75M private placement; debt repayment (Cathay Bank)	Completed $21.75M; entered $25.0M new placement	Two Q3 placements totaling ~$73.26M	Strengthening
China growth / EPC	Yes! residential kits strategy for China	50 MW Fenyi and 21 MW Jiangxi project agreements	China debut drove revenue; multiple China EPC/service agreements	Accelerating
Greece asset acquisition	—	—	Agreements to acquire 26.57 MW operating PV assets; closing shortly after Q3	New expansion
Japan entry	—	—	New Japan subsidiary established to acquire first PV project	New expansion
Operating discipline / OpEx	OpEx $1.3M; rightsizing	OpEx $1.2M; down y/y	OpEx $2.8M with rapid scale-up post-dormancy	Higher near-term to scale
One-time financing impacts	—	$11M zero-coupon convertible issued; $0.7M interest in Q2	Convertible conversion drove $8.9M loss on extinguishment and $0.9M non-cash interest	Non-recurring drag

“We are pleased with SPI’s continued strong business execution and rapid growth during the third quarter… we have enhanced SPI’s reputation as a global leader in developing PV projects, particularly in the China PV installation market.” — Chairman Xiaofeng Peng .
“We have laid the foundation for further rapid scaling of SPI’s global businesses looking into 2015… we believe that SPI is well-positioned to capitalize on above-average market growth… to become one of the largest PV project development companies [in China].” — Chairman Xiaofeng Peng .
Q2 context: “These placements will dramatically improve our financial position and balance sheet to support our ambitious global growth strategy… strong foundation for… other important initiatives” — Chairman Xiaofeng Peng .
Q1 context: “Strengthen our strategy… Yes! solar initiative… harness emerging growth prospects in the residential solar sector in China.” — CEO Min Xiahou .

No Q3 2014 earnings call transcript was available in our system; no Q&A highlights to report [ListDocuments showed none; see absence of earnings-call-transcript results].

S&P Global consensus estimates for Q3 2014 revenue and EPS were unavailable for SPI due to missing CIQ mapping; as a result, we cannot present “vs. estimates” comparisons. Management noted that excluding a one-time convertible bond conversion impact, Q3 would have been profitable (~$2.2M net income), implying a positive underlying variance versus prior periods, but no external consensus is available for validation .

Underlying profitability inflection: excluding the one-time convertible extinguishment, SPI indicates ~$2.2M net income in Q3, aided by a richer-margin mix and China project execution .
Revenue scalability validated: sequential revenue growth from $3.6M (Q1) to $6.3M (Q2) to $26.7M (Q3) shows capacity to mobilize pipeline and convert backlog into sales .
Liquidity and funding runway improved: cumulative private placements and rising cash position support continued pipeline build-out and asset acquisitions .
Asset-backed growth catalysts: closing the 26.57 MW Greece portfolio and executing China EPC/service agreements could sustain revenue/margin momentum into 2015 .
Risk monitor: one-time financing items distorted GAAP results; continued scaling brought OpEx higher q/q; lack of formal guidance limits visibility—watch execution pace and working capital .
Leadership build-out: appointment of CFO Amy Jing Liu and establishment of Japan subsidiary point to organizational readiness for multi-region scaling .

Supporting details and data sourced from SPI’s Q3, Q2, and Q1 2014 8-K press releases and exhibits .