This excerpt taken from the CY 10-Q filed Aug 10, 2007.
Although SunPower expects the acquisition of SP Systems to be beneficial, such benefits may not be realized because of integration difficulties or other challenges.
During the first quarter of fiscal 2007, SunPower completed the acquisition of SP Systems, a privately-held leading provider of large-scale solar power systems. SP Systems has global operations that will need to be integrated successfully in order for SunPower to realize the benefits anticipated from the acquisition. Realizing these benefits will require the integration of technology, operations and personnel of SunPower and SP Systems into a single organization. SunPower expects the integration to be a complex, time-consuming and expensive process that, even with proper planning and implementation, could cause significant disruption. The challenges that SunPower may face include, but are not limited to, the following:
SunPower may not be able to successfully integrate the operations of SP Systems in a timely manner, or at all. In addition, SunPower may not realize the anticipated benefits and synergies of the acquisition to the extent or when anticipated. Even if the integration of SunPower and SP Systems operations, products and personnel is successful, it may place a significant burden on SunPowers management resources. The diversion of managements attention and any difficulties encountered in the transition and integration process could harm SunPowers business, financial condition and operating results.