The largest solar panel manufacturer in the Silicon Valley of California reported profits in excess of $20 million during the third quarter, according to published reports.

SunPower of San Jose - whose clients are residential and commercial, domestic and international - likely will finish 2010 with more than $2 billion as shares increased to $14.25 following after-hours trading. During the third quarter, SunPower’s revenues were $554. Its revenues from the second quarter were $392 million, and revenues from the third quarter of 2009 were $465 million.

"For 2011, we continue to see more demand than supply," chief executive officer Tom Werner told analysts during a conference call.

Analysts were surprised earlier this year when SunPower warned revenue would not materialize until the end of the year. But with the third quarter figures as healthy as they were as compared to the previous quarter and the same quarter last year, that was not the case.

"It was a consistently good quarter," said John Hardy, an analyst with Gleacher & Company, who also noted the strong third quarter has helped placate concerns.