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Maxeon Solar Technologies Announces First Quarter 2022 Financial Results – EQ Mag Pro

Maxeon Solar Technologies Announces First Quarter 2022 Financial Results – EQ Mag Pro


  • Record European DG Volume with new Beyond the Panel launches–

  • First US Utility-Scale shipments delivered successfully–

SINGAPORE : Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) (“Maxeon” or “the Company”), a global leader in solar innovation and channels, today announced its financial results for the first quarter ended April 3, 2022.

Maxeon’s Chief Executive Officer Jeff Waters noted, “We kicked off 2022 with another record DG performance in Europe and the unveiling of our SunPower One ecosystem which we will start launching in various regions across the globe this year. Our module sales were up over 75% year over year in Europe and in certain countries our mix of AC module sales exceeded 40%. In US Utility-Scale, we’re now negotiating terms for 2024 deliveries and we’re thrilled to see the first module containers leave our facilities in Mexico and arrive successfully at our customer’s project site.

While supply chain conditions remain challenging, we remain focused on executing on our key transformation initiatives – specifically the ramping of our Maxeon 6 and Performance line for the US market which are critical for enabling our return to profitability in 2023. Maxeon 6 is scheduled to be fully ramped to 500MW in the second half of 2022 and Performance line capacity for the US market is scheduled to be fully ramped in the first half of 2023. As these projects near completion, our focus will pivot to Maxeon’s next transformation steps led by Maxeon 7, the ramp of storage sales, direct US residential market entry and North America capacity expansion.”

Selected Q1 Unaudited Financial Summary 

(In thousands, except shipments)

Fiscal Q1 2022

Fiscal Q4 2021

Fiscal Q1 2021

Shipments, in MW





$                   223,081

$                   221,479

$                   165,417

Gross (loss) profit (1)




GAAP Operating expenses




GAAP Net loss attributable to the stockholders(1)




Capital expenditures




Other Financial Data(1), (2)

(In thousands)

Fiscal Q1 2022

Fiscal Q4 2021

Fiscal Q1 2021

Non-GAAP Gross (loss) profit

$                    (12,542)

$                    (10,056)

$                       1,274

Non-GAAP Operating expenses




Adjusted EBITDA(3)




(1)     The Company’s GAAP and Non-GAAP results were impacted by the effects of certain items. Refer to “Supplementary information affecting
GAAP and Non-GAAP results
” below.

(2)     The Company’s use of Non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under “Use of Non-GAAP
Financial Measures” below.

(3)     The Adjusted EBITDA for three months ended January 2, 2022 and April 4, 2021 did not contain an adjustment for equity in losses of
unconsolidated investees. For a reconciliation of Adjusted EBITDA to GAAP Net Loss for the three months ended January 2, 2022 and
April 4, 2021, please refer to our Forms 6-K furnished with the SEC on March 24, 2022 and May 20, 2021 respectively

Supplementary information affecting GAAP and Non-GAAP results

Three Months Ended

(In thousands)

statements item

April 3, 2022

January 2, 2022

April 4, 2021

Incremental cost of above market

Cost of revenue




Loss on ancillary sales of excess
polysilicon(2), (3)

Cost of revenue




(1)     Relates to the difference between our contractual cost for the polysilicon under the long-term fixed supply agreements with our supplier and the
price of polysilicon available in the market as derived from publicly available information at the beginning of each quarter, multiplied by the volume
of modules sold within the quarter.

(2)     In order to reduce inventory and improve working capital, we have periodically elected to sell polysilicon inventory procured under the long-term
fixed supply agreements in the market at prices below our purchase price, thereby incurring a loss.

(3)     For the three months ended April 3, 2022, the loss on ancillary sales of excess polysilicon also included $5.9 million for the loss on firm purchase
commitment in connection to the ancillary sales to third parties of excess polysilicon to be fulfilled in the quarter ending July 3, 2022.

Second Quarter 2022 Outlook

For the second quarter of 2022, the Company anticipates the following results:

(In millions, except shipments)


Shipments, in MW

460 – 490 MW


$215 – $230

Gross loss(1)

$15 – $25

Non-GAAP gross loss(1), (2)

$15 – $25

Operating expenses

$39 ± $1

Non-GAAP operating expenses(3)

$36 ± $1

Adjusted EBITDA(1), (4)

$(37) – $(47)

Capital expenditures(5)

$20 – $24

Out-of-market polysilicon cost(1)

$3 – $4

(1)       Outlook for Gross loss, Non-GAAP gross loss and Adjusted EBITDA includes out-of-market polysilicon cost.

(2)       The Company’s Non-GAAP gross loss is impacted by the effects of adjusting for stock-based compensation expense. The Company does not
provide a reconciliation between its gross loss and Non-GAAP gross loss outlook as the outlook is rounded to the nearest million and hence
the adjustment does not result in a difference to Non-GAAP gross loss outlook.

(3)       The Company’s Non-GAAP operating expenses are impacted by the effects of adjusting for stock-based compensation expense and restructuring
charges and fees.

(4)       The Company cannot provide a reconciliation between its Adjusted EBITDA projection and the most directly comparable GAAP measures without
unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of the remeasurement gain or loss of the prepaid

(5)       Capital expenditures are directed mainly to upgrading production to Maxeon 6 in our Malaysia factory, the purchase of cell and module equipment for
our 1.8 GW of Performance line capacity for the U.S., as well as developing Maxeon 7 technology and operating a pilot line.

These anticipated results for the second quarter of 2022 are preliminary, unaudited and represent the most current information available to management. The Company’s business outlook is based on management’s current views and estimates with respect to market conditions, production capacity, the uncertainty of the continuing impact of the COVID-19 pandemic, and the global economic environment. Please refer to Forward Looking Statements section below. Management’s views and estimates are subject to change without notice.

About Maxeon Solar Technologies

Maxeon Solar Technologies Ltd (NASDAQ: MAXN) is Powering Positive ChangeTM. Headquartered in Singapore, Maxeon designs and manufactures Maxeon® and SunPower® brand solar panels, and has sales operations in more than 100 countries, operating under the SunPower brand in certain countries outside the United States. The Company is a leader in solar innovation with access to over 1,000 patents and two best-in-class solar panel product lines. Maxeon products span the global rooftop and solar power plant markets through a network of more than 1,400 trusted partners and distributors. A pioneer in sustainable solar manufacturing, Maxeon leverages a 35-year history in the solar industry and numerous awards for its technology.

Anand Gupta Editor - EQ Int'l Media Network