Maxeon Solar Technologies Announces Second Quarter 2022 Financial Results – EQ Mag Pro
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Record EU DG revenues, high-volume shipments commenced for US Utility-Scale–
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Maxeon 7 ready to scale with funding secured —
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 second quarter ended July 3, 2022.
Maxeon’s Chief Executive Officer Jeff Waters noted, “Demand for our technology continues to strengthen, in part because of our direct-to-installer model in DG and our exposure to the US utility-scale business. The DG business posted another record for EU revenues based on higher volume, panel price increases and growing Beyond the Panel mix. In the US, we completed our first direct deliveries to commercial customers and began building the domestic sales team for our residential channel. Utility-scale demand is another bright spot in the US where we added another 1.2 gigawatts of bookings and executed our first contract with price adjustment mechanisms designed to ensure we secure margins consistent with our long-term financial model.”
Commenting on result of the Company’s fund raising effort, Waters added, “We recently announced a $207 million private convertible bond issuance to our significant shareholder TZE. This transaction will provide the necessary funding for our Maxeon 7 conversion project in the Philippines and Mexico, among other things. This transaction also highlights TZE’s continued commitment to, and confidence in, Maxeon’s success.”
Continued Waters, “In the second quarter of 2022, Maxeon executed further on our multi-year capacity transformation with notable progress on Maxeon 6, Maxeon 7 and our North America Performance Line. We’ve produced our last ever Maxeon 5 module and are on track to have a fully utilized half gigawatt of Maxeon 6 capacity later this year. The Maxeon 7 pilot line achieved its performance targets and, with funding recently secured, we now plan to scale the technology. Our Performance Line remains on track to reach 1.8 gigawatts early next year and based on recent passage of the Inflation Reduction Act, we are accelerating plans to add an incremental 3 gigawatts in the US.”
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Selected Q2 Unaudited Financial Summary |
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(In thousands, except shipments) |
Fiscal Q2 2022 |
Fiscal Q1 2022 |
Fiscal Q2 2021 |
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Shipments, in MW |
521 |
488 |
434 |
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Revenue |
$ 238,080 |
$ 223,081 |
$ 175,895 |
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Gross loss(1) |
(39,324) |
(12,964) |
(2,812) |
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GAAP Operating expenses |
35,701 |
37,410 |
38,069 |
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GAAP Net loss attributable to the stockholders(1) |
(87,920) |
(59,112) |
(77,011) |
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Capital expenditures |
18,231 |
21,682 |
51,703 |
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Other Financial Data(1), (2) |
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(In thousands) |
Fiscal Q2 2022 |
Fiscal Q1 2022 |
Fiscal Q2 2021 |
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Non-GAAP Gross loss |
$ (23,905) |
$ (12,542) |
$ (2,629) |
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Non-GAAP Operating expenses |
30,162 |
34,367 |
31,200 |
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Adjusted EBITDA(3) |
(36,833) |
(33,590) |
(23,536) |
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(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 July 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 July 4, 2021, please refer to our Form 6-K furnished with the SEC on August 12, 2021.
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Supplementary information affecting GAAP and Non-GAAP results |
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Three Months Ended |
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(In thousands) |
Financial |
July 3, 2022 |
April 3, 2022 |
July 4, 2021 |
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Incremental cost of above market |
Cost of revenue |
3,308 |
7,388 |
12,538 |
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Loss on ancillary sales of excess |
Cost of revenue |
— |
8,328 |
2,498 |
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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 provision for the loss on firm purchase commitment in connection to the ancillary sales to third parties of excess polysilicon to be fulfilled in subsequent quarters.
Third Quarter 2022 Outlook
For the third quarter of 2022, the Company anticipates the following results:
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(In millions, except shipments) |
Outlook |
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Shipments, in MW |
580 – 620 MW |
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Revenue |
$270 – $290 |
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Gross loss(1) |
$10 – $20 |
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Non-GAAP gross loss(1), (2) |
$10 – $20 |
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Operating expenses |
$38 ± $1 |
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Non-GAAP operating expenses(3) |
$35± $1 |
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Adjusted EBITDA(1), (4) |
$(27) – $(37) |
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Capital expenditures(5) |
$21 – $25 |
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Out-of-market polysilicon cost(1) |
$1 |
(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 forward and the equity in gain or loss of unconsolidated investees.
(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 third 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 1,700 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.
