Maxeon Solar Technologies Announces First Quarter 2022 Financial Results – EQ Mag Pro
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Record European DG Volume with new Beyond the Panel launches–
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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.”
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Selected Q1 Unaudited Financial Summary |
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(In thousands, except shipments) |
Fiscal Q1 2022 |
Fiscal Q4 2021 |
Fiscal Q1 2021 |
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Shipments, in MW |
488 |
577 |
379 |
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Revenue |
$ 223,081 |
$ 221,479 |
$ 165,417 |
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Gross (loss) profit (1) |
(12,964) |
(10,545) |
1,051 |
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GAAP Operating expenses |
37,410 |
35,518 |
37,207 |
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GAAP Net loss attributable to the stockholders(1) |
(59,112) |
(73,332) |
(38,814) |
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Capital expenditures |
21,682 |
37,393 |
10,958 |
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Other Financial Data(1), (2) |
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(In thousands) |
Fiscal Q1 2022 |
Fiscal Q4 2021 |
Fiscal Q1 2021 |
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Non-GAAP Gross (loss) profit |
$ (12,542) |
$ (10,056) |
$ 1,274 |
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Non-GAAP Operating expenses |
34,367 |
33,423 |
35,067 |
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Adjusted EBITDA(3) |
(33,590) |
(32,777) |
(23,520) |
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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 |
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(2) The Company’s use of Non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under “Use of Non-GAAP |
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(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 |
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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 |
April 3, 2022 |
January 2, 2022 |
April 4, 2021 |
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Incremental cost of above market |
Cost of revenue |
7,388 |
11,542 |
11,618 |
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Loss on ancillary sales of excess |
Cost of revenue |
8,328 |
2,621 |
1,720 |
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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 |
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(2) In order to reduce inventory and improve working capital, we have periodically elected to sell polysilicon inventory procured under the long-term |
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(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 |
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Second Quarter 2022 Outlook
For the second 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 |
460 – 490 MW |
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Revenue |
$215 – $230 |
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Gross loss(1) |
$15 – $25 |
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Non-GAAP gross loss(1), (2) |
$15 – $25 |
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Operating expenses |
$39 ± $1 |
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Non-GAAP operating expenses(3) |
$36 ± $1 |
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Adjusted EBITDA(1), (4) |
$(37) – $(47) |
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Capital expenditures(5) |
$20 – $24 |
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Out-of-market polysilicon cost(1) |
$3 – $4 |
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(1) Outlook for Gross loss, Non-GAAP gross loss and Adjusted EBITDA includes out-of-market polysilicon cost. |
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(2) The Company’s Non-GAAP gross loss is impacted by the effects of adjusting for stock-based compensation expense. The Company does not |
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(3) The Company’s Non-GAAP operating expenses are impacted by the effects of adjusting for stock-based compensation expense and restructuring |
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(4) The Company cannot provide a reconciliation between its Adjusted EBITDA projection and the most directly comparable GAAP measures without |
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(5) Capital expenditures are directed mainly to upgrading production to Maxeon 6 in our Malaysia factory, the purchase of cell and module equipment for |
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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.
