Maxeon posts wider Q1 loss, says US ramp up critical for profitability

Source: Maxeon Solar Technologies Ltd

Maxeon Solar Technologies Ltd (NASDAQ:MAXN) on Thursday reported an expanded net attributable loss of USD 59.1 million (EUR 55m) for its fiscal first quarter through April 3, regardless of growth in shipments and revenues.

The Singapore-based solar cell and panel maker, a spin-off of SunPower Corp (NASDAQ:SPWR), said that the market continues to be constrained by supply chain hurdles. The company is continuing work to ramp up production of the Maxeon 6 and Performance line photovoltaic (PV) panels for the US market. This is considered by Maxeon as “critical” for its return to profitability in 2023.

Details about the company’s financial performance in the fiscal quarter are available in the table.

Amounts in USD millions	Q1 2022	Q4 2021	Q1 2021
Module shipments (MW)	488	577	379
Revenues	223.1	221.5	165.4
Gross profit (loss)	(13)	(10.5)	1.1
Operating expenses	37.4	35.5	37.2
Net profit (loss) attributable to shareholders	(59.1)	(73.3)	(38.8)
Adjusted EBITDA (loss)	(33.6)	(32.8)	(23.5)
Capital expenditures	21.7	37.4	11

488

21.7

During the reporting period, Maxeon enjoyed a 75% year-on-year increase in module sales in Europe.

The ramp-up of the Maxeon 6 manufacturing capacity to 500 MW is scheduled for the second half of this year, while the Performance line capacity for the US market is due 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," said CEO Jeff Waters.

OUTLOOK

The following forecast was given by the company for the second quarter of 2022.

Amounts in USD millions, unless otherwise noted	Q2 forecast
Shipments (MW)	460-490
Revenues	215-230
Gross loss	15-25
Operating expenses	39+/-1
Adjusted EBITDA (loss)	(37)-(47)
Capital expenditures	20-24