--$56 Million
GAAP Gross Profit, $30 Million
Adjusted EBITDA--
--New
Mexico site selected for US cell and module
facility--
SINGAPORE, Aug. 10,
2023 /PRNewswire/ --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 2, 2023.
Maxeon's Chief Executive Officer Bill
Mulligan noted, "Maxeon delivered another solid quarter,
with year-on-year revenue growth of 46 percent and adjusted EBITDA
above our guidance mid-point. We were thrilled to announce
the selection of Albuquerque as
the site for our planned US solar cell and module factory, and were
also pleased to recently celebrate the completion of our 1.8 GW
capacity expansion in Mexicali. These two milestones position
the company well for continued expansion in the US utility scale
market."
Continued Mulligan, "The demand environment in the global
distributed generation (DG) market weakened significantly in
late-Q2 due to the combined effect of higher interest rates, the
impact of policy disruption in California, and significant channel inventory
industry-wide. Our DG sales team was able to deliver
on-plan ASP and gross profit but came in short of target on volume
and revenue. We expect these challenging market conditions to
persist at least through Q3, particularly in residential, and we
have increased our sales focus on the commercial and industrial
(C&I) segment as a result. We therefore expect a somewhat
higher mix of C&I sales over the next few quarters with some
push-out of volume from Q3 to Q4 and into 2024 due to the
longer sales cycles associated with C&I projects.
In DG, we believe that we are well positioned to navigate the
current market dynamics thanks to our differentiated panel
technology, direct-to-installer channel model, and geographic
diversification, and that our overall portfolio of US utility scale
and global DG exposure is a sound strategic platform that provides
long term opportunity for profitable growth while diversifying
market risk."
Selected Q2 Unaudited Financial Summary
(In thousands,
except shipments)
|
Fiscal Q2
2023
|
|
Fiscal Q1
2023
|
|
Fiscal Q2
2022
|
Shipments, in
MW
|
807
|
|
774
|
|
521
|
Revenue
|
$
348,373
|
|
$
318,332
|
|
$
238,080
|
Gross profit
(loss)(1)
|
56,223
|
|
53,625
|
|
(39,324)
|
GAAP Operating
expenses
|
47,830
|
|
41,921
|
|
35,701
|
GAAP Net (loss) income
attributable to the stockholders(1)
|
(1,509)
|
|
20,271
|
|
(87,920)
|
Capital
expenditures
|
24,169
|
|
16,500
|
|
18,231
|
|
|
|
Other Financial
Data(1), (2)
|
(In
thousands)
|
Fiscal Q2
2023
|
|
Fiscal Q1
2023
|
|
Fiscal Q2
2022
|
Non-GAAP Gross profit
(loss)
|
$
56,748
|
|
$
54,142
|
|
$
(23,905)
|
Non-GAAP Operating
expenses
|
40,883
|
|
38,056
|
|
30,162
|
Adjusted
EBITDA(3)
|
30,240
|
|
30,984
|
|
(36,833)
|
|
|
(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.
|
Supplementary information affecting GAAP and Non-GAAP
results
|
|
Three Months
Ended
|
(In
thousands)
|
Financial
statements item
affected
|
July 2,
2023
|
|
April 2,
2023
|
|
July 3,
2022
|
Incremental cost of
above market polysilicon(1)
|
Cost of
revenue
|
184
|
|
237
|
|
3,308
|
|
|
(1)
|
Relates to the
difference between our contractual cost for the polysilicon under
the long-term fixed supply agreements with our supplier, which
ended in the fiscal year 2022, 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.
|
Fiscal Year 2023 and Third Quarter 2023 Outlook
For the third quarter of 2023, the Company anticipates the
following results:
(In millions, except
shipments)
|
Outlook
|
Shipments, in
MW
|
700 - 740
|
Revenue
|
$280 - $320
|
Gross profit
|
$29 - $39
|
Non-GAAP gross
profit(1)
|
$30 - $40
|
Operating
expenses
|
$50 ± $2
|
Non-GAAP operating
expenses(2)
|
$43 ± $2
|
Adjusted
EBITDA(3)
|
$2 - $12
|
Capital
expenditures(4)
|
$29 - $35
|
For fiscal year 2023, the Company is revising its annual
guidance to reflect the near term softening of residential demand
and the challenging market conditions which the Company expects to
persist through the fourth quarter:
– Revenue to be within a range of $1,250
million to 1,350 million.
– Adjusted EBITDA to be within a range of $80 million to $100
million.
We reaffirm our annual capital expenditures(4)
guidance to be within a range of $150
million to $170 million, which
was updated to account for the Maxeon 7 capacity expansion
following the successful equity raise last May. Refer to our
prospectus supplement filed with the Securities and Exchange
Commission on May 16, 2023.
(1)
|
The Company's Non-GAAP
gross profit is impacted by the effects of adjusting for
stock-based compensation expense.
|
(2)
|
The Company's Non-GAAP
operating expenses are impacted by the effects of adjusting for
stock-based compensation expense.
|
(3)
|
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.
|
(4)
|
Capital expenditures
mainly relates to the preparation for capacity expansion for our
Maxeon 7 technology, completion of manufacturing capacity for
Performance line panels to be sold in the U.S. market, completion
of manufacturing capacity for our Maxeon 6 product platform,
further developing Maxeon 7 technology and operating a pilot line,
as well as various corporate initiatives. The above excludes
capital expenditures in connection to the investment plan to deploy
a multi-GW factory in the United States to manufacture solar
products for both the DG and utility-scale power plant
markets.
|
These anticipated results for the third quarter of 2023 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 and the global economic
environment. Please refer to Forward Looking Statements section
below. Management's views and estimates are subject to change
without notice.
For more information
Maxeon's second quarter 2023 financial results and management
commentary can be found on Form 6-K by accessing the Financials
& Filings page of the Investor Relations section of Maxeon's
website at: https://corp.maxeon.com/investor-relations. The Form
6-K and Company's other filings are also available online from the
Securities and Exchange Commission at www.sec.gov.
Conference Call Details
The Company will hold a conference call on August 10, 2023, at 5:00
PM U.S. ET / August 11, 2023,
at 5:00 AM Singapore Time, to discuss
results and to provide an update on the business.
To join the live conference call, participants must first
register here, where a dial-in number will be provided.
A simultaneous audio-only webcast of the conference call will be
available on Maxeon's website here. A webcast replay will be
available on Maxeon's website for one year at
https://corp.maxeon.com/events-and-presentations.
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-plus-year history in the solar
industry and numerous awards for its technology. For more
information about how Maxeon is Powering Positive
ChangeTM visit us at https://www.maxeon.com/, on
LinkedIn and on Twitter @maxeonsolar.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including, but not limited to, statements regarding: (a)
our expectations regarding pricing trends, demand and growth
projections; (b) potential disruptions to our operations and supply
chain that may result from epidemics, natural disasters or military
conflicts, including the duration, scope and impact on the demand
for our products, market disruptions from the war in Ukraine; (c) anticipated product launch timing
and our expectations regarding ramp, customer acceptance and
demand, upsell and expansion opportunities; (d) our expectations
and plans for short- and long-term strategy, including our
anticipated areas of focus and investment, market expansion,
product and technology focus, and projected growth and
profitability; (e) our ability to meet short term and long term
material cash requirements, our ability to complete an equity or
debt offering or financing at favorable terms, if at all, and our
overall liquidity, substantial indebtedness and ability to obtain
additional financing; (f) our technology outlook, including
anticipated fab capacity expansion and utilization and expected
ramp and production timelines for the Company's next-generation
Maxeon 7 and Performance line solar panels, expected cost
reductions, and future performance; (g) our strategic goals and
plans, including capacity expansion, partnership discussions with
respect to the Company's next-generation technology, and our
relationship with SunPower Corporation as one of our largest
customers and our relationships with our other existing customers,
suppliers and partners, and our ability to achieve and maintain
them; (h) our expectations regarding our future performance and
revenues resulting from contracted orders, bookings, backlog, and
pipelines in our sales channels and feedback from our partners; (i)
our projected effective tax rate and changes to the valuation
allowance related to our deferred tax assets; and (j) our third
quarter and annual fiscal year 2023 guidance, including shipments,
revenue, gross profit, non-GAAP gross profit, operating expenses,
non-GAAP operating expenses, Adjusted EBITDA, capital expenditures,
and related assumptions.
The forward-looking statements can be also identified by
terminology such as "may," "might," "could," "will," "aims,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, the
quotations from management in this press release and Maxeon's
operations and business outlook contain forward-looking
statements.
These forward-looking statements are based on our current
assumptions, expectations and beliefs and involve substantial risks
and uncertainties that may cause results, performance or
achievement to materially differ from those expressed or implied by
these forward-looking statements. These statements are not
guarantees of future performance and are subject to a number of
risks. The reader should not place undue reliance on these
forward-looking statements, as there can be no assurances that the
plans, initiatives or expectations upon which they are based will
occur. Factors that could cause or contribute to such differences
include, but are not limited to: (1) challenges in executing
transactions key to our strategic plans, including regulatory and
other challenges that may arise; (2) our liquidity, substantial
indebtedness, terms and conditions upon which our indebtedness is
incurred, and ability to obtain additional financing for our
projects, customers and operations; (3) our ability to manage
supply chain shortages and/or excess inventory and cost increases
and operating expenses; (4) potential disruptions to our operations
and supply chain that may result from damage or destruction of
facilities operated by our suppliers, difficulties in hiring or
retaining key personnel, epidemics, natural disasters, including
impacts of the war in Ukraine; (5)
our ability to manage our key customers and suppliers; (6) the
success of our ongoing research and development efforts and our
ability to commercialize new products and services, including
products and services developed through strategic partnerships; (7)
competition in the solar and general energy industry and downward
pressure on selling prices and wholesale energy pricing, including
impacts of inflation, economic recession and foreign exchange rates
upon customer demand; (8) changes in regulation and public policy,
including the imposition and applicability of tariffs; (9) our
ability to comply with various tax holiday requirements as well as
regulatory changes or findings affecting the availability of
economic incentives promoting use of solar energy and availability
of tax incentives or imposition of tax duties; (10) fluctuations in
our operating results and in the foreign currencies in which we
operate; (11) appropriately sizing, or delays in expanding our
manufacturing capacity and containing manufacturing and logistics
difficulties that could arise; (12) unanticipated impact to
customer demand and sales schedules due, among other factors, to
the war in Ukraine, economic
recession and environmental disasters; (13) challenges managing our
acquisitions, joint ventures and partnerships, including our
ability to successfully manage acquired assets and supplier
relationships; (14) reaction by securities or industry analysts to
our annual and/or quarterly guidance, in combination with our
results of operations or other factors, and/ or third party reports
or publications, whether accurate or not, which may cause such
securities or industry analysts to cease publishing research or
reports about us, or adversely change their recommendations
regarding our ordinary shares, which may negatively impact the
market price of our ordinary shares and volume of our stock
trading; (15) reaction by investors to our annual and/or quarterly
guidance, in combination with our results of operations or other
factors, and/ or third party reports or publications, whether
accurate or not, which may negatively impact the market price of
our ordinary shares and volume of our stock trading and (16)
unpredictable outcomes resulting from our litigation activities or
other disputes. A detailed discussion of these factors and other
risks that affect our business is included in filings we make with
the Securities and Exchange Commission ("SEC") from time to time,
including our most recent report on Form 20-F, particularly under
the heading "Risk Factors". Copies of these filings are available
online from the SEC at www.sec.gov, or on the SEC Filings section
of our Investor Relations website at
https://corp.maxeon.com/investor-relations. All forward-looking
statements in this press release are based on information currently
available to us, and we assume no obligation to update these
forward-looking statements in light of new information or future
events.
Use of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP gross
profit (loss), non-GAAP operating expenses and earnings before
interest, taxes, depreciation and amortization ("EBITDA") adjusted
for stock-based compensation, restructuring benefits (charges and
fees), remeasurement gain (loss) on prepaid forward and physical
delivery forward, loss related to settlement of price escalation
dispute and equity in losses of unconsolidated investees ("Adjusted
EBITDA") to supplement our consolidated financial results presented
in accordance with GAAP. Non-GAAP gross profit (loss) is defined as
gross profit (loss) excluding stock-based compensation. Non-GAAP
operating expenses is defined as operating expenses excluding
stock-based compensation and restructuring benefits (charges and
fees).
We believe that non-GAAP gross profit (loss), non-GAAP operating
expenses and Adjusted EBITDA provide greater transparency into
management's view and assessment of the Company's ongoing operating
performance by removing items management believes are not
representative of our continuing operations and may distort our
longer-term operating trends. We believe these measures are useful
to help enhance the comparability of our results of operations
across different reporting periods on a consistent basis and with
our competitors, distinct from items that are infrequent or not
associated with the Company's core operations as presented above.
We also use these non-GAAP measures internally to assess our
business, financial performance and current and historical results,
as well as for strategic decision-making and forecasting future
results. Given our use of non-GAAP measures, we believe that these
measures may be important to investors in understanding our
operating results as seen through the eyes of management. These
non-GAAP measures are neither prepared in accordance with GAAP nor
are they intended to be a replacement for GAAP financial data,
should be reviewed together with GAAP measures and may be different
from non-GAAP measures used by other companies.
As presented in the "Reconciliation of Non-GAAP Financial
Measures" section, each of the non-GAAP financial measures excludes
one or more of the following items in arriving to the non-GAAP
measures:
- Stock-based compensation expense. Stock-based
compensation relates primarily to equity incentive awards.
Stock-based compensation is a non-cash expense that is dependent on
market forces that are difficult to predict and is excluded from
non-GAAP gross profit (loss), non-GAAP operating expense and
Adjusted EBITDA. Management believes that this adjustment for
stock-based compensation expense provides investors with a basis to
measure our core performance, including the ability to compare our
performance with the performance of other companies, without the
period-to-period variability created by stock-based
compensation.
- Restructuring benefits (charges and fees). We incur
restructuring benefits (charges and fees) related to reorganization
plans aimed towards realigning resources consistent with our global
strategy and improving its overall operating efficiency and cost
structure. Restructuring benefits (charges and fees) are excluded
from non-GAAP operating expenses and Adjusted EBITDA because they
are not considered core operating activities. Although we have
engaged in restructuring activities and initiatives, past
activities have been discrete events based on unique sets of
business objectives. As such, management believes that it is
appropriate to exclude restructuring benefits (charges and fees)
from our non-GAAP financial measures as they are not reflective of
ongoing operating results nor do these charges contribute to a
meaningful evaluation of our past operating performance.
Remeasurement gain (loss) on prepaid forward and physical
delivery forward. This relates to the mark-to-market fair value
remeasurement of privately negotiated prepaid forward and physical
delivery transactions. The transactions were entered into in
connection with the issuance on July 17,
2020 of the 6.50% Green Convertible Senior Notes due 2025
for an aggregate principal amount of $200
million. The prepaid forward is remeasured to fair value at
the end of each reporting period, with changes in fair value booked
in earnings. The fair value of the prepaid forward is primarily
affected by the Company's share price. The physical delivery
forward was remeasured to fair value at the end of the Note
Valuation Period on September 29,
2020, and was reclassified to equity after remeasurement,
and will not be subsequently remeasured. The fair value of the
physical delivery forward was primarily affected by the Company's
share price. The remeasurement gain (loss) on prepaid forward and
physical delivery forward is excluded from Adjusted EBITDA because
it is not considered core operating activities. As such, management
believes that it is appropriate to exclude the mark-to-market
adjustments from our Adjusted EBITDA as it is not reflective of
ongoing operating results nor do the loss contribute to a
meaningful evaluation of our past operating performance.
- Equity in income (losses) of unconsolidated investees.
This relates to the income (loss) on our unconsolidated equity
investment Huansheng JV. This is excluded from our Adjusted EBITDA
financial measure as it is non-cash in nature and not reflective of
our core operational performance. As such, management believes that
it is appropriate to exclude such charges as they do not contribute
to a meaningful evaluation of our performance.
- Loss related to settlement of price escalation dispute.
This relates to loss arising from the settlement of price
escalation dispute with a polysilicon supplier related to our
long-term, firm commitment polysilicon supply agreement which ended
in the fiscal year 2022. This is excluded from our Adjusted EBITDA
financial measure as it is non-recurring and not reflective of
ongoing operating results. As such, management believes that it is
appropriate to exclude such charges as the loss does not contribute
to a meaningful evaluation of our past and future operating
performance.
Reconciliation of Non-GAAP Financial Measures
|
Three Months
Ended
|
(In
thousands)
|
July 2,
2023
|
|
April 2,
2023
|
|
July 3,
2022
|
Gross profit
(loss)
|
$
56,223
|
|
$
53,625
|
|
$
(39,324)
|
Stock-based
compensation
|
525
|
|
517
|
|
249
|
Loss related to
settlement of price escalation dispute
|
—
|
|
—
|
|
15,170
|
Non-GAAP Gross
profit (loss)
|
56,748
|
|
54,142
|
|
(23,905)
|
|
|
|
|
|
|
GAAP Operating
expenses
|
47,830
|
|
41,921
|
|
35,701
|
Stock-based
compensation
|
(7,071)
|
|
(4,144)
|
|
(1,896)
|
Restructuring benefits
(charges and fees)
|
124
|
|
279
|
|
(3,643)
|
Non-GAAP Operating
expenses
|
40,883
|
|
38,056
|
|
30,162
|
|
|
|
|
|
|
GAAP Net (loss)
income attributable to the stockholders
|
(1,509)
|
|
20,271
|
|
(87,920)
|
Interest expense,
net
|
8,903
|
|
8,999
|
|
5,685
|
Provision for income
taxes
|
5,893
|
|
5,984
|
|
937
|
Depreciation
|
14,546
|
|
14,383
|
|
15,305
|
Amortization
|
45
|
|
68
|
|
75
|
EBITDA
|
27,878
|
|
49,705
|
|
(65,918)
|
Stock-based
compensation
|
7,596
|
|
4,661
|
|
2,145
|
Loss related to
settlement of price escalation dispute
|
—
|
|
—
|
|
15,170
|
Restructuring
(benefits) charges and fees
|
(124)
|
|
(279)
|
|
3,643
|
Remeasurement (gain)
loss on prepaid forward
|
(4,718)
|
|
(23,849)
|
|
3,986
|
Equity in (income)
losses of unconsolidated investees
|
(392)
|
|
746
|
|
4,141
|
Adjusted
EBITDA
|
30,240
|
|
30,984
|
|
(36,833)
|
Reconciliation of Non-GAAP Outlook
(In
millions)
|
Outlook
|
Gross
profit
|
$29 - $39
|
Stock-based
compensation
|
1
|
Non-GAAP gross
profit
|
$30 -
$40
|
|
|
Operating
expenses
|
$50 ± $2
|
Stock-based
compensation
|
(7)
|
Non-GAAP operating
expenses
|
$43 ±
$2
|
©2023 Maxeon Solar Technologies, Ltd. All rights reserved.
MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd.
Visit https://corp.maxeon.com/trademarks for more
information.
MAXEON SOLAR
TECHNOLOGIES, LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited)
|
(In thousands,
except for shares data)
|
|
|
As of
|
|
July 2,
2023
|
|
January 1,
2023
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
375,461
|
|
$
227,442
|
Short-term
securities
|
60,000
|
|
76,000
|
Restricted short-term
marketable securities
|
991
|
|
968
|
Accounts receivable,
net
|
61,731
|
|
54,301
|
Inventories
|
349,336
|
|
303,230
|
Advances to suppliers,
current portion
|
1,407
|
|
2,137
|
Prepaid expenses and
other current assets
|
105,300
|
|
126,971
|
Total current
assets
|
$
954,226
|
|
$
791,049
|
Property, plant and
equipment, net
|
361,311
|
|
380,468
|
Operating lease right
of use assets
|
25,863
|
|
17,844
|
Other intangible
assets, net
|
313
|
|
291
|
Deferred tax
assets
|
10,228
|
|
10,348
|
Other long-term
assets
|
102,373
|
|
60,418
|
Total
assets
|
$
1,454,314
|
|
$
1,260,418
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
211,909
|
|
$
247,870
|
Accrued
liabilities
|
107,648
|
|
135,157
|
Contract liabilities,
current portion
|
177,921
|
|
139,267
|
Short-term
debt
|
35,512
|
|
50,526
|
Operating lease
liabilities, current portion
|
5,331
|
|
3,412
|
Total current
liabilities
|
$
538,321
|
|
$
576,232
|
Long-term
debt
|
1,424
|
|
1,649
|
Contract liabilities,
net of current portion
|
156,231
|
|
161,678
|
Operating lease
liabilities, net of current portion
|
21,845
|
|
15,603
|
Convertible
debt
|
382,040
|
|
378,610
|
Deferred tax
liabilities
|
14,333
|
|
14,913
|
Other long-term
liabilities
|
67,027
|
|
63,663
|
Total
liabilities
|
$
1,181,221
|
|
$
1,212,348
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Common stock, no par
value (52,646,297 and 45,033,027 issued and outstanding as of
July 2, 2023 and January 1, 2023, respectively)
|
$
—
|
|
$
—
|
Additional paid-in
capital
|
789,312
|
|
584,808
|
Accumulated
deficit
|
(501,501)
|
|
(520,263)
|
Accumulated other
comprehensive loss
|
(20,546)
|
|
(22,108)
|
Equity attributable to
the Company
|
267,265
|
|
42,437
|
Noncontrolling
interests
|
5,828
|
|
5,633
|
Total equity
|
273,093
|
|
48,070
|
Total liabilities
and equity
|
$
1,454,314
|
|
$
1,260,418
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 2,
2023
|
|
July 3,
2022
|
|
July 2,
2023
|
|
July 3,
2022
|
Revenue
|
$
348,373
|
|
$
238,080
|
|
$
666,705
|
|
$
461,161
|
Cost of
revenue
|
292,150
|
|
277,404
|
|
556,857
|
|
513,449
|
Gross profit
(loss)
|
56,223
|
|
(39,324)
|
|
109,848
|
|
(52,288)
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
13,012
|
|
12,416
|
|
24,088
|
|
26,310
|
Sales, general and
administrative
|
34,492
|
|
21,520
|
|
65,520
|
|
45,271
|
Restructuring
charges
|
326
|
|
1,765
|
|
143
|
|
1,530
|
Total operating
expenses
|
47,830
|
|
35,701
|
|
89,751
|
|
73,111
|
Operating income
(loss)
|
8,393
|
|
(75,025)
|
|
20,097
|
|
(125,399)
|
Other (expense) income,
net
|
|
|
|
|
|
|
|
Interest expense,
net
|
(8,903)
|
|
(5,684)
|
|
(17,902)
|
|
(10,470)
|
Other, net
|
4,550
|
|
(1,978)
|
|
28,993
|
|
(2,130)
|
Other (expense)
income, net
|
(4,353)
|
|
(7,662)
|
|
11,091
|
|
(12,600)
|
Income (loss) before
income taxes and equity
in (income) losses of unconsolidated investees
|
4,040
|
|
(82,687)
|
|
31,188
|
|
(137,999)
|
Provision for income
taxes
|
(5,893)
|
|
(937)
|
|
(11,877)
|
|
(1,762)
|
Equity in income
(losses) of unconsolidated investees
|
392
|
|
(4,141)
|
|
(354)
|
|
(7,201)
|
Net (loss)
income
|
(1,461)
|
|
(87,765)
|
|
18,957
|
|
(146,962)
|
Net income
attributable to noncontrolling interests
|
(48)
|
|
(155)
|
|
(195)
|
|
(70)
|
Net loss (income)
attributable to the stockholders
|
$
(1,509)
|
|
$
(87,920)
|
|
$
18,762
|
|
$
(147,032)
|
|
|
|
|
|
|
|
|
Net (loss) income per
share attributable to stockholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
(0.03)
|
|
$
(2.15)
|
|
$
0.43
|
|
$
(3.61)
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute net (loss) income per share:
|
|
|
|
|
|
|
|
Basic
|
45,158
|
|
40,853
|
|
43,273
|
|
40,751
|
Diluted
|
45,158
|
|
40,853
|
|
44,110
|
|
40,751
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF EQUITY
|
(unaudited)
|
(In
thousands)
|
|
|
Shares
|
|
Amount
|
|
Additional
Paid In
Capital
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Equity
Attributable
to the
Company
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
Balance at January
1, 2023
|
45,033
|
|
$
—
|
|
$
584,808
|
|
$
(520,263)
|
|
$
(22,108)
|
|
$
42,437
|
|
$
5,633
|
|
$
48,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Net income
|
—
|
|
—
|
|
—
|
|
20,271
|
|
—
|
|
20,271
|
|
147
|
|
20,418
|
Issuance of common
stock for stock-based compensation, net of tax withheld
|
377
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Recognition of
stock-based compensation
|
—
|
|
—
|
|
4,033
|
|
—
|
|
—
|
|
4,033
|
|
—
|
|
4,033
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
1,627
|
|
1,627
|
|
—
|
|
1,627
|
Balance at April 2,
2023
|
45,410
|
|
$
—
|
|
$
588,841
|
|
$
(499,992)
|
|
$
(20,481)
|
|
$
68,368
|
|
$
5,780
|
|
$
74,148
|
Net loss
(income)
|
—
|
|
$
—
|
|
$
—
|
|
$
(1,509)
|
|
$
—
|
|
$
(1,509)
|
|
$
48
|
|
$
(1,461)
|
Issuance of common
stock, net of issuance cost
|
7,120
|
|
—
|
|
193,491
|
|
—
|
|
—
|
|
193,491
|
|
—
|
|
193,491
|
Issuance of common
stock for stock-based compensation, net of tax withheld
|
116
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Recognition of
stock-based compensation
|
—
|
|
—
|
|
6,980
|
|
—
|
|
—
|
|
6,980
|
|
—
|
|
6,980
|
Other comprehensive
loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(65)
|
|
(65)
|
|
—
|
|
(65)
|
Balance at July 2,
2023
|
52,646
|
|
—
|
|
789,312
|
|
(501,501)
|
|
(20,546)
|
|
267,265
|
|
5,828
|
|
273,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Additional
Paid In
Capital
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Equity
Attributable
to the
Company
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
Balance at January
2, 2022
|
44,247
|
|
$
—
|
|
$
624,261
|
|
$
(262,961)
|
|
$
(11,844)
|
|
$
349,456
|
|
$
5,419
|
|
$
354,875
|
Effect of adoption of
ASU 2020-06
|
—
|
|
—
|
|
(52,189)
|
|
10,122
|
|
—
|
|
(42,067)
|
|
—
|
|
(42,067)
|
Net loss
|
—
|
|
—
|
|
—
|
|
(59,112)
|
|
—
|
|
(59,112)
|
|
(85)
|
|
(59,197)
|
Issuance of common
stock for stock-based compensation, net of tax withheld
|
354
|
|
—
|
|
(2)
|
|
—
|
|
—
|
|
(2)
|
|
—
|
|
(2)
|
Distribution to
noncontrolling interest
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(64)
|
|
(64)
|
Recognition of
stock-based compensation
|
—
|
|
—
|
|
1,466
|
|
—
|
|
—
|
|
1,466
|
|
—
|
|
1,466
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
(803)
|
|
(803)
|
|
—
|
|
(803)
|
Balance at April 3,
2022
|
44,601
|
|
$
—
|
|
$
573,536
|
|
$
(311,951)
|
|
$
(12,647)
|
|
$
248,938
|
|
$
5,270
|
|
$
254,208
|
Net (loss)
income
|
—
|
|
—
|
|
—
|
|
(87,920)
|
|
—
|
|
(87,920)
|
|
155
|
|
(87,765)
|
Issuance of common
stock for stock-based compensation, net of tax withheld
|
108
|
|
—
|
|
(21)
|
|
—
|
|
—
|
|
(21)
|
|
—
|
|
(21)
|
Recognition of
stock-based compensation
|
—
|
|
—
|
|
2,844
|
|
—
|
|
—
|
|
2,844
|
|
—
|
|
2,844
|
Other comprehensive
loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(755)
|
|
(755)
|
|
—
|
|
(755)
|
Balance at July 3,
2022
|
44,709
|
|
—
|
|
576,359
|
|
(399,871)
|
|
(13,402)
|
|
163,086
|
|
5,425
|
|
168,511
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited)
|
(In
thousands)
|
|
|
Six Months
Ended
|
|
July 2,
2023
|
|
July 3,
2022
|
Cash flows from
operating activities
|
|
|
|
Net profit
(loss)
|
$
18,957
|
|
$
(146,962)
|
Adjustments to
reconcile net profit (loss) to operating cash flows
|
|
|
|
Depreciation and
amortization
|
29,042
|
|
28,368
|
Stock-based
compensation
|
12,257
|
|
4,842
|
Non-cash interest
expense
|
4,657
|
|
2,819
|
Equity in losses of
unconsolidated investees
|
354
|
|
7,201
|
Deferred income
taxes
|
(460)
|
|
475
|
Loss on impairment of
property, plant and equipment
|
442
|
|
—
|
Loss on disposal of
property, plant and equipment
|
9
|
|
191
|
Remeasurement (gain)
loss on prepaid forward
|
(28,567)
|
|
4,383
|
(Utilization of)
provision for inventory reserves
|
(10,377)
|
|
10,126
|
Other, net
|
20
|
|
558
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
(23,850)
|
|
(18,728)
|
Inventories
|
(65,706)
|
|
(80,028)
|
Prepaid expenses and
other assets
|
654
|
|
(19,800)
|
Operating lease
right-of-use assets
|
2,303
|
|
1,337
|
Advances to
suppliers
|
730
|
|
34,907
|
Accounts payable and
other accrued liabilities
|
(13,507)
|
|
58,134
|
Contract
liabilities
|
48,661
|
|
117,329
|
Operating lease
liabilities
|
(1,928)
|
|
(1,454)
|
Net cash (used in)
provided by operating activities
|
(26,309)
|
|
3,698
|
Cash flows from
investing activities
|
|
|
|
Purchases of property,
plant and equipment
|
(40,669)
|
|
(39,913)
|
Purchases of
intangible assets
|
(135)
|
|
—
|
Proceeds from maturity
of short-term securities
|
76,000
|
|
—
|
Purchase of short-term
securities
|
(60,000)
|
|
—
|
Purchase of restricted
short-term marketable securities
|
(10)
|
|
—
|
Proceeds from disposal
of property, plant and equipment
|
—
|
|
32
|
Net cash used in
investing activities
|
(24,814)
|
|
(39,881)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
debt
|
114,539
|
|
130,010
|
Repayment of
debt
|
(129,526)
|
|
(105,650)
|
Repayment of finance
lease obligations
|
(252)
|
|
(332)
|
Payment for tax
withholding obligations for issuance of common stock upon vesting
of restricted stock units
|
—
|
|
(23)
|
Net proceeds from
issuance of common stock
|
194,226
|
|
—
|
Distribution to
noncontrolling interest
|
—
|
|
(64)
|
Net cash provided by
financing activities
|
178,987
|
|
23,941
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
81
|
|
160
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
127,945
|
|
(12,082)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
267,961
|
|
192,232
|
Cash, cash equivalents
and restricted cash, end of period
|
$
395,906
|
|
$
180,150
|
Non-cash
transactions
|
|
|
|
Property, plant and
equipment purchases funded by liabilities
|
$
16,485
|
|
$
33,800
|
Property, plant and
equipment obtained through capital lease
|
—
|
|
2,127
|
Right-of-use assets
obtained in exchange for lease obligations
|
10,322
|
|
1,257
|
The following table reconciles our cash and cash equivalents and
restricted cash reported on our Condensed Consolidated Balance
Sheets and the cash, cash equivalents and restricted cash reported
on our Condensed Consolidated Statements of Cash Flows as of
July 2, 2023 and July 3, 2022:
(In
thousands)
|
July 2,
2023
|
|
July 3,
2022
|
Cash and cash
equivalents
|
$
375,461
|
|
$
138,347
|
Restricted cash,
current portion, included in Prepaid expenses and other current
assets
|
20,443
|
|
35,396
|
Restricted cash, net of
current portion, included in Other long-term assets
|
2
|
|
6,407
|
Total cash, cash
equivalents and restricted cash shown in Condensed Consolidated
Statements of Cash Flows
|
$
395,906
|
|
$
180,150
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/maxeon-solar-technologies-announces-second-quarter-2023-financial-results-301898313.html
SOURCE Maxeon Solar Technologies, Ltd.