Maxeon Reports Around $3 M Loss, 434 MW Shipments in Q2 FY21

Singaporean solar innovation company Maxeon Solar Technologies has announced its financial results for the second quarter ended July 4, 2021, reporting around $176 million in revenues and $2.8 million in losses in Q2 FY21.

While the company suffered losses worth $8 million in the year-ago period, it managed to earn a profit of $1.051 million in the previous quarter, i.e. Q1 FY21. Maxeon also reported shipments worth 434 MW and EBITDA of $27.3 million in the second quarter.

Maxeon’s CEO Jeff Waters has opined on these results. He stated, “Strong execution in the Distributed Generation (DG) market not only produced results consistent with our outlook, but also put the company in a position to achieve even stronger sequential growth in future quarters. The European DG channel posted a record revenue quarter. In utility-scale, we remain selective based on market pricing outside the United States, but we’re now seeing bidding trends that support strong 2022 growth.”

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The company continues to optimize its manufacturing footprint and product lines, phasing out the legacy Maxeon 2 product and readying for the ramp of Maxeon 6 this year, as well as clearing the way for the build out of the performance line capacity for the U.S. market in the first half of 2022, said Waters.

Last month, the firm announced the the entry of a new product – Performance 3 AC solar PV module – into its AC portfolio. The new device offers installers more efficient installations, simplified logistics, and more flexible system designs.

Waters also said, “Additionally, our liquidity improved during the quarter with $170 million of net proceeds from our public offering and an additional $33 million in positive operating cash flows in fiscal Q2 2021. With a stronger balance sheet, strong growth indicators and continued operational progress, we at Maxeon continue to grow in our confidence in our financial transformation.”

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For the third quarter of 2021, Maxeon anticipates shipments worth 580-640 MW, $220-240 in revenues, gross loss of $10-20 million, and EBITDA of $30-40 million. The company will direct its capital investments mainly towards upgrading production from Maxeon 2 to Maxeon 6 in its Malaysia factory, the purchase of cell and module equipment for its 1.8 GW of performance line capacity for the U.S., as well as Maxeon 7 pilot line investment. The firm is also in the process of closing its module factory in Toulouse, France, which is expected to result into some restructuring charges.

Commenting on Maxeon’s potential launch of a manufacturing facility on U.S. soil, Waters stated, “We recently submitted to the United States Department of Energy (DOE) Loan Programs Office an application to support the deployment of a 3 GW Performance line solar cell and module factory. Pending successful negotiation of a DOE loan guarantee and the passage of enabling legislation including the Solar Energy Manufacturing for America Act and the American Jobs in Energy Manufacturing Act of 2021, we intend to move forward with this project with the goal of starting solar panel production in the U.S. as early as 2023.”