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Maxeon Solar Technologies Mediaroom Maxeon Solar Technologies Announces First Quarter 2021 Financial Results --Shipments of 379 MW ; Revenue $ 165 million-- --Performance Line U.S. Market Traction : Supply Agreement for ~ 1 GW to Primergy's Gemini Project-- SINGAPORE , May 20 , 2021 / 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 first quarter ended April 4 , 2021 . Commenting on first quarter results , Maxeon's Chief Executive Officer Jeff Waters noted , " As expected , results for the first quarter of 2021 were in line with our recently offered outlook . Shipment and revenue declines reflected the natural seasonal pattern in our distributed generation business , combined with our ongoing pause in large scale . Gross margins were relatively stable considering the volume decline , with better average selling prices offsetting volume deleveraging . Operating expenses ran higher sequentially , but in line with projections . As we conclude the remaining SunPower separation activities , we expect to bring operating expenses down in the quarters ahead . " Looking ahead , Waters elaborated , " We are optimistic about our long - term prospects as we continue to make significant progress in key strategic growth areas . Our newly announced initiative to bring Performance line products to North America is progressing rapidly , with an agreement to supply approximately 1 GW for Primergy's Gemini Project . Our Beyond the Panel strategy is unfolding as planned , with Maxeon AC panels on track to exceed 20 % of distributed generation revenues outside the United States as we exit the year . As well , we continue to optimize our manufacturing footprint and support margins as we ramp Maxeon 6 production and phase out our legacy Maxeon 2 line . " Waters concluded , " Maxeon has a heritage of leading the solar industry through advanced technology development , and as an independent company we are accelerating this effort . Two days ago , we again demonstrated our technical leadership with the introduction of Maxeon Air , a disruptive technology platform that enables the production of frameless , thin , lightweight , and conformable solar panels . The Maxeon Air solar panel can open new market opportunities . Furthermore , research and development on our next - generation Maxeon 7 is hitting its milestones , with visibility for greater than 25 % efficiency at launch . We are enthusiastic about our technology roadmap , which we believe will drive robust growth for years to come . " Selected Q1 Financial Summary ( In thousands , except shipments ) Shipments , in MW Revenue ( 1 ) Gross profit ( 1 ) $ Operating expenses ( 1 ) Fiscal Q1 2021 379 165,417 1,051 37,207 Fiscal Q4 2020 $ 655 245,564 7,313 $ Fiscal Q1 2020 531 227,640 3,232 32,805 32,812 Net ( loss ) income attributable to stockholders ( 1 ) Capital investments ( 38,814 ) 3,458 10,958 13,301 ( 31,749 ) 5,746 ( In thousands ) Non - GAAP gross profit Non - GAAP operating expenses Adjusted EBITDA Other Financial Data ( 1 ) , ( 2 ) Fiscal Q4 2020 Fiscal Q1 2020 $ $ 7,657 31,644 ( 17,035 ) 3,698 31,389 ( 9,379 ) Fiscal Q1 2021 $ 1,274 35,067 ( 25,650 ) ( 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 . 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 . ( 2 ) Supplementary information affecting GAAP and Non - GAAP results ( In thousands ) Financial statements item affected April 4 , 2021 Three Months Ended January 3 , 2021 March 29 , 2020 Incremental cost of above market polysilicon ( 1 ) Cost of revenue $ 11,618 $ 18,202 $ 15,266 Loss on ancillary sales of excess polysilicon ( 2 ) Cost of revenue 1,720 2,544 1,987 ( 1 ) Relates to the difference between our contractual cost for the polysilicon under the long - term fixed supply agreements with supplier and the price of polysilicon available in the market as derived from publicly available information at the time , multiplied by the volume of polysilicon we have consumed . ( 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 . Second Quarter 2021 Outlook For the second quarter of 2021 , the Company anticipates the following results : ( In millions , except shipments ) Shipments , in MW Revenue Gross loss ( 1 ) Operating expenses Non - GAAP operating expenses ( 2 ) Adjusted EBITDA ( 1 ) , ( 3 ) Capital investments ( 4 ) Out - of - market polysilicon cost ( 1 ) Restructuring charges ( 2 ) , ( 5 ) Outlook 415 475 MW $ 165 - $ 185 $ 5- $ 15 $ 38 $ 2 $ 31 + $ 2 $ ( 30 ) - $ ( 40 ) $ 50- $ 60 $ 16- $ 19 $ 5 - $ 6 ( 1 ) Outlook for Gross loss and Adjusted EBITDA includes out - of - market polysilicon cost . ( 2 ) The Company's Non - GAAP operating expenses are impacted by the effects of adjusting for stock - based compensation expense and restructuring charges . ( 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 prepaid forward . ( 4 ) Capital investments are directed mainly to upgrading production from Maxeon 2 to Maxeon 5 and 6 in our Malaysia factory , and research and development activities related to the new Maxeon 7 technology . ( 5 ) We are in the process of closing our module factory in Toulouse , France resulting in anticipated restructuring charges . The restructuring charges are included in operating expenses . These anticipated results for the second quarter of 2021 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 .