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Maxeon Solar Technologies Mediaroom Maxeon Solar Technologies Announces Second Quarter 2021 Financial Results --Shipments of 434 MW ; Revenue of $ 176 million led by record quarter for European DG-- --DOE Loan Guarantee application submitted for 3GW manufacturing facility in the US-- SINGAPORE , Aug. 12 , 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 second quarter ended July 4 , 2021 . Commenting on results , Maxeon's Chief Executive Officer Jeff Waters noted , " The second quarter was very productive for Maxeon . 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 . " Waters also commented : " Operationally we continue to optimize our 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 our Performance line capacity for the U.S. market in the first half of 2022. 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 . " Commenting on the Company'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. " Selected Q2 Financial Summary ( In thousands , except shipments ) Shipments , in MW Revenue $ Fiscal Q2 2021 434 175,895 $ Gross ( loss ) / profit ( 1 ) ( 2,812 ) Fiscal Q1 2021 379 165,417 1,051 $ Fiscal Q2 2020 428 165,011 ( 8,025 ) Operating expenses 38,069 37,207 27,917 Net loss attributable to the stockholders ( 1 ) ( 77,011 ) ( 38,814 ) Capital investments 51,703 10,958 ( 46,585 ) 3,753 ( In thousands ) Non - GAAP Gross ( loss ) / profit Non - GAAP Operating expenses Adjusted EBITDA Other Financial Data ( 1 ) , ( 2 ) Fiscal Q1 2021 Fiscal Q2 2020 $ 1,274 35,067 ( 25,650 ) $ ( 7,392 ) 26,626 ( 22,823 ) Fiscal Q2 2021 $ ( 2,629 ) 31,200 ( 27,341 ) ( 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 Financial statements item affected July 4 , 2021 Cost of revenue April 4 , 2021 11,618 1,720 June 28 , 2020 ( In thousands ) Incremental cost of above market polysilicon ( 1 ) Cost of revenue Loss on ancillary sales of excess polysilicon ( 2 ) 12,538 2,498 6,345 1,993 ( 1 ) Relates to the difference between our contractual cost for the polysilicon under the long - term fixed supply agreements with our supplier and the price of polysilicon available in the market as derived from publicly available information at the time , multiplied by the volume of modules sold within the quarter . ( 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 . Third Quarter 2021 Outlook For the third quarter of 2021 , the Company anticipates the following results : ( In millions , except shipments ) Shipments , in MW Revenue Gross loss ( 1 ) Non - GAAP gross loss ( 1 ) , ( 2 ) Operating expenses Non - GAAP operating expenses ( 3 ) Adjusted EBITDA ( 1 ) , ( 4 ) Capital investments ( 5 ) Out - of - market polysilicon cost ( 1 ) Restructuring charges ( 3 ) , ( 6 ) ( 1 ) Outlook 580 640 MW $ 220 - $ 240 $ 10- $ 20 $ 10 $ 20 $ 36 ± $ 2 $ 31 $ 2 $ ( 30 ) - $ ( 40 ) $ 55 $ 65 $ 20- $ 23 $ 3- $ 4 Outlook for Gross loss , Non - GAAP gross loss and Adjusted EBITDA includes out - of - market polysilicon cost . ( 2 ) The Company's Non - GAAP gross loss is impacted by the effects of adjusting for stock - based compensation expense . The Company does not provide a reconciliation between its gross loss and Non - GAAP gross loss outlook as the outlook is rounded to the nearest million and hence the adjustment does not result in a difference in Non - GAAP gross loss outlook . ( 3 ) The Company's Non - GAAP operating expenses are impacted by the effects of adjusting for stock - based compensation expense and restructuring charges . ( 4 ) 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 . ( 5 ) Capital investments are directed mainly to upgrading production from Maxeon 2 to Maxeon 6 in our Malaysia factory , the purchase of cell and module equipment for our 1.8 GW of Performance line capacity for the U.S. , as well as Maxeon 7 pilot line investment . ( 6 ) We are in the process of closing our module factory in Toulouse , France resulting in anticipated restructuring charges . Additional restructuring charges are anticipated for the continued restructuring of our manufacturing network . The restructuring charges are included in operating expenses . These anticipated results for the third 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 . For more information Maxeon's second quarter 2021 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://www.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