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Maxeon Solar Technologies Mediaroom Maxeon Solar Technologies Announces Third Quarter 2021 Financial Results --Revenue of $ 220M with DG Channel sales moving Beyond the Panel-- --DOE Loan Guarantee Application Progressed to Part 2-- SINGAPORE , Nov. 17 , 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 third quarter ended October 3 , 2021 . Maxeon's Chief Executive Officer Jeff Waters noted , " The team executed very well in the third quarter on near and long term initiatives despite unprecedented supply chain conditions . Our Distributed Generation channel set another record in Europe and the transition to sales Beyond the Panel accelerated with microinverter sales increasing 50 % . In Utility - Scale , we booked our first major project in India totaling nearly 200MW , and added up to approximately 400MW to the United States backlog . We are thrilled to announce that we safely re - opened our Malaysia facility after a 15 day shutdown during the quarter due to a COVID - 19 outbreak , and that as of today , 99 % of those employees are fully vaccinated . We are also supporting vaccinations for our employees in the Philippines and Mexico where national rates are still far behind Europe and the United States . The global pandemic is having a well publicized impact on global supply chain conditions . We are weathering these events , and delivered third quarter financial results within our guidance range . We also stayed on schedule for our long term transformation initiatives including the ramps of Maxeon 6 and North America Performance lines . In the United States , we remain supportive of the Biden Administration's efforts to incentivize domestic manufacturing . If the Solar Energy Manufacturing for America Act passes this year , Maxeon is setup to move fast thanks to our longtime presence in the United States , decades of experience ramping cell and module facilities , and our DOE Loan Guarantee Application for a 3 Gigawatt facility which has already progressed to Part 2 of the process . This is the next of several steps in the DOE process which could ultimately result in a conditional commitment and final loan agreement from the DOE , " Selected Q3 Financial Summary ( In thousands , except shipments ) Shipments , in MW Revenue Gross loss ( 1 ) GAAP Operating expenses 4,889 51,703 LLL Fiscal Q3 2021 566 220,488 ( 16,708 ) 32,639 Fiscal Q2 2021 434 175,895 ( 2,812 ) 38,069 ( 77,011 ) Fiscal Q3 2020 531 206,620 ( 12,302 ) 26,861 ( 67,755 ) GAAP Net loss attributable to the stockholders ( 1 ) Capital investment ( 65,363 ) 54,140 ( In thousands ) Non - GAAP Gross loss Non - GAAP Operating expenses Adjusted EBITDA Other Financial Data ( 1 ) , ( 2 ) $ Fiscal Q3 2021 ( 16,353 ) 29,678 ( 33,099 ) Fiscal Q2 2021 $ ( 2,629 ) 31,200 ( 27,341 ) Fiscal Q3 2020 $ ( 11,665 ) 25,575 ( 33,074 ) ( 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 . Supplementary information affecting GAAP and Non - GAAP results ( 2 ) ( In thousands ) Incremental cost of above market polysilicon ( 1 ) Loss on ancillary sales of excess polysilicon ( 2 ) Accommodation fee associated with the long - term polysilicon supply contract ( 3 ) Three Months Ended Financial statements item affected Cost of revenue Cost of revenue October 3 , 2021 11,490 7,425 July 4 , 2021 12,538 2,498 September 27 , 2020 38,138 1,993 Other , net 5,900 ( 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 beginning of each quarter , 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 . ( 3 ) Relates to long - term fixed supply agreements with a polysilicon supplier which is structured as " take or pay " contract , that specify future quantities and pricing of products to be supplied . We negotiated an extension of our long - term fixed supply agreements with the supplier which resulted in a one - time accommodation fee recognized in the quarter ended September 27 , 2020 . Fourth Quarter 2021 Outlook For the fourth 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 ) Outlook 540 - 570 MW $ 215 $ 235 $ 5- $ 15 $ 5- $ 15 $ 35 ± $ 2 $ 31 + $ 2 $ ( 32 ) - $ ( 42 ) $ 45 - $ 50 $ 13 $ 17 $ 2- $ 3 ( 1 ) 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 to 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 the 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 .