SINGAPORE - Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN), a company specializing in solar innovation, has released its preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023.
According to the statement, the company's financial performance for the fourth quarter was largely aligned with expectations, with the U.S utility-scale business contributing the bulk of the revenue and stable average selling prices (ASPs).
The company's CEO, Bill Mulligan, indicated that Maxeon is undergoing a transformation of its Interdigitated Back Contact (IBC) capacity to adapt to the current distributed generation (DG) market slowdown. This initiative led to an accelerated ramp-down of Maxeon 6 capacity, resulting in higher restructuring costs than initially forecasted for the fourth quarter.
Maxeon's focus remains on reducing manufacturing costs, optimizing operating expenses (OPEX), and managing liquidity to achieve profitability. The company emphasizes the development of premium, differentiated products and delivering superior customer experiences across global DG and U.S. utility-scale markets. Maxeon plans to file its annual 20-F report by April 30, 2024.
For the fourth quarter of 2023, Maxeon reported shipments of 653 megawatts (MW), generating $229 million in revenue but with a gross loss of $32 million. The GAAP net loss attributable to stockholders was $184 million, and the company ended the quarter with $196 million in cash, cash equivalents, restricted cash, and short-term securities.
Comparatively, for the fiscal year 2023, Maxeon shipped a total of 2,862 MW and recorded $1,123 million in revenue. The gross profit for the year was $80 million, with a GAAP net loss of $274 million.
Looking ahead to the first quarter of 2024, Maxeon anticipates approximately 508 MW in shipments and $186 million in revenue.
This press release contains forward-looking statements, including expectations for future financial performance and strategic initiatives. Investors are cautioned not to place undue reliance on these statements, which are subject to risks and uncertainties that could cause actual results to differ materially.
The financial information provided is based on this press release statement and should not be considered a substitute for full financial statements filed with regulatory authorities.
InvestingPro Insights
Maxeon Solar Technologies (NASDAQ:MAXN) has been navigating a challenging market, as reflected in their recent preliminary financial results. Our InvestingPro Insights reveal a company that is facing significant headwinds. According to the latest data, Maxeon's market capitalization stands at a modest $144.09 million, indicating the market's current valuation of the company.
The company's price-to-earnings (P/E) ratio is deeply negative, at -0.74, highlighting investor concerns about profitability. This is further evidenced by an adjusted P/E ratio for the last twelve months as of Q3 2023 at -1.11, suggesting that the market does not expect earnings to improve in the near term.
From a revenue perspective, Maxeon has seen a growth of 27.11% over the last twelve months as of Q3 2023, demonstrating some positive dynamics in the company's top-line performance. However, this is contrasted by a quarterly revenue decline of 17.36% in Q3 2023, which may raise questions about the company's ability to maintain its revenue trajectory. Moreover, the gross profit margin for the same period was reported at 12.14%, reflecting some of the challenges in maintaining profitability.
InvestingPro Tips for Maxeon also reveal cautionary signals. Analysts have revised their earnings estimates downwards for the upcoming period, indicating potential headwinds and a lack of confidence in the company's short-term earnings potential. Additionally, Maxeon's stock has experienced a significant decline, falling by 11.84% in the last week alone, and by 23.31% over the last month, which suggests a bearish sentiment among investors.
For those considering an investment in Maxeon, or seeking to better understand the company's financial health, InvestingPro offers additional insights. There are currently 13 more InvestingPro Tips available on Maxeon, providing a comprehensive analysis of the company's financial status and future prospects. These tips can be accessed through InvestingPro, and readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Maxeon's next earnings date is scheduled for May 16, 2024, which will be a critical time for investors to assess the company's progress towards its stated goals.
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