Maxeon Solar Technologies saw its gross loss widen in Q1 2022 despite outlook-beating revenue after the sale of excess polysilicon at a loss dragged on its performance.
The PV module manufacturer’s gross loss reached US$12.9 million in the opening quarter, up by more than US$2 million sequentially, after losing US$8.3 million through the sale of excess polysilicon, done so to reduce its inventory.
The increase is due to a US$5.9 million loss on firm purchase commitments that had to be fulfilled in the quarter ending 3 July 2022.
Despite an increase in its gross loss, the module supplier exceeded its revenue forecasts, reaching US$223 million, while module shipments in Q1 2022 were 488MW, in line with its quarterly guidance and an increase from Q1 2021’s shipments of 379MW.
Maxeon revealed it was realising greater shipments of modules to Europe, figures for the continent soaring 75% year-on-year on the back of heightened demand, while its market share in Italy in particular topped 25% in the last quarter.
Jeff Waters, CEO at Maxeon, said: “While supply chain conditions remain challenging, we remain focused on executing on our key transformation initiatives.”
The module supplier gave an update on the production ramp-up of its Maxeon 6 and Performance line for the US market, two products that are “critical” for Maxeon’s return to profitability in 2023 and key to its transformation.
Waters said that Maxeon 6 capacity will reach 500MW during the second half of 2022, while the Performance line will be ramped up in the first half of next year and with the module supplier on track to treble its capacity expansion by the end of the fiscal year.
“As these projects near completion, our focus will pivot to Maxeon’s next transformation steps led by Maxeon 7, the ramp of storage sales, direct US residential market entry and North America capacity expansion,” added Waters.
Moreover, the company announced the delivery of its first modules for the US utility-scale market coming from its facilities in Mexico, where it aims to have 1.8GW of dedicated capacity for the US by early 2023.
In guidance for Q2 2022, Maxeon expects module shipments to come in at the 460MW – 490MW range, slightly lower than its outlook for Q1 2022.
Its forecasted revenue range for Q2 2022 is US$215 – 230 million, equating to a gross loss of US$15 – 25 million.