- Preliminary second quarter GAAP Net Loss of ($30) million, Adjusted EBITDA of
approximately ($3) million
- Preliminary second quarter customer growth of 20,400 new
customers
- Preliminary second quarter Revenue of $464 million, 11% higher year-over-year
- Reduced 2023 outlook for customer growth and Adjusted
EBITDA
RICHMOND, Calif., July 26,
2023 /PRNewswire/ -- SunPower Corp.
(NASDAQ:SPWR), a leading solar technology and energy services
provider, today provided preliminary unaudited financial results
for the second quarter ending July 2,
2023.
"Demand in the second quarter has weakened more than expected in
the Southeast and Southwest where macroeconomic uncertainty and
higher interest rates have slowed our top-of-funnel lead generation
and sales bookings," said Peter
Faricy, SunPower CEO. "To quickly adapt to prevailing market
conditions and help ensure SunPower maintains its competitive edge,
we are reducing our cost structure. Although we've seen
improvements in sales growth in June and July, we've made the
decision to reduce our labor costs and are taking additional
measures to improve operational efficiency across the board. We
believe that these actions will position the company for success as
market conditions improve."
Updated 2023 Guidance
FY 2023 GUIDANCE
Net Loss
(GAAP)
|
($90) million - ($70)
million
|
Residential
Customers
|
70,000 -
90,000
|
Residential Adjusted
EBITDA/Customer1
|
$1,450 -
$1,650
|
Adjusted
EBITDA2
|
$55 million - $75
million
|
|
|
- Excluding Platform Investment, which is primarily Product,
Digital, and Corporate Operating Expense.
- Adjusted EBITDA guidance for FY 2023 includes net adjustments
that increase GAAP net loss guidance by approximately $145 million primarily relating to the following
adjustments: stock-based compensation expense, restructuring
charges, mark-to-market (gain) loss on equity investments, net,
amortization of intangible assets and software, interest expense,
depreciation, income taxes, and other non-recurring
adjustments.
The company reduced 2023 guidance for GAAP net loss to
($90) million-($70) million.
To accurately reflect its assessment of current and near-future
customer demand as well as its mitigating actions to reduce cost
structure, the company has reduced its 2023 customer guidance to
70,000–90,000 incremental customers, noting that more than 70% of
the projected installations in the second half of 2023 are already
accounted for through the execution of existing backlog. This
includes the expected recognition of all California NEM 2.0 backlog
by year-end and stronger than expected New Homes
bookings.
Guidance for Adjusted EBITDA per customer before platform
investment was reduced to $1,450-$1,650 to
reflect installation costs that are higher than anticipated, as
well as the effects of lower market pricing and higher levels of
inventory carried this year following the supply chain disruptions
of 2022.
The company also expects to reduce Platform Investment to
$50 million-$70 million for the year.
Guidance for Adjusted EBITDA for the year was reduced to
$55 million-$75 million.
Earnings Conference Call Information
SunPower will discuss its full second quarter 2023 financial
results on Tuesday, August 1 at
8:00 a.m. Eastern Time. Analysts
intending to participate in the Q&A session must register for a
personal link and dial-in at
https://register.vevent.com/register/BI48b45e1a95444ba288520060aea99e7c.
The results are scheduled to be released at 7:45 a.m. ET. The live audio webcast and
supplemental financial information will be available on SunPower's
investor website at http://investors.sunpower.com/events.cfm.
About SunPower
SunPower (NASDAQ:SPWR) is a leading solar, storage and energy
services provider in North
America. SunPower offers solar + storage solutions designed
and warranted by one company that gives customers control over
electricity consumption and resiliency during power outages while
providing cost savings to homeowners. For more information, visit
www.sunpower.com.
Forward Looking Statements
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements regarding: (a) our guidance for fiscal
2023, including Net Loss, Adjusted EBITDA per customer, incremental
customers, Adjusted EBITDA, as well as platform investments and
related assumptions; (b) our restructuring plan,
including our expectations regarding reductions in cost structure
and related actions; (c) expectations regarding demand
and our future performance based on backlog, bookings, projected
consumer demand, and pipelines in our sales channels and for our
products; (d) our strategic plans and areas of
investment and focus, both current and future, and expectations for
the results thereof; (e) our expectations regarding
projected demand and growth in 2023 and our positioning for future
success; and (f) our expectations for industry trends
and factors, and the impact thereof on our business and strategic
plans.
These forward-looking statements are based on our current
assumptions, expectations, and beliefs and involve substantial
risks and uncertainties that may cause results, performance, or
achievement to materially differ from those expressed or implied by
these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to: (1)
regulatory changes and the availability of economic incentives
promoting use of solar energy; (2) potential disruptions to our
operations and supply chain that may result from epidemics or
natural disasters; (3) competition in the solar and general energy
industry, supply chain constraints, interest rates, inflation, and
pricing pressures; (4) changes in public policy, including the
imposition and applicability of tariffs and duties; (5) our
dependence on sole- or limited-source supply relationships,
including for our solar panels and other components of our
products; (6) risks related to the introduction of new or enhanced
products, including potential technical challenges, lead times, and
our ability to match supply with demand while maintaining quality,
sales, and support standards; (7) the success of our ongoing
research and development efforts and our ability to commercialize
new products and services, including products and services
developed through strategic partnerships; (8) our liquidity,
indebtedness, and ability to obtain additional financing for our
projects and customers; (9) challenges managing our acquisitions,
joint ventures, and partnerships, including our ability to
successfully manage acquired assets and supplier relationships;
(10) the timing and execution of restructuring plans; (11) employee
management issues that may arise; and (12) estimates and
assumptions related to the cost of exiting employees and other
associated costs. A detailed discussion of these factors and other
risks that affect our business is included in filings we make with
the Securities and Exchange Commission (SEC) from time to time,
including our most recent reports on Form 10-K and Form 10-Q,
particularly under the heading "Risk Factors." Copies of these
filings are available online from the SEC or on the SEC Filings
section of our Investor Relations website at
investors.sunpower.com. All forward-looking statements in this
press release are based on information currently available to us,
and we assume no obligation to update these forward-looking
statements in light of new information or future events.
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SOURCE SunPower Corp.