Shares of Maxeon Solar Technologies were down in post-market trading after the company cut its revenue guidance for the current fiscal year a second time and posted third-quarter results that showed decline in both revenue and shipments.
Maxeon Solar Technologies, a Singapore-based solar technology company, is facing challenges as it cuts its revenue guidance for the current fiscal year for the second time. The company’s stock fell 9% to $5.54 in post-market trading, following the release of its third-quarter results which revealed a decline in both revenue and shipments.
Decreased Revenue Guidance for 2023 Fiscal Year
For the 2023 fiscal year, Maxeon said it expects revenue from a range of $1.114 billion to $1.154 billion. In August, Maxeon cut its full-year revenue guidance to a range of $1.25 billion to $1.35 billion, from of $1.4 billion to $1.6 billion.
Maxeon Solar Technologies now anticipates its revenue for the 2023 fiscal year to be between $1.114 billion and $1.154 billion. Previously, in August, the company had revised its full-year revenue guidance to a range of $1.25 billion to $1.35 billion, down from the initial projection of $1.4 billion to $1.6 billion.
Third-Quarter Results Show Decline in Revenue and Shipments
The Singapore-based company reported a third-quarter loss per share of $2.21 on revenue of $227.6 million. In the year-ago period, the company reported a loss per share of $1.09 on revenue of $275.4 million.
In the third quarter, Maxeon Solar Technologies reported a loss per share of $2.21 on revenue of $227.6 million. Comparatively, in the same period last year, the company faced a loss per share of $1.09 on revenue of $275.4 million. These results indicate a decline in both revenue and financial performance.
Factors Contributing to the Decline
Bill Mulligan, the company’s chief executive officer, said “as indicated in our preliminary results announcement of our third quarter financials, the third quarter was significantly impacted by the absence of shipments to SunPower for a majority of the quarter as well as by the industry-wide supply and demand imbalance in Europe.”
Bill Mulligan, Maxeon Solar Technologies’ CEO, attributed the decline in the third quarter to two main factors. Firstly, the company experienced a significant absence of shipments to SunPower for a majority of the quarter. Secondly, there was an industry-wide supply and demand imbalance in Europe, which added to the challenges faced by the company.
Resolution of Dispute with SunPower and New Supply Agreement
Maxeon also said it resolved its dispute with SunPower and said it had reached a supply agreement with the company.
Maxeon Solar Technologies announced that it has successfully resolved its dispute with SunPower and has reached a new supply agreement with the company. This development is expected to positively impact the company’s future operations and help mitigate some of the challenges it has faced.