Maxeon Solar Technologies(MAXN) - 2024 Q3 - Quarterly Report

Financial Performance - In Q3 2024, Maxeon reported shipments of 199 MW, a decrease of 62.3% from 526 MW in Q2 2024 and a decline of 68.3% from 628 MW in Q3 2023[4] - Revenue for Q3 2024 was $88.56 million, down 52.0% from $184.22 million in Q2 2024 and down 61.1% from $227.63 million in Q3 2023[4] - The gross loss for Q3 2024 was $(179.10) million, compared to a gross loss of $(7.79) million in Q2 2024 and a gross profit of $2.73 million in Q3 2023[4] - Net loss attributable to stockholders in Q3 2024 was $(393.94) million, significantly higher than $(34.23) million in Q2 2024 and $(108.26) million in Q3 2023[4] - Non-GAAP Adjusted EBITDA for Q3 2024 was $(225.71) million, compared to $(36.57) million in Q2 2024 and $(19.92) million in Q3 2023[4] - Total operating expenses for the three months ended September 29, 2024, were $153.22 million, up from $66.56 million in the same period last year, primarily due to restructuring charges of $105.96 million[21] - Net loss for the nine months ended September 29, 2024, was $508.744 million, compared to a loss of $89.418 million for the same period in 2023[28] Market Conditions - Average market prices for high efficiency and mainstream crystalline modules dropped by approximately 43.5% and 28.6%, respectively, since January 2024[2] - The company is unable to provide financial guidance for Q4 2024 due to uncertainties surrounding U.S. Customs and Border Protection detentions[2] Restructuring and Strategic Focus - Maxeon plans to focus exclusively on the U.S. market to drive future growth and profitability[2] - Maxeon is undergoing a restructuring process to optimize its business portfolio and geographic market focus[2] - The company reported a significant increase in restructuring charges and fees, totaling $108,992 thousand in Q3 2024, compared to $6,783 thousand in Q2 2024[16] Cash Flow and Assets - Total current assets decreased to $262,115 thousand as of September 29, 2024, down from $619,019 thousand as of December 31, 2023[19] - Cash and cash equivalents dropped to $51,223 thousand from $190,169 thousand over the same period[19] - The company had a net decrease in cash, cash equivalents, and restricted cash of $141.159 million for the nine months ended September 29, 2024[30] Equity and Liabilities - Total liabilities as of September 29, 2024, were $647,096 thousand, down from $997,367 thousand at the end of 2023[19] - The company’s accumulated deficit increased to $(1,304,415) thousand as of September 29, 2024, from $(796,092) thousand at the end of 2023[19] - The company’s total equity attributable to the Company was $(211,064) thousand as of September 29, 2024, compared to $(1,109) thousand at the end of 2023[19] Stock and Compensation - Stock-based compensation expense for Q3 2024 was $5,889 thousand, up from $5,236 thousand in Q2 2024[16] - The company recognized stock-based compensation of $18.003 million for the nine months ended September 29, 2024, compared to $17.145 million in the same period of 2023[28] Other Financial Metrics - Basic and diluted net loss per share attributable to stockholders was $(0.47) for the three months ended September 29, 2024, compared to $(2.21) for the same period last year[21] - The company recognized a gain on extinguishment of debt of $35.33 million during the nine months ended September 29, 2024[21] - The company reported a loss on impairment of property, plant, and equipment amounting to $157.673 million for the nine months ended September 29, 2024[28] - The company experienced a loss on impairment of intangible assets totaling $2.167 million for the nine months ended September 29, 2024[28]