Revenue and Growth - For the three months ended March 31, 2021, 86% of total revenue was derived from tracker system sales, with the majority coming from customers in the United States [96]. - Product revenue for Q1 2021 was $56.5 million, an increase of $26.0 million, or 85.3%, compared to $30.5 million in Q1 2020, driven by a 104% increase in MW shipped [125]. - Service revenue for Q1 2021 was $9.2 million, an increase of $7.3 million, or 384.2%, compared to $1.9 million in Q1 2020, primarily due to increased shipping and logistics revenue [126]. - Total revenue for Q1 2021 was $65.7 million, compared to $32.4 million in Q1 2020, reflecting a significant growth in both product and service revenues [123]. - Revenue growth is dependent on the increase in solar tracker projects and the company's ability to expand its market share in emerging markets [106]. Expenses and Profitability - Cost of revenue for Q1 2021 was $65.6 million, an increase of $40.2 million, or 158.3%, compared to $25.4 million in Q1 2020, mainly due to increased MW shipped and higher logistics costs [127]. - Gross profit for Q1 2021 decreased by $6.9 million, or 98%, to $119 thousand, compared to $6.98 million in Q1 2020, impacted by increased costs and lower margins [128]. - Research and development expenses for Q1 2021 were $2.0 million, an increase of $0.9 million, or 78%, compared to $1.1 million in Q1 2020 [129]. - General and administrative expenses for Q1 2021 were $5.1 million, an increase of $2.6 million, or 105%, compared to $2.5 million in Q1 2020 [131]. - The company anticipates that operating expenses will increase in absolute dollar amounts as it continues to invest in growth and expansion efforts [112]. Financial Position - Net cash used in operating activities for Q1 2021 was $27 million, primarily due to a net loss of $7.4 million, reflecting investments in operations and expansion [139]. - The company paid off its revolving line of credit with Western Alliance Bank during Q1 2021, which had an outstanding balance of $1.0 million [142]. - The company intends to maintain appropriate debt levels based on cash flow expectations and operational requirements, with potential incremental debt financings [135]. Losses and Adjusted Metrics - For the three months ended March 31, 2021, the company reported a net loss of $7,442,000 compared to a net income of $3,420,000 for the same period in 2020 [149]. - Adjusted EBITDA for the three months ended March 31, 2021, was $(6,664,000), a decrease from $3,390,000 in the same period of 2020 [149]. - Adjusted Non-GAAP net loss for the three months ended March 31, 2021, was $(6,676,000), compared to an adjusted net income of $3,430,000 in 2020 [152]. - The company reported an Adjusted EPS of $(0.10) for the three months ended March 31, 2021, down from $0.05 in the same period of 2020 [152]. Employee and Operational Expansion - As of March 31, 2021, the company had 207 full-time employees and has expanded its sales and support network globally, including locations in Australia, India, and Europe [95]. - The company plans to continue significant investments in technology and personnel to enhance product capabilities and expand its patent portfolio [98]. Supply Chain and Market Risks - The company has reduced its reliance on China for its supply chain from 90% in 2019 to qualifying suppliers outside of China for all commodities as of March 31, 2021 [100]. - The company experienced supply chain disruptions due to COVID-19, leading to increased lead times and logistics costs [101]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in steel and aluminum prices [159]. - Significant price increases in raw materials could reduce operating margins if the company cannot recover these costs from customers [160]. Accounting and Estimates - The company evaluates its estimates and assumptions regularly, acknowledging that actual results may differ significantly [159]. - There were no significant changes in critical accounting policies or estimates during the three months ended March 31, 2021 [158].
FTC Solar(FTCI) - 2021 Q1 - Quarterly Report