Maxeon Solar Technologies(US:MAXN)2023-08-10 20:08Financial Performance - Revenue for the three months ended April 2, 2023, was $318,332 thousand, a 42.6% increase from $223,081 thousand for the same period in 2022[8]. - Gross profit for the same period was $53,625 thousand, compared to a gross loss of $12,964 thousand in the prior year[8]. - Operating income for the three months ended April 2, 2023, was $11,704 thousand, a significant improvement from an operating loss of $50,374 thousand in the same period last year[8]. - Net income attributable to stockholders for the three months ended April 2, 2023, was $20,271 thousand, compared to a net loss of $59,112 thousand in the prior year[8]. - The company reported a comprehensive income of $22,045 thousand for the three months ended April 2, 2023, compared to a comprehensive loss of $60,000 thousand in the same period last year[10]. - The basic income per share for the three months ended April 2, 2023, was $0.49, a recovery from a loss of $1.45 per share for the same period in 2022[132]. Cash and Liquidity - Cash and cash equivalents increased to $278,849 thousand as of April 2, 2023, up from $227,442 thousand on January 1, 2023[4]. - The net increase in cash, cash equivalents, and restricted cash for the three months ended April 2, 2023, was $35.8 million, up from $15.5 million for the same period in 2022[16]. - The company expects that its current cash and cash equivalents, along with cash generated from operations, will be sufficient to meet its obligations over the next 12 months[20]. - The company has a total cash, cash equivalents, and restricted cash of $303.7 million as of April 2, 2023, compared to $207.8 million as of April 3, 2022[16]. - The company reported a decrease in restricted cash primarily due to the release of cash collateralized for standby letters of credit[19]. Assets and Liabilities - Total assets as of April 2, 2023, were $1,267,535 thousand, slightly up from $1,260,418 thousand at the beginning of the year[4]. - Total liabilities decreased to $1,193,387 thousand as of April 2, 2023, from $1,212,348 thousand on January 1, 2023[4]. - As of April 2, 2023, contract liabilities amounted to $328.3 million, an increase of $27.4 million from January 1, 2023, primarily due to additional customer advances[47][48]. - The company reported accounts receivable, net, of $72.2 million as of April 2, 2023, up from $54.3 million on January 1, 2023, indicating a growth of approximately 33%[49]. - The company had total inventories of $316.4 million, an increase from $303.2 million on January 1, 2023, representing a growth of approximately 4.1%[55]. Expenses and Investments - Research and development expenses for the three months ended April 2, 2023, were $11,076 thousand, down from $13,894 thousand in the prior year[8]. - The company recognized stock-based compensation of $4,033 thousand during the three months ended April 2, 2023[11]. - The company has recognized a total refund liability of $24.3 million related to the Amendment to the Solarization Agreement, to be repaid in 12 equal installments until the fourth quarter of 2025[36]. - The company has $59.3 million of prepayments in "Contract liabilities, current portion" on its Condensed Consolidated Balance Sheets as of April 2, 2023[39]. Restructuring and Strategic Initiatives - The Company implemented a restructuring plan in May 2021, resulting in the closure of a manufacturing facility in Toulouse, France, affecting less than 40 employees[136]. - A subsequent restructuring plan was adopted in June 2022, focusing on the closure of a module factory in Porcelette, France, with an expected impact on less than 30 employees[137]. - The total restructuring benefits recognized for the three months ended April 2, 2023, amounted to $(212,000), while the previous year recorded $(235,000)[138]. - As of April 2, 2023, the total restructuring reserve stood at $191,000, down from $563,000 at the beginning of the period[140]. - The company continues to focus on improving operating performance and liquidity through various strategies, including evaluating restructuring plans and renegotiating payment terms[24]. Debt and Financing - The company completed the sale of $207 million in aggregate principal amount of 7.50% first lien senior secured convertible notes due 2027 to TZE SG at a purchase price equivalent to 97% of the principal amount[43]. - The net carrying amount of the Green Convertible Notes was $192.1 million as of April 2, 2023, with a fair value of $314.4 million[98]. - The interest expense for the Green Convertible Notes for the three months ended April 2, 2023, was $4.1 million, including $3.25 million in contractual interest and $858,000 in amortization[99]. - The carrying amount of the Prepaid Forward was $58.5 million as of April 2, 2023, with a gain of $23.8 million recorded for the three months ended April 2, 2023[105]. - The outstanding amount of the Revolving Credit agreement was $50.0 million as of both April 2, 2023, and January 1, 2023, with interest expenses recorded at $0.7 million for the three months ended April 2, 2023[113].