Maxeon Solar Technologies has pulled down its financial guidance for Q3/2023 after its largest US distributed generation (DG) customer failed its payment obligations. Citing the global slowdown in the DG markets, the management has now announced business restructuring under which it will cut down around 15% of its global workforce.
The company paused its shipments to the unidentified customer in July 2023 and says it is now engaging in good faith to resolve the breach of the master supply agreement (MSA). However, there is no timeline to the resolution. Bloomberg cites Raymond James analysts to identify the customer as SunPower Corporation.
As against the Q3/2023 guidance of $280 million to $320 million, Maxeon now guides revenues in a range of $224 million to $229 million. Adjusted EBITDA guidance of $2 million to $12 million is a downward revision of close to $30 million. The company now guides shipments to range between 622 MW and 632 MW, down from 700 MW to 740 MW (see Singapore Company's Q2/2023 Revenues Grew 46% YoY).
"As a result of rapidly changing market and industry conditions, we have acted decisively to streamline our operations, invest in new technology, and adjust our mix between the DG and utility-scale markets," said Maxeon CEO Bill Mulligan. "We believe that Maxeon is well positioned to weather this market disruption and come out stronger on the other side."
On the technology front, Maxeon will start working on its Fab 3 facility in Malaysia to install a TOPCon cell pilot line to de-risk its planned US factory ramp up. The 3 GW solar cell and 3 GW TOPCon module fab in Albuquerque remains on track (see Maxeon Picks New Mexico For New Solar Fab).
In light of the current market environment, the manufacturer plans to re-engineer its IBC manufacturing capacity. It explains, "Instead of refurbishing our Fab 5 facility in the Philippines, which we now plan to utilize for the scale-up of our next-generation Maxeon 8 technology, we will convert our legacy Maxeon 3 capacity in the Philippines to Maxeon 7 technology. This will allow us to accelerate market introduction of world-record efficiency Maxeon 7 panels by several months and reduce capital expenditures by about $100 million."
The company recently announced that it has acquired shingled solar panel IP from Complete Solaria along with its dealer channel operations and contracts in the US (see Maxeon Reaches Deal With California Solar Company).
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