Maxeon Solar Technologies Announces First Quarter 2024 Financial Results
Maxeon Solar Technologies (NASDAQ: MAXN) reported its Q1 2024 financial results, revealing a revenue of $187 million, a significant drop from previous quarters. The company is facing challenges due to difficult market conditions, high interest rates, and policy changes.
Key strategic moves include securing $197.5 million in financing from its largest shareholder, TZE, and restructuring its convertible notes, which will result in significant shareholder dilution. The company also sold its stake in the HSPV joint venture for $34 million and made IP-licensing agreements for shingling technology.
Despite these efforts, Maxeon anticipates continued difficulties, with expected Q2 revenue between $160-$200 million and a fiscal year revenue forecast of $640-$800 million. The company is focused on restructuring and returning to profitability.
- Secured $197.5 million in financing commitments from largest shareholder TZE.
- Completed all deliveries to SunPower under the Settlement Agreement.
- Added over 100 new partners to the U.S. Dealer channel.
- Introduced 7th generation Performance Series module in Europe.
- Sold stake in HSPV joint venture for $34 million.
- Entered a new supply agreement with HSPV for international DG business.
- Anticipated Q2 revenue between $160-$200 million.
- Anticipated fiscal year revenue between $640-$800 million.
- Q1 2024 revenue decreased to $187 million from previous quarters.
- Increased product costs due to underutilized manufacturing operations.
- Reported GAAP net loss of $80.1 million in Q1 2024.
- Significant shareholder dilution due to financing and convertible note restructuring.
- Ongoing price and demand headwinds in U.S. and Europe DG business.
- GAAP operating expenses increased to $48.7 million in Q1 2024.
- Non-GAAP gross loss of $12.9 million in Q1 2024.
- Adjusted EBITDA of -$39 million in Q1 2024.
- Projected continued losses in Q2 2024 with adjusted EBITDA between -$51 million to -$31 million.
Insights
Maxeon's first quarter financial results reveal a challenging period, marked by a substantial drop in revenue to
The restructuring initiatives and financing commitments from TZE offer some relief. The
Maxeon’s guidance for Q2 2024, with revenue expectations between
The competitive landscape for solar technology is evolving and Maxeon's market position faces pressures. The introduction of the 7th generation Performance Series module and the focus on the TOPCon cell technology is a strategic move. However, the impact of higher interest rates and policy changes, which have led to disruptions in the DG business, indicates that external factors are unfavorably influencing demand.
The shift in focus to the U.S. market, especially in utility-scale projects, might leverage Maxeon's existing relationships and differentiated products. However, the ongoing patent infringement lawsuits against competitors could be a double-edged sword, potentially offering licensing revenue if successful but also diverting resources and attention.
Market dynamics are critical, with the solar industry known for fierce competition and high sensitivity to policy changes. Maxeon’s cautious optimism regarding trade policy trends reflects a market in flux. Investors should be aware that while strategic initiatives are in place, external factors present significant risks.
The legal implications of Maxeon's patent infringement lawsuits against competitors are noteworthy. These lawsuits could secure the company’s intellectual property rights over the TOPCon technology, potentially leading to licensing opportunities and additional revenue streams. However, legal battles are inherently unpredictable and could result in substantial legal expenses.
The recent sale of Maxeon's stake in the Huansheng Photovoltaic joint venture and the IP-license agreement for shingling technology is a strategic divestment. This generates immediate liquidity of
Investors should monitor the outcomes of these legal actions closely. Success in protecting intellectual property could bolster Maxeon's market position and revenue, whereas protracted legal disputes could exert further financial and operational strain.
--First Quarter Revenue of
--Financing Commitments Secured from Largest Shareholder--
Maxeon's Chief Executive Officer Bill Mulligan noted, "Maxeon has been facing a very difficult market environment since the third quarter of last year, with challenging industry pricing conditions and demand disruptions in our DG business due to higher interest rates and policy changes, as well as project pushouts by two of our large-scale customers in the US. These external factors led to underutilized manufacturing operations, increased product costs, and lower revenue and profit than planned. While the Company is making progress on our announced restructuring initiatives and we are seeing some positive trends in the market, we determined that Maxeon requires additional capital to support its continuing operations. After conducting a thorough analysis with the help of financial advisors, management and the board determined that the most viable financing option to support our immediate liquidity needs was from our largest shareholder, TCL Zhonghuan Renewable Energy Technology Co. Ltd. (TZE)."
"TZE has agreed to invest
"Our distributed generation (DG) business faced ongoing price and demand headwinds in both the
"We recently sold our stake in the Huansheng Photovoltaic (
"For the balance of 2024, the Company will be focused on rebuilding our balance sheet while undergoing further transformation to return the core business to profitability with reduced customer concentration risk."
Selected Q1 Unaudited Financial Summary | |||||
(In thousands, except shipments) | Fiscal Q1 2024 | Fiscal Q4 2023 | Fiscal Q1 2023 | ||
Shipments, in MW | 488 | 653 | 774 | ||
Revenue | $ 187,456 | $ 228,775 | $ 318,332 | ||
Gross (loss) profit (1) | (14,871) | (34,461) | 53,625 | ||
GAAP Operating expenses | 48,668 | 141,007 | 41,921 | ||
GAAP Net (loss) income attributable to the stockholders(1) | (80,148) | (186,334) | 20,271 | ||
Capital expenditures | 19,216 | 11,656 | 16,500 | ||
Other Financial Data(1) | |||||
(In thousands) | Fiscal Q1 2024 | Fiscal Q4 2023 | Fiscal Q1 2023 | ||
Non-GAAP Gross (loss) profit | $ (12,888) | $ (9,675) | $ 54,142 | ||
Non-GAAP Operating expenses | 38,520 | 36,654 | 38,056 | ||
Adjusted EBITDA | (38,977) | (37,631) | 30,984 | ||
(1) | The Company's use of Non-GAAP financial information, including a reconciliation to |
Second Quarter 2024 and Fiscal Year 2024 Outlook | |
For the second quarter of 2024, the Company anticipates the following results: | |
(In millions, except shipments) | Outlook |
Shipments, in MW | 520 - 600 MW |
Revenue | |
Gross loss | |
Non-GAAP gross loss(1) | |
Operating expenses | |
Non-GAAP operating expenses(1) | |
Adjusted EBITDA(2) | |
Capital expenditures(3) | |
For fiscal year 2024, the Company's annual guidance is below:
– Revenue to be within a range of
– Adjusted EBITDA to be within a range of
– Capital expenditures(3) to be within a range of
(1) | The Company's Non-GAAP operating expenses are impacted by the effects of adjusting for stock-based compensation expense and restructuring charges and fees. |
(2) | The Company cannot provide a reconciliation between its Adjusted EBITDA projection and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of the remeasurement gain or loss of the prepaid forward. |
(3) | Capital expenditures are directed mainly to conversion of our legacy Maxeon 3 capacity in |
These anticipated results for the second quarter of 2024 are preliminary, unaudited and represent the most current information available to management. The Company's business outlook is based on management's current views and estimates with respect to market conditions, production capacity and the global economic environment. Please refer to Forward Looking Statements section below. Management's views and estimates are subject to change without notice.
For more information
Maxeon's first quarter 2024 financial results and management commentary can be found on Form 6-K by accessing the Financials & Filings page of the Investor Relations section of Maxeon's website at: https://corp.maxeon.com/investor-relations. The Form 6-K and Company's other filings are also available online from the Securities and Exchange Commission at www.sec.gov.
Conference Call Details
The Company will hold a conference call on May 30, 2024, at 8:00 AM
To join the live conference call, participants must first register here, where a dial-in number will be provided.
A simultaneous audio-only webcast of the conference call will be available on Maxeon's website at https://corp.maxeon.com/events-and-presentations. A webcast replay will be available on Maxeon's website for one year at https://corp.maxeon.com/events-and-presentations.
About Maxeon Solar Technologies
Maxeon Solar Technologies Ltd (NASDAQ: MAXN) is Powering Positive ChangeTM. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding: (a) our ability to (i) meet short-term and long-term material cash requirements, (ii) complete an equity, debt or other financing at favorable terms, if at all, (iii) refinance our quickly maturing outstanding debt and (iv) continue as a going concern; (b) the success of our ongoing restructuring initiatives; (c) our expectations regarding product pricing trends, demand and growth projections, including our efforts to enforce our intellectual property rights against our competitors; (d) potential disruptions to our operations and supply chain that may result from epidemics, natural disasters or military conflicts, including the duration, scope and impact on the demand for our products, market disruptions from the war in
The forward-looking statements can be also identified by terminology such as "may," "might," "could," "will," "aims," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and Maxeon's operations and business outlook contain forward-looking statements.
These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. Factors that could cause or contribute to such differences include, but are not limited to: (1) challenges in executing transactions key to our strategic plans, including regulatory and other challenges that may arise; (2) our liquidity, substantial indebtedness, terms and conditions upon which our indebtedness is incurred, and ability to obtain additional financing for our projects, customers and operations; (3) our ability to manage supply chain shortages and/or excess inventory and cost increases and operating expenses; (4) potential disruptions to our operations and supply chain that may result from damage or destruction of facilities operated by our suppliers, difficulties in hiring or retaining key personnel, epidemics, natural disasters, including impacts of the war in
On April 8, 2024, the Company issued a press release and furnished a Report on Form 6-K announcing its preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Subsequent to the issuance of such preliminary financial information, the Company revised the presentation of gross loss, GAAP operating expenses, GAAP net loss attributable to the stockholders, non-GAAP gross loss, non-GAAP operating expenses and Adjusted EBITDA as follows:
- Additional inventory reserve of
$2.3 million - Adjustment of estimate on employee compensation based on final payout which resulted in lower gross loss of
$0.3 million $0.5 million $0.8 million $0.4 million - Adjustment of uncertain tax position which resulted in higher GAAP net loss attributable to stockholders of
$0.5 million
Use of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP gross (loss) profit, non-GAAP operating expenses and earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for stock-based compensation, restructuring charges and fees, remeasurement loss on prepaid forward and physical delivery forward and equity in losses of unconsolidated investees ("Adjusted EBITDA") to supplement our consolidated financial results presented in accordance with GAAP. Non-GAAP gross (loss) profit is defined as gross (loss) profit excluding stock-based compensation and restructuring charges and fees. Non-GAAP operating expenses is defined as operating expenses excluding stock-based compensation and restructuring charges and fees.
We believe that non-GAAP gross (loss) profit, non-GAAP operating expenses and Adjusted EBITDA provide greater transparency into management's view and assessment of the Company's ongoing operating performance by removing items management believes are not representative of our continuing operations and may distort our longer-term operating trends. We believe these measures are useful to help enhance the comparability of our results of operations across different reporting periods on a consistent basis and with our competitors, distinct from items that are infrequent or not associated with the Company's core operations as presented above. We also use these non-GAAP measures internally to assess our business, financial performance and current and historical results, as well as for strategic decision-making and forecasting future results. Given our use of non-GAAP measures, we believe that these measures may be important to investors in understanding our operating results as seen through the eyes of management. These non-GAAP measures are neither prepared in accordance with GAAP nor are they intended to be a replacement for GAAP financial data, should be reviewed together with GAAP measures and may be different from non-GAAP measures used by other companies.
As presented in the "Reconciliation of Non-GAAP Financial Measures" section, each of the non-GAAP financial measures excludes one or more of the following items in arriving to the non-GAAP measures:
- Stock-based compensation expense. Stock-based compensation relates primarily to equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict and is excluded from non-GAAP gross (loss) profit, non-GAAP operating expense and Adjusted EBITDA. Management believes that this adjustment for stock-based compensation expense provides investors with a basis to measure our core performance, including the ability to compare our performance with the performance of other companies, without the period-to-period variability created by stock-based compensation.
- Restructuring charges and fees (benefits). We incur restructuring charges, inventory impairment and other inventory related costs associated with the re-engineering of our IBC capacity, and fees related to reorganization plans and business acquisition aimed towards realigning resources consistent with our global strategy and improving its overall operating efficiency and cost structure. Restructuring charges and fees (benefits) are excluded from non-GAAP operating expenses and Adjusted EBITDA because they are not considered core operating activities. Although we have engaged in restructuring activities and initiatives, past activities have been discrete events based on unique sets of business objectives. As such, management believes that it is appropriate to exclude restructuring charges and fees (benefits) from our non-GAAP financial measures as they are not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance.
- Remeasurement loss (gain) on prepaid forward and physical delivery forward. This relates to the mark-to-market fair value remeasurement of privately negotiated prepaid forward and physical delivery transactions. The transactions were entered into in connection with the issuance on July 17, 2020 of the
6.50% Green Convertible Senior Notes due 2025 for an aggregate principal amount of$200 million - Equity in losses of unconsolidated investees and related gains. This relates to the loss on our unconsolidated equity investment Huansheng JV and gains on such investment. This is excluded from our Adjusted EBITDA financial measure as it is non-cash in nature and not reflective of our core operational performance. As such, management believes that it is appropriate to exclude such charges as they do not contribute to a meaningful evaluation of our performance. As of April 26, 2024, we divested all of our equity interest in Huansheng JV.
Reconciliation of Non-GAAP Financial Measures | |||||
Three Months Ended | |||||
(In thousands) | March 31, 2024 | December 31, 2023 | April 2, 2023 | ||
Gross (loss) profit | $ (14,871) | $ (34,461) | $ 53,625 | ||
Stock-based compensation | 696 | (53) | 517 | ||
Restructuring charges and fees | 1,287 | 24,839 | — | ||
Non-GAAP Gross (loss) profit | (12,888) | (9,675) | 54,142 | ||
GAAP Operating expenses | 48,668 | 141,007 | 41,921 | ||
Stock-based compensation | (6,182) | (1,235) | (4,144) | ||
Restructuring (charges and fees) benefits | (3,966) | (103,118) | 279 | ||
Non-GAAP Operating expenses | 38,520 | 36,654 | 38,056 | ||
GAAP Net (loss) income attributable to the stockholders | (80,148) | (186,334) | 20,271 | ||
Interest expense, net | 8,741 | 7,416 | 8,999 | ||
Provision for (benefits from) income taxes | 1,203 | (9,949) | 5,984 | ||
Depreciation | 10,330 | 12,261 | 14,383 | ||
Amortization | 228 | 44 | 68 | ||
EBITDA | (59,646) | (176,562) | 49,705 | ||
Stock-based compensation | 6,878 | 1,182 | 4,661 | ||
Restructuring charges and fees (benefits) | 5,253 | 127,957 | (279) | ||
Remeasurement loss (gain) on prepaid forward | 8,538 | 9,792 | (23,849) | ||
Equity in losses of unconsolidated investees and related gain | — | — | 746 | ||
Adjusted EBITDA | (38,977) | (37,631) | 30,984 | ||
Reconciliation of Non-GAAP Outlook | |
(In millions) | Outlook |
Gross loss | |
Stock-based compensation | $— |
Non-GAAP gross loss | |
Operating expenses | |
Stock-based compensation | |
Restructuring Charges and Fees | |
Non-GAAP operating expenses | |
©2024 Maxeon Solar Technologies, Ltd. All rights reserved. MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd. Visit https://corp.maxeon.com/trademarks for more information.
MAXEON SOLAR TECHNOLOGIES, LTD. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(unaudited) | |||
(In thousands, except for shares data) | |||
As of | |||
March 31, 2024 | December 31, 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 98,365 | $ 190,169 | |
Restricted short-term marketable securities | 1,386 | 1,403 | |
Accounts receivable, net | 38,921 | 62,687 | |
Inventories | 271,695 | 308,948 | |
Prepaid expenses and other current assets | 50,875 | 55,812 | |
Total current assets | $ 461,242 | $ 619,019 | |
Property, plant and equipment, net | 275,449 | 280,025 | |
Operating lease right of use assets | 24,725 | 22,824 | |
Intangible assets, net | 3,135 | 3,352 | |
Advances to suppliers, net of current portion | 7,879 | 7,879 | |
Other long-term assets | 69,719 | 68,910 | |
Total assets | $ 842,149 | $ 1,002,009 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 154,327 | $ 153,020 | |
Accrued liabilities | 86,278 | 113,456 | |
Contract liabilities, current portion | 66,720 | 134,171 | |
Short-term debt | 25,438 | 25,432 | |
Operating lease liabilities, current portion | 6,578 | 5,857 | |
Total current liabilities | $ 339,341 | $ 431,936 | |
Long-term debt | 1,089 | 1,203 | |
Contract liabilities, net of current portion | 113,564 | 113,564 | |
Operating lease liabilities, net of current portion | 25,057 | 19,611 | |
Convertible debt | 387,351 | 385,558 | |
Deferred tax liabilities | 7,001 | 7,001 | |
Other long-term liabilities | 36,262 | 38,494 | |
Total liabilities | $ 909,665 | $ 997,367 | |
Commitments and contingencies | |||
Equity: | |||
Common stock, no par value (54,683,822 and 53,959,109 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) | $ — | $ — | |
Additional paid-in capital | 818,388 | 811,361 | |
Accumulated deficit | (876,240) | (796,092) | |
Accumulated other comprehensive loss | (15,359) | (16,378) | |
Equity attributable to the Company | (73,211) | (1,109) | |
Noncontrolling interests | 5,695 | 5,751 | |
Total equity | (67,516) | 4,642 | |
Total liabilities and equity | $ 842,149 | $ 1,002,009 | |
MAXEON SOLAR TECHNOLOGIES, LTD. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(unaudited) | ||||
(In thousands, except per share data) | ||||
Three Months Ended | ||||
March 31, 2024 | April 2, 2023 | |||
Revenue | $ 187,456 | $ 318,332 | ||
Cost of revenue | 202,327 | 264,707 | ||
Gross (loss) profit | (14,871) | 53,625 | ||
Operating expenses: | ||||
Research and development | 9,897 | 11,076 | ||
Sales, general and administrative | 35,719 | 31,028 | ||
Restructuring charges (benefits) | 3,052 | (183) | ||
Total operating expenses | 48,668 | 41,921 | ||
Operating (loss) income | (63,539) | 11,704 | ||
Other (expense) income, net | ||||
Interest expense | (9,554) | (10,803) | ||
Interest income | 813 | 1,804 | ||
Other, net | (6,721) | 24,443 | ||
Other (expense) income, net | (15,462) | 15,444 | ||
(Loss) income before income taxes and equity in losses of unconsolidated investees | (79,001) | 27,148 | ||
Provision for income taxes | (1,203) | (5,984) | ||
Equity in losses of unconsolidated investees | — | (746) | ||
Net (loss) income | (80,204) | 20,418 | ||
Net loss (income) attributable to noncontrolling interests | 56 | (147) | ||
Net (loss) income attributable to the stockholders | $ (80,148) | $ 20,271 | ||
Net (loss) income per share attributable to stockholders: | ||||
Basic | $ (1.59) | $ 0.49 | ||
Diluted | $ (1.59) | $ 0.46 | ||
Weighted average shares used to compute net (loss) income per share: | ||||
Basic | 50,504 | 41,389 | ||
Diluted | 50,504 | 53,070 | ||
MAXEON SOLAR TECHNOLOGIES, LTD. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY | |||||||||||||||
(unaudited) | |||||||||||||||
(In thousands) | |||||||||||||||
Shares | Amount | Additional | Accumulated | Accumulated | Equity | Noncontrolling Interests | Total Equity | ||||||||
Balance at December 31, 2023 | 53,959 | $ 811,361 | $ (796,092) | $ (16,378) | $ (1,109) | $ 5,751 | $ 4,642 | ||||||||
Net (loss) income | — | — | — | (80,148) | — | (80,148) | (56) | (80,204) | |||||||
Issuance of common stock for stock-based compensation, net of tax withheld | 725 | — | — | — | — | — | — | — | |||||||
Recognition of stock-based compensation | — | — | 7,027 | — | — | 7,027 | — | 7,027 | |||||||
Other comprehensive income | — | — | — | — | 1,019 | 1,019 | — | 1,019 | |||||||
Balance at March 31, 2024 | 54,684 | $ — | $ 818,388 | $ (876,240) | $ (15,359) | $ (73,211) | $ 5,695 | $ (67,516) | |||||||
Shares | Amount | Additional | Accumulated | Accumulated | Equity | Noncontrolling | Total Equity | ||||||||
Balance at January 1, 2023 | 45,033 | $ — | $ 584,808 | $ (520,263) | $ (22,108) | $ 42,437 | $ 5,633 | $ 48,070 | |||||||
Net income | — | — | — | 20,271 | — | 20,271 | 147 | 20,418 | |||||||
Issuance of common stock for stock-based compensation, net of tax withheld | 377 | — | — | — | — | — | — | — | |||||||
Recognition of stock-based compensation | — | — | 4,033 | — | — | 4,033 | — | 4,033 | |||||||
Other comprehensive loss | — | — | — | — | 1,627 | 1,627 | — | 1,627 | |||||||
Balance at April 2, 2023 | 45,410 | $ — | $ 588,841 | $ (499,992) | $ (20,481) | $ 68,368 | $ 5,780 | $ 74,148 | |||||||
MAXEON SOLAR TECHNOLOGIES, LTD. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(unaudited) | |||
(In thousands) | |||
Three Months Ended | |||
March 31, 2024 | April 2, 2023 | ||
Cash flows from operating activities | |||
Net (loss) income | $ (80,204) | $ 20,418 | |
Adjustments to reconcile net income (loss) to operating cash flows | |||
Depreciation and amortization | 10,558 | 14,451 | |
Stock-based compensation | 6,878 | 4,661 | |
Non-cash interest expense | 1,813 | 2,294 | |
Equity in losses of unconsolidated investees | — | 746 | |
Deferred income taxes | — | 188 | |
Loss on disposal of property, plant and equipment | 2 | 9 | |
Loss on impairment of property, plant and equipment | 1,376 | — | |
Loss on impairment of operating lease right of use assets | 3,584 | — | |
Remeasurement loss (gain) on prepaid forward | 8,538 | (23,849) | |
Provision for (utilization of) excess or obsolete inventories | 8,140 | (10,396) | |
Other, net | 352 | (160) | |
Changes in operating assets and liabilities | |||
Accounts receivable | 15,497 | (17,890) | |
Contract assets | (3) | 4 | |
Inventories | 36,151 | (24,465) | |
Prepaid expenses and other assets | 4,278 | 2,300 | |
Operating lease right-of-use assets | 1,528 | 930 | |
Accounts payable and other accrued liabilities | (23,323) | (19,312) | |
Contract liabilities | (67,278) | 27,136 | |
Operating lease liabilities | (793) | (520) | |
Net cash used in operating activities | (72,906) | (23,455) | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (19,216) | (16,500) | |
Purchases of intangible assets | (10) | (118) | |
Proceeds from maturity of short-term market securities | — | 76,000 | |
Purchase of restricted short-term marketable securities | — | (10) | |
Proceeds for disposal of property, plant and equipment | 87 | — | |
Proceeds from sale of assets | 462 | — | |
Net cash (used in) provided by investing activities | (18,677) | 59,372 | |
Cash flows from financing activities | |||
Proceeds from debt | 40,092 | 60,164 | |
Repayment of debt | (40,091) | (60,125) | |
Repayment of finance lease obligations | (129) | (230) | |
Net cash used in financing activities | (128) | (191) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (84) | 55 | |
Net increase in cash, cash equivalents and restricted cash | (91,795) | 35,781 | |
Cash, cash equivalents and restricted cash, beginning of period | 195,510 | 267,961 | |
Cash, cash equivalents and restricted cash, end of period | $ 103,715 | $ 303,742 | |
Non-cash transactions | |||
Property, plant and equipment purchases funded by liabilities | $ 2,364 | $ 11,322 | |
Right-of-use assets obtained in exchange for lease obligations | 7,013 | 6,283 | |
The following table reconciles our cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets and the cash, cash equivalents and restricted cash reported on our Condensed Consolidated Statements of Cash Flows as of March 31, 2024 and April 2, 2023:
(In thousands) | March 31, 2024 | April 2, 2023 | |
Cash and cash equivalents | $ 98,365 | $ 190,169 | |
Restricted cash, current portion, included in Prepaid expenses and other current assets | 5,253 | 24,891 | |
Restricted cash, net of current portion, included in Other long-term assets | 98 | 2 | |
Total cash, cash equivalents and restricted cash shown in Condensed Consolidated Statements of Cash Flows | $ 103,716 | $ 215,062 |
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SOURCE Maxeon Solar Technologies, Ltd.
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