- Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen. Welcome to the Maxeon Solar Technologies Third Quarter 2022 Earnings Call. Currently all participants are in listen only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time. [Operator instructions] I'd now like to turn the conference over to our host, Mr. Solar Maxeon of Lahey Technologies. Robert begin. Sir, you may

Robert Lahey

Financial welcome Thank quarter third our Peter Chief Babcock; Aschenbrenner. and Strategy and With you, Good day, Interim Chief Mark Officer, operator. to Executive Kai XXXX Officer, today, Strohbecke Chief Maxeon's us everyone, Officer, earnings call. conference

the Let a turn items Mark. to before housekeeping cover over me I few call

page As today on later a be of website. will Maxeon's available reminder, a call replay Investor of Relations this the

to reconciliations. call. measures Also, Investor as as Maxeon's directly comparable well we also forward-looking additional Babcock. slide website. on the today's looking slide deck release, During Investor posted slide and other various today's see today's today's for supplemental of of well information subject will Relations that GAAP in those presentations to risks forward both harbor Please those make that certain on as the deck safe are earnings turn affect will non-GAAP statements the statements. events press which factors the documents of call, this available call let our that, that press and most relevant Maxeon's appendix Maxeon's of during website, Please of described to are as measure, Relations CEO, enhance these have and a Mark SEC filings. uncertainties may me gap are we presentation, release, To page supplemental for the X-K non-GAAP the today's With regarding to presentation reference over we call, refer

Mark Babcock

when the new decision CEO Jeff appointed made to transition of day good and our Thank mutual you, Rob, was I Waters Interim Maxeon and September board to leadership. in everyone.

launched spun into line years of fleet, thankful very nearly the of Jeff's beyond States. successfully and commence first Power, company the are performance the products We our during shipping our initiative Sun refreshed which manufacturing we our majority panel of service the out four to United for

look panel Q&A. we increasingly the privilege forward from during well transition. the now and our model. me and Then four serve review panel to outlook CEO toward beyond for the to on US our meantime years, a new in primarily our financial it's with performance Maxeon's material next capacity on we expansion manufacturing the the of With long-term our the is The expect key search be a underway, board achievement and our and a initiatives in As growth, market, detailed contributions said, focus will to for company initiatives. transformation provide update I'll of that progress conclude Kai we'll financial footprint

let's business US talk our with progress were RE+ channel thrilled distributed conference formally the in about starting our September. to expansion of launch at We initiative generation. Now

interest significant a our XXXX SunPower DG had products expressed and largest customer strong beyond. and for Our in there presence

While SunPower this to and mutually future. relationship the we partnership has to into look continuing well supplier beneficial evolved since remains to a key the spin be out, forward their

Greentech Renewables, our Feedback market products of the warranty. selling with XX is CED customers with year and new new channel known delivery a of previously with for destined also from branded first excellent, many installer the began January. new in This our DG booking differentiation We noting for as through Tech. starting sales Green partnership systems Maxeon busy value

XX% also electronics global and increasing ASP like new customers number core and our of ASPs quarter. As where power Maxeon alternative touchpoints will then the more integrated deliver of and believe the products decreases, should beyond in are XXXX demand expansion material installers sales market solar for we average. to current the end also in partnership the modules with channel France program. via share Netherlands, moving this new than EU suppliers US, premium we with customers By drive beyond. in in expect materially cultivate third expansion to our closer accounted markets increases and for

Beyond grew the Germany, panel revenue also and sequentially UK in Italy, Belgium, the Australia.

particularly new Overall, sales now DG Maxon volume over additional the mix XX% Maxon Europe and third market integrate well quarter. products. with to which previous We're opportunity our our brand storage, north is starting as table. their believe as of from panels. The XXXX. we pre-integrated in starts mid-teens QX and channel set providing of five all to our unique next rates France of is preparing channel Maxeon were for from a this where EV XX% quarter and increases year chain six to crossed and replaced Our differentiation and mix by installers of charging as we're close are year up systems encouraging share the in higher and our in a consecutive differentiated just in price six virtue which new quarter, results single portion shipping at our our structure, pleased are we making capacity the revenue increased easier success results up in the believe scratch professionals point XX% initial surface lives this increase from a sales residential product, source for We module partners we we're threshold We and of records by downstream to for respected the shipping uniquely our value business of AC positioned the solar kitchen of for benefited very

QX. delivery mix were in where Beyond strong scheduled storage, also increased for began the we approximately panel module Australia to for sales booking orders and XX% AC where contributions product with

DG and reassess profits plan both to Maxon optimization has and XXXX We into IBC the sales segments deployment residential demand to in US EU volume continue our seven. supply continue products redirecting in such as us the liberate global European US line and this The three to We and the of markets amount markets to significant by channel. to Union. our in Maxeon margin our performance of strategy certain for residential to ASP highest expect strength US plan of leveraging supply new led a support in the maximize

expect advantage a basis with This on points XX% unique as current technology translates standard to a markets. cell yield year well this is will the in warranted other to compared efficiency EU for attributes. slower IBC generation longer and our compared and we XXX lifetime. and ideal modules as that over novel energy residential architecture based performance due US to important amplified IBC product time efficiency higher technology, the is We roughly believe first seventh is yield degradation Our and

EB adoption spaces. demand pump We from is limited root electricity are and heat increasing constrained by

from at Maxeon high from one ramp engineering ramp timely timing to X.X US and appetite the proposition panels performance and the environment, will capacity later our for our demand of and gigawatt seven just the are retrofitting Given, focused gigawatts scale line expand exceptional will customers. and capacity utility we We ongoing US The provide Maxeon to to This three are Detailed in evaluating of in on of strategies we date lines. our information track is a extremely are in over capacity Maxon utility maintain capacity with solar production business. studies scale given value seven XXXX. ramped our achieve of full output meet existing high the full XXXX. of approach to CapEx levels anticipated unique instead demand

conference delivery third XXXX, the from plus through sources Our gigawatt approximate what our years scale the heard sales the credits utility now around recent party due validated US pipeline into the fully doubling at dates re we several of demand is tax extension next discussions allocated agreements to discussions with the and with have over impact an enhancement few multi of in XXXX. active the supply investment team for of

plans highly on unique business, utility market in Maxeonizing the landscape passage on in in the located macro We the solar that to As domestic plan for developments geopolitical three share manufacturing prospects With capitalize mind, in are an Act our of reduction inflation exciting cell I'd growth we position. focused with a the our advantage we assess on opportunities for and support update place like that States. to opportunity and US scale gigawatt United of put this factory Maxeon. module have conditions Southeastern recent our in the new

is Axion term to and the to completion moving financing the Department ensure anticipate arrangements to conditional step program. tailored high an we're ramping is margins rapidly and subject secure to supply in negotiation and a technology chain commitment. XXXX would while which is next that providing customers, The customers. successful sheet a through of in of process for loan We in of for certainty of unique Our demand due healthy with long-term diligence our guarantee Energy lead invitation supply this supply

some the launching forward term scale. panels expected This supply starting locally currently utility investment financial total at XXXX from finally generate seven, manufacturing beyond of panels our into the team These trough to X developing working as done expanding continue an customers. over an the results the during We margin over model. DOE improve the our lifting second our are and invitation to predictable time with move and solar factory process expect closely long enable to produced soon of It's jobs billion. the exciting planned is XXXX of with we Maxeon long Maxon. two six, Maxon quarter We've past ramping years, to achievement US heavy and toward efforts term show projected

on XXXX to the XXXX now turn initiative, are call steps executing transformation still profitability in we while focused final the to With Kai. year, in our growth Next to our laser over accelerating I'll that, XXXX. we're

Kai Strohbecke

is still consistent capacity million, volumes by a range increased sequential third increases six converted current beyond XX% everyone. represents higher volumes mix of shipments to quarter. last and scale Thank lead our were to for megawatts and will quarter due American utility consistent drivers $XXX you, the ASPs increase. megawatts of large with were DG our XXX and guidance first capacity. led details Maxeon Mark, in of DG the ramping also up XXX a our for revenues increase XXX performance also were of sequentially of our its North factory total and price the range from full for MoCo. of and recently XX% hello from discuss That quarter panel a a quarter the guidance attributable geographies revenue. This the sequential representing shipments third of then Were many guidance in to megawatts. combination US with up provide I

out the panel However, policy comprises year of demand. impact in as the gross total a inflation an smaller in charges goods sold our trust of legacy higher of mix million very products XX continued the market and panels, million on started million. is quarter was supply guidance than have reflects quarter, P to supply million volume This increase The third improvement strategies. supply increases over levels sold DG flagship and sequential the now historical by in to a million sales. or of identified as increases on have while cases million have sell diluted offset strong fixed third down which $XX well higher figure more on was mix This our of of negative contract related based cost $XX utility upset to our negative improvement quarter as earlier in cost projected includes opportunistic cost year prices second from $XX our mix silicon with optimization as of as results, markets million was our than our our poly even of contract. $X $XX the the cost in six geographic the been close we we blended of to transformation. significantly our some of in goods In line market as come price. chain income The higher slowing as Non-GAAP multi-year some reversing scale cost of beyond max by $X previously chain was

In our that our from American rep materially volume to result, was ASPs underutilization utility half expenses we and were In well million still in quarter. adjusted guidance within facilities other our to gap to business operating plan positive. rent the in impact we of scale are quarter our $XX as bookings the Malaysian XX at our our charges and guidance the on below seeing write the North manufacturing our Maxeon as inventories. cogs market well contributed third majority of startup the the the both in our XX DG attributable growth XX sales loss the additional $XX million is net reach underutilization performance million quarter, Non-GAAP EBITDA line in new $XX.X level meaningfully were the growth from lower In cost margin which is in the negative XXXX. business line third third a As the we totaling overall in million, XXXX came of range quarter. in that in with capacity on first below and also partially US still target quarter, quarter, third This market loss but previous where quarter second during expenses was performance million increased million recognized improved quarter. line compared downs

upset higher issuance, increase quarter. we Moving onto convertible inventories driven million The the of with operating we into cash end the million was cash, at deliveries equivalence, end markets. partially CapEx bond closed offset as by rent sequential XXX and balance losses and third our by million spending, our the short compared sheet, the second investments of cash term quarter to $XXX $XXX

days further million, below million. For which the of quarter were expenditures Capital to XX range in sequentially to XX our DIO was $XX $XX days. from $XX growth. third million guidance increased

the cross quarterly we ramping payment As margins with our This quarter. to investments of continuing see in next with of year our quarter the results CapEx gross performance to long-term executed utility With XX% to are second performance positive reflect achievement financial least to was the financial and overall, over while the line margin business. improving in spend we margins result our the our we to expect up the before are in of and the have In company a at of to third position burden show quarter. legacy pleased course maintain scale models of leading drop improved fourth our on ASPs, the US that six a for performance capacity previous of XXXX. sequentially performance tangible in discipline from still starting line now the DG and the nexon end US plan deliver

our partly to expect pricing and financial the contracted an the scale scale this as utility XXXX, based beyond achieve become ramped, of prices fully factories already utility second increased panel in DG turnaround and in mix the EU of We on strong revenue. reduction the US half cost

be projected in XXX in breakeven represents guidance largest reduction for The the will market in to this as in of to imply midpoint non-GAAP. quarter is slightly charge XX volume improvement gross which points soon, million fourth I XXXX Capacity plus in With fourth project between is ASPs to continue prices mind, products in expected for to contract end The utility attributable This we until XX% gross we $X mix contributor Non-GAAP minus the scale the is to Operating million out third be turn megawatts that DG mix silicon. quarter to is panel from sequentially, expected S rank. range the higher we is of levels. sequential are sell impact expect megawatts. P&L material ran. our cost The a continue but unit million midpoint decrease these the million. which sequential largest incorporate into of slightly on line X XXXX numbers poly of US quarter expenses A now to facilities revenue. early the XX for a reach increase project shipment. million. expiring The these this volumes, XXX expectations fourth in raw We shipments or on included shipment performance quarter of panel guidance of as revenue up of greater XXXX, of will a higher expected be guidance the XXX driver profit our we utility beyond margin of scale our slight XXX growth. are to P and growth of

percentage a expected is quarter the as into more both XXXX. our However, OpEx in efficient to revenue, fourth of and become

negative will storage sales. in DG that EV the line The demonstrating this handle our be to million, and Non-GAAP projected As and teams majority in in for power just is electronics spend of line logistics $XX negative are improvement range sales range projected sequential be example, be gross chargers largely of by is EBITDA $XX $XX executed one the XXXX. sales to our to panel ramp performance of of our capital income million the million to in million. with expenditures same $XX

continue will reasons convert our this CapEx ramp We to the line of We to intend million US $XXX capacity issuance. spend for the completing market. finance our CapEx performance from for

As discussed, capacity no we Furthermore, for our spending of production we XXXX. previous our is three gigawatt that proposed longer Mexon in because working in CapEx for US Mexon Mark expansion, a are facility lines anticipate that, on commence for plan indication and the may three relevant. retrofitting seven

Department CapEx Our majority financing Energy successful funds on program a remains Loan for for a required. guarantee remaining the US plan application with contingent the of of the

partnerships, We variety high project co-investment, will stakeholders. customer generation, markets this remains ATA different in consider the and interest a options of in capital from including very company, strategic

the strategy to of We the before a the we will max shareholders. best finalize to over go we believe summarize financing in be to back Mark With that, call several will I'll Q&A, months interest next that turn

Mark Babcock

focused three key a completion our long-term capacity primarily element which of Thank projects, our transformation, you achieving Kai. critical model. financial is of first We're on

our manufacturing beyond to the we're Second, capacity and leaning DG transformative panel business. demand plan and scaling into a material expansion, of we sales and product are become opportunities with third, expanding portion

proceed. let's go Now operator. Q&A to Please

Operator

of of comes first Our Julien Bank question line instructions] the from [Operator Dumoulin-Smith America. with

now is line open. Your

Julien Dumoulin-Smith

positive margin talk bit for little alluded team. ASPs your up time. very Just prepared those ramp and If, of commentary you to as may here. I here, results well much more see the you as legacy the here, to Thank if afternoon a as you remarks you Congratulations off some under-utilization. that good can ramp in the the as Hey, as well XX on rolling the about the here? follow just through

You, ability XX the to back half? fill about, real the in commented in versus talk remarks time the a of volume in of about the those you considerations also Can way. out through demand here way and some other still under-utilization all in then ultimately sort

Mark Babcock

then that but Yeah, of in demand we up as space kind general, in let strong. finish very start see I'll said, we so here, and being utility I'll US might

discussions facilities, in matter active as a really we the years booking if booking long yet. we are three of ramp with next the not utilizing for in of year, there's But components up and all in we of term. term financial We volumes capacity through look there several get to big It's the into model. short out are advance how out we folks the

is and signed the at half lower significantly contracts year, this from the, the those have sort next and started for of of delivery ASPs for year. those where are than we past moving contracts in One higher that prices the earlier delivery through second year it's of contracted next

The disappearing COGS as in is the there. into that overall that and is space optimization as to assumptions under-utilization some and then including cogs combination some both of production. second piece areas basically terms of much an well as last other we improvement DG ASPs the the piece in of for capacity space, for cogs other closer a full And full, other the move things

We in to We're talked come bit going will our from in the taking start next there. Europe here beyond panel other some for storage a expect in about product orders micro that's QX. products. contribution uplift should in little that'll, real shipping I that. So think the a we significant think the storage that'll provide begin from in already is inverter additional I but year QX the contribution we product thing Australia We products shipping the and the

combination that don't really I it's those on have do So know, of of Kai, gets things you to those us a trajectory. that anything

Kai Strohbecke

underutilization. to Kai, to fill Add? few things, and regards just with Yeah, want I Julia, the a in

operational to due mentioned, not as of is underutilization the Mark and demand. purely a So lack

a of not lack We are from suffering demand. certainly

XX to So million million. under-utilization go over into, equipment the that installed quarter at have volumes we And of And the we further clean just around down second have then building nature additional just here and ramping that for into this room costs charges reported this peaked facilities is fixed quarters. capacity. our we quarter. capacity the where from coming additional expected into about in the We these have are already we that the some for $XX

how, time. are is this as less less over and So ramping we gets Underutilization that

Julien Dumoulin-Smith

trends? here, drag like the increases and clarify higher Tech, as talk about it. do cadence Got those scale we see if presumably is we Excellent. does at first we hit you utility just of be don't Green out say, utility especially half, in more about IBC how contracts yet, those early to just can You from with, some market drag, with from if should margins? If the more ramping. the of beyond have still as look mind. presumably XX, think Right, specific, the ASPs price I scale you panel least dg, could How two pair you positive here not the try more

Kai Strohbecke

think, to selling I start January. we So in Tech Green will

kicks build think year, years that's the something immediately, volumes will the they'll I not in business. ramping flat that almost be during throughout ramping, we the although be So that

during year. from the also ASPs build the those So would contribution

contracts As utility second in but I half not the year at the the exceptionally better the in half earlier, significantly first the favorable for are of I get think said those of space, ASPs the year.

a But to in even a XX% that Whereas performance draw ramp, a dg, still accordance it quarter improvement ramp Yeah, XXXX our the said, be with during US line about. as expect in but XXXX, from track margin improvements fourth in aligned will the XXXX, the that to through Yeah. we Yes. have a even just I are positive long of long Julian, would third quarter, of with We are That of linear series also in cross we exactly financial that gross model. the model. so Mark margin between margins. to you, where financial already targeting And be in So some gross you break get term said majority it to XX%, accelerated as our still term would will Mark runway we term come we margin. our financial models. as the be meaningfully long on from talked the say year.

take proxy So margin model, the term gross ADA whole as a the which for XX% XX% we long financial margin. includes adjusted also

Operator

you. Thank

question next line Donovan from Our comes Capital the Northland of with Schafer Markets.

Donovan Schafer

Hey for I My taking first more something IVC question promotional than guys thanks sometimes related kind But the actually company from and I news some curious super necessarily track of be I'm other just, there's questions. that companies. from and follow announcements might the some, all releases means I've a press noticed material.

ISC-Konstanz kind and I'm or it German update sort whatever course a on some either from seeing, Chinese you some, basically ones steps about maybe cloudy made an or know, like you other have was I I US. of kind were maybe of the but of and form everything releases patent and IDC any this and was back IBC because LG in a then do, company that away left company. is expires, us Panasonic or better to like your for and also more of these bit other on mind, interviews they their So a offerings of I just spelled there's with But in of uneconomic of other what and specifically market the that how doing of name, or because company sort the guys additional or walked process market maybe feel contact sort them. of it's talking technology And think I there there give a saw had it just I announcements of ISC-Konstanz, some IBC can they're little patents called they some German maybe I that maybe blanking the my guess position patents is it's the in geographies, geography, when generally? not but it and press

sort just technology, helpful specifics of around know and Hey, think there sort patents, feel and, little other trend a those saw and good versus you've said, of because of and that kind an an there an have IBC got some we're saying, patent, really I of just I the I would but qualitatively other bit of con thing. Just you advantage updates going pop architectures uptake I and like to be like do name again, I

Peter Aschenbrenner

Peter this Aschenbrenner. And Donna, Okay. is

So to succinct. a be I'll pretty, pretty try

So patent we protection. We've portfolio years. our and our about good innovating feel been for building extremely IP XX

We not innovations file really patents some on only our but around fundamental architecture ideas. of metalization cell, continue disruptive the to seven Maxeon also some like

off. of it's things And not so really a question rolling

I think it's a innovation. question of ongoing

EU, So strong in we're IP so we our still going -- of where China. US, tend in the place. majority markets And place sales, in we to cover file to vast

Some countries in Southeast Asia.

of good getting out are IBC. feel we So sort in say and getting about patent protection. of There always folks would I

that's we, the They're have Constance in call we to more little a B for should we IBC have metalization, long sales back on, with R&D that and It's of metalization other back I institute why used important way the cumbersome. is which time, back done one been of C The good types of is them. back, as of institutes outfit. is the at things contact most the say. protection few or one patent people a contact interdigitated of an that that's the a different it do which mentioned cells looking on have that we contact, I You very period note

get towards a this form in, level of structure. working the and solar believe there's really their as through XX an And it's, in doing we of say years. they on over top kind start We still experience the for crystal we're and we've would of to I that interest fascinated So con starting well, silicon which getting as they're see to that something past are We're years, cell. as some contacts people XX interested particularly said, technology. consistently ongoing entitled get other we experience it's been think again

lead. good say we So We, would tuned. stay about feel the I

that products are we'll We continue folks of but as to have approach certainly I kind our to mature. adjacent maybe think some develop not see

the saying companies flip like competing con optimal maybe IBC ideal. architectures of, and So that idea bunch of think of around are some like that, actually like that and, Are that kind being you it. yeah of seeing Do raises of layering this there any different you, a the you form is the indicative? kind seen, tandem other other kind I that trend There's ones you're more of -- out and, is maybe the entitled the there's stands I've to stuff. do a a coming side all guess or this or some more

And more is as been to call Topcon in reflective so a most too that in a to there? trend. it's the of the has the action about around? towards interest just come of think it now right But, a I trend in companies talked early it go is, that trend I now clear stick longer IC right more is mainstream that there think tends remains But of ebbs the IBC it market. top flows term and con. of one just There, consistently kind of and and these kind terms technology. and from mainstream kind I of where you're Is of is you think

Donovan Schafer

Okay.

I ask US jumped between you kind cover Mexico issue, that the have was if to And have series border. you're between forth Prevention of for to know Okay. I call, assembling I Act. back one any you trucks able the last want checked, going this. in, Industrywide, and every then Mexico Labor did outta was this actually okay. apologize of the and P cells another there's there another if been get can -- I those I but weaker there. And I and about, guys basically you no day panels

think really into okay, back be obviously time checked kind may about in again every That XXXX if at not that conversations in these that customers interests, but case. sort so, look trucks increases talking incremental ability they truck across said, were same that cash bookings increases day, Like there's to, to to if ties have technology that for interest, room And exemption of our an that out can I more just of curious there maybe to on kind know don't expansion us. the the you just say, side, of for conversations. no the getting panels. And on would but us you IBC was if issues last then, and I behind that to and these sure forth that a the want into coming thing ad that's you that CVD. still apply I then because the border make the comfortable clearly so get And

force the you So with that, also labor, get Hemlock, that's going poly from away. but the

labor forced just the stuff, updates, us of prevention into on curious Just kind getting product developments there? the any

Mark Babcock

Sure.

with delivering are from place respect most what think forced here border and, customers now. our of And blockages issues of been as have have the with a and I shipping chain around So shipments chain we, month to we, it's, I us. think on you feel comfortable labor different the, supply companies well, supply the we the a hundreds said, at it's and in very into type we're, the

and solid issues of the that kind will table the that off look and continue it definition. by to takes with that to we manufacturing so we expand of potentially And most those in respect think is US

go a years. slated IBC front, section the the exclusion a exclusion, which in On XXX is is away few to

any in into shipped being issues our related future the US don't IBC anticipate we product the to either. So

Operator

take Okay. guys. offline. Great. I'll rest Thanks, questions helpful. of that's the my Thanks

Operator

Thank you.

line comes Brian Our Sachs. the next Goldman question of with from Lee

open. now is line Your

Brian Lee

afternoon. taking I'll be in 'XX over good give in of the and your be next the and can are phased going then the in had on how of give Can on try net how to DOE you related CapEx. the guarantee, in that's guys, past quick. of of just 'XX, get us, the anticipating years, kind numbers questions. you we I dollars more and for then just thinking be then couple loan for them a but quantified keep much it much think the us you've burden? should sense what would a to billion Hey from reasonably you two how Thanks to sense I DOE

Peter Aschenbrenner

Sure. take Brian, I'll is this those. Peter,

of is we, calculates per total billion DOE First part project that number disclosed the, project the a includes the the total of roughly dollar But over it's project, that's the important the and that. is period facility of se not the, all, we an etcetera lease the course a costs of lease, investment CapEx CapEx that today that contingency sort way cost.

We haven't the timing project. disclosed this for specific

we I with the percentage mentioned that to DOE CapEx And assume respect think spent specific a percentage is that. you'd mid-XXXX, assume that to that, yet. if lot the plant's you'd coming of haven't online prior a and

that can majority possible. be, high negotiated be you project co-investment. Of a precedents like expect at. to there the like that the we out that from course investment of is DOE as some number. percentage to come and that said combination would in customer of And this are as what we a have vast We'd from we There to look that's

Brian Lee

largest evening up caller. I, from Anything of like you you. I background it to saw That's number one a even to Sun XX they've speak selling the additional Thank then you a stake, Power partner seems this investor us me days. strategic on, give next that, over out little as for back months slash what's maybe great. Okay. just more guys well. just bit to something on we there? going think shareholders read that years, total the Appreciate been on can know as I filing into maybe your of a on And follow their put Can from you, as well

Mark Babcock

obviously we for so can't total. Yeah, speak

asset there. the that focus actions However, be significantly they have past more in appears to really if you the their And ownership space. scale over large years observe active generation their become

side some why So current downstream we investment scale DG, it much upstream surprising understand not since the good downstream objectives. but their obviously especially do their exposure with with are potentially large we have that more that fit on the in not we would

but, not, ask you'd them. story given they're doing, on surprising focus if don't to appears the have obviously really totals to not get we where you especially what want to be, So

Operator

Thank you.

Our next line question comes is from the line of Philip Shen with ROTH Shen Capital open. now Partners.

Philip Shen

the up Brian's share on you what thanks DOE The is, guys wanted expect you can or total what the and, regardless investment. or of and follow Well, of the gigawatt to is Can three on for dollars the questions Hey and billion facility. questions some be? so, your Thanks. CapEx the whether to you XX actually, CapEx And can't, not what you is? if talk in can about

Mark Babcock

not as, still position hey. of technically what be down CapEx. made will the gifts decisions to Phil, CapEx. takes a and kind Hey, So, are right and in and further break as qualify to There's, now different we

So to a also all there. we of early next We'll, giving number point. putting That that that a disclosing are With not over had that in from CapEx originally right now. XXXX. regards spill are will is the CapEx in be XXXX the earnings some this out that are for we total this we for call billion right There some roughly do guidance that's investment now we And in here CapEx our XXXX. at year. guidance of

You we till spend end million CapEx the have seen of XX the of that quarter. September about

XX at the about another guiding We for million. midpoint now are

$XX $XX the you million. So had guided to range. that million million $XX into originally puts We

that projects, been CapEx the are for for and be So up of milestone existing payments we has specifications. some point. giving some beyond just this that finishing spill over, at of is already equipment reaching there's further guidance But to some installed going XXXX not some

Philip Shen

guy. Thanks Okay.

beyond how it source or the you with? as years could Would transformers, chips long In the years of may delayed just are ago, hearing terms and now. given, an and might they of that now they of talk of that playing and also as a maybe were the as bill terms in co-investment, three equity scenarios are just that months piece much they three gigawatt you couple large of And trying for give that then two would guys out access in the time risk to term the they that a of about different talk the funds, lead in facility We're customer can time, meaningful a guys be are invest be XXXX? you out IRA, through people structured? talked lead lot deposits have year facility, contract. transformers that you three then a be, What about terms you the can

your on well, risk are around numbers the So Thanks. thoughts that timing? 'XX what or

Mark Babcock

So questions, schedule the And form second risk. on Phil. Peter, is question question First is co-investment. of customer on This two

get or say be I co-investment, into that models. loan respect would So deal model with to take. one the the I we're, of a a other into co in at evaluating customer project be we're off facility probably There's still plan investment point we that's risk. respect also. think some process, final structure schedule with interest to would a on the the, prepayment couple different as make forms a And diligence further co-investment repayable would a will on, decisions a,

feel I now site we've is lot and we're that good on and you at like think I a pretty of think somewhat so a this have in good to terms make year we the said handle. of build equipment delivery, is, key trying the dependent planning a a we in as detailed about us. and good for that this engineering handle well. have a that, I ones we pretty a point only been Having not like facility

for in your Thanks our we're currently. in gears confident I Sun relationship time Power. ramp So our to Shifting with caller. think the

Do what Power or ship but with in Power. been But a, have think much XXXX. selling in how up So might probably I a And think long supplying optimization earlier. Sun them the significantly in of a them for long about down would part your end in in think we might not XXXX, versus about that you margin We've be XXXX you up megawatts Sun for that to again, to XXXX. down, our slightly be sorry, you XXXX? be time. we a time. relationship been working spoke good down that They've would product with

XXXX great reduction. it but if reduction it's and is more Sun it's there, of some supply out really mentioned significant on discussions yeah, partner in there with them a there in they XXXX. I is and a think their call, to there demand is wouldn't so matter lot a supplied be of it, actually there's, a Power There's than potential a And we've contracted ongoing more for as

Philip Shen

everyone. process we Really your or shift bit you a in And timing and a Where the, process? in do are you change in terms name do CEO the CEO finalizing terms for Mark surprise the was then of what's appreciate we, that hat? the color your Mark. the think in finally, the of new of interim think I a When have

Mark Babcock

set with Obviously. think have So we're, that's it's ongoing disclosing. I don't are need is a and work a a, engaged we're that we something timeline specific to recruiting a The specific that. we that process a, the on here on headhunter permanent guess I'm we do until progress CEO. level. good I here. making we're going I long as board I such feel time as as like be for to it's, at But a have

the so not, concern we team how I actually the at think, And execute in of main XXXX. least of terms it's for management

Operator

you. Thank

Our comes is from next now Molchanov of line the your line Raymond question Pavel, Pavel with James. open.

Pavel Molchanov

Thanks the for question. taking

you at in over the a pricing dynamic an your expect in seeing for about it's insights we different you weeks You down qX. and down straight mentioned uptick XX% in, period. that every on pricing benchmark, structure? now, pretty look XX much that think When PD I week Are

Mark Babcock

think you customer a at insights at look or if not looking you're installer to the distributor. basically PV leaving factory, number, product to product being I sold So a an

play in space. different we where that's so little a And bit

ASP And as that long uptick We're we to for product. obviously maximize mentioned. that and starting product continuing to got carry that premium product. demand, in down yet and try the QX the us especially our can. confidence will the, through backlogs drift see performance what's to both giving are not pricing that we've for IBC as And series we our beyond, strong We is necessarily us we, will which we seeing,

Pavel Molchanov

the of or into reallocated? customs? Are at they Okay. the are there where because module being are earlier. you by Where market, the Clearly Chinese dumped The some ones on they're US going? issues being that international modules stopped border constraints touched markets domestic are being essentially in supply other the those that

Mark Babcock

space. that modules. much else putting I the a, are, the large I'm seeing modules Outside that, is where active scale, are format What everybody is, assuming utility can't we're US you're more very bifa those getting away. excess answer in what DG turned

that again, space as not in rest There the so very availability And play as premium there is product the we product overlap series areas. in world generally than US, but both a into the well seeing in of we're module those performance same with more our the is IBC product.

flood And of sort US seeing into product the that's not so of we're not the any getting far internationally. markets affecting DG

Pavel Molchanov

I quarter, a then and past highlight? of me, that's to your region think XX% revenue And kind Okay. lastly, an of high. this all-time Any hotspot

Mark Babcock

over where mentioned think I France we XX% XX% we, we're market moving Well, share.

markets IBC having is Europe, the there. product We of combination top in, The we're continue to in DG focused great mid-range product at series with quite there. be Really strong all effect doing performance the in well in really of our Italy. our the end

as mentioned the doing AC are with We the we modules there, of products the with some penetration AC well earlier. rates quite

complete it's and product QX year, next We'll Australia our it into systems and Europe. selling be to more into shipping said, of So expect already shipping storage qX. great we I as to in be be

around but DG And markets the so, the important, very is u markets important EU our differentiators like exposure significant. one of The overall US we our is a also feel but world. to the are big the that's e

Operator

up next Our from follow instructions] Bank question a Dumoulin-Smith is with Julien [Operator America. of

Your open. line is not

Julien Dumoulin-Smith

here. much you talk thank about… for Hey, Can we

Mark Babcock

can't… you that still much so up breaking You're

Mark Babcock

the remarks? comments we you XX that you described in XXXX bit a apologize I Can with and technology to accelerating. deliveries in in were little that guys. about and your talk your demand remarks otherwise talked IBC I the next about your and the prepared align you about

Mark Babcock

I asking about XXXX. generation So I performance understood that next be that technology Is in you're think correct? delivering we would that

Peter Aschenbrenner

Yeah, to I just the wanted go about, for talk it…

Mark Babcock

words you the Sorry, through you time your up. first were of XX% about we Julian, got question, went the breaking

of recap you now like question? clear. Could more You're do quick a much just your super

Julien Dumoulin-Smith

apologize. sorry, on. know going what's don't Yeah, I I

as period. of well an with remarks through the the timeline to that IBC, next alluded demand in about as just to for your product iteration Just relative on the acceleration respect you

how scale. you about talk can you If big can and quickly how

Mark Babcock

obviously timeline we're the possible there. of, as opportunity don't talked demand much as the an although about think window given of, trying timeline, I so of accelerate acceleration Yeah, we to of

those how we're performance IBC next capable to factors, what as benefits mean, in as out bring the plans in demand to so timeline we bring recognize but I much got to this I to guess really that. focused doing there as are position we a finalize discussions it's on about etcetera. the I'm this we exactly at additional a So to that efficiency, on market talked really certainly are and energy we exactly being volumes. can, to additive and generation yield, point, in want doing on ongoing or We really the talk of we're but trying we technology. And soon as how other is benefits about market, not soon

Julien Dumoulin-Smith

All right. you Thank great very Have Fair much. a enough day. guys.

Mark Babcock

Thank you. Thank you Jordan.

Operator

Thank you.

conclude you As there now are call. no we'll further all the Thank questions, again.

You may now disconnect.

Maxeon Solar Technologies (MAXN) 11 Nov 222022 Q3 Earnings call transcript