SunPower tumbles after cutting guidance, reveals cost-cutting plan
SunPower (NASDAQ:SPWR) shares plunged more than 16% Wednesday after it reported preliminary second quarter results, cutting its outlook. The company also announced a restructuring plan which includes a workforce reduction.
The company reported a preliminary second quarter GAAP net loss of $30 million. In addition, it revealed second quarter customer growth of 20,400 new customers.
Preliminary second quarter revenue was $464M, 11% higher year-over-year.
However, the company reduced its 2023 outlook for customer growth and adjusted EBITDA. It now expects residential customers between 70,000 and 90,000, as «more than 70% of the projected installations in the second half of 2023 are already accounted for through the execution of existing backlog.»
Adjusted EBITDA is now seen between $55M and $75M, reflecting higher installation costs.
SunPower's restructuring plan is aimed at aligning operating costs with current market conditions driven by slower sales partly due to higher interest rates.
As part of the plan, the company said in a filing that it expects approximately 140 employees, representing approximately 5% of its labor costs, to exit the company in the third quarter of 2023, resulting in restructuring charges of around $4.3M.
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