Business
Complete Solaria Reports Second Quarter 2023 Results
FREMONT, Calif., Aug. 22, 2023 (GLOBE NEWSWIRE) -- Complete Solaria Inc. (NASDAQ: CSLR) published its second quarter 2023 results, which will be reviewed for
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[{"type":"text","content":"FREMONT, Calif., Aug. 22, 2023 (GLOBE NEWSWIRE) -- Complete Solaria Inc. (NASDAQ: CSLR) published its second quarter 2023 results, which will be reviewed for investors at 5:00 p.m. EDT today, https://investors.completesolaria.com/. Second quarter summary (financial comments based on non-GAAP results unless noted): Revenue of $32.2 million, down 9% from previous quarterSystems: $25.6 million, up 54% QoQ, and a recordModules: $6.6 million, down 65% QoQ 18% gross margin, up 6% QoQStrategic Decision: company to pursue only higher-margin Systems business in the futureSale of Modules business: non-binding term sheet with module manufacturer signedStreamlined organization: RIF of 59 with $7.9 million of annualized savingsNew Systems bookings remain strong with $49.1 million in contracts in Q2 Fellow Shareholders: Our revenue and earnings for the quarter are given below, compared with the prior quarter: ($1000s, except gross margin)GAAP Non-GAAP* Q2 2023Q1 2023Q2 2023Q1 2023Revenue 32,174 35,398 32,174 35,398 Gross Margin 18% 6% 17% 6%Operating Income (17,546) (20,233) (15,788) (15,698) *reconciliation attached The details of a plan to address operating losses are found in the CEO’s report, which comes directly after the Chairman’s report, which focusses on restructuring. Chairman’s Report When I became the Executive Chairman of Complete Solaria seven weeks ago, I chose to devote most of my time to improving the company’s organization and business practices – to build a “machine to make quarters,” not to make quarters per se. Those efforts are just becoming visible. The first operational problem we addressed was described to investors in a Zoom-cast from Complete Solaria’s Salt Lake fabrication plant (fab) on June 30, 2023. We told investors that a surge in orders had flooded the Salt Lake fab with new installation jobs, jamming it up and slowing it down. Our fab inventory had climbed to 2,800 home installation jobs, up from the historical 1,200 or fewer jobs. That fab logjam and slowdown limited our total Q2 revenue to $32.2 million, as we forecasted on the Zoom-cast. Despite the fab slowdown, our Systems revenue actually achieved a record in Q2. The low overall revenue was the result of low Modules revenue, which was in turn due to a deliberate decision described below. I asked for help from three top experts: a fab expert who came to...