SunPower Inc. Q3 FY2024 earnings call

• The company merged on September 30th, starting with 65 employees and hiring 1,204 SunPower employees. - Reorganized into a start-up model aiming for $100 million in revenue. - Cut headcount through a 'Noah's Ark plan' by hiring selectively. - Reduced legal (from 39 to 7 people), HR, quality, and IT staff. Integrated Blue Raven's Albatross software for better efficiency. - Q3 combined revenue was $117 million, but non-GAAP loss was $40 million. - Q4 2024 revenue expected at $80 million, with operating loss projected to drop from $40 million to $2-11 million. - Focus on cost-cutting using professional groups to optimize processes like leases and kitting.

The company has three main segments: New Homes, Blue Raven, and Dealer. New Homes is currently the only profitable segment. Blue Raven is not yet profitable. The Dealer segment is involved in buying jobs from dealers. In the previous quarter, the combined revenue from all three segments was $117 million. New Homes had 233 employees, Blue Raven had a specific sales and installation structure, and Dealer had 137 employees initially which roughly doubled in headcount.

• Q4 2024 revenue forecasted at $80 million, down from the initial $100 million target. - Target to break even in a few quarters with an $80 million revenue run rate. - Plan to acquire solar companies for inorganic growth once the company is more stabilized. - Expect revenue to grow to around $700 million by 2028 if growing at the average solar market rate.

• Potential for solar industry closures and bankruptcies that could impact the company. - Customer backlog issues in new homes business due to SunPower's bankruptcy, with some business shifted away. - Dependence on stock performance and potential delisting risks associated with SunPower's previous status.

Q: Update on new homes and retrofit backlog?

A: Lost ~20% of new homes business due to SunPower's bankruptcy, but working on solutions; backlog through Q4 2025 is over 10,000 homes.

Q: Full diluted share count exiting 2024, including Chinese investor funds?

A: Fully diluted shares outstanding at the end of the quarter will be approximately 143 million.

Q: What revenue run rate is needed to break even?

A: $80 million.

Q: Impact of IRA repeal and President Trump on the industry?

A: Solar subsidy (income tax credit) likely safe, but share price affected by political views on solar.

Q: Commercial & industrial opportunities?

A: Already working with Starbucks on solar awning projects for commercial & industrial, serving opportunistically.

Q: Future cost reductions?

A: Using professional groups to cut costs, such as optimizing leases and kitting processes