Newly-listed solar tracking systems maker FTC Solar (NASDAQ:FTCI) on Tuesday reported a first-quarter net loss of USD 7.4 million (EUR 6m) even as it enjoyed doubling sales as product volumes improved.
The US company, which at end-April raised USD 181 million in its initial public offering (IPO), said that executed contracts and awarded orders have increased in the past quarter, while higher steel prices and shipping costs had a “manageable” impact on its performance. Overall, the delivered results are in line with the company’s projections, commented president and CEO Tony Etnyre.
“We are pleased that with our IPO complete, we are well-funded to pursue the many significant growth opportunities we see ahead, and to continue our growth trajectory,” the CEO added.
FTC Solar closed the January-March quarter with a 103% year-on-year jump in revenue, mainly driven by increased product volumes. In spite of the growth, it swung to a GAAP net loss and an operating loss of USD 8 million as operating costs doubled mainly due to personnel staffing growth and other IPO preparations.
After “a strong ramp up in employee count” and overhead costs, gross profit contracted to USD 119,000.
More details about FTC Solar’s first publicly announced financial report are available in the table.
|Amounts in USD million
|Operating income (loss)
|GAAP net income (loss)
|Non-GAAP net income (loss)
Looking ahead, Austin, Texas-based FTC Solar anticipates to book revenues of between USD 41 million and USD 46 million in the second quarter. The sequential decline is forecast on the back of delays by developers on uncontracted solar projects and the turbulent pricing environment, it explained. On a non-GAAP basis, it guided for a net loss of USD 17.3 million-10.4 million and operating expenses within the USD 9.5 million-10.5 million range.
“As we look to the remainder of the year, we feel good about many factors under our control, including our cost-reduction roadmap,” the solar tracker maker said. It expects third-quarter revenue to rise "meaningfully” quarter-over-quarter and “continue to grow in a healthy manner” in the closing trimester, during which profitability is expected to be achieved on a non-GAAP basis.
(USD 1.0 = EUR 0.821)
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