U.S.-based solar tracker systems provider FTC Solar‘s net loss narrowed to $7.2 million for the second quarter (Q2) of the financial year (FY) 2023 from $18.2 million year-over-year (YoY) on the back of reduced manufacturing costs, increased product volume, higher product direct margins, and lower operating expenses.
The company recorded a revenue of $32.3 million during the April- June period, a 5% YoY increase.
The company’s Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was $7.23 million, a YoY decrease of 60%.
“Project delays, including some related to domestic content discussions around the Inflation Reduction Act, have continued to challenge us as certain revenue anticipated in the second quarter has been pushed into future periods resulting in an overall disappointing quarter,” said Sean Hunkler, FTC Solar President, and Chief Executive Officer.
“However, on the positive side, we were pleased to show continued gross margin expansion in the quarter, with non-GAAP gross margin improving another 90 basis points over the prior quarter. Improved margins and continued cost controls allowed us to report Adjusted EBITDA flat with the prior quarter, despite the lower revenue,” he said.
The company has introduced a 1P (single point) tracker solution to the market, which has obtained Underwriters Laboratories certification, indicating safety and compliance. It has also secured a new 140 MW project award utilizing the 1P solution, which is part of a larger 1 GW award.
FTC Solar won a new award for a 120 MW project in South Africa, expanding its presence in the region. It also secured a new 300 MW award in Spain and Italy, marking its debut in these markets.
The company’s order backlog has grown to $1.6 billion, with $259 million added since May 10.FTC Solar’s net loss narrowed to $11.8 million for the Q1 FY 2023 from $27.8 million YoY despite declining revenue because the cost of revenue associated with engineering services saw a sharper cut.
The company recorded a net loss of $99.6 million during FY 2022, a decrease of 6.47% YoY from a loss of $106.5 million.
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