SolarMax Technology Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

SolarMax Technology (Nasdaq: SMXT) reported Q2 2024 financial results, showing significant declines from Q2 2023. Revenue dropped to $4.5 million from $14.8 million, while gross profit fell to $0.6 million from $2.1 million. The company's net loss increased to $2.2 million ($0.05 per share) from $1.9 million ($0.05 per share) in Q2 2023.

CEO David Hsu attributed the decline to the normalization of demand following a surge in 2023 due to favorable rebate conditions in California, as well as increased borrowing costs impacting consumer investment in solar. Despite these challenges, SolarMax is focusing on its long-term growth strategy and expanding its commercial solar project portfolio, with recent non-binding agreements for projects in Las Vegas and San Jose.

Positive

• Expansion of commercial solar project portfolio with potential large-scale developments in Las Vegas and San Jose
• Maintained total operating expenses at $3.0 million, unchanged from Q2 2023

Negative

• Revenue decreased by 69.6% to $4.5 million in Q2 2024 compared to Q2 2023
• Gross profit declined by 71.4% to $0.6 million in Q2 2024 compared to Q2 2023
• Net loss increased to $2.2 million in Q2 2024 from $1.9 million in Q2 2023
• Higher interest rates negatively impacting consumer investment in solar

RIVERSIDE, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, today reported financial results for the quarter ended June 30, 2024.

Second Quarter Highlights

• Revenue: $4.5 million, compared to $14.8 million in Q2 2023.
• Gross profit: $0.6 million, compared to $2.1 million in Q2 2023.
• Total operating expense: $3.0 million, compared to $3.0 million in Q2 2023.
• Net loss: $2.2 million ($0.05 per share), compared to a net loss of $1.9 million ($0.05 per share) in Q2 2023.

David Hsu, CEO of SolarMax, stated, “Our second quarter performance reflects some of the same external factors that influenced our first quarter. Last year’s exceptionally high revenues were largely driven by an unusual surge in demand as residential customers accelerated their solar system purchases to take advantage of favorable rebate conditions before the regulatory changes in California took effect in April 2023. This created a temporary boost in our 2023 numbers. Since we completed these orders in 2023, our 2024 revenues reflected a significant drop from the 2023 numbers. Additionally, our revenues were impacted by the increased borrowing costs associated with higher interest rates, which resulted in a decline in consumer investment in solar across the industry.”

“Despite these short-term challenges, we are focused on executing our long-term growth strategy, and we continue to see strong underlying demand for our solar solutions as consumers and businesses alike increasingly turn to renewable energy to meet their power needs,” continued Hsu. “Moreover, subsequent to the quarter end, we took significant steps to expand our commercial solar project portfolio with a non-binding memorandum of understanding for a large-scale solar development project in Las Vegas and a non-binding term sheet for a similar project at a major mall in San Jose, California. We anticipate our commercial solar development projects will play an increasing role in our revenue growth in the quarters ahead.”

About SolarMax Technology Inc.

SolarMax, based in California and founded in 2008, is a leader within the solar and renewable energy sector focused on making sustainable energy both accessible and affordable. SolarMax has established a strong presence in California and began operations in China in 2016. SolarMax is looking to generate robust growth with strategic initiatives that aim to scale commercial solar development services and LED lighting solutions in the US while expanding its residential solar operations. For more information, visit www.solarmaxtech.com.

Any information contained on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, including but not limited to the Company’s ability to develop its commercial solar business and to be accepted as a provider of commercial solar systems in the United States, and its ability to translate its experience in China, where it has not completed an installation since 2021, to the current United States market and those described in “Cautionary Note on Forward-Looking Statements” “Item 1A. Risk Factors,” and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on April 16, 2024 and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 15, 2024. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:
Stephen Brown, CFO
(951) 300-0711

FAQ

What was SolarMax Technology's (SMXT) revenue for Q2 2024?

SolarMax Technology (SMXT) reported revenue of $4.5 million for Q2 2024, compared to $14.8 million in Q2 2023.

How did SolarMax Technology's (SMXT) net loss change in Q2 2024 compared to Q2 2023?

SolarMax Technology's (SMXT) net loss increased to $2.2 million ($0.05 per share) in Q2 2024, compared to a net loss of $1.9 million ($0.05 per share) in Q2 2023.

What factors contributed to SolarMax Technology's (SMXT) revenue decline in Q2 2024?

SolarMax Technology's (SMXT) revenue decline in Q2 2024 was attributed to the normalization of demand following a surge in 2023 due to favorable rebate conditions in California, and increased borrowing costs impacting consumer investment in solar.

What new projects is SolarMax Technology (SMXT) pursuing to drive future growth?

SolarMax Technology (SMXT) is pursuing large-scale commercial solar development projects, including a non-binding memorandum of understanding for a project in Las Vegas and a non-binding term sheet for a project at a major mall in San Jose, California.