SPI Energy Reports Positive Net Income from Continuing Operations in Q3 2023
News provided byACCESSWIRE
Nov 21, 2023, 4:00 PM ET
Net revenues up 31% year-over-year to $55.9 million in Q3 2023
Net income from continuing operations improved to $0.8 million in Q3 2023, up from a net loss of $9.6 million in Q3 2022
MCCLELLAN PARK, CA / ACCESSWIRE / November 21, 2023 / SPI Energy Co., Ltd., (NASDAQ:SPI) (the "Company"), a global renewable energy company and provider of solar storage solutions for business, residential, government, logistics and utility customers, today announced its financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights:
- Net revenues were $55.9 million in Q3 2023, up 31% from $42.8 million in Q3 2022
- Gross profit improved to $7.5 million in Q3 2023, up from a gross loss of $2.4 million in Q3 2022
- Gross margin as a percentage of net revenues improved to 13.3% in Q3 2023
- Operating income was $1.0 million in Q3 2023, up from an operating loss of $10.0 million in Q3 2022
- Net loss attributable to shareholders of SPI was $1.9 million, or $0.06 per basic and diluted share, in Q3 2023, compared to $13.4 million, or $0.48 per basic and diluted share, in Q3 2022
- Net income from continuing operations was $0.8 million in Q3 2023, up from a net loss from continuing operations of $9.6 million in Q3 2022
- Total assets were $230.2 million as of September 30, 2023
- Cash and cash equivalents totaled $5.5 million as of September 30, 2023
"We are extremely proud to report positive net income from continuing operations during the third quarter," said Xiaofeng Peng, Chairman and Chief Executive Officer of SPI Energy. "The sale of our majority stake in Phoenix Motor removes its net loss burden from out bottom line moving forward, strengthening our ability to drive increasing profits in the quarters ahead as we continue to grow our business. Our net revenues grew by 31% year-over-year to $55.9 million in the third quarter, while our gross profit improved to $7.5 million, up from a gross loss in the year-ago period and up 43% from the second quarter of 2023. Our continually improving financial metrics reflect our operations' robustness and our strategies' effectiveness."
Peng continued, "As we move forward, our commitment to driving greater success and growth in the upcoming quarters remains unwavering. We are diligently executing our strategy with focus and remain on track to achieve our previously issued top-line guidance for the year. These are truly exciting times for SPI Energy, and I would like to express my gratitude to all our customers, partners, and employees for their unwavering support as we strive to deliver on our vision."
Third Quarter 2023 Business Highlights:
- Announced plans to begin manufacturing state-of-the-art N-type Heterojunction Technology (HJT) solar cells in the United States, positioning the Company's wholly owned Solar4America subsidiary to become one of the leading American providers of advanced photovoltaic (PV) solutions.
- Sold majority stake in Phoenix Motor, reducing SPI's ownership stake to 25.83%, thereby eliminating the requirement to consolidate Phoenix Motor's financial results into SPI's financial statements. By divesting the majority of its stake in Phoenix Motor, SPI eliminates the impact of Phoenix Motor's net losses on its own profitability, paving the way for improved financial performance.
- Showcased Made-in-USA solar modules, including 550W (M10) modules, at multiple trade shows, including:
- Energy Expo 2023
- RE+ Mid-Atlantic
- RE+ 2023
- In preparation for its upcoming planned spinoff, the Company's Solarjuice subsidiary presented to investors at ROTH MKM's 10th annual Solar & Storage Symposium.
About SPI Energy
SPI Energy Co., Ltd. (NASDAQ: SPI) is a global renewable energy company and provider of solar, storage solutions that was founded in 2006 in Roseville, California and is headquartered in McClellan Park, California.
The company comprises the following core divisions: (a) SPI Solar commercial & utility solar business develops and provides a full spectrum of EPC services to third party project developers. (b) Orange Power business owns and operates solar projects that sell electricity to the grid in multiple regions, including the U.S., U.K., and Europe. (c) SolarJuice is a leader in renewable energy system solutions for residential and small commercial markets with solar wholesale distribution business in Australia, and residential solar and roofing installation business in California. SolarJuice also manufactures solar cells & modules in United States under the Solar4America brand. (d) SEM Wafertech develops American solar wafer manufacturing at Sumter, SC.
SPI maintains global operations in North America, Australia, Asia and Europe and is also targeting strategic investment opportunities in fast growing green energy industries such as battery storage, charging stations, and others which leverage the Company's expertise and substantial solar cash flow.
For more information on SPI Energy and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company's public filings and press releases available under the Investor Relations section at or available at www.sec.gov.
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.
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