Sunworks, Inc (NASDAQ:SUNW) reported a third-quarter FY23 revenue decline of 29.5% year-on-year to $28.7 million, missing the consensus of $42.9 million.
The solar power, battery storage, and electric vehicle charging solutions provider's adjusted EPS loss of 24 cents was in line with the consensus.
Residential Solar segment revenue of $20.3 million was down by 44.5% Y/Y. Commercial Solar Energy segment revenue totaled $8.3 million, up 105.9% Y/Y.
Total backlog stood at $66.5 million, down by 39.7% Y/Y.
Adjusted EBITDA loss was $(8.5) million versus $(3.7) million last year.
CEO Mark Trout said the combination of higher interest rates nationwide and less favorable residential solar economics in California following the NEM 3.0 transition negatively impacted originations during the quarter.
"As a result, Sunworks right-sized our cost structure, including a reduction in force and closing non-strategic and underutilized markets," he added.
Trout acknowledged a solid pipeline of potential new opportunities with larger commercial organizations, including independent power producers, and remained optimistic about the first order for a commercial-grade electric vehicle system.
The consensus for Q4 revenue and EPS are $56.3 million and an EPS loss of 14 cents.
Price Action: SUNW was down 7.1% to 32 cents a share at last check Friday. The stock has lost 79% YTD.
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