Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Complete Solaria Inc (NASDAQ:CSLR) successfully raised $80 million through convertible debt offerings to fund the acquisition of SunPower assets.
• The company has reorganized its structure to focus on profitability, aiming for break-even at an $80 million revenue run rate.
• Complete Solaria Inc (NASDAQ:CSLR) has integrated three divisions, leveraging Blue Raven's expertise in scaling operations.
• The company has reduced its operating expenses significantly, from $43.5 million to an expected $17 million in the next quarter.
• Complete Solaria Inc (NASDAQ:CSLR) has a strategic plan to leverage the SunPower brand name, which holds a 20% premium in the market.

Negative Points

• The company reported a $40 million loss in the last quarter, highlighting significant financial challenges.
• Complete Solaria Inc (NASDAQ:CSLR) lost 20% of its new homes business due to the SunPower bankruptcy, impacting revenue.
• The company's Q4 revenue is expected to be $80 million, down from the previous $100 million target.
• There is uncertainty regarding the impact of potential political changes, such as the IRA repeal, on the solar industry.
• Complete Solaria Inc (NASDAQ:CSLR) faces challenges in integrating different company cultures and systems post-merger.

Q & A Highlights

• Warning! GuruFocus has detected 7 Warning Signs with CSLR.

Q: Can you update us on the number of new homes and retrofit homes in the backlog currently? A: We lost about 10-20% of our new homes business due to the bankruptcy of Sunpower, which caused some corporations to shift their business. However, we are working on solutions to regain trust and have a backlog through Q4 2025 of over 10,000 homes. (Unidentified_1 and Unidentified_4)

Q: What is the full diluted share count expected exiting 2024, including the expected raise from Chinese investors? A: Inclusive of the raise from the Chinese investors, the fully diluted shares outstanding at the end of the quarter will be approximately 143 million. (Unidentified_5)

Q: How much cash do you expect to have on the balance sheet exiting the year? A: We expect to have approximately $20 to $25 million in cash on the balance sheet by the end of the year. (Unidentified_5)

Q: What is the revenue run rate needed to achieve break-even? A: We need to achieve an $80 million revenue run rate to break even. We have built the company to survive on the revenue we can make, and we expect to reach break-even in a couple of quarters. (Unidentified_1)

Q: What are your thoughts on the impact of the IRA repeal and President Trump's impact on the industry and Complete Solar? A: The largest drop in Complete Solar's stock price occurred when Donald Trump was elected due to his stance on solar energy. However, I believe the solar energy subsidy is safe as it is an income tax credit, which stimulates the economy. (Unidentified_1)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.