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U.S.-based solar tracker systems provider FTC Solar’s Q3 GAAP (generally accepted accounting principles) net loss widened to $25.6 million compared to $22.9 year-over-year (YoY) due to low demand induced by regulatory hurdles.
The company said that customers struggled to import modules due to Uyghur Forced Labor Prevention Act (ULFPA) that came into effect last year that affected project development and demand for trackers
Consequently, the company’s revenue for the July-September quarter came in at $16.6 million, a dip of 69% YoY. Further, the operating expenses for the quarter were $17.1 million, up 16% YoY.
FTC’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) loss widened to $17.7 million compared to $16.1 million YoY.
The company’s total backlog by the end of Q3 was at $961 million, including the addition of $203 million during the quarter. It said that $165 million worth of backlog is not likely to be affected by ULFPA delays.
The President and CEO of FTC Solar, Sean Hunkler, said, “Our goal through this downturn has simply been to best position the company for the coming recovery, and we continued to make good progress this quarter, including, launching a new 1P tracker to expand our served market, launching a new solution for U.S. sourced thin-film modules which fill a gap in our offering, entering several new international markets and growing our project pipeline to a new record high.”
FTC said that during Q3, it also launched its largest solar, hydro DG project of 128 MW in Australia, aiming expansion of operations to grow its business.
Hunker said, “We believe that many of our recent achievements should also help mitigate future impacts from UFLPA. Overall, we see significant long-term growth opportunities ahead for the market, and believe we are poised to outpace the market when the module market normalizes once again.”
In Q3, FTC launched its new 1P solar tracker solution— Pioneer — which would help expand its market reach, along with a 500 MW initial order from one of the top engineering, procurement, and construction companies.
The company recorded a revenue of $30.7 million in Q2, a YoY drop of 39% compared to $50.1 million.
The company’s contracted and awarded orders in the first quarter of 2022 totaled $664 million, including the addition of $112 million worth of projects since March.