Tigo Energy, a leading solar energy company, has announced that its fiscal third-quarter revenue will fall short of the previously provided outlook. This is due to customer delays and order cancellations.
According to Chief Executive Zvi Alon, many customers have requested Tigo to postpone purchase order deliveries until the fourth quarter or early 2024. Additionally, some customers have decided to cancel their orders altogether.
According to Alon, “We believe the inventory supply in the channel that we previously discussed remains elevated and that these order pushouts reflect the ongoing inventory digestion that our customers are experiencing, along with a general market slowdown affecting our customers in the quarter.”
Tigo now expects third-quarter revenue to be in the range of $17 million to $18 million. This is significantly below the company’s earlier expectations of $41 million to $45 million. As for the backlog, which includes orders expected to be fulfilled within the next 12 months, Tigo is targeting a range of $66 million to $68 million.
The full results for the fiscal third quarter, which ended on Sept. 30, will be reported by Tigo on Nov. 7.
This news comes as another warning from Tigo, as its initial third-quarter outlook provided in August was already below analysts’ expectations. At that time, Tigo had mentioned a softening of demand as supply-chain constraints eased.