Sunworks, Inc. (NASDAQ:SUNW) Q3 2023 Earnings Conference Call November 10, 2023 12:00 PM ET
Company Participants
Jason Bonfigt - CFO
Mark Trout - President and CEO
Conference Call Participants
Donovan Schafer - Northland Capital Markets
Philip Shen - ROTH Capital Partners
Operator
Greetings, and welcome to Sunworks Third Quarter 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce Jason Bonfigt, Chief Financial Officer. Thank you. You may begin.
Jason Bonfigt
Thank you, operator. I'm Jason Bonfigt, Chief Financial Officer of Sunworks. On behalf of our entire team, I'd like to welcome you to our third quarter results of 2023 conference call. Leading the call with me today is our President and CEO, Mark Trout.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements.
Following our prepared remarks, we will open the line for questions.
With that, I'd like to turn the call over to Mark.
Mark Trout
Thank you, Jason, and welcome to those joining us today.
As detailed in our third-quarter earnings release issued earlier today, the last several months have continued to be a challenging period for both Sunworks and the residential solar industry at large. We continue to believe in the long-term economics of residential solar and storage, particularly as the demands of a growing population weigh on our nation's aging electricity infrastructure, which we believe will result in structurally higher utility rates for customers over time.
During the third quarter, the combination of higher interest rates, less favorable residential solar economics in California following the NEM 3.0 transition, continued to weigh on us and the industry at large, resulting in lower new installation activity and reduced fixed cost absorption in the period.
During a transitional period for our residential business, we've maintained an opportunistic pricing strategy in accordance with current demand conditions. At the same time, we've taken decisive action to further rightsize our cost structure, including several rounds of reductions in force.
We have retrenched and focused on markets where we believe we have volume and efficiencies to stabilize and maintain an appropriate cost structure. We continue to improve our internal processes with significant focus on customer cycle time improvement, installation crew efficiency, and cost management. We are seeing improved conditions in supply chain availability and material pricing, which we anticipate continuing into the next quarter or two.