Enphase Energy Reports Record Results for Q3 2013

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Microinverter manufacturer Enphase Energy announces Q3 2013 financial results, reporting record-breaking revenue of $62 million and gross margin of 28.1%. Operating expenses remain flat.

Microinverter manufacturer Enphase Energy (Nasdaq:ENPH) has announced its financial results for the third quarter, ended September 30, 2013. The firm reported record-breaking revenue of $62 million, and a Non-GAAP gross margin of 28.3%.

In the earnings call, Enphase CEO  Paul Nahi commented: “The third quarter 2013 was a record-breaking quarter for Enphase, with highest ever revenue of $62 million and highest ever gross margin of 28.3%.”

Q3 2013 highlights:

  • Revenue of $62.0 million, an increase of 7% compared to the previous quarter. Units sold in the third quarter of 2013 totaled 426,000, or 94MW.
  • GAAP gross margin of 28.1%, with a non-GAAP gross margin of 28.3%, up 140 basis points year-over-year.
  • GAAP operating expenses of $22.8 million. Non-GAAP operating expenses were $20.4 million, which is below $22.9 million in Q3 2012, and flat compared to the three prior quarters.
  • GAAP net loss of $6.3 million for the third quarter of 2013, or a loss of $0.15 per share. On a non-GAAP basis, the net loss was $3.7 million, or a loss of $0.09 per share.
  • 60,000 units shipped of the fourth-generation microinverter system
  • Continued improved cash flow from operations, with the result that the company exited the quarter with a total cash balance of $31.8 million.

“We are pleased to announce our third-quarter results, which include company records for revenue and gross margin. Combined with flat operating expense levels and improved cash flow from operations, this demonstrates our ability to successfully execute our business strategy and progress towards profitability and sustainable positive cash flow,” Nahi said.

Nahi continued, “In addition to our strong third-quarter financial performance, we have experienced a great response to our new fourth-generation microinverter system, of which we shipped 60,000 units during the third quarter. The product is now being shipped throughout North America, and we continue to ramp production as our customers transition to the fourth-generation system. The general availability of our most efficient, rigorously tested and robust Enphase system, along with the shipment of our four millionth microinverter, mark additional milestones for Enphase as the world’s leading microinverter systems provider.”

Business highlights:

  • Enphase announced general availability throughout North America of their fourth-generation microinverter system, featuring the M250 microinverter and Enlighten software platform enhancements.
  • Enphase microinverters were installed in a 3MW distributed solar project for the San Diego Unified School District, exemplifying microinverter flexibility with 125 individual solar arrays of varying size and orientation.
  • Over 9,000 Enphase microinverters were deployed in a 2.3MW three-phase solar project at Vine Fresh Produce, in Ontario, Canada. The project is the largest rooftop solar PV array in the province’s Feed-in-Tariff (FIT) program.
  • A Clinton Global Initiative Commitment to Action is using Enphase microinverters to pilot an innovative solar energy microgrid system that will provide a clean, reliable energy alternative in Abuja, Nigeria.

According to Kris Sennesael, CFO of Enphase, the firm expects revenue for Q4 2013 to be within the range of $62 to $65 million.

“We expect fourth-quarter gross margin to be within a range of 29 percent to 32 percent, as we continue the transition from our third- to fourth-generation microinverter system and drive further product cost improvements. We expect non-GAAP operating expenses for the fourth quarter of 2013 to be roughly flat compared to the third quarter of 2013,” Sennesael said.

Nahi has a positive outlook for the industry and for Enphase. In the company’s earnings call, Nahi commented: “Looking at 2014 and beyond, we continue to be extremely bullish on the industry and see potential for significant growth of Enphase’s business, particularly in the U.S., the U.K., and Australia.”

Nahi also noted that the company’s market share is steady, and that competition — at least in the U.S. — is not in microinverters but in string or central inverters. He also mentioned that he is not seeing a change in the fundamental inverter market.

 

Enphase Results Q3 2013