Enphase announces strong results for both Q4 and full year 2013. The company is positioned well to take advantage of a booming solar industry in 2014.
Enphase Energy, Inc. (Nasdaq: ENPH) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2013.
Fourth quarter 2013 results
Enphase reported these results for Q4 2013:
Total revenues for the fourth quarter of 2013 were $67.1 million, an increase of 8% compared to the third quarter of 2013 and an increase of 16%compared to the fourth quarter of 2012. During the fourth quarter, Enphase sold 107MW (AC) or 485,000 microinverters. This is an increase in MW of 14% compared to the third quarter of 2013 and an increase of 30% compared to the fourth quarter of 2012.
GAAP gross margin for the fourth quarter of 2013 was 32.1%. Non-GAAP gross margin was 32.3%, an increase of 400 basis points compared to the third quarter of 2013, and an increase of 430 basis points compared to the fourth quarter of 2012.
GAAP operating expenses for the fourth quarter were $23.1 million and non-GAAP operating expenses were $21.3 million.
GAAP operating loss for the fourth quarter of 2013 was $1.6 million, and non-GAAP operating income was $0.4 million. That resulted in Enphase’s first profitable quarter on a non-GAAP operating income basis. This compares to a non-GAAP operating loss of $4.2 million in the fourth quarter of 2012.
Fourth quarter of 2013 GAAP net loss was $2.8 million, or a loss of $0.07 per share. On a non-GAAP basis, the net loss was $0.7 million, or a loss of $0.02 per share.
Cash flow from operations during the fourth quarter was $7.6 million and net cash flow was $6.4 million. As a result, the company exited the year with a total cash balance of $38.2 million.
“We ended 2013 with a breakthrough fourth quarter,” commented Paul Nahi, CEO of Enphase. “We posted the highest revenue in our company’s history, shipping over 100MW for the first time in any quarter, while our record gross margin marks the first time we have exceeded 30 percent in any quarter. Combined with our ongoing focus on expense management, we were able to post a non-GAAP operating profit for the first time in Enphase’s history. We also continue to drive working capital improvements, resulting in strong cash generation during the quarter.”
He added, “This quarter’s results demonstrate the power of the Enphase business model and our ability to execute on our key initiatives. We are extremely pleased to have achieved several company milestones during the fourth quarter and exited 2013 with strong business momentum. Since inception, we have shipped over 1GW (AC) or approximately 5 million microinverters. We are well positioned for 2014, which by many accounts, is expected to be a very strong year for the solar industry, and we are off to a great start.”
Full year 2013 results
The company reported these results for 2013:
Total revenues were $232.8 million, representing 355MW (AC) or 1.6 million microinverters.
GAAP gross margin for the year was 29.0%.
Non-GAAP gross margin was 29.1%.
GAAP net loss for the year totaled $25.9 million, or a loss of $0.62 per share.
Non-GAAP net loss was $18.0 million, or a loss of $0.43 per share.
“2013 was another year of impressive results by Enphase, highlighted by continued gross margin expansion which has improved 350 basis points year-over-year,” said Nahi. “We strengthened our industry leadership position and introduced our fourth-generation microinverter. We continue to improve the overall financial performance of the company, and substantially improved the cash flow from operations for the year close to the break-even level.” He added, “I am tremendously proud of what we accomplished, which was made possible by the ongoing innovation, hard work and commitment of our entire Enphase family.”
2014 looks to be a good year for Enphase.
“Looking forward, we expect revenues for the first quarter of 2014 to be within a range of $54 million to $57 million, and for gross margin to be within a range of 30 percent to 33 percent,” said Kris Sennesael, Enphase CFO. “The strong business momentum from the fourth quarter of 2013 is carrying over into the first quarter of 2014. At the midpoint of the revenue outlook range, revenue is up 22 percent compared to the first quarter of 2013. We also expect operating expenses for the first quarter of 2014 to be up approximately 5 to 8 percent compared to the fourth quarter of 2013, as we continue to invest in the growth of the company.”
The company noted that its forward-looking statements could differ from actual results.
The company used certain non-GAAP financial measures in their announcement. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables that accompany their press release.
Conference call recording
Enphase hosted a conference call today to discuss its fourth quarter and full year 2013 results and first quarter 2014 business outlook. An archived version of the webcast of the conference call, along with accompanying presentation slides, will be available on the Investor Relations section of the company’s website at investor.enphase.com for 30 days. In addition, an audio replay of the conference call will be available by calling 855-859-2056 and using the participant passcode 47007756.