Enphase Energy, Inc. announced financial results for the first quarter of 2018, which included the summary below from its President and CEO, Badri Kothandaraman. Highlights for the quarter included:
- Revenue of $70.0 million, at the higher end of guidance
- GAAP gross margin of 26.2%; non-GAAP gross margin of 26.5%
- GAAP operating loss of $2.5 million; non-GAAP operating income of $0.9 million
- GAAP EPS of $(0.06); non-GAAP EPS of $(0.01)
- Ending cash balance of $53.3 million
Revenue and earnings for the first quarter are given below, compared with those of the prior quarter and the year ago quarter:
(In thousands, except per share data)
Our first quarter revenue was $70.0 million, a decrease of 12% sequentially from $79.7 million, and an increase of 28% year-over-year. We shipped 180 megawatts DC, or 611,000 microinverters. Our non-GAAP gross margin was 26.5%, an increase of 230 basis points from 24.2% in the prior quarter. The increase was primarily due to pricing management, supply chain optimization and IQ platform transition. Our non-GAAP operating expenses were $17.7 million, a decrease of 2% compared to the prior quarter. We are very pleased to report non- GAAP operating income of $0.9 million, our second consecutive quarter of non-GAAP operating income. Non-GAAP net loss was $1.3 million, which resulted in basic and diluted earnings per share of $(0.01).
We exited the quarter with $53.3 million in cash. Inventory was $18.5 million in the first quarter, compared to $26.0 million in the fourth quarter and $33.8 million in the first quarter of 2017.
In summary, we are pleased with our continued progress towards our 30-20-10 operating model, which we expect to achieve in the fourth quarter of 2018.
- Enphase started shipping IQ 7 to customers in the U.S. during the first quarter of 2018, and recently started shipping IQ 7 to customers in the U.K. IQ 7, with its worldwide SKU, will be phased into worldwide markets throughout 2018.
- Enphase received the Dutch Solar Innovation Award 2018 in recognition of its seventh-generation IQ™ microinverters for the Enphase Home Energy Solution with IQ™. According to the award jury, the microinverters will make an important contribution to the increased quality of solar power systems installed in the Netherlands.
- Enphase announced that Enphase Energized™ AC Modules (ACM) from its ACM partners have been installed by over 180 of its solar installation partners in the U.S. just five months after availability. Leading solar module manufacturers have announced partnerships with Enphase to develop AC Modules.
- Enphase recently announced that it has renewed its commitment to support low-income solar in partnership with GRID Alternatives, the nation's largest nonprofit solar installer. Through donations of its microinverters, Enphase will help GRID Alternatives provide rooftop solar installations and hands-on job training in low-income communities across the United States.
- On April 16, 2018, Enphase announced the introduction of Enphase IQ™ microinverters across India for the Enphase Microinverter System with IQ™. The IQ family of microinverters supports modules up to 440Wp, as well as 60- and 72-cell modules.
- On April 23, 2018, Enphase announced a strategic partnership with Solaria Corporation for the development of an Enphase Energized™ AC Module, the Solaria PowerXT®-AC, integrating our IQ 7+ Microinverters with Solaria's high-output PowerXT® 355W (60-cell equivalent) modules. The PowerXT®-AC is expected to be available in the U.S. starting in June 2018.
Second Quarter 2018 Financial Outlook
For the second quarter of 2018, Enphase estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of $72 million to $80 million
- GAAP and non-GAAP gross margin to be within a range of 26% to 29%
- Non-GAAP operating expense to be within a range of $17.5 million to $18.5 million
- GAAP operating expense to be within a range of $19.5 million to $20.5 million, including an estimated $2.0 million of stock-based compensation expense.