Enphase Energy Reports 36% Year-over-Year Revenue Growth in Third Quarter 2012 Financial Results
PETALUMA, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (Nasdaq:ENPH), today announced financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
Record quarterly revenue of $60.8 million, up 36% year-over-year
Record gross margin of 26.8%, up 770 basis points year-over-year
Continued gains in market share in U.S. and European markets
- First shipments commenced in the United Kingdom
Total revenues for the third quarter of 2012 were $60.8 million, an increase of 36 percent when compared to the same prior year period, and an increase of 9 percent compared to the second quarter of 2012. Units sold in the third quarter of 2012 increased to 431,000, compared to 286,000 in the third quarter of 2011 and 403,000 in the second quarter of 2012.
Gross profit percentage for the third quarter of 2012 was 26.8 percent, an increase of 770 basis points compared to 19.1 percent in the third quarter of 2011, and an increase of 240 basis points compared to 24.4 percent in the second quarter of 2012.
Operating expenses for the third quarter of 2012 were $24.5 million and non-GAAP operating expenses were $23.1 million. Net loss for the third quarter of 2012 was $8.9 million, or a loss of $0.22 per share, which compares to a net loss of $7.2 million in the year-ago quarter. On a non-GAAP basis, the net loss was $7.4 million for the third quarter of 2012, or a loss of $0.18 per share, which compares to a net loss of $6.2 million in the year-ago quarter.
"Enphase made excellent progress in the third quarter of 2012. We started shipping our microinverters into the UK market and launched new initiatives and tools to broaden our reach into the commercial segment," said Paul Nahi, CEO of Enphase Energy (ENPH). "I am proud that we received recognition as a Technology Pioneer from the World Economic Forum. I'm pleased with the revenue growth and continuous gross margin expansion, despite a difficult macroeconomic environment and certain challenges in the European markets as result of a drastic and sudden reduction in Feed-in Tariffs. We are confident that microinverters remain poised to become the preferred solution for solar installations, and that Enphase will lead this transition."
Launched the new Limitless Partnership to help commercial installers by offering training, technical design resources, on-site field support and expert customer service.
Introduced new installer tools including a new version of Enlighten monitoring software, a new ArrayGun iOS mobile application, the Engage Coupler and the Enphase Metering and Management Solution. All of these new tools allow installers to reduce their installation times and improve their productivity.
Announced Dynamic Solar as the first authorized UK dealer for the Enphase Microinverter System. Enphase recently entered into the UK solar energy market and established a regional office there in June.
- Launched the online Enphase Energized AC Solutions Marketplace where solar installers can explore AC solutions from some of the world's leading PV module brands.
The Company also announced today it has entered into two transactions which will provide the Company with additional debt capacity and liquidity. The first is a $50 million asset-based working capital credit facility with Wells Fargo Capital Finance, Inc., which replaces the Company's pre-existing $33 million undrawn line of credit. The second is a new $23 million credit facility, which is intended to replace the Company's pre-existing $7.4 million of term debt and provide up to $15.6 million of additional borrowing capacity. Borrowings under each of the new credit facilities are subject to customary conditions precedent.
CFO Kris Sennesael commented, "We are pleased to have completed these financing transactions. Together they will provide the Company with additional financial flexibility as we continue to execute on our strategy."
Enphase Energy expects net revenues for the fourth quarter of 2012 to be within a range of $52 million to $57 million, and for gross margin to be within a range of 26.5 percent to 28.0 percent.
Use of non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in this release. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting its business.
Conference Call Information
Enphase Energy will host a conference call for analysts and investors to discuss its third quarter results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Open to the public, investors may access the call by dialing +1-877-644-1284, access code 37742541. A live webcast of the conference call will also be accessible from the "Investor Relations" section of the Company's website at investor.enphase.com. Following the webcast, an archived version will be available on the website for 30 days. In addition, an audio replay of the conference call will be available approximately one hour after the conclusion of the call. To access the replay, parties in the United States and Canada should call +1-855-859-2056 and enter access code 37742541. International parties can access the replay at +1-404-537-3406 and should enter access code 37742541.
This press release contains forward-looking statements, including, but not limited to, statements related to Enphase Energy's financial performance, market demands for its microinverters, advantages of its technology, market trends and future financial performance. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. Enphase Energy's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to: the future demands for solar energy solutions; the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications; the Company's ability to achieve broad market acceptance of its microinverter systems and to develop new and enhanced products in response to customer demands and rapid market and technological changes in the solar industry; the success of competing solar solutions that are or become available; the Company's ability to effectively manage the growth of its organization and expansion into new markets and to maintain or achieve anticipated product quality, product performance and cost metrics; competition and other factors that may cause potential future price reductions for its products; the Company's ability to optimally match production with demand and dependence on a limited number of outside contract manufacturers and lack of supply contracts with these manufacturers; general economic conditions in domestic and international markets; and other risks detailed in the "Risk Factors" and elsewhere in Enphase Energy's Securities and Exchange Commission filings and reports, including its most recent report on Form 10-Q filed on August 13, 2012. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.
A copy of this press release can be found on the investor relations page of Enphase Energy's website at investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy delivers microinverter technology for the solar industry that increases energy production, simplifies design and installation, improves system uptime and reliability, reduces fire safety risk and provides a platform for intelligent energy management. Our semiconductor-based microinverter system converts energy at the individual module level and brings a system-based, high technology approach to solar energy generation. www.enphase.com
The Enphase Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12730
ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
|Net revenues||$ 60,813||$ 44,728||$ 159,110||$ 92,389|
|Cost of revenues||44,489||36,185||119,878||76,391|
|Research and development||10,571||6,431||27,068||17,919|
|Sales and marketing||7,039||4,567||18,448||11,842|
|General and administrative||6,911||3,980||18,698||11,119|
|Total operating expenses||24,521||14,978||64,214||40,880|
|Loss from operations||(8,197)||(6,435)||(24,982)||(24,882)|
|Other expense, net:|
|Other (expense) income||(56)||145||246||(249)|
|Total other expense, net||(580)||(741)||(5,148)||(1,871)|
|Loss before income taxes||(8,777)||(7,176)||(30,130)||(26,753)|
|Provision for income taxes||(130)||(346)|
|Net loss attributable to common stockholders||$ (8,907)||$ (7,176)||$ (30,476)||$ (26,753)|
|Net loss per share attributable to common stockholders, basic and diluted||$ (0.22)||$ (4.77)||$ (1.11)||$ (23.68)|
|Shares used in computing net loss per share attributable to common stockholders, basic and diluted||40,755||1,503||27,356||1,130|
ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$ 41,717||$ 51,524|
|Accounts receivable, net||32,734||17,771|
|Prepaid expenses and other||7,030||1,264|
|Total current assets||98,131||81,787|
|Property and equipment, net||24,926||18,411|
|Total assets||$ 124,099||$ 106,242|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable||$ 15,197||$ 12,928|
|Current portion of term loans||6,844||4,529|
|Convertible preferred stock warrant liability||1,399|
|Total current liabilities||38,141||52,370|
|Total long-term liabilities||23,430||39,898|
|Commitments and contingencies|
|Convertible preferred stock||93,596|
|Additional paid-in capital||181,814||9,103|
|Accumulated other comprehensive income (loss)||(2)||83|
|Total stockholders' equity||62,528||13,974|
|Total liabilities and stockholders' equity||$ 124,099||$ 106,242|
ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
|Cash flows from operating activities:|
|Net loss||$ (30,476)||$ (26,753)|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||3,938||2,020|
|Provision for doubtful accounts||60||64|
|Net loss on disposal of assets||110|
|Non-cash interest expense||3,969||745|
|Change in fair value of convertible preferred stock warrants||(520)||273|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||(5,448)||(2,005)|
|Accounts payable, accrued and other liabilities||13,543||14,685|
|Net cash used in operating activities||(52,274)||(23,229)|
|Cash flows from investing activities:|
|Purchases of property and equipment||(11,054)||(9,589)|
|Net cash used in investing activities||(11,054)||(9,589)|
|Cash flows from financing activities:|
|Proceeds from issuance of convertible notes||12,500|
|Proceeds from private placement of common stock||1,097|
|Proceeds from term loans and debt||2,600||9,248|
|Term loan and debt issuance costs||(189)|
|Repayments of term loans||(5,522)||(1,381)|
|Principal payments under capital leases||(96)||(130)|
|Proceeds from the exercise of stock options||47||182|
|Proceeds from issuance of common stock in IPO, net of underwriting discounts and commissions||58,609|
|Payment of offering costs||(2,032)||(1,886)|
|Net cash provided by financing activities||53,606||19,441|
|Effect of exchange rate changes on cash||(85)||(94)|
|Net decrease in cash and cash equivalents||(9,807)||(13,471)|
|Cash and cash equivalentsBeginning of period||51,524||39,993|
|Cash and cash equivalentsEnd of period||$ 41,717||$ 26,522|
ENPHASE ENERGY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Three Months Ended
Nine Months Ended
|Reconciliation of Gross Profit and Gross Profit Percentage on a GAAP Basis to Gross Profit and Gross Profit Percentage on a Non-GAAP Basis:|
|Gross profit on a GAAP basis||$ 16,324||$ 8,543||$ 39,232||$ 15,998|
|Gross profit on a non-GAAP basis||$ 16,386||$ 8,554||$ 39,351||$ 16,023|
|Net revenues asis||$ 60,813||$ 44,728||$ 159,110||$ 92,389|
|Gross profit on a GAAP basis||26.8%||19.1%||24.7%||17.3%|
|Gross profit percentage on a non-GAAP basis||26.9%||19.1%||24.7%||17.3%|
|Reconciliation of Operating Expenses on a GAAP Basis to Operating Expenses on a Non-GAAP Basis:|
|Operating expenses on a GAAP basis||$ (24,521)||$ (14,978)||$ (64,214)||$ (40,880)|
|Operating expenses on a non-GAAP basis||$ (23,132)||$ (14,406)||$ (61,174)||$ (39,466)|
|(1) Includes stock-based compensation as follows:|
|Research and development||$ 514||$ 215||$ 1,171||$ 528|
|Sales and marketing||362||183||826||484|
|General and administrative||513||174||1,043||402|
|Total||$ 1,389||$ 572||$ 3,040||$ 1,414|
|Reconciliation of Loss from Operations on a GAAP Basis to Loss from Operations on a Non-GAAP Basis:|
|Loss from operations on a GAAP basis||$ (8,197)||$ (6,435)||$ (24,982)||$ (24,882)|
|Loss from operations on a non-GAAP basis||$ (6,746)||$ (5,852)||$ (21,823)||$ (23,443)|
|Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:|
|Net loss on a GAAP basis revenues||$ (8,907)||$ (7,176)||$ (30,476)||$ (26,753)|
|Non-cash interest expense||66||529||3,969||745|
|(Gains) losses from convertible preferred stock warrant liability revaluation||(108)||(520)||273|
|Net loss on a non-GAAP basis||$ (7,390)||$ (6,172)||$ (23,868)||$ (24,296)|
|Reconciliation of Basic and Diluted Net Loss per Share on a GAAP Basis to Basic and Diluted Net Loss per Share on a Non-GAAP Basis:|
|Basic and diluted net loss per share on a GAAP basis asis||$ (0.22)||$ (4.77)||$ (1.11)||$ (23.68)|
|Non-cash interest expense||0.35||0.15||0.66|
|(Gains) losses from convertible preferred stock warrant liability revaluation||(0.07)||(0.02)||0.24|
|Basic and diluted net loss per share on a non-GAAP basis||$ (0.18)||$ (4.11)||$ (0.87)||$ (21.50)|
ENPHASE ENERGY, INC.
SUPPLEMENTAL OPERATING DATA
|Net revenues (in thousands)||$ 60,813||$ 55,697||$ 42,600||$ 57,134||$ 44,728|
|Gross profit (in thousands)||16,324||13,601||9,307||13,071||8,543|
|Gross profit percentage||26.8%||24.4%||21.8%||22.9%||19.1%|
|Microinverter units shipped (in thousands)||431||403||292||389||286|
(1) Represents the productive capacity of microinverters shipped.
CONTACT: Media Relations Christine Bennett, Enphase Energy Global Corporate Communications Manager firstname.lastname@example.org +1-707-763-4784 Or Investor Relations David Niederman, The Blueshirt Group +1-415-217-7722Enphase Energy, Inc. 2012 GlobeNewswire, Inc.