Enphase Energy, Inc. (Nasdaq:ENPH) announced today financial results for the second quarter ended June 30, 2014. The company’s positive report reflects the popularity of microinverters in today’s growing solar market.
Second Quarter Highlights
- Record revenue of $82.0 million, up 41% year-over-year
- Shipped 132 MW of microinverter systems, up 54% year-over-year
- Record non-GAAP gross margin of 33.0%, up 490 basis points year-over-year
- Non-GAAP operating income at breakeven
Enphase Energy reported total revenue for the second quarter of 2014 of $82.0 million, an increase of 41% compared to the second quarter of 2013, and an increase of 42% compared to the first quarter of 2014. During the second quarter of 2014, Enphase sold 132 MW of microinverters, an increase in MW of 54% compared to the second quarter of 2013.
GAAP gross margin for the second quarter of 2014 was 32.7%. Non-GAAP gross margin was 33.0%, an increase of 490 basis points compared to the second quarter of 2013.
GAAP operating expenses for the second quarter of 2014 were $29.3 million and non-GAAP operating expenses were $27.0 million.
GAAP operating loss for the second quarter of 2014 was $2.5 million, and non-GAAP operating income was $6,000, resulting in Enphase’s second profitable quarter on a non-GAAP operating income basis. This compares to a non-GAAP operating loss of $4.0 million in the second quarter of 2013.
GAAP net loss for the second quarter of 2014 was $3.0 million, or a loss of $0.07 per share. On a non-GAAP basis, the net loss was $0.4 million, or a loss of $0.01 per share.
Enphase exited the second quarter with a total cash balance of $37.6 million.
“Strong demand for our microinverter systems in our core U.S. residential market, as well as in the U.K. and Australia, continued to drive our business momentum into the second quarter, resulting in a 41% increase in revenue year-over-year,” said Paul Nahi, CEO of Enphase Energy. “The solar industry is experiencing strong growth, and Enphase is leading the way with our innovative microinverter system, providing higher power generation, ease of installation and best-in-class monitoring capabilities.”
“I am extremely pleased with our financial performance in the second quarter,” said Kris Sennesael, CFO. “The accelerated growth in demand for our microinverter system enabled us to achieve record-breaking results in our top line performance, further increase our gross margin to a record level, and achieve another quarter of positive non-GAAP operating income.”
“We expect the top line growth to further accelerate in the third quarter,” stated Mr. Sennesael. “We expect revenue for the third quarter of 2014 to be within a range of $93 million to $98 million. At the midpoint of the revenue outlook range, revenue would be up 54%, compared to the third quarter of 2013. We expect gross margin to be within a range of 32% to 34%. We also expect non-GAAP operating expenses for the third quarter of 2014 to be approximately flat to up 4 percent, compared to the second quarter of 2014, as we continue to invest in the company’s growth.”