Enphase Q2 micro-inverter revenue falls despite demand ‘rebound’

From pv magazine USA

Enphase Energy, the solar micro-inverter pioneer, reported its financial results for the second quarter this week.

Coming off a strong, profitable first quarter, Enphase sees the second-quarter results of Covid-19 in compressed revenue and a swing to a loss. Gross margins remain strong.

The company reported revenue of $125.5 million in the second quarter, along with a GAAP gross margin of 38.5%. Last quarter, it reported $205.5 million in revenue – so revenue this quarter decreased 39% sequentially (or 22% sequentially, excluding the impact of $44.5 million of safe harbor revenue in the first quarter of 2020).

Financial results for the second quarter of 2020

• Revenue of $125.5 million
• Ending cash balance of $607.3 million
• GAAP gross margin of 38.5%; record non-GAAP gross margin of 39.6%
• GAAP net loss of $47.3 million
• Inventory was $31.2 million at the end of the second quarter, compared to $34.6 million at the end of the first quarter

“The employees in all four of our customer experience centers – the U.S., Europe, India, and Australia – are fully supporting installers and homeowners, while working from home,” the company said.

Quarterly highlights

• Enphase shipped approximately 355 MW DC, or 1.08 million micro-inverters.
• Shipped its energy storage systems in June for pilot runs to a few installers
• Enphase and Q Cells announced a strategic partnership to develop AC modules
• Enphase and Maxeon, SunPower’s spinoff, will also partner to produce AC modules

Q3 guidance

For the third quarter, Enphase estimates its financial results as follows:

• Revenue to fall within a range of $160 million to $175 million
• GAAP gross margin to fall within a range of 36% to 39%
• GAAP operating expenses to fall within a range of $41.0 million to $43.0 million

“We saw a rebound in customer demand in June and July, we are carefully monitoring the resurgence of the Covid-19 pandemic in several states,” Enphase noted.

Fellow solar-panel-electronics maker SolarEdge also posted financial results this week. Revenue fell by 22%, but the company managed to show a profit for the quarter.