Enphase Energy swings to loss in Q2 2020

Ken Teegardin/CC BY-SA 2.0

US solar microinverters maker Enphase Energy Inc (NASDAQ:ENPH) turned to a net loss of USD 47.3 million (EUR 39.9m) in the second quarter of 2020 from a profit of USD 10.6 million a year back.

The company noted that the negative result takes into account a non-cash charge of USD 59.7 million from fair value changes related to its convertible notes from March 2020 because of an increase in the price of its stock.

Enphase’s Q2 revenue declined by about 6.3% year-on-year, but gross margin rose to 38.5% from 33.8% and even to a record 39.6% on a non-GAAP basis. The company shipped roughly 1.09 million microinverters during the three-month period, or about 355 MW in direct current (DC).

Below you can find more details about Enphase’s Q2 financial performance.

Figures in USD, unless otherwise noted	Q2 2020	Q2 2019
GAAP Revenue	125.5m	134.1m
GAAP Gross margin (%)	38.5	33.8
GAAP Operating expenses	37.5m	27.9m
GAAP Operating profit (loss)	10.9m	17.4m
GAAP Net profit (loss)	(47.3m)	10.6m
Non-GAAP Revenue	125.5m	134.1m
Non-GAAP Gross margin (%)	39.6	34.1
Non-GAAP Operating expenses	26m	22.5m
Non-GAAP Operating profit (loss)	23.7m	23.2m
Non-GAAP Net profit (loss)	23.5m	23.2m

For the third quarter of 2020, Enphase forecasts revenue in the range of USD 160 million-175 million, GAAP gross margin of 36% to 39%, non-GAAP gross margin of 37% to 40%, GAAP operating expenses of USD 41 million-43 million and non-GAAP operating expenses of USD 28 million-30 million.

“While 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. We have a resilient business model that enables strong cash flow generation even during difficult economic periods, enabling us to invest in product innovation and digital transformation,” commented president and CEO Badri Kothandaraman.

(USD 1.0 = EUR 0.844)

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