Enphase Energy's Q1 profit grows as revenues double

Image by Enphase Energy (enphase.com)

US solar microinverters maker Enphase Energy Inc (NASDAQ:ENPH) recorded increased GAAP net profit and revenues in the first quarter of 2020 and a record-high gross margin, in spite of the COVID-19 uncertainty.

The California-based company said in a press release last week that the coronavirus pandemic is disrupting market activity but it expressed “tremendous confidence” in the strength of its business in the long term.

“We have a flexible and resilient supply chain, aided by our strong contract manufacturing partners. Our balance sheet is strong, enabling us to invest in organic and inorganic growth even in today’s difficult times,” noted president and CEO Badri Kothandaraman.

Enphase Energy booked a first-quarter GAAP net profit of USD 68.9 million (EUR 63.6m), zooming from USD 2.8 million a year back as revenues doubled and reached USD 205.5 million. It shipped 2,012,476 microinverters in the three months with a total direct current (DC) capacity of around 643 MW.

The table below gives more details about the company’s performance in the first quarter (Q1).

Results in USD million	Q1 2020	Q1 2019
Revenue	205.5	100.2
GAAP gross margin (%)	39.2	33.3
Non-GAAP Gross margin (%)	39.5	33.5
Operating expenses	36	26.2
Operating profit	44.7	7.1
GAAP net profit (loss)	68.9	2.8
Non-GAAP net profit (loss)	51.9	9.5

Enphase Energy had USD 593.8 million in cash, including restricted cash related to safe harbour equipment deliveries, at the end of March. It expects to book revenues of between USD 115 million and USD 130 million in the second quarter, with GAAP and non-GAAP gross margins falling in the 37%-40% gap. GAAP operating costs are forecast to stand at between USD 33 million and USD 35 million.

(USD 1.0 = EUR 0.923)

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