US microinverters maker Enphase Energy Inc's (NASDAQ:ENPH) net loss narrowed to USD 3.5 million (EUR 3m) in the third quarter of 2018 from USD 3.7 million in the preceding quarter and USD 6.9 million in the year-ago period.
The company's revenues edged up to USD 78 million from USD 75.9 million and USD 77 million a quarter and a year ago, respectively. It shipped 665,000 microinverters in the period, totalling 204 MW direct current (DC).
In a press release on Tuesday, president and chief executive Badri Kothandaraman said the biggest challenge in the quarter was meeting additional demand being driven by the company's strong balance sheet due to supply shortages, which constrained revenue by more than USD 10 million. "We expect the supply shortages to continue in the fourth quarter of 2018 and have made appropriate investments to alleviate these constraints by early 2019," the CEO added.
Enphase expects its revenue in the fourth quarter to be between USD 80 million and USD 90 million.
In the third quarter, on a non-GAAP basis, the company made a net profit of USD 4.6 million, compared to a net profit of USD 1.6 million in the preceding quarter and a loss of USD 964,000 in the third quarter of 2017.
| Amounts in USD (except percentages) |
Q3 2018 |
Q3 2017 |
| GAAP revenue |
78m |
77m |
| GAAP gross margin |
32.4% |
21.4% |
| GAAP operating profit (loss) |
(374,000) |
(5.9m) |
| GAAP net profit (loss) |
(3.5m) |
(6.9m) |
| GAAP basic earnings (loss) per share |
(0.03) |
(0.08) |
| non-GAAP gross margin |
32.8% |
21.8% |
| non-GAAP operating profit (loss) |
7m |
(102,000) |
| non-GAAP net profit (loss) |
4.6m |
(964,000) |
| non-GAAP basic earnings (loss) per share |
0.05 |
(0.01) |
Non-GAAP gross margin improved to 32.8% from 30.5% in the prior quarter. In the fourth quarter, GAAP and non-GAAP gross margin is expected to be in a range of 31% to 34%. The company also guided for GAAP operating expenses of USD 25 million to USD 28 million and non-GAAP operating expenses of USD 18.5 million to USD 20.5 million. The GAAP and non-GAAP operating expenses were USD 25.6 million and USD 18.6 respectively in the third quarter.
Kothandaraman said the company is pleased with its progress towards the achievement of its 30-20-10 target financial model. Enphase has committed to reaching 30% gross margin, 20% operating expenses and 10% operating income by the end of 2018.
In the first nine months of the year, net loss was cut to USD 12.3 million from USD 42.3 million in the same period of 2017 as revenues increased to USD 223.9 million from USD 206.5 million.
(USD 1 = EUR 0.871)
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Image by Enphase Energy (enphase.com)
