Enphase Energy cuts second-quarter loss, posts record revenue

Robust demand for its microinverter systems in the domestic U.S. residential market as well as in the United Kingdom and Australia helped Enphase Energy reach record second-quarter revenue and narrow its net loss.

The California company on Tuesday posted a 41% year-on-year increase in revenue to $82 million while slashing its net loss by nearly half to $3 million. Gross margin in the period was 32.7%, up from 28% a year ago.

"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 Enphase CEO Paul Nahi.

Enphase’s microinverter system shipments rose 54% to 132 MW-AC. Stressing the solar industry’s strong growth, Nahi said the company’s innovative microinverter system was benefitting from its "higher power generation, ease of installation and best-in-class monitoring capabilities."

Enphase Chief Financial Officer Kris Sennesael added that "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."

Enphase’s non-GAAP operating income reached $6,000 but under GAAP (Generally Accepted Accounting Principles) guidelines the company made an operating loss of $2.5 million.

Nevertheless, Sennesael offered an optimistic outlook for the full year: "We expect the top line growth to further accelerate in the third quarter." Sennesael added that the company expected third-quarter revenue to range between $93 million and $98 million and gross margin at between 32% and 34%.

"At the midpoint of the revenue outlook range, revenue would be up 54%, compared to the third quarter of 2013,” Sennesael said.

Last month Enphase announced it was partnering with financial servoces firm Technology Credit Corporation (TCC) to offer financing packages for installer-integrators and customers in the small to medium commercial PV market.

Enphase pointed out that TCC had more than 300 commercial PV systems under finance, making it one of the largest providers of small commercial financing in the United States. The firm’s financing approach incorporates leases and power purchase agreements that work to fast-track customer ownership of the system, it added.