Enphase Energy, the California-based producer of microinverters, has reported a 57% increase year-on-year in revenues for the fourth quarter of 2014.
Revenue reached $105.2 million in Q4 last year, rising 6% on the quarter that preceded it, with shipment volumes growing by 67% year-on-year too, reaching 180 MW the equivalent of 799,000 microinverters shipped.
Non-GAAP (generally accepted accounting principles) gross margin came in at 33.5%, which was an increase of 120 basis points year-on-year, leading to a non-GAAP operating income of $4.8 million and a net income of $3.5 million. This performance fared favorably to Q4 2013, when operating loss was $1.6 million and operating income reached just $0.4 million.
Enphase exited the fourth and final quarter of the year with no debt and a total cash balance of $42 million, having generated $8.9 million of cash from operations in the quarter. Over the course of the year Enphase settled all outstanding debts and term loans to the tune of $5.8 million, and spent $2.5 million on acquiring all of the assets of Next Phase Solar.
"We ended 2014 with record-breaking financial results," said Enphase Energy CEO Paul Nahi. "During the fourth quarter we achieved record revenue, MW shipped and gross margin, along with impressive bottom line results, including our highest-ever operating income.
"Our high-technology business model, world-class products and superior customer support continued to propel our growth during the quarter."
Nahi remarked that 2014 and into 2015 is an "exciting time for the company", which has been marked by a series of notable milestones and records being broken.
Looking ahead to the remainder of the year, CFO Kris Sennesael revealed that the company expects first quarter revenues to be within the range of $84 million to $88 million, which is in line with normal seasonality, the CFO added.
"We also expect non-GAAP operating expenses for Q1 2015 to be up 2-5% compared to Q4 2014 as we continue to invest in R&D and sales and marketing opportunities to support innovative new products."
These new products are expected to include the Enphase Energy Management System and the AC battery storage solution. The company is also keen to expand into new markets and geographies, Sennesael confirmed.