Enphase Q2 microinverter revenue down but notes a ‘rebound in customer demand’

Enphase Energy, the solar microinverter pioneer, reported its financial results for the second quarter of 2020 after close of market today.

Coming off of a strong, profitable first quarter, Enphase is seeing the Q2 results of Covid-19 in compressed revenue and a swing to a quarterly loss. Gross margin remains strong. The stock price is down 4% in after-hours trading.

The company reported revenue of $125.5 million in the second quarter of 2020, along with a GAAP gross margin of 38.5%. Last quarter the company reported $205.5 million in revenue — so revenue this quarter decreased 39% sequentially (or 22% sequentially, excluding the impact of $44.5 million of safe harbor revenue in the first quarter of 2020).

Financial results for the second quarter of 2020

• Revenue of $125.5 million
• Ending cash balance of $607.3 million
• GAAP gross margin of 38.5%; record non-GAAP gross margin of 39.6%
• GAAP net loss of $47.3 million
• Inventory was $31.2 million at the end of Q2, compared to $34.6 million at the end of Q1

The company notes, “The employees in all four of our customer experience centers – the U.S., Europe, India, and Australia – are fully supporting installers and homeowners, while working from home.”

Business highlights in the quarter

• Enphase shipped approximately 355 MW DC, or 1,087,662 microinverters.
• Shipped its energy storage systems in June for pilot runs to a few installers
• Enphase and Q Cells announced a strategic partnership to develop AC modules
• Enphase and Maxeon, SunPower’s spin-off, will also partner to produce AC modules

Q3 guidance

For the third quarter of 2020, Enphase Energy estimates financial results as follows:

• Revenue to be within a range of $160 million to $175 million
• GAAP gross margin to be within a range of 36% to 39%
• GAAP operating expenses to be within a range of $41.0 million to $43.0 million

Enphase noted, “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.”

Fellow solar-panel-electronics maker SolarEdge posted its financial results yesterday and saw its revenue fall as well — by 22%, but the firm managed to show a profit for the quarter.