Enphase Energy, Inc. (ENPH) 10-Q Quarterly Report Tue Oct 27 2020

- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy management technology company and the world’s leading supplier of microinverter-based solar-plus-storage systems, announced today financial results for the third quarter of 2020, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported revenue of $178.5 million in the third quarter of 2020, along with a record 41.0% for non-GAAP gross margin. We shipped approximately 478 megawatts DC, or 1,442,743 microinverters.

The financial highlights for the third quarter of 2020 are listed below. The GAAP numbers include an approximate $23 million refund on tariffs which were previously paid on microinverters imported to the U.S. from China. The non-GAAP numbers do not include the tariff refund:

•Revenue of $178.5 million

•Cash flow from operations of $67.5 million; ending cash balance of $661.8 million

•GAAP gross margin of 53.2%; record non-GAAP gross margin of 41.0%

•GAAP operating income of $51.8 million; non-GAAP operating income of $43.7 million

•GAAP net income of $39.4 million; non-GAAP net income of $41.8 million

•GAAP diluted earnings per share of $0.28; non-GAAP diluted earnings per share of $0.30

Our revenue and earnings for the third quarter of 2020 are provided below, compared with those of the prior quarter and the year ago quarter:

(In thousands, except per share data and percentages)


	GAAP															Non-GAAP
	Q3 2020			Q2 2020			Q3 2019*			Q3 2020			Q2 2020			Q3 2019*
Revenue	$	178,503		$	125,538		$	180,057		$	178,503		$	125,538		$	180,057

Gross margin	53.2		%	38.5		%	35.9		%	41.0		%	39.6		%	36.2		%
Operating expenses	$	43,222		$	37,533		$	31,000		$	29,571		$	26,024		$	25,037
Operating income	$	51,759		$	10,854		$	33,706		$	43,675		$	23,700		$	40,166
Net income (loss)	$	39,362		$	(47,294)		$	31,099		$	41,760		$	23,549		$	39,466
Basic EPS	$	0.31		$	(0.38)		$	0.25		$	0.33		$	0.19		$	0.32
Diluted EPS	$	0.28		$	(0.38)		$	0.23		$	0.30		$	0.17		$	0.30

* Revenue for the third quarter of 2019 of $180.1 million included approximately $8.0 million of safe harbor revenue.

Our non-GAAP gross margin increased to 41.0% from 39.6% in the second quarter of 2020, driven by disciplined pricing and cost management. Non-GAAP operating expenses increased to $29.6 million in the third quarter of 2020, compared to $26.0 million in the prior quarter, primarily due to an increase in our engineering and sales headcount to support innovation and growth. Non-GAAP operating income was $43.7 million, compared to $23.7 million in the prior quarter.

We exited the third quarter with $661.8 million in cash and generated $67.5 million in cash flow from operations. Inventory was $37.5 million at the end of the third quarter of 2020, compared to $31.2 million at the end of the second quarter of 2020. The sequential increase in inventory was driven by the purchase of battery cell packs to support the increased shipments of Encharge™ storage systems in the fourth quarter of 2020, along with the expected increase in microinverter shipments.

The following information was filed by Enphase Energy, Inc. (ENPH) on Tuesday, October 27, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/1463101/000146310120000127/a2020q310-qdoc.htm

View differences made from one quarter to another to evaluate Enphase Energy, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Enphase Energy, Inc..

Continue

Assess how Enphase Energy, Inc.'s management team is paid from their Annual Proxy

Enphase Energy, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter by Sentiment:

All

Positive

Negative

Filter by Category:

All

Revenue

Financial

Other

Filter by Subcategory:

All

Product

Expense

Geography

Cash Flow

Earnings

Other

Inside Enphase Energy, Inc.'s 10-Q Quarterly Report:

Other - Other Highlight
We consider an accounting policy to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the condensed consolidated financial statements.

Revenue - Product Highlight
However, our liquidity may be negatively impacted if sales decline significantly for an extended period due to the impact of the ongoing COVID-19 pandemic.
Revenue - Product Highlight
The $26.5 million decrease in cash used in changes from working capital for the nine months ended September 30, 2020, compared to the same period in 2019, was primarily due to collections of $79.7 million of accounts receivable and $8.5 million decrease in inventory, partially offset by $35.3 million decrease in deferred revenue as we delivered safe harbor orders that were prepaid in the fourth quarter of 2019 and $27.9 million decrease in accounts payable due to pay off of liabilities.
Financial - Expense Highlight
The increase in personnel-related expenses was primarily due to hiring employees in New Zealand, India and U.S., increasing total compensation costs.
Financial - Expense Highlight
The increase in personnel-related expenses was primarily due to hiring employees in New Zealand, India and US, increasing total compensation costs.
Other - Other
Cash from operations could be...Read more
Revenue - Geography
Further information relating to the...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Cash Flow
The following table summarizes our...Read more
Financial - Expense
For the nine months ended...Read more
Financial - Expense
Enphase Energy, Inc. | 2020...Read more
Revenue - Product
This had a negative impact...Read more
Financial - Expense
In addition, the decline in...Read more
Financial - Earnings
Gross margin increased by 17.3...Read more
Financial - Earnings
Enphase Energy, Inc. | 2020...Read more
Other - Other
This charge is partially offset...Read more
Financial - Expense
Restructuring expense for the nine...Read more
Financial - Expense
Nine months ended September 30,...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Expense
Restructuring charges for three months...Read more
Financial - Expense
As of both the three...Read more
Revenue - Product
The most significant near-term impacts...Read more
Revenue - Product
Nine months ended September 30,...Read more
Revenue - Product
For the nine months ended...Read more
Other - Other
Change in fair value of...Read more
Revenue - Product
Enphase Energy, Inc. | 2020...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Enphase Energy, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: ENPH
CIK: 1463101
Form Type: 10-Q Quarterly Report
Accession Number: 0001463101-20-000127
Submitted to the SEC: Tue Oct 27 2020 4:18:45 PM EST
Accepted by the SEC: Tue Oct 27 2020
Period: Wednesday, September 30, 2020
Industry: Semiconductors And Related Devices

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/enph/0001463101-20-000127.htm

Enphase Energy, Inc. (ENPH) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

SEC Filings

ENPH Valuations

ENPH Annual Reports

ENPH Quarterly Reports

ENPH Corporate News