Stock Update (NASDAQ:ENPH): Enphase Energy Inc Reports Financial Results for the Fourth Quarter and Fiscal Year 2015


Enphase Energy, Inc. (NASDAQ:ENPH), a global energy technology company, announced today financial results for the fourth quarter and year ended December 31, 2015.

Enphase Energy reported total revenue for the fourth quarter of 2015 of $65.6 million. During the fourth quarter of 2015, Enphase sold 129MW (AC) or 547,000 microinverters. GAAP gross margin for the fourth quarter of 2015 was 23.9 percent and non-GAAP gross margin was 24.5 percent.

GAAP operating expenses for the fourth quarter of 2015 were $30.9 million and non-GAAP operating expenses were $27.8 million. GAAP operating loss for the fourth quarter of 2015 was $15.2 million and non-GAAP operating loss was $11.7 million. GAAP net loss for the fourth quarter of 2015 was $15.8 million, or a net loss of$0.35 per share. On a non-GAAP basis, net loss was $11.5 million, or a net loss of $0.25 per share.

The Company generated $8.1 million of cash from operations in the fourth quarter of 2015 and exited the quarter with a total cash balance of $28.5 million.

“During the fourth quarter of 2015, we shipped our 10 millionth microinverter, representing more than 2.5GW of Enphase systems,” said Paul Nahi, president and CEO of Enphase Energy. “In addition, we started shipping our 5th generation microinverter. We are making great progress with the development of our Enphase Home Energy Solution, including the AC Battery storage system, the AC module and the AC combiner box. These products will help drive further long-term growth with new and existing partners worldwide.”

“Revenue for the fourth quarter of 2015 was impacted by the reduction of inventory levels in our channel, which have now returned to normalized levels,” said Kris Sennesael, CFO of Enphase Energy. “We also reduced our operating expenses in the second half of 2015 to accommodate our lower gross margin profile.”

For the fiscal year 2015, total revenue was $357.2 million. During 2015, Enphase shipped a record 706MW (AC) or 3.1 million microinverters. GAAP gross margin for 2015 was 30.3 percent and non-GAAP gross margin was 30.6 percent. GAAP net loss for 2015 totaled $22.1 million, or a net loss of $0.49 per share. Non-GAAP net loss was $8.1 million, or a net loss of $0.18 per share in 2015.

“2015 was a challenging year for Enphase,” said Paul Nahi. “However, we continued to grow our revenue and MW shipped on a year-over-year basis, further driving the global adoption of the microinverter technology in our key markets. As we move into 2016, we continue to aggressively drive down the overall cost of our microinverter system, and are pleased with several recent customer wins that will contribute to market share growth. We are excited about our vision to realize the global potential of solar energy through our technology innovation and remain committed to providing our customers with the features, quality, ease, and simplicity of an Enphase energy solution.”

Business Outlook

“We expect revenue for the first quarter of 2016 to be within a range of $63 million to $69 million,” stated Kris Sennesael. “We expect gross margin to be within a range of 18 percent to 21 percent. We also expect non-GAAP operating expenses for the first quarter of 2016 to be within a range of $27 million to $29 million.” (Original Source)

Shares of Enphase Energy closed today at $2.35, up $0.14 or 6.33%. ENPH has a 1-year high of $15.25 and a 1-year low of $1.63. The stock’s 50-day moving average is $2.39 and its 200-day moving average is $3.36.

On the ratings front, Enphase Energy has been the subject of a number of recent research reports. In a report issued on December 16, Roth Capital analyst Philip Shen upgraded ENPH to Buy, with a price target of $4, which represents a potential upside of 80.2% from where the stock is currently trading. Separately, on November 18, Canaccord Genuity’s Jonathan Dorsheimer maintained a Hold rating on the stock and has a price target of $2.20.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Shen and Jonathan Dorsheimer have a total average return of -16.9% and -6.4% respectively. Shen has a success rate of 24.8% and is ranked #3600 out of 3638 analysts, while Dorsheimer has a success rate of 38.1% and is ranked #3376.

Enphase Energy Inc delivers microinverter technology for solar industry that increases energy production, simplifies design and installation, improves system, reduces fire safety risk & provides a platform for intelligent energy management.