Delaware | 001-35480 | 20-4645388 | ||
(State of incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
(d) | Exhibits. |
Exhibit Number | Description | |
99.1 | Press release of the Company, dated August 6, 2013, entitled “Enphase Energy Reports Second Quarter 2013 Financial Results.” |
Date: | August 6, 2013 | ENPHASE ENERGY, INC. | |
By: | /s/ Kris Sennesael | ||
Kris Sennesael | |||
Vice President and Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release of the Company, dated August 6, 2013, entitled “Enphase Energy Reports Second Quarter 2013 Financial Results.” |
• | Revenue of $58.2 million, up 28% sequentially |
• | Record non-GAAP gross margin of 28.1%, up 360 basis points year-over-year |
• | Non-GAAP operating expenses flat sequentially at $20.4 million |
• | Introduction of the fourth generation microinverter system at Intersolar North America in July, which includes the new M250 Microinverter and software platform products MyEnlighten and Enlighten Manager. |
• | Named #1 residential inverter supplier in the Americas for 2012 by IHS Research by share of revenue. |
• | Named #1 power electronics monitoring provider in the world by number of new sites in 2012 by GTM Research with Enlighten, the Company's intelligent monitoring software platform. |
• | Achievement of an important milestone, passing one terawatt-hour of clean energy production by its microinverters as reported by Enlighten. |
• | Entered into strategic relationship with Lennar, through its newly created subsidiary, SunStreet Energy Group, to provide microinverters to the new home construction market. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net revenues | $ | 58,167 | $ | 55,697 | $ | 103,744 | $ | 98,297 | |||||||
Cost of revenues | 41,883 | 42,096 | 75,259 | 75,389 | |||||||||||
Gross profit | 16,284 | 13,601 | 28,485 | 22,908 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,484 | 8,655 | 17,510 | 16,497 | |||||||||||
Sales and marketing | 7,365 | 6,360 | 14,215 | 11,409 | |||||||||||
General and administrative | 5,926 | 6,091 | 11,962 | 11,787 | |||||||||||
Total operating expenses | 21,775 | 21,106 | 43,687 | 39,693 | |||||||||||
Loss from operations | (5,491 | ) | (7,505 | ) | (15,202 | ) | (16,785 | ) | |||||||
Other expense, net: | |||||||||||||||
Interest expense | (484 | ) | (3,405 | ) | (948 | ) | (4,884 | ) | |||||||
Other income (expense) | (297 | ) | (324 | ) | (346 | ) | 316 | ||||||||
Total other expense, net | (781 | ) | (3,729 | ) | (1,294 | ) | (4,568 | ) | |||||||
Loss before income taxes | (6,272 | ) | (11,234 | ) | (16,496 | ) | (21,353 | ) | |||||||
Provision for income taxes | (124 | ) | (151 | ) | (306 | ) | (216 | ) | |||||||
Net loss attributable to common stockholders | $ | (6,396 | ) | $ | (11,385 | ) | $ | (16,802 | ) | $ | (21,569 | ) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.41 | ) | $ | (1.05 | ) | |||
Shares used in computing net loss per share attributable to common stockholders, basic and diluted | 41,617 | 39,461 | 41,384 | 20,584 |
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 33,976 | $ | 45,294 | |||
Accounts receivable, net | 32,104 | 27,743 | |||||
Inventory | 17,906 | 19,843 | |||||
Prepaid expenses and other | 2,708 | 2,118 | |||||
Total current assets | 86,694 | 94,998 | |||||
Property and equipment, net | 25,141 | 25,541 | |||||
Other assets | 1,513 | 1,752 | |||||
Total assets | $ | 113,348 | $ | 122,291 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 10,012 | $ | 11,272 | |||
Accrued liabilities | 19,348 | 19,266 | |||||
Deferred revenues | 1,258 | 933 | |||||
Current portion of term loans | 3,365 | 2,384 | |||||
Total current liabilities | 33,983 | 33,855 | |||||
Long-term liabilities: | |||||||
Deferred revenues | 9,303 | 7,537 | |||||
Warranty obligations | 18,790 | 15,260 | |||||
Other liabilities | 394 | 307 | |||||
Term loans | 6,531 | 8,677 | |||||
Total liabilities | 69,001 | 65,636 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | — | — | |||||
Additional paid-in capital | 188,082 | 183,629 | |||||
Accumulated deficit | (143,828 | ) | (127,026 | ) | |||
Accumulated other comprehensive income | 93 | 52 | |||||
Total stockholders’ equity | 44,347 | 56,655 | |||||
Total liabilities and stockholders’ equity | $ | 113,348 | $ | 122,291 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (16,802 | ) | $ | (21,569 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 3,369 | 2,451 | |||||
Provision for doubtful accounts | 28 | — | |||||
Net loss on disposal of assets | 31 | 110 | |||||
Non-cash interest expense | 215 | 3,903 | |||||
Stock-based compensation | 2,910 | 1,708 | |||||
Change in fair value of convertible preferred stock warrants | — | (520 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (4,389 | ) | 7,810 | ||||
Inventory | 1,937 | (19,738 | ) | ||||
Prepaid expenses and other assets | (526 | ) | (1,317 | ) | |||
Accounts payable, accrued and other liabilities | 3,174 | 16,719 | |||||
Deferred revenues | 2,091 | (21,402 | ) | ||||
Net cash used in operating activities | (7,962 | ) | (31,845 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (3,467 | ) | (8,013 | ) | |||
Net cash used in investing activities | (3,467 | ) | (8,013 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from term loans and debt | — | 2,600 | |||||
Repayments of term loans | (1,196 | ) | (4,076 | ) | |||
Principal payments under capital leases | (40 | ) | (63 | ) | |||
Proceeds from issuance of common stock under employee stock plans | 1,534 | 44 | |||||
Proceeds from issuance of common stock in IPO, net of underwriting discounts and commissions | — | 58,609 | |||||
Payment of offering costs | — | (1,828 | ) | ||||
Net cash provided by financing activities | 298 | 55,286 | |||||
Effect of exchange rate changes on cash | (187 | ) | 17 | ||||
Net (decrease) increase in cash and cash equivalents | (11,318 | ) | 15,445 | ||||
Cash and cash equivalents—Beginning of period | 45,294 | 51,524 | |||||
Cash and cash equivalents—End of period | $ | 33,976 | $ | 66,969 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Reconciliation of Gross Profit and Gross Margin on a GAAP Basis to Gross Profit and Gross Margin on a Non-GAAP Basis: | ||||||||||||||||
Gross profit on a GAAP basis | $ | 16,284 | $ | 13,601 | $ | 28,485 | $ | 22,908 | ||||||||
Stock-based compensation | 64 | 38 | 172 | 57 | ||||||||||||
Gross profit on a non-GAAP basis | $ | 16,348 | $ | 13,639 | $ | 28,657 | $ | 22,965 | ||||||||
Gross margin on a GAAP basis | 28.0 | % | 24.4 | % | 27.5 | % | 23.3 | % | ||||||||
Gross margin on a non-GAAP basis | 28.1 | % | 24.5 | % | 27.6 | % | 23.4 | % | ||||||||
Reconciliation of Operating Expenses on a GAAP Basis to Operating Expenses on a Non-GAAP Basis: | ||||||||||||||||
Operating expenses on a GAAP basis | $ | 21,775 | $ | 21,106 | $ | 43,687 | $ | 39,693 | ||||||||
Stock-based compensation(1) | (1,411 | ) | (964 | ) | (2,738 | ) | (1,651 | ) | ||||||||
Operating expenses on a non-GAAP basis | $ | 20,364 | $ | 20,142 | $ | 40,949 | $ | 38,042 | ||||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||
Research and development | $ | 438 | $ | 384 | $ | 916 | $ | 657 | ||||||||
Sales and marketing | 397 | 268 | 775 | 464 | ||||||||||||
General and administrative | 576 | 312 | 1,047 | 530 | ||||||||||||
Total | $ | 1,411 | $ | 964 | $ | 2,738 | $ | 1,651 | ||||||||
Reconciliation of Loss from Operations on a GAAP Basis to Loss from Operations on a Non-GAAP Basis: | ||||||||||||||||
Loss from operations on a GAAP basis | $ | (5,491 | ) | $ | (7,505 | ) | $ | (15,202 | ) | $ | (16,785 | ) | ||||
Stock-based compensation | 1,475 | 1,002 | 2,910 | 1,708 | ||||||||||||
Loss from operations on a non-GAAP basis | $ | (4,016 | ) | $ | (6,503 | ) | $ | (12,292 | ) | $ | (15,077 | ) | ||||
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: | ||||||||||||||||
Net loss on a GAAP basis | $ | (6,396 | ) | $ | (11,385 | ) | $ | (16,802 | ) | $ | (21,569 | ) | ||||
Stock-based compensation | 1,475 | 1,002 | 2,910 | 1,708 | ||||||||||||
Non-cash interest expense | 107 | 2,966 | 215 | 3,903 | ||||||||||||
(Gains) losses from convertible preferred stock warrant liability revaluation | — | 103 | — | (520 | ) | |||||||||||
Net loss on a non-GAAP basis | $ | (4,814 | ) | $ | (7,314 | ) | $ | (13,677 | ) | $ | (16,478 | ) | ||||
Reconciliation of Basic and Diluted Net Loss per Share on a GAAP Basis to Basic and Diluted Net Loss per Share on a Non-GAAP Basis: | ||||||||||||||||
Basic and diluted net loss per share on a GAAP basis | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.41 | ) | $ | (1.05 | ) | ||||
Stock-based compensation | 0.03 | 0.02 | 0.07 | 0.08 | ||||||||||||
Non-cash interest expense | — | 0.08 | 0.01 | 0.20 | ||||||||||||
(Gains) losses from convertible preferred stock warrant liability revaluation | — | — | — | (0.03 | ) | |||||||||||
Basic and diluted net loss per share on a non-GAAP basis | $ | (0.12 | ) | $ | (0.19 | ) | $ | (0.33 | ) | $ | (0.80 | ) |
Quarterly Period | ||||||||||||||||||||
2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | ||||||||||||||||
Net revenues (in thousands) | $ | 58,167 | $ | 45,577 | $ | 57,568 | $ | 60,813 | $ | 55,697 | ||||||||||
Gross profit (in thousands) | 16,284 | 12,201 | 16,056 | 16,324 | 13,601 | |||||||||||||||
Gross margin | 28.0 | % | 26.8 | % | 27.9 | % | 26.8 | % | 24.4 | % | ||||||||||
Microinverter units shipped (in thousands) | 399 | 315 | 384 | 431 | 403 | |||||||||||||||
Megawatts shipped(1) | 85.6 | 67.7 | 82.6 | 92.4 | 86.0 | |||||||||||||||
(1) Represents the productive capacity of microinverters shipped. |
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