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 November 4, 2014, entitled “Enphase Energy Reports Record Financial Results for the Third Quarter of 2014.” |
Date: | November 4, 2014 | 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 November 4, 2014, entitled “Enphase Energy Reports Record Financial Results for the Third Quarter of 2014.” |
• | Revenue of $99.1 million, up 60 percent year-over-year |
• | Shipped 170MW (AC) of microinverter systems, up 81 percent year-over-year |
• | Non-GAAP gross margin of 33.0 percent, up 470 basis points year-over-year |
• | Non-GAAP operating income of $4.8 million |
• | Non-GAAP net income of $3.8 million |
• | Non-GAAP diluted earnings per share of $0.08 |
• | Strong positive cash flow from operations of $11.2 million |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net revenues | $ | 99,113 | $ | 62,046 | $ | 238,697 | $ | 165,790 | |||||||
Cost of revenues | 66,592 | 44,611 | 160,689 | 119,870 | |||||||||||
Gross profit | 32,521 | 17,435 | 78,008 | 45,920 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 12,112 | 8,293 | 32,346 | 25,803 | |||||||||||
Sales and marketing | 9,884 | 8,550 | 29,205 | 22,765 | |||||||||||
General and administrative | 8,632 | 5,937 | 22,837 | 17,899 | |||||||||||
Total operating expenses | 30,628 | 22,780 | 84,388 | 66,467 | |||||||||||
Income (loss) from operations | 1,893 | (5,345 | ) | (6,380 | ) | (20,547 | ) | ||||||||
Other income (expense), net: | |||||||||||||||
Interest expense | (356 | ) | (437 | ) | (1,291 | ) | (1,385 | ) | |||||||
Other expense, net | (597 | ) | (378 | ) | (432 | ) | (724 | ) | |||||||
Total other income (expense), net | (953 | ) | (815 | ) | (1,723 | ) | (2,109 | ) | |||||||
Income (loss) before income taxes | 940 | (6,160 | ) | (8,103 | ) | (22,656 | ) | ||||||||
Provision for income taxes | (127 | ) | (141 | ) | (351 | ) | (447 | ) | |||||||
Net income (loss) | $ | 813 | $ | (6,301 | ) | $ | (8,454 | ) | $ | (23,103 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.02 | $ | (0.15 | ) | $ | (0.20 | ) | $ | (0.56 | ) | ||||
Diluted | $ | 0.02 | $ | (0.15 | ) | $ | (0.20 | ) | $ | (0.56 | ) | ||||
Shares used in per share calculation: | |||||||||||||||
Basic | 43,128 | 41,777 | 42,664 | 41,517 | |||||||||||
Diluted | 48,786 | 41,777 | 42,664 | 41,517 |
September 30, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 44,537 | $ | 38,190 | |||
Accounts receivable, net | 49,270 | 32,084 | |||||
Inventory | 15,488 | 16,580 | |||||
Prepaid expenses and other | 5,194 | 3,655 | |||||
Total current assets | 114,489 | 90,509 | |||||
Property and equipment, net | 28,825 | 24,853 | |||||
Other assets | 1,410 | 1,307 | |||||
Total assets | $ | 144,724 | $ | 116,669 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 21,992 | $ | 7,363 | |||
Accrued liabilities | 30,655 | 19,722 | |||||
Deferred revenues | 2,418 | 2,773 | |||||
Term loans, current portion | 2,888 | 3,507 | |||||
Total current liabilities | 57,953 | 33,365 | |||||
Long-term liabilities: | |||||||
Deferred revenues, noncurrent | 15,339 | 11,284 | |||||
Warranty obligations, noncurrent | 24,558 | 25,490 | |||||
Other liabilities | 1,439 | 1,154 | |||||
Term loans, noncurrent | 2,973 | 5,170 | |||||
Total liabilities | 102,262 | 76,463 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock and additional paid-in capital | 203,911 | 192,916 | |||||
Accumulated deficit | (161,393 | ) | (152,939 | ) | |||
Accumulated other comprehensive (loss) income | (56 | ) | 229 | ||||
Total stockholders’ equity | 42,462 | 40,206 | |||||
Total liabilities and stockholders’ equity | $ | 144,724 | $ | 116,669 |
Nine Months Ended September 30, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (8,454 | ) | $ | (23,103 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 6,004 | 5,122 | |||||
Provision for doubtful accounts | 711 | 665 | |||||
Net loss on disposal of assets | 247 | 82 | |||||
Non-cash interest expense | 256 | 322 | |||||
Stock-based compensation | 7,037 | 4,955 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (17,897 | ) | (7,666 | ) | |||
Inventory | 1,092 | (4,549 | ) | ||||
Prepaid expenses and other assets | (1,867 | ) | (969 | ) | |||
Accounts payable, accrued and other liabilities | 24,513 | 11,855 | |||||
Deferred revenues | 3,700 | 4,835 | |||||
Net cash provided by (used in) operating activities | 15,342 | (8,451 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (9,836 | ) | (4,886 | ) | |||
Net cash used in investing activities | (9,836 | ) | (4,886 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of term loans | (2,847 | ) | (1,815 | ) | |||
Principal payments under capital leases | — | (40 | ) | ||||
Proceeds from issuance of common stock under employee stock plans | 3,958 | 1,672 | |||||
Net cash provided by (used in) financing activities | 1,111 | (183 | ) | ||||
Effect of exchange rate changes on cash | (270 | ) | 4 | ||||
Net increase (decrease) in cash and cash equivalents | 6,347 | (13,516 | ) | ||||
Cash and cash equivalents—Beginning of period | 38,190 | 45,294 | |||||
Cash and cash equivalents—End of period | $ | 44,537 | $ | 31,778 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Gross profit (GAAP) | $ | 32,521 | $ | 17,435 | $ | 78,008 | $ | 45,920 | ||||||||
Stock-based compensation | 229 | 137 | 572 | 309 | ||||||||||||
Gross profit (Non-GAAP) | $ | 32,750 | $ | 17,572 | $ | 78,580 | $ | 46,229 | ||||||||
Gross margin (GAAP) | 32.8 | % | 28.1 | % | 32.7 | % | 27.7 | % | ||||||||
Stock-based compensation | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||
Gross margin (Non-GAAP) | 33.0 | % | 28.3 | % | 32.9 | % | 27.9 | % | ||||||||
Operating expenses (GAAP) | $ | 30,628 | $ | 22,780 | $ | 84,388 | $ | 66,467 | ||||||||
Stock-based compensation(1) | (2,301 | ) | (1,908 | ) | (6,465 | ) | (4,646 | ) | ||||||||
Secondary offering expenses | (365 | ) | — | (365 | ) | — | ||||||||||
Severance costs | — | (422 | ) | — | (578 | ) | ||||||||||
Operating expenses (Non-GAAP) | $ | 27,962 | $ | 20,450 | $ | 77,558 | $ | 61,243 | ||||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||
Research and development | $ | 824 | $ | 625 | $ | 2,215 | $ | 1,541 | ||||||||
Sales and marketing | 635 | 542 | 1,816 | 1,317 | ||||||||||||
General and administrative | 842 | 741 | 2,434 | 1,788 | ||||||||||||
Total | $ | 2,301 | $ | 1,908 | $ | 6,465 | $ | 4,646 | ||||||||
Income (loss) from operations (GAAP) | $ | 1,893 | $ | (5,345 | ) | $ | (6,380 | ) | $ | (20,547 | ) | |||||
Stock-based compensation | 2,530 | 2,045 | 7,037 | 4,955 | ||||||||||||
Secondary offering expenses | 365 | — | 365 | — | ||||||||||||
Severance costs | — | 422 | — | 578 | ||||||||||||
Income (loss) from operations (Non-GAAP) | $ | 4,788 | $ | (2,878 | ) | $ | 1,022 | $ | (15,014 | ) | ||||||
Net income (loss) (GAAP) | $ | 813 | $ | (6,301 | ) | $ | (8,454 | ) | $ | (23,103 | ) | |||||
Stock-based compensation | 2,530 | 2,045 | 7,037 | 4,955 | ||||||||||||
Secondary offering expenses | 365 | — | 365 | — | ||||||||||||
Severance costs | — | 422 | — | 578 | ||||||||||||
Non-cash interest expense | 65 | 214 | 256 | 322 | ||||||||||||
Net income (loss) (Non-GAAP) | $ | 3,773 | $ | (3,620 | ) | $ | (796 | ) | $ | (17,248 | ) | |||||
Net income (loss) per share, diluted (GAAP) | $ | 0.02 | $ | (0.15 | ) | $ | (0.20 | ) | $ | (0.56 | ) | |||||
Stock-based compensation | 0.06 | 0.05 | 0.17 | 0.12 | ||||||||||||
Secondary offering expenses | — | — | — | — | ||||||||||||
Severance costs | — | 0.01 | — | 0.01 | ||||||||||||
Non-cash interest expense | — | — | 0.01 | 0.01 | ||||||||||||
Net income (loss) per share, diluted (Non-GAAP) | $ | 0.08 | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.42 | ) | |||||
Shares used in per share calculation, diluted (GAAP and Non-GAAP) | 48,786 | 41,777 | 42,664 | 41,517 |
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