Enphase Energy, Inc. announced financial results for the first quarter ended March 31, 2017.
Enphase Energy reported total revenue for the first quarter of 2017 of $54.8 million. During the first quarter of 2017, Enphase sold approximately 138MW (AC) or 573,000 microinverters. GAAP gross margin for the first quarter of 2017 was 12.9 percent and non-GAAP gross margin was 13.3 percent. Gross margin was lower than expected primarily as a result of cost absorption on decreased revenue volume.
GAAP operating expenses for the first quarter of 2017 were $29.1 million and non-GAAP operating expenses were $20.2 million, a decrease of 14 percent sequentially. GAAP operating loss for the first quarter of 2017 was $22.1 million and non-GAAP operating loss was $12.9 million. GAAP net loss for the first quarter of 2017 was $23.3 million, or a net loss of $0.30 per share. On a non-GAAP basis, net loss was $13.6 million, or a net loss of $0.18 per share.
The Company exited the quarter with a total cash balance of $30.0 million.
"Our revenue for the first quarter was lower than expected due to the extraordinarily wet winter in California, where we have a significant presence," said Paul Nahi, president and CEO of Enphase Energy. "We started shipping our Enphase Home Energy Solution with IQ™, our sixth-generation integrated solar, storage and energy management offering, in the U.S. at the end of the first quarter. We look forward to the U.S. launch of our integrated AC solar modules, developed with our partners, during the second quarter. These modules, which we believe are the future of rooftop solar, will include our sixth-generation microinverters, creating a simpler and more consolidated solution."
"The financing actions and restructuring initiatives we took over the past three quarters have helped to strengthen our cash position and reduce our non-GAAP operating expenses in the first quarter by 14 percent sequentially," said Bert Garcia, CFO of Enphase Energy. "We expect the full effect of our restructuring initiatives will bring our non-GAAP operating expense run-rate to approximately 18 million dollars, starting in the second quarter, as we continue to focus on achieving sustainable profitability in the second half of 2017."
"We expect our revenue for the second quarter of 2017 to be within a range of $72 million to $80 million," stated Bert Garcia. "We expect GAAP and non-GAAP gross margin for the second quarter to be within a range of 17 percent to 20 percent. Non-GAAP gross margin excludes approximately $300,000 of stock-based compensation expense. We expect our GAAP operating expense for the second quarter to be within a range of $22 million to $24 million and non-GAAP operating expense to be within a range of $17 million to $19 million, excluding an estimated $1.7 million of stock-based compensation expense and approximately $3.2 million of additional restructuring expense."