Enphase Energy, Inc. announced financial results for the third quarter ended September 30, 2017.
Enphase Energy reported total revenue for the third quarter of 2017 of $77.0 million, an increase of 3 percent compared to the second quarter of 2017. During the third quarter of 2017, Enphase sold approximately 231MW (DC) or 790,000 microinverters. GAAP gross margin for the third quarter of 2017 was 21.4 percent and non-GAAP gross margin was 21.8 percent.
GAAP operating expenses for the third quarter of 2017 were $22.4 million, a decrease of 33 percent compared to the third quarter of 2016. Non-GAAP operating expenses were $16.9 million, a decrease of 41 percent compared to the third quarter of 2016. GAAP operating loss was $5.9 million and non-GAAP operating loss was $102,000 for the third quarter of 2017, compared to a GAAP operating loss of $17.7 million and a non-GAAP operating loss of $12.4 million for the third quarter of 2016. GAAP net loss for the third quarter of 2017 was $6.9 million, or a net loss of $0.08 per share, compared to a third quarter of 2016 net loss of $18.8 million, or a net loss of $0.40 per share. On a non-GAAP basis, net loss in the third quarter of 2017 was $964,000, or a net loss of $0.01 per share, compared to a third quarter of 2016 net loss of $13.4 million, or a net loss of $0.28 per share.
The Company exited the quarter with a total cash balance of $28.9 million.
"We completed the transition to our sixth-generation IQ Microinverter System for our North American customers during the third quarter, and we expect to introduce our seventh-generation IQ product worldwide in the first quarter of 2018," said Badri Kothandaraman, president and CEO of Enphase Energy. "These transitions, along with our continued focus on operational excellence, will help drive further gross margin improvement."
"The fiscal discipline across all areas of our business in the third quarter resulted in a 41 percent year-over-year decrease in non-GAAP operating expenses and a sequential 340 basis point improvement in non-GAAP gross margin," said Bert Garcia, CFO of Enphase Energy. "We were close to breakeven on a non-GAAP operating income basis in the third quarter, demonstrating our commitment to achieving non-GAAP operating profitability in the fourth quarter of 2017."
"We expect our revenue for the fourth 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 fourth quarter to be within a range of 21.5 percent to 24.5 percent. Non-GAAP gross margin excludes approximately $300,000 of stock-based compensation expense. We expect our GAAP operating expense for the fourth quarter to be within a range of $19.5 million to $21.5 million and non-GAAP operating expense to be within a range of $16 million to $18 million, excluding an estimated $1.4 million of stock-based compensation expense and approximately $2.1 million of additional restructuring expense."