Enphase Energy Inc. ( ENPH ) reported fourth
quarter 2012 loss per share of 12 cents compared with a loss of
$2.29 per share in the year-ago quarter. Pro forma loss was
narrower than the Zacks Consensus Estimate of a loss of 18 cents
GAAP loss during the quarter was 19 cents per share versus a
loss of $3.41 per share in the year-ago quarter.
For 2012, the company incurred a pro forma loss of 93 cents per
share, much narrower than the prior-year loss of $22.32 per share.
The loss was slightly wider than the Zacks Consensus Estimate of a
loss of 92 cents.
GAAP loss for 2012 stood at $1.24 per share versus a loss of
$25.73 per share in 2011.
Total revenue for the quarter was $57.6 million, increasing
marginally from $57.1 million in the year-ago period. Quarterly
revenue was in line with the Zacks Consensus Estimate.
Similarly, in 2012, Enphase registered a 45% upswing in revenue
to $216.7 million from $149.5 million in 2011. This was due to a
rise in microinverters volumes exported during the year.
Revenue for 2012 missed the Zacks Consensus Estimate by
Total shipments in the reported quarter stood at 384,000 units,
down 1.3% from 389,000 units exported in fourth quarter 2011.
For 2012, aggregate microinverter shipments totaled 1.5 million
versus 1.0 million in 2011.
Total operating expenses for the quarter were $22.2 million, up
31.5% from $16.9 million in the corresponding year-ago quarter. A
combined increase in research and development, sales and marketing
as well as in general and administrative expenses led to the cost
Operating loss for the quarter was $6.2 million compared with a
loss of $3.8 million in the prior-year period. The wider loss in
the reported quarter was a fallout of higher costs, partially
offset by a nominal rise in revenues.
Interest expense for the quarter was $1.02 million, down 26%
from $1.4 million in the fourth quarter of 2011.
Enphase Energy expects revenue in the first quarter 2013 in the
range $43 million to $46 million and gross margin in the band 26%
to 28%. The company also expects GAAP operating costs to be flat in
the first quarter 2013 compared to the fourth quarter of 2012.
Cash and cash equivalents as of Dec 31, 2012 were $45.3 million
compared with $51.5 million as of Dec 31, 2011.
Cash flow from operations at year-end 2012 stood at $44.6
million versus $0.4 million at the end of 2011.
Total long-term liabilities as of Dec 31, 2012 were $31.8
million, down 20.3% from $39.9 million as of Dec 31, 2011.
Other Solar Company Releases
FirstSolar Inc. ( FSLR ) posted earnings
of $2.04 per share, comfortably beating the Zacks Consensus
Estimate of $1.75 per share.
Enphase Energy's fourth quarter performance improved markedly
from the prior year quarter with steady revenue and decreasing
losses. The company's microinverter technology is gradually gaining
acceptance in the solar industry.
However, we still believe the low cost conventional centralized
inverter technologies will continue to provide stiff competition.
This will be further compounded by the continued stalemate in the
European economy that will likely to affect volume shipments, going
Furthermore, natural gas which is currently leading the race in
power generation is likely to create obstacles in the renewables
growth trajectory. Currently, Enphase Energy holds a Zacks Rank #5
We prefer Zacks Ranked #2 (Buy) solar operator Yingli
Green Energy Holding Co. Ltd. ( YGE ) as well as Zacks
Ranked #3 (Hold) Canadian Solar Inc. ( CSIQ ). These
companies financial results are yet to be released.
Based in Petaluma, CA, Enphase Energy along with its
subsidiaries engages in the design, development, and sale of
microinverter systems for the solar photovoltaic industry. The
microinverters increases energy production, streamlines design and
installation, upgrades system uptime and reliability, reduces fire
safety risk and offers energy management solutions.CANADIAN SOLAR (CSIQ): Free Stock Analysis
ReportFIRST SOLAR INC (FSLR): Free Stock Analysis
ReportYINGLI GREEN EN (YGE): Free Stock Analysis
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