Narrower-than-Expected Loss at Enphase
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Enphase Energy, Inc.
) posted first quarter 2013 results with a loss of 25 cents per
share (including stock based compensation expense) narrower than
the Zacks Consensus Estimate of a loss of 27 cents. The loss also
declined significantly from the year-ago loss of $5.78 per share.
The results reflect the company's effort to successfully control
Enphase Energy reported quarterly operating revenue of $45.6
million, marginally above the Zacks Consensus Estimate of $45.0
million and at the top end of the company's guidance. Revenues
were also up 7% year over year.
The top-line figure includes approximately $9 million of revenue
associated with shipments related to the expiring 1603 grant
program. Excluding these 1603 related units, revenue increased
36% year over year.
Gross margin reported by the company was 27.0%, up from 21.9% in
the year-ago quarter.
Operating expenses were $20.4 million, up from $17.9 million in
the year-ago quarter.
As of Mar 31, 2013, cash and cash equivalents were $36.4 million
versus $45.3 million as of Dec 31, 2012. Term loans declined to
$8.0 million from $8.7 million as of Dec 31, 2012. Net cash used
in operating activities was $7.0 million versus $14.1 million in
the year-ago period.
The company expects revenues to climb sequentially to a range of
$56 million to $60 million in the second quarter of 2013. It
expects gross margin in the range of 26% to 28% and operating
expenses to be flat sequentially.
The loss incurred in the quarter was narrower than the Zacks
Consensus Estimate. Moreover, the top-line succeeded in beating
our expectation, though marginally. The company continues to
progress well by executing its key initiatives which include
improvement in operating performance, expanding gross margin,
broadening market opportunity and developing new products and
Enphase Energy is engaged in the design, development, and sale of
microinverter systems for the solar photovoltaic industry. The
company believes that the long-term global prospects of the solar
industry represent a great opportunity.
However, we remain concerned about the increased competition as
well as lower demand for solar products. The company presently
retains a short-term Zacks Rank #3 (Hold).
Stocks worth considering are
JA Solar Holdings Co., Ltd.
STR Holdings, Inc.
), all with a Zacks Rank #2 (Buy).