PV inverter maker Enphase reports continued growth, improved margins in 4Q 2012

Enphase Energy Inc. (Petaluma, California, U.S.) has gained the largest market share of any inverter maker in California's residential solar photovoltaic (PV) market, as reported in its fourth quarter and full year 2012 results.

In the fourth quarter Enphase reported a very slight year-over-year increase in revenues to USD 57.6 million and an operating margin of -11%. The company's earnings release comes six days after Enphase reported the commissioning of its largest project to date at 902 kW.

“Our fourth quarter results are encouraging on several fronts,” commented Enphase CEO Paul Nahi. “We had a significant improvement in operating performance and continued our gross margin expansion to a new record level.”

“In addition, the fourth quarter is the first time that operating expenses did not increase sequentially and strict working capital management resulted in a positive operating cash flow of USD 7.6 million. This performance gives us confidence we will begin to realize leverage from the investments we have made in our business infrastructure.”

Microinverters breaking out of smaller projects?

3,760 Enphase micro-inverters were incorporated at the 902kW PV plant at Strain Ranches in rural California. The PV plant will power commercial rice drying and storage at the agricultural facility, and features SolarWorld PV modules.

This is among the largest PV projects to date to use micro-inverter technology, which has established a market niche in small residential and commercial PV projects. The project also incorporates Enphase's Enlighten monitoring solution.

2013 Technology Pioneer

During 2012 Enphase shipped more than 1.5 million micro-inverters, a 50% increase over 2011. The company was also named 2013 Technology Pioneer by the World Economic Forum.

Over the full year Enphase showed a 45% growth in revenues to USD 217 million, but a -14% operating margin and a net loss of USD 38.2 million.

In the first quarter of 2013 Enphase expects revenues of USD 43 to 46 million, which will represent a normal seasonal decline, and a gross margin of 26% to 28%.

2013-02-27