Market share growth by Enphase Energy has resulted in quarterly sales increasing 9% to US$60.8 million in Q3 2012, a new quarterly record for the company.
Microinverters units sales in Q3 increased to 431,000, compared to 286,000 in the third quarter of 2011 and 403,000 in the second quarter of 2012. Gross profit was 26.8%, up from 24.4%in Q2.
Paul Nahi, CEO of Enphase Energy said in a statement: “Enphase made excellent progress in the third quarter of 2012. We started shipping our microinverters into the UK market and launched new initiatives and tools to broaden our reach into the commercial segment.
“I'm pleased with the revenue growth and continuous gross margin expansion, despite a difficult macroeconomic environment and certain challenges in the European markets as result of a drastic and sudden reduction in Feed-in Tariffs. We are confident that microinverters remain poised to become the preferred solution for solar installations, and that Enphase will lead this transition.”
In a conference call to discuss quarterly results, Nahi noted that it was gaining market share in Europe as it launched operations in new markets such as the UK: “With respect to Europe, we continue to make excellent progress in developing this market. In addition to shipments in France, Italy, Belgium and The Netherlands, we started shipping our Enphase microinverter solutions into the UK during the quarter. Since opening our regional UK office in June, we have announced the availability through eight distributors, including the leading PV distributors Dynamic Solar, Rexell and Waxman.”
“The Solar Power UK 2012 trade show [organised by PV-Tech's parent company Solar Media] was a huge success for Enphase. Our booth was filled to capacity with many installers and distributors learning about microinvertors for the first time,” added Nahi.
Enphase said it had also secured further debt capacity and liquidity valued at US$50 million through an asset-based working capital credit facility with Wells Fargo Capital Finance, which the company said replaced a pre-existing US$33 million undrawn line of credit. The second instrument was a US$23 million credit facility, which was intended to replace a pre-existing US$7.4 million of term debt and provide up to US$15.6 million of additional borrowing capacity.
However, Enphase Energy said that it expected net revenues for Q4 to be below Q3 results, partly due to weakness in the Canadian and slowing European markets.
Sales were targeted to be within a range of US$52 million – US$57 million, with a gross margin in a range of 26.5% – 28%.