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Enphase sold out into 2019, margins way up, projections bright


Enphase sold out into 2019, margins way up, projections bright

Enphase’s 3rd quarter results saw revenues hold just short of $80 million with an estimated $10 million sales shortfall due to a component shortage as the company shipped 204 MW of inverters. Future speculation saw an international play on the IQ8, the SunPower partnership, and energy storage driving future growth.

From pv magazine USA

Enphase Energy is close to making some serious money it seems. The company has seen gross margins increase from a low of 16.88% in Q1’17 to greater than 32.4%% in Q3’2018, while quarterly losses shrunk to $3.5 million. Revenue increased to just over $78 million – while missing targets by $1.5 million.

With a new partnership with SunPower coming into play, energy storage growth, and a component shortage potentially easing – 2019 revenues, while not projected, were definitely speculated as being significantly upwards moving.

Badri Kothandaraman, Enphase’s President and Chief Executive Officer, noted the company turned away more than $10 million of business in Q3 due to a component shortage, and they expected this shortage to continue through the 4th quarter – but a resolution is expected in Q1 as Enphase stated they built a line specifically to build this component in house.

The component was noted as a complex MOFSET 600 volt transistor made by a handful of companies – STMicroelectronics, Infineon, Alpha & Omega Semiconductor, On Semi, and Toshiba. It was stated that electric vehicle charging stations were placing a high demand on these components. Memory shortages have been solved already.

In a question related to a speculated SolarEdge 10-15% replacement percentage, Kothandaraman noted a target of 500 parts per million failure rate, but didn’t give his own companies replacement numbers – nor did he speculate on SolarEdge’s numbers.

The company has deployed 25 MWh of batteries, mostly in Europe and Australia. They’ll be expanding their current offering to include a 10 and 13.2 kW battery, while still keeping the modularity of 3 kWh blocks from their current hardware offerings. The company did note some shortcoming of its current hardware offerings.

The 301 tariffs were 50% absorbed by Enphase, meaning a 3-4% price increase for the end customer. However, Q1 potential tariff amounts and affects weren’t yet speculated on as those numbers aren’t known.

One analyst asked questions about how future revenue growth could be calculated based on energy storage, and management hardware sales. Kothandaraman noted that the average house currently buys 20 Enphase microinverters at $100 each, while a future home might add an addition $8,000 per sale when including Ensemble hardware and energy storage.

Source PV Magazine

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