Enphase Energy, Inc (ENPH) saw its loss widen to $23.30 million, or $0.30 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $18.80 million, or $0.41 a share. On the other hand, adjusted net loss for the quarter narrowed to $13.62 million, or $0.18 a share from a loss of $15.72 million or $0.34 a share, a year ago. Revenue during the quarter dropped 14.61 percent to $54.75 million from $64.12 million in the previous year period. Gross margin for the quarter contracted 547 basis points over the previous year period to 12.87 percent. Operating margin for the quarter stood at negative 40.36 percent as compared to a negative 29.77 percent for the previous year period.
Operating loss for the quarter was $22.10 million, compared with an operating loss of $19.09 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $12.92 million compared to operating loss of $16.04 million in prior year period.
“Our revenue for the first quarter was lower than expected due to the extraordinarily wet winter in California, where we have a significant presence,” said Paul Nahi, president and Chief executive officer of Enphase Energy. “We started shipping our Enphase Home Energy Solution with IQ™, our sixth-generation integrated solar, storage and energy management offering, in the U.S. at the end of the first quarter. We look forward to the U.S. launch of our integrated AC solar modules, developed with our partners, during the second quarter. These modules, which we believe are the future of rooftop solar, will include our sixth-generation microinverters, creating a simpler and more consolidated solution.”
For the second-quarter 2017, Enphase Energy, Inc expects revenue to be in the range of $72 million to $80 million.
Operating cash flow remains negative
Enphase Energy, Inc has spent $24.51 million cash to meet operating activities during the quarter as against cash outgo of $15.25 million in the last year period. The company has spent $3.47 million cash to meet investing activities during the quarter as against cash outgo of $3.35 million in the last year period.
Cash flow from financing activities was $40.59 million for the quarter, up 1,232.44 percent or $37.54 million, when compared with the last year period.
Cash and cash equivalents stood at $29.96 million as on Mar. 31, 2017, up 130.14 percent or $16.94 million from $13.02 million on Mar. 31, 2016.
Working capital increases sharply
Enphase Energy, Inc has recorded an increase in the working capital over the last year. It stood at $68.17 million as at Mar. 31, 2017, up 106.96 percent or $35.23 million from $32.94 million on Mar. 31, 2016. Current ratio was at 2.25 as on Mar. 31, 2017, up from 1.41 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 71 days for the quarter from 98 days for the last year period. Days sales outstanding went up to 78 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 43 for the same period last year.
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