Enphase Energy, Inc. (ENPH) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $18.76 million, or $ 0.40 a share in the quarter, against a net profit of $0.62 million, or $0.01 a share in the last year period. On adjusted basis, net loss for the quarter stood at $13.42 million, or $0.28 a share compared with a net profit of $3.76 million, or $0.08 a share in the last year period.
Revenue during the quarter dropped 13.79 percent to $88.68 million from $102.87 million in the previous year period. Gross margin for the quarter contracted 1268 basis points over the previous year period to 17.91 percent. Operating margin for the quarter stood at negative 19.99 percent as compared to a positive 1.73 percent for the previous year period.
Operating loss for the quarter was $17.73 million, compared with an operating income of $1.78 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $12.44 million compared to operating profit of $4.88 million in prior year period.
"Our solid sequential growth in revenue and megawatt shipments reflects continued global demand for our solar energy systems," said Paul Nahi, president and chief executive officer of Enphase Energy. "We began shipping our AC Battery storage solution in Australia and New Zealand during the third quarter and are very pleased with the demand we have seen. We also unveiled our Enphase Home Energy Solution with IQ, our next-generation integrated solar, storage and energy management offering. The solution, available in the first quarter of 2017, features our sixth-generation Enphase IQ Microinverter System. The Enphase IQ 6 series microinverter will also be used in the upcoming AC modules developed with our partners, including LG, SolarWorld and Jinko Solar."
For the fourth-quarter, Enphase Energy, Inc. expects revenue to be in the range of $90 million to $100 million.
Operating cash flow remains negative
Enphase Energy, Inc. has spent $28.59 million cash to meet operating activities during the nine month period as against cash outgo of $29.31 million in the last year period.
The company has spent $10.28 million cash to meet investing activities during the nine month period as against cash outgo of $9.68 million in the last year period.
Cash flow from financing activities was $34.64 million for the nine month period, up 74.37 percent or $14.77 million, when compared with the last year period.
Cash and cash equivalents stood at $24.11 million as on Sep. 30, 2016, up 7.21 percent or $1.62 million from $22.49 million on Sep. 30, 2015.
Working capital drops significantly
Enphase Energy, Inc. has witnessed a decline in the working capital over the last year. It stood at $44.31 million as at Sep. 30, 2016, down 29.06 percent or $18.16 million from $62.47 million on Sep. 30, 2015. Current ratio was at 1.52 as on Sep. 30, 2016, down from 1.79 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 66 days for the last year period. Days sales outstanding went up to 66 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding was almost stable at 42 days for the quarter, when compared with the previous year period.
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