US headquartered solar PV microinverter supplier Enphase Energy's Q1/2022 revenues improved by 7% QoQ and 46% YoY despite the global supply chain being 'under stress' as the management remains confident of its supplier management and 'qualification of alternate suppliers'.
The US market having increased 9% sequentially and 49% annually, accounted for 84% of its Q1/2022 revenues of $441.29 million, with the remaining 16% coming from international markets.
In Europe, it suffered a decrease of 6% QoQ but improvement of 39% YoY for revenues citing 'unforeseen shipment delays'. Going forward, the management expects revenues from this market in Q2/2022 to register more than 40% sequential growth. To increase traction in the European market, Enphase is also adding a manufacturing line at Flex's Romanian fab which will come online from Q1/2023 (see North America PV News Snippets).
Latin America also saw its revenues increase 13% from last quarter and more than doubled YoY.
It shipped around 2,838,693 microinverters or 1,029 MW DC of microinverters and 120.4 MWh of Enphase IQ Batteries. While its IQ Battery shipments increased 20% on annual basis, microinverter shipments dropped 6% compared to Q4/2021.
During the reporting quarter, it locked in GAAP gross margin of 40.1% and operating expenses as $115.15 million. Operating income was reported as $61.8 million and net income as $51.82 million.
President and CEO Badri Kothandaraman said the company is vigilant of the global supply chain and logistics challenges due to COVID-19 related disruptions. He added, "Our overall customer demand for Q2 is quite robust for both microinverters and batteries and exceeds the higher end of our guidance range. The component availability is better than what we have experienced in the last 18 months, but there are still global challenges, which are not specific to Enphase. We remain optimistic that the lead times will come down by the end of this year."
Regarding COVID-19 related lockdown in some cities of China where it operates manufacturing lines, Kothandaraman assured that Enphase fabs remain open there as the shipping lines remain open too. There are 'hiccups' in raw material availability but it is better than last year.
Guidance
For Q2/2022, the company has offered a strong guidance of revenues between $490 million to $520 million, including shipments of 130 MWh to 140 MWh of Enphase IQ batteries. GAAP gross margin is guided to be within a range of 37.0% to 40.0% and operating expenses as ranging between $127.5 million to $130.5 million.
Enphase also touched upon the ongoing antidumping and countervailing duties (AD/CVD) at the behest of Auxin Solar in the US. The management said it creates 'massive uncertainty' impacting jobs, raise electricity prices for homeowners and increase import from China, hence the Department of Commerce should resolve it much ahead of the August 2022 timeline.