- Enphase Energy exited 2021 with annual revenues having grown by over 78% to $1.38 billion
- In Q4/2021, the management increased its overall microinverter production capacity globally to over 5 million per quarter
- The company has plans to start a new contract manufacturing facility for microinverters in Europe with about 750,000 capacity a quarter
- CFO Eric Branderiz is set to retire on February 14, 2022; Management elevates Mandy Young to take on the role
US based solar microinverter supplier Enphase Energy, Inc has revealed its plans to expand its existing production capacity for microinverters with the addition of a new contract manufacturing facility in Europe, by the end of this year, which its President and CEO Badri Kothandaraman said will enable it to service customers better.
The management however had no other details to share regarding the location or the contract manufacturer for the proposed European fab as it continues negotiations. Kothandaraman did add that the fab will be capable to roll out about 750,000 microinverters a quarter.
In Q4/2021, the company added a fully automated line in Mexico taking the location’s total quarterly capacity to 2.25 million microinverters. Counting its quarterly capacity of 1.5 million in India through contract manufacturer Salcomp, and existing capacity in China, Enphase said it has a capacity to produce over 5 million microinverters per quarter in total.
Q4/2021
During the last quarter of 2021, Enphase reported revenues of $412.7 million as having gone up 17% on sequential basis and over 55% on YoY basis. Gross margin was 39.6% versus 39.9% in Q3. It shipped around 1,082 MW DC of microinverters and 100.2 MWh of IQ batteries in the fourth quarter. In Q3/2021, inverters shipments reached 913 MW and 762 in Q4/2020. While referring to global supply chain challenges, management said the company was ‘able to meet the surge in customer demand while successfully navigating supply constraints and logistics challenges’.
The quarter saw Enphase starting production shipments of its IQ8 microinverters for North America, and aims to launch the product worldwide in H2/2022. Enphase expects the product to do well saying that IQ8 ‘fundamentally changes the paradigm for solar technology’ since it can form a microgrid during a power outage using only sunlight, providing backup power even without a battery. “With IQ8, any home can adopt Enphase technology for backup, even with no battery or a small battery,” explained Kothandaraman.
2021
Enphase exited 2021 with revenues of $1.38 billion, compared to $774.4 million in 2020 and GAAP net income of $145.4 million over $140 million reported for the previous year (see Enphase Energy Exited 2020 With $774 Million Revenue). GAAP gross margin for the year dropped to 40.1% compared to 44.7% in 2020.
Management said as against its baseline financial model of 35% gross margin, 15% operating expenses and 20% operating income, it achieved the figure of 40, 17, 24, respectively while exiting Q4/2021.
Guidance
For Q1/2022, the management forecasts revenues within the range of $420 million to $440 million, including shipments of 110 MWh to 120 MWh of Enphase IQ Batteries. GAAP gross margin is guided within a range of 37.0% to 40.0% and GAAP operating expenses within $130.5 million to $133.5 million.
CFO change
During the call with analysts, the management also updated about the company’s existing CFO Eric Branderiz retiring from the company with his last day being February 14, 2022. He will be succeeded by Enphase’s Chief Accounting Officer and Corporate Treasurer Mandy Yang who analysts at Roth Capital Partners consider to be ‘well qualified to take over the CFO role’. Branderiz will continue to be associated with the microinverter maker until June 30, 2022 in the capacity of an advisor to assist with the transition.
