Enphase Energy sidesteps logistics challenges to post record quarterly revenue

Apr 28, 2022 01:07 PM ET
  • Microinverter provider Enphase Energy avoided ongoing international logistics challenges in the opening quarter of 2022 to post record quarterly revenues.
Enphase Energy sidesteps logistics challenges to post record quarterly revenue
Image: Enphase

Enphase posted revenues of US$ 441.3 million in the 3 months finishing 31 March 2022, passing the top end of its guidance through, in spite of a 6% drop in sequential microinverter shipments, falling to 2.8 million units or 1,022 MWdc.

Shipments of its battery energy storage space product remained to climb, nonetheless, recording a 20% quarterly rise to 120.4 MWh.

The company anticipates to introduce the most recent version of its intelligence series of microinverters, the IQ8, to Europe and also Australia throughout the 2nd half of 2022 after releasing in the US late last year.

Talking to financiers as well as analysts adhering to the outcomes disclosure, Enphase president Badri Kothandaraman specified supply chains are still "under stress and anxiety", yet its microinverter making continued to be stable after it had actually qualified alternate suppliers.

However, Kothandaraman claimed business was continuing to be "vigilant" in relation to the worldwide supply chain.

Kothandaraman added that Enphase's quarterly production capacity had gone beyond 5 million, with Mexico leading the way with 2.25 million. 1.5 million units are made in India with the rest originating from China.

An automated manufacturing facility in Romania is currently unfinished as part of a collaboration with Flex as well as will certainly be operational in Q1 2023. It will certainly have a quarterly capacity of 750,000 units which will certainly "support the increased need as well as to boost delivery times to clients in Europe" added Kothandaraman.

On the other hand, in terms of batteries shipments to Europe, the business is presently shipping them to Germany and also Belgium and also will plan on getting in more recent markets in Europe throughout the year.

It is additionally on course to add a 3rd cell pack supplier in the 2nd half of the year, but has actually not revealed how much it will certainly add to the present complete capacity of 180MWh per quarter.

Preparations for the batteries are still at 14 to 16 weeks comparable to the previous quarter as a result of the ongoing worldwide logistic challenges, however these might come down when port blockage as well as shipping restrictions boost.

In support for Q2 2022, Enphase has forecast revenue to be within US$ 490-520 million, including shipments of 130-- 140MWh of battery energy storage products.

"Our total consumer need for Q2 is quite robust for both microinverters as well as batteries and also goes beyond the higher end of our advice array. The component availability is far better than what we have experienced in the last 18 months, yet there are still global challenges, which are not specific to Enphase. We remain positive that the preparations will certainly come down by the end of this year," said Kothandaraman.

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