Enphase Energy Reports Financial Results for the Third Quarter of 2020

October 27, 2020 at 4:05 PM EDT

FREMONT, Calif., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy management technology company and the world’s leading supplier of microinverter-based solar-plus-storage systems, announced today financial results for the third quarter of 2020, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported revenue of $178.5 million in the third quarter of 2020, along with a record 41.0% for non-GAAP gross margin. We shipped approximately 478 megawatts DC, or 1,442,743 microinverters.

The financial highlights for the third quarter of 2020 are listed below. The GAAP numbers include an approximate $23 million refund on tariffs which were previously paid on microinverters imported to the U.S. from China. The non-GAAP numbers do not include the tariff refund:

  • Revenue of $178.5 million
  • Cash flow from operations of $67.5 million; ending cash balance of $661.8 million
  • GAAP gross margin of 53.2%; record non-GAAP gross margin of 41.0%
  • GAAP operating income of $51.8 million; non-GAAP operating income of $43.7 million
  • GAAP net income of $39.4 million; non-GAAP net income of $41.8 million
  • GAAP diluted earnings per share of $0.28; non-GAAP diluted earnings per share of $0.30

Our revenue and earnings for the third quarter of 2020 are provided below, compared with those of the prior quarter and the year ago quarter:

(In thousands, except per share data and percentages)

  GAAP   Non-GAAP
  Q3 2020   Q2 2020   Q3 2019*   Q3 2020   Q2 2020   Q3 2019*
Revenue $ 178,503     $ 125,538     $ 180,057     $ 178,503     $ 125,538     $ 180,057  
Gross margin 53.2 %   38.5 %   35.9 %   41.0 %   39.6 %   36.2 %
Operating expenses $ 43,222     $ 37,533     $ 31,000     $ 29,571     $ 26,024     $ 25,037  
Operating income $ 51,759     $ 10,854     $ 33,706     $ 43,675     $ 23,700     $ 40,166  
Net income (loss) $ 39,362     $ (47,294 )   $ 31,099     $ 41,760     $ 23,549     $ 39,466  
Basic EPS $ 0.31     $ (0.38 )   $ 0.25     $ 0.33     $ 0.19     $ 0.32  
Diluted EPS $ 0.28     $ (0.38 )   $ 0.23     $ 0.30     $ 0.17     $ 0.30  

* Revenue for the third quarter of 2019 of $180.1 million included approximately $8.0 million of safe harbor revenue.

Our non-GAAP gross margin increased to 41.0% from 39.6% in the second quarter of 2020, driven by disciplined pricing and cost management. Non-GAAP operating expenses increased to $29.6 million in the third quarter of 2020, compared to $26.0 million in the prior quarter, primarily due to an increase in our engineering and sales headcount to support innovation and growth. Non-GAAP operating income was $43.7 million, compared to $23.7 million in the prior quarter.

We exited the third quarter with $661.8 million in cash and generated $67.5 million in cash flow from operations. Inventory was $37.5 million at the end of the third quarter of 2020, compared to $31.2 million at the end of the second quarter of 2020. The sequential increase in inventory was driven by the purchase of battery cell packs to support the increased shipments of Encharge™ storage systems in the fourth quarter of 2020, along with the expected increase in microinverter shipments.

We started production shipments of our Encharge storage systems to customers in North America in July and ramped volume throughout the third quarter of 2020. The feedback from both installers and homeowners has been positive. Installers like the system’s modularity and having a single provider of a rooftop power electronics and battery storage systems, while homeowners value the product’s differentiated functionality, industrial design, reliability, safety, and ability to get on and off-grid from a smartphone app. The Encharge storage system features Enphase Power Start™ technology, allowing homeowners to start motor-driven appliances, such as air conditioners and pumps, in off-grid mode with optimal system size. In addition, the Enlighten™ energy management software platform gives homeowners the power of insight into the performance of their solar and storage systems. We are excited about the ability to offer our customers peace of mind with our energy independent solution.

Demand for our core microinverter products rebounded strongly in the third quarter of 2020. We experienced record sell-through from distribution to installers, resulting in channel inventory slightly below the low end of our typical target range. Sales to distributors improved significantly and was broad-based geographically. We were also pleased to report our first quarter of significant revenue from the sale of Encharge storage systems.

BUSINESS HIGHLIGHTS

On Aug. 17, 2020, Enphase Energy announced a strategic partnership with Sonnenstromfabrik (CS Wismar GmbH), one of Europe’s most modern, high-quality manufacturers of solar modules, to develop the first high-efficiency Enphase Energized™ AC module (ACM) utilizing the Enphase IQ 7+™ microinverters for the European residential solar markets.

On Aug. 26, 2020 Enphase Energy announced that Solargain, one of Australia's largest and most experienced solar energy providers, selected Enphase microinverters as the premium inverter solution for its turnkey retail solar offerings in Australia. Solargain was selected by IKEA as its Australian partner to support IKEA's in-store and online solar offering and Australian consumers purchasing a Solargain-IKEA solar system can select Enphase IQ 7+ microinverters.

On Aug. 31, 2020, Enphase Energy announced that Enphase IQ 7A™ microinverters for high-power monofacial and bifacial solar modules are shipping to customers in Australia and Europe. IQ 7A microinverters, support up to 450W high-power modules, targeting residential and commercial solar applications.

On Sept. 21, 2020, Enphase Energy announced it entered into partnerships with three solar distribution companies in Belgium and the Netherlands–Carbomat Group, Libra Energy and Solarclarity, further strengthening Enphase’s presence in the European solar market.

On Oct. 20, 2020, Enphase Energy announced that SunCool Energy has started offering the Enphase Encharge storage system to customers in South Florida. Encharge storage systems feature Enphase Ensemble™ energy management technology, which powers the world’s first fully integrated, grid-agnostic microinverter-based solar-plus-storage system.

FOURTH QUARTER 2020 FINANCIAL OUTLOOK

For the fourth quarter of 2020, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

  • Revenue to be within a range of $245.0 million to $260.0 million; revenue guidance does not include any safe harbor shipments
  • GAAP gross margin to be within a range of 37.0% to 40.0%, excluding the recovery of the remaining $16.0 million tariff refund that has not yet been approved; non-GAAP gross margin to be within a range of 38.0% to 41.0%, excluding tariff refund and stock-based compensation expenses
  • GAAP operating expenses to be within a range of $51.0 million to $54.0 million, including $16.0 million estimated for stock-based compensation expenses and acquisition related amortization
  • Non-GAAP operating expenses to be within a range of $35.0 million to $38.0 million, excluding $16.0 million estimated for stock-based compensation expenses and acquisition related amortization

Follow Enphase Online

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this press release. To view a description of non-GAAP financial measures used and the non-GAAP reconciliation schedule for the periods presented, click here.

Conference Call Information

Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2020 results and fourth quarter 2020 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (877) 644-1284; participant passcode 3662778. A live webcast of the conference call will also be accessible from the “Investor Relations” section of the Company’s website at investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (855) 859-2056; participant passcode 3662778, beginning approximately one hour after the call.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to future financial performance,  expense levels, the capabilities, advantages, and performance of our technology and products, our business strategies and anticipated demand for our products. These forward-looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

A copy of this press release can be found on the investor relations page of Enphase Energy’s website at investor.enphase.com

About Enphase Energy, Inc.

Enphase Energy, a global energy technology company, delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one intelligent platform. The Company revolutionized the solar industry with its microinverter technology and produces a fully integrated solar-plus-storage solution. Enphase has shipped more than 30 million microinverters, and approximately 1.3 million Enphase systems have been deployed in more than 130 countries. For more information, visit www.enphase.com.

Enphase Energy®, the Enphase logo, Encharge, Power Start, Enlighten, Enphase Energized, IQ 7+, IQ 7A, Ensemble, and other trademarks or service names are the trademarks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

Contact:
Adam Hinckley
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com 
+1-707-763-4784 x7354


ENPHASE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
Net revenues $ 178,503     $ 125,538     $ 180,057     $ 509,586     $ 414,301  
Cost of revenues (1) 83,522     77,151     115,351     285,543     270,937  
Gross profit 94,981     48,387     64,706     224,043     143,364  
Operating expenses:                  
Research and development 15,052     13,192     11,085     40,120     29,213  
Sales and marketing 14,645     12,371     9,551     38,788     26,038  
General and administrative 13,525     11,970     9,895     37,810     28,358  
Restructuring charges         469         1,468  
  Total operating expenses 43,222     37,533     31,000     116,718     85,077  
Income from operations 51,759     10,854     33,706     107,325     58,287  
Other expense, net                  
Interest income 110     282     894     1,483     1,698  
Interest expense (5,993 )   (5,952 )   (2,286 )   (15,100 )   (7,388 )
Other expense, net (1,031 )   653     (943 )   (1,302 )   (6,904 )
Change in fair value of derivatives (2)     (59,692 )       (44,348 )    
  Total other expense, net (6,914 )   (64,709 )   (2,335 )   (59,267 )   (12,594 )
Income before income taxes 44,845     (53,855 )   31,371     48,058     45,693  
Income tax benefit (provision) (5,483 )   6,561     (272 )   12,946     (1,211 )
Net income (loss) $ 39,362     $ (47,294 )   $ 31,099     $ 61,004     $ 44,482  
Net income (loss) per share:                  
Basic $ 0.31     $ (0.38 )   $ 0.25     $ 0.49     $ 0.39  
Diluted $ 0.28     $ (0.38 )   $ 0.23     $ 0.44     $ 0.35  
Shares used in per share calculation:                  
Basic 126,109     125,603     122,123     125,084     114,720  
Diluted 141,820     125,603     133,611     140,207     131,114  

(1) We sought refunds totaling approximately $39 million plus accrued interest on tariffs previously paid from September 24, 2018 to March 31, 2020 for certain microinverters that qualify for the tariff exclusion on Chinese imported microinverter products that fit the dimensions and weight limits within a Section 301 Tariff exclusion under U.S. note 20(ss)(40) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States. The refund request is subject to review and approval by the U.S. Customs and Border Protection; therefore, we have assessed the probable loss recovery in the three and nine months ended September 30, 2020 is equal to the $23.0 million approved refund requests available to us prior to issuance of the financial statements on October 27, 2020.  As of both the three and nine months ended September 30, 2020, we have recorded $23.0 million as a reduction to cost of revenues in our condensed consolidated statements of operations as the approved refunds relate to paid tariffs previously recorded to cost of revenues, therefore, we recorded the corresponding approved tariff refunds as credits to cost of revenues in the current period.

(2) Change in fair value of derivatives of $44.3 million for the nine months ended September 30, 2020, represents changes in fair value of the conversion option in the Notes due 2025, as well as the convertible note hedge and warrant transactions. Initially, conversion of the Notes due 2025 would be settled solely in cash as a result of the Company not having the necessary number of authorized but unissued shares of its common stock available to settle the conversion option of the Notes due 2025 in shares; therefore, the conversion option, convertible note hedge and warrant transactions were classified as derivatives that required marked-to-market accounting. On May 20, 2020, at the Company’s annual meeting of stockholders, the stockholders approved an amendment to its certificate of incorporation to increase the number of authorized shares of the Company’s common stock. As a result, the Company will now be able to settle the Notes due 2025, convertible notes hedge and warrants through payment or delivery, as the case may be, of cash, shares of its common stock or a combination thereof, at the Company’s election. Accordingly, on May 20, 2020, the conversion option, convertible note hedge and warrant transactions were remeasured at fair value and were then reclassified to additional paid-in-capital in the condensed consolidated balance sheet in the second quarter of 2020 and are no longer remeasured as long as they continue to meet the conditions for equity classification.


ENPHASE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

  September 30,
2020
  December 31,
2019
ASSETS      
Current assets:      
Cash and cash equivalents $ 661,792     $ 251,409  
Restricted cash     44,700  
Accounts receivable, net 122,386     145,413  
Inventory 37,535     32,056  
Prepaid expenses and other assets 28,521     26,079  
  Total current assets 850,234     499,657  
Property and equipment, net 35,187     28,936  
Operating lease, right of use asset, net 14,487     10,117  
Intangible assets, net 26,839     30,579  
Goodwill 24,783     24,783  
Other assets 51,998     44,620  
Deferred tax assets, net 88,812     74,531  
  Total assets $ 1,092,340     $ 713,223  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 48,148     $ 57,474  
Accrued liabilities 52,203     47,092  
Deferred revenues, current 41,738     81,783  
Warranty obligations, current 10,760     10,078  
Debt, current 103,670     2,884  
  Total current liabilities 256,519     199,311  
Long-term liabilities:      
Deferred revenues, noncurrent 115,757     100,204  
Warranty obligations, noncurrent 33,019     27,020  
Other liabilities 14,387     11,817  
Debt, noncurrent 256,452     102,659  
  Total liabilities 676,134     441,011  
  Total stockholders’ equity 416,206     272,212  
Total liabilities and stockholders’ equity $ 1,092,340     $ 713,223  


ENPHASE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
Cash flows from operating activities:                  
Net (loss) income (1) $ 39,362     $ (47,294 )   $ 31,099     $ 61,004     $ 44,482  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                  
Depreciation and amortization 4,765     4,141     3,857     12,750     11,551  
Provision for doubtful accounts 69     81     201     254     408  
Non-cash interest expense 5,422     5,372     1,907     13,516     4,173  
Financing fees on extinguishment of debt                 2,152  
Fees paid for repurchase and exchange of convertible notes due 2023                 6,000  
Stock-based compensation 14,399     12,300     5,776     34,214     14,000  
Change in fair value of derivatives     59,692         44,348      
Deferred income taxes 5,060     (7,067 )       (14,507 )    
Changes in operating assets and liabilities:                  
Accounts receivable (32,633 )   6,529     (37,035 )   23,533     (56,139 )
Inventory (6,349 )   3,430     (10,137 )   (5,479 )   (13,964 )
Prepaid expenses and other assets (917 )   (4,525 )   934     (10,451 )   (8,634 )
Accounts payable, accrued and other liabilities (1) 26,189     (13,323 )   1,851     (9,200 )   18,656  
Warranty obligations 5,872     406     1,631     6,681     3,330  
Deferred revenues 6,262     5,689     4,877     (24,509 )   10,781  
  Net cash provided by operating activities 67,501     25,431     4,961     132,154     36,796  
Cash flows from investing activities:                  
Purchases of property and equipment (3,903 )   (4,451 )   (4,192 )   (11,707 )   (7,368 )
  Net cash used in investing activities (3,903 )   (4,451 )   (4,192 )   (11,707 )   (7,368 )
Cash flows from financing activities:                  
Issuance of convertible notes, net of issuance costs     (591 )   (559 )   312,420     127,481  
Purchase of convertible note hedges             (89,056 )   (36,313 )
Sale of warrants             71,552     29,819  
Fees paid for repurchase and exchange of convertible notes due 2023                 (6,000 )
Principal payments and financing fees on debt (636 )   (485 )   (536 )   (2,269 )   (45,658 )
Proceeds from exercise of equity awards and employee stock purchase plan (138 )   2,867     303     4,708     2,925  
Payment of withholding taxes related to net share settlement of equity awards (8,390 )   (9,385 )   (2,348 )   (52,042 )   (4,438 )
Net cash provided by (used in) financing activities (9,164 )   (7,594 )   (3,140 )   245,313     67,816  
Effect of exchange rate changes on cash and cash equivalents 104     24     (542 )   (77 )   (435 )
Net increase in cash and cash equivalents 54,538     13,410     (2,913 )   365,683     96,809  
Cash, cash equivalents and restricted cash—Beginning of period 607,254     593,844     205,959     296,109     106,237  
Cash and cash equivalents—End of period $ 661,792     $ 607,254     $ 203,046     $ 661,792     $ 203,046  

(1) As of September 30, 2020, we have received $16.0 million of tariff refunds and accrued for $7.0 million tariff refunds that were approved, however, not yet received on or before September 30, 2020. As of both the three and nine months ended September 30, 2020, we have recorded $23.0 million as a reduction to cost of revenues in our condensed consolidated statements of operations as the approved refunds relate to paid tariffs previously recorded to cost of revenues, therefore, we recorded the corresponding approved tariff refunds as credits to cost of revenues in the current period. The tariff refund receivable of $7.0 million is recorded as a reduction of accounts payable to Flex Ltd. and affiliates (“Flex”), our manufacturing partner and the importer of record who will first receive the tariff refunds, on the condensed consolidated balance sheet as of September 30, 2020.


ENPHASE ENERGY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data and percentages)
(Unaudited)

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
Gross profit (GAAP) $ 94,981     $ 48,387     $ 64,706     $ 224,043     $ 143,364  
Stock-based compensation 1,294     1,337     497     3,237     1,114  
Tariff refunds (23,029 )           (23,029 )    
Gross profit (Non-GAAP) $ 73,246     $ 49,724     $ 65,203     $ 204,251     $ 144,478  
                   
Gross margin (GAAP) 53.2 %   38.5 %   35.9 %   44.0 %   34.6 %
Stock-based compensation 0.7 %   1.1 %   0.3 %   0.6 %   0.3 %
Tariff refunds (12.9 )%   %   %   (4.5 )%   %
Gross margin (Non-GAAP) 41.0 %   39.6 %   36.2 %   40.1 %   34.9 %
                   
Operating expenses (GAAP) $ 43,222     $ 37,533     $ 31,000     $ 116,718     $ 85,077  
Stock-based compensation (1) (13,105 )   (10,963 )   (4,948 )   (30,977 )   (12,168 )
Restructuring and asset impairment charges         (469 )       (1,468 )
Acquisition related expenses and amortization (546 )   (546 )   (546 )   (1,638 )   (1,638 )
Operating expenses (Non-GAAP) $ 29,571     $ 26,024     $ 25,037     $ 84,103     $ 69,803  
                   
(1) Includes stock-based compensation as follows:                  
Research and development $ 4,248     $ 3,263     $ 1,411     $ 9,430     $ 3,255  
Sales and marketing 3,952     3,610     1,541     9,504     3,900  
General and administrative 4,905     4,090     1,996     12,043     5,013  
Restructuring             $     $ 718  
  Total $ 13,105     $ 10,963     $ 4,948     $ 30,977     $ 12,168  
                   
Income from operations (GAAP) $ 51,759     $ 10,854     $ 33,706     $ 107,325     $ 58,287  
Stock-based compensation 14,399     12,300     5,445     34,214     13,282  
Tariff refunds (23,029 )           (23,029 )    
Restructuring and asset impairment charges         469         1,468  
Acquisition related expenses and amortization 546     546     546     1,638     1,638  
Income from operations (Non-GAAP) $ 43,675     $ 23,700     $ 40,166     $ 120,148     $ 74,675  
                   
Net income (loss) (GAAP) $ 39,362     $ (47,294 )   $ 31,099     $ 61,004     $ 44,482  
Stock-based compensation 14,399     12,300     5,445     34,214     13,282  
Tariff refunds (23,029 )           (23,029 )    
Restructuring and asset impairment charges         469         1,468  
Acquisition related expenses and amortization 546     546     546     1,638     1,638  
Non-recurring debt prepayment fees and non-cash interest 5,422     5,372     1,907     13,516     11,297  
Change in fair value of derivatives     59,692         44,348      
Non-GAAP income tax adjustment 5,060     (7,067 )       (14,507 )    
Net income (Non-GAAP) $ 41,760     $ 23,549     $ 39,466     $ 117,184     $ 72,167  
                   
Net income (loss) per share, basic (GAAP) $ 0.31     $ (0.38 )   $ 0.25     $ 0.49     $ 0.39  
Stock-based compensation 0.12     0.10     0.05     0.28     0.12  
Tariff refunds (0.18 )           (0.18 )    
Restructuring and asset impairment charges                 0.01  
Acquisition related expenses and amortization             0.01     0.01  
Non-recurring debt prepayment fees and non-cash interest 0.04     0.05     0.02     0.11     0.10  
Change in fair value of derivatives     0.48         0.35      
Non-GAAP income tax adjustment 0.04     (0.06 )       (0.12 )    
Net income per share, basic (Non-GAAP) $ 0.33     $ 0.19     $ 0.32     $ 0.94     $ 0.63  
                   
Shares used in basic per share calculation GAAP and Non-GAAP 126,109     125,603     122,123     125,084     114,720  
                   
Net income (loss) per share, diluted (GAAP) $ 0.28     $ (0.38 )   $ 0.23     $ 0.44     $ 0.35  
Stock-based compensation 0.11     0.09     0.04     0.26     0.10  
Restructuring and asset impairment charges         0.01         0.01  
Tariff Refunds (0.17 )           (0.17 )    
Acquisition related expenses and amortization         0.01     0.01     0.01  
Non-recurring debt prepayment fees and non-cash interest 0.04     0.04     0.01     0.10     0.09  
Change in fair value of derivatives     0.48         0.33      
Non-GAAP income tax adjustment 0.04     (0.06 )       (0.11 )   $  
Net income per share, diluted (Non-GAAP) (2) (4) $ 0.30     $ 0.17     $ 0.30     $ 0.86     $ 0.56  
                   
Shares used in diluted per share calculation GAAP 141,820     125,603     133,611     140,207     131,114  
Shares used in diluted per share calculation Non-GAAP (3) (4) 137,352     135,770     132,323     136,359     130,729  

(2) Calculation of non-GAAP diluted net income per share for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019 excludes convertible notes due 2023 interest expense, net of tax of less than $0.1 million in each period from non-GAAP net income. Calculation of non-GAAP diluted net income per share for the nine months ended September 30, 2020 and September 30, 2019 excludes convertible notes due 2023 interest expense, net of tax of less than $0.1 million and $0.9 million, respectively, from non-GAAP net income.

(3) Effect of dilutive in-the-money portion of convertible senior notes and warrants are included in the GAAP weighted-average diluted shares in periods where the Company has GAAP net income. The Company excluded the in-the-money portion of convertible notes due 2024 totaling 4,468 thousand shares, 3677 thousand shares and 1,288 thousand shares in the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and 3,849 thousand shares and 385 thousand shares for the nine months ended September 30, 2020 and September 30, 2019, respectively for non-GAAP weighted-average diluted shares as the Company entered into convertible note hedge transactions that reduce potential dilution to the Company’s common stock upon any conversion of the notes due 2024.

(4) Effect of dilutive in-the-money portion of Stock Options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes due 2023 and the warrants issued in conjunction with the Notes due 2024 are included in the non-GAAP weighted-average diluted shares in periods where the Company has non-GAAP net income, which totaled 10,167 thousand shares in the three months ended June 30, 2020.


Enphase_Logo_Standard_orange_gray_RGB copy.jpg

Source: Enphase Energy, Inc.