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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Enphase Energy Inc | NASDAQ:ENPH | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
8.04 | 7.58% | 114.1002 | 111.00 | 120.00 | 117.26 | 110.44 | 110.45 | 6,067,185 | 05:00:09 |
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(Mark One)
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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Delaware
|
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20-4645388
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(State or other jurisdiction of incorporation or organization)
|
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(I.R.S. Employer Identification No.)
|
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|
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Title of each class
|
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Trading Symbol(s)
|
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Name of each exchange on which registered
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Common Stock, $0.00001 par value per share
|
|
ENPH
|
|
Nasdaq Global Market
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
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Page
|
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As of
|
||||||
|
September 30,
2020 |
|
December 31,
2019 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
661,792
|
|
|
$
|
251,409
|
|
Restricted cash
|
—
|
|
|
44,700
|
|
||
Accounts receivable, net of allowances of $348 and $564 at September 30, 2020 and December 31, 2019, respectively
|
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 (includes $7,560 and $6,794 measured at fair value at September 30, 2020 and December 31, 2019, respectively)
|
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 (includes $18,188 and $13,012 measured at fair value at September 30, 2020 and December 31, 2019, respectively)
|
33,019
|
|
|
27,020
|
|
||
Other liabilities
|
14,387
|
|
|
11,817
|
|
||
Debt, noncurrent
|
256,452
|
|
|
102,659
|
|
||
Total liabilities
|
676,134
|
|
|
441,011
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $0.00001 par value, 200,000 shares and 150,000 shares authorized; and 126,270 shares and 123,109 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
540,738
|
|
|
458,315
|
|
||
Accumulated deficit
|
(124,177
|
)
|
|
(185,181
|
)
|
||
Accumulated other comprehensive loss
|
(356
|
)
|
|
(923
|
)
|
||
Total stockholders’ equity
|
416,206
|
|
|
272,212
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,092,340
|
|
|
$
|
713,223
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenues
|
$
|
178,503
|
|
|
$
|
180,057
|
|
|
$
|
509,586
|
|
|
$
|
414,301
|
|
Cost of revenues
|
83,522
|
|
|
115,351
|
|
|
285,543
|
|
|
270,937
|
|
||||
Gross profit
|
94,981
|
|
|
64,706
|
|
|
224,043
|
|
|
143,364
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
15,052
|
|
|
11,085
|
|
|
40,120
|
|
|
29,213
|
|
||||
Sales and marketing
|
14,645
|
|
|
9,551
|
|
|
38,788
|
|
|
26,038
|
|
||||
General and administrative
|
13,525
|
|
|
9,895
|
|
|
37,810
|
|
|
28,358
|
|
||||
Restructuring charges
|
—
|
|
|
469
|
|
|
—
|
|
|
1,468
|
|
||||
Total operating expenses
|
43,222
|
|
|
31,000
|
|
|
116,718
|
|
|
85,077
|
|
||||
Income from operations
|
51,759
|
|
|
33,706
|
|
|
107,325
|
|
|
58,287
|
|
||||
Other expense, net
|
|
|
|
|
|
|
|
||||||||
Interest income
|
110
|
|
|
894
|
|
|
1,483
|
|
|
1,698
|
|
||||
Interest expense
|
(5,993
|
)
|
|
(2,286
|
)
|
|
(15,100
|
)
|
|
(7,388
|
)
|
||||
Other expense, net
|
(1,031
|
)
|
|
(943
|
)
|
|
(1,302
|
)
|
|
(6,904
|
)
|
||||
Change in fair value of derivatives
|
—
|
|
|
—
|
|
|
(44,348
|
)
|
|
—
|
|
||||
Total other expense, net
|
(6,914
|
)
|
|
(2,335
|
)
|
|
(59,267
|
)
|
|
(12,594
|
)
|
||||
Income before income taxes
|
44,845
|
|
|
31,371
|
|
|
48,058
|
|
|
45,693
|
|
||||
Income tax benefit (provision)
|
(5,483
|
)
|
|
(272
|
)
|
|
12,946
|
|
|
(1,211
|
)
|
||||
Net income
|
$
|
39,362
|
|
|
$
|
31,099
|
|
|
$
|
61,004
|
|
|
$
|
44,482
|
|
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.31
|
|
|
$
|
0.25
|
|
|
$
|
0.49
|
|
|
$
|
0.39
|
|
Diluted
|
$
|
0.28
|
|
|
$
|
0.23
|
|
|
$
|
0.44
|
|
|
$
|
0.35
|
|
Shares used in per share calculation:
|
|
|
|
|
|
|
|
||||||||
Basic
|
126,109
|
|
|
122,123
|
|
|
125,084
|
|
|
114,720
|
|
||||
Diluted
|
141,820
|
|
|
133,611
|
|
|
140,207
|
|
|
131,114
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income
|
$
|
39,362
|
|
|
$
|
31,099
|
|
|
$
|
61,004
|
|
|
$
|
44,482
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
797
|
|
|
155
|
|
|
567
|
|
|
(173
|
)
|
||||
Comprehensive income
|
$
|
40,159
|
|
|
$
|
31,254
|
|
|
$
|
61,571
|
|
|
$
|
44,309
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Common stock and paid-in capital
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
534,868
|
|
|
$
|
449,803
|
|
|
$
|
458,316
|
|
|
$
|
353,336
|
|
Cumulative-effect adjustment to additional paid in capital(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
||||
Issuance of common stock from exercise of equity awards
|
541
|
|
|
303
|
|
|
4,708
|
|
|
2,925
|
|
||||
Payment of withholding taxes related to net share settlement of equity awards
|
(9,069
|
)
|
|
(2,348
|
)
|
|
(52,042
|
)
|
|
(4,438
|
)
|
||||
Conversion of convertible notes due 2023, net
|
—
|
|
|
—
|
|
|
—
|
|
|
58,857
|
|
||||
Equity component of convertible notes
|
—
|
|
|
25
|
|
|
116,300
|
|
|
35,114
|
|
||||
Cost of convertible notes hedge related to the convertible notes
|
—
|
|
|
—
|
|
|
(117,108
|
)
|
|
(36,313
|
)
|
||||
Sale of warrants related to the convertible notes
|
—
|
|
|
—
|
|
|
96,351
|
|
|
29,818
|
|
||||
Stock-based compensation expense and other
|
14,399
|
|
|
5,784
|
|
|
34,214
|
|
|
14,241
|
|
||||
Balance, end of period
|
$
|
540,739
|
|
|
$
|
453,567
|
|
|
$
|
540,739
|
|
|
$
|
453,567
|
|
|
|
|
|
|
|
|
|
||||||||
Accumulated deficit
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(163,539
|
)
|
|
$
|
(332,946
|
)
|
|
$
|
(185,181
|
)
|
|
$
|
(346,302
|
)
|
Cumulative-effect adjustment to accumulated deficit(1) and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||
Net income
|
39,362
|
|
|
31,099
|
|
|
61,004
|
|
|
44,482
|
|
||||
Balance, end of period
|
$
|
(124,177
|
)
|
|
$
|
(301,847
|
)
|
|
$
|
(124,177
|
)
|
|
$
|
(301,847
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(1,153
|
)
|
|
$
|
414
|
|
|
$
|
(923
|
)
|
|
$
|
742
|
|
Foreign currency translation adjustments
|
797
|
|
|
155
|
|
|
567
|
|
|
(173
|
)
|
||||
Balance, end of period
|
$
|
(356
|
)
|
|
$
|
569
|
|
|
$
|
(356
|
)
|
|
$
|
569
|
|
Total stockholders' equity, ending balance
|
$
|
416,206
|
|
|
$
|
152,289
|
|
|
$
|
416,206
|
|
|
$
|
152,289
|
|
|
|
(1)
|
Includes the adoption of Accounting Standards Update (“ASU”) 2018-07, “Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting” on January 1, 2019.
|
|
|
Nine Months Ended
September 30, |
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
61,004
|
|
|
$
|
44,482
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
12,750
|
|
|
11,551
|
|
||
Provision for doubtful accounts
|
254
|
|
|
408
|
|
||
Non-cash interest expense
|
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
|
34,214
|
|
|
14,000
|
|
||
Change in fair value of derivatives
|
44,348
|
|
|
—
|
|
||
Deferred income taxes
|
(14,507
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
23,533
|
|
|
(56,139
|
)
|
||
Inventory
|
(5,479
|
)
|
|
(13,964
|
)
|
||
Prepaid expenses and other assets
|
(10,451
|
)
|
|
(8,634
|
)
|
||
Accounts payable, accrued and other liabilities
|
(9,200
|
)
|
|
18,656
|
|
||
Warranty obligations
|
6,681
|
|
|
3,330
|
|
||
Deferred revenues
|
(24,509
|
)
|
|
10,781
|
|
||
Net cash provided by operating activities
|
132,154
|
|
|
36,796
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(11,707
|
)
|
|
(7,368
|
)
|
||
Net cash used in investing activities
|
(11,707
|
)
|
|
(7,368
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Issuance of convertible notes, net of issuance costs
|
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
|
(2,269
|
)
|
|
(45,658
|
)
|
||
Proceeds from exercise of equity awards and employee stock purchase plan
|
4,708
|
|
|
2,925
|
|
||
Payment of withholding taxes related to net share settlement of equity awards
|
(52,042
|
)
|
|
(4,438
|
)
|
||
Net cash provided by financing activities
|
245,313
|
|
|
67,816
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(77
|
)
|
|
(435
|
)
|
||
Net increase in cash and cash equivalents
|
365,683
|
|
|
96,809
|
|
||
Cash, cash equivalents and restricted cash—Beginning of period
|
296,109
|
|
|
106,237
|
|
||
Cash and cash equivalents—End of period
|
$
|
661,792
|
|
|
$
|
203,046
|
|
|
|
|
|
||||
Supplemental disclosures of non-cash investing and financing activities:
|
|
|
|
||||
Purchases of fixed assets included in accounts payable
|
$
|
2,132
|
|
|
$
|
926
|
|
Accrued interest payable unpaid upon exchange of convertible notes due 2023
|
$
|
—
|
|
|
$
|
833
|
|
|
1.
|
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
|
|
|
2.
|
REVENUE RECOGNITION
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Primary geographical markets:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
139,924
|
|
|
$
|
150,686
|
|
|
$
|
420,315
|
|
|
$
|
328,281
|
|
International
|
38,579
|
|
|
29,371
|
|
|
89,271
|
|
|
86,020
|
|
||||
Total
|
$
|
178,503
|
|
|
$
|
180,057
|
|
|
$
|
509,586
|
|
|
$
|
414,301
|
|
|
|
|
|
|
|
|
|
||||||||
Timing of revenue recognition:
|
|
|
|
|
|
|
|
||||||||
Products delivered at a point in time
|
$
|
166,729
|
|
|
$
|
170,152
|
|
|
$
|
475,707
|
|
|
$
|
384,888
|
|
Products and services delivered over time
|
11,774
|
|
|
9,905
|
|
|
33,879
|
|
|
29,413
|
|
||||
Total
|
$
|
178,503
|
|
|
$
|
180,057
|
|
|
$
|
509,586
|
|
|
$
|
414,301
|
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Receivables
|
$
|
122,386
|
|
|
$
|
145,413
|
|
Short-term contract assets (Prepaid expenses and other assets)
|
16,973
|
|
|
15,055
|
|
||
Long-term contract assets (Other assets)
|
48,792
|
|
|
42,087
|
|
||
Short-term contract liabilities (Deferred revenues)
|
41,738
|
|
|
81,783
|
|
||
Long-term contract liabilities (Deferred revenues)
|
115,757
|
|
|
100,204
|
|
Contract Assets
|
|
||
Balance on December 31, 2019
|
$
|
57,142
|
|
Amount recognized
|
(12,942
|
)
|
|
Increase
|
21,565
|
|
|
Balance as of September 30, 2020
|
$
|
65,765
|
|
|
Contract Liabilities
|
|
||
Balance on December 31, 2019
|
$
|
181,987
|
|
Revenue recognized
|
(78,614
|
)
|
|
Increase due to billings
|
54,122
|
|
|
Balance as of September 30, 2020
|
$
|
157,495
|
|
|
September 30,
2020 |
||
|
(In thousands)
|
||
Fiscal year:
|
|
||
2020 (remaining three months)
|
$
|
11,888
|
|
2021
|
39,344
|
|
|
2022
|
34,296
|
|
|
2023
|
28,483
|
|
|
2024
|
23,259
|
|
|
Thereafter
|
20,225
|
|
|
Total
|
$
|
157,495
|
|
3.
|
OTHER FINANCIAL INFORMATION
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Accounts receivable
|
$
|
122,734
|
|
|
$
|
145,977
|
|
Allowance for doubtful accounts
|
(348
|
)
|
|
(564
|
)
|
||
Accounts receivable, net
|
$
|
122,386
|
|
|
$
|
145,413
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
September 30, 2020
|
||||||
|
(In thousands)
|
||||||
Balance, at beginning of the period
|
$
|
296
|
|
|
$
|
564
|
|
Net charges to expenses
|
70
|
|
|
254
|
|
||
Write-offs, net of recoveries
|
(18
|
)
|
|
(470
|
)
|
||
Balance, at end of the period
|
$
|
348
|
|
|
$
|
348
|
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Raw materials
|
$
|
7,148
|
|
|
$
|
4,197
|
|
Finished goods
|
30,387
|
|
|
27,859
|
|
||
Total inventory
|
$
|
37,535
|
|
|
$
|
32,056
|
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Salaries, commissions, incentive compensation and benefits
|
$
|
5,494
|
|
|
$
|
5,524
|
|
Customer rebates and sales incentives
|
19,965
|
|
|
24,198
|
|
||
Freight
|
3,861
|
|
|
4,908
|
|
||
Operating lease liabilities, current
|
4,245
|
|
|
3,170
|
|
||
Other
|
18,638
|
|
|
9,292
|
|
||
Total accrued liabilities
|
$
|
52,203
|
|
|
$
|
47,092
|
|
|
4.
|
GOODWILL AND INTANGIBLE ASSETS
|
|
September 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Goodwill
|
$
|
24,783
|
|
|
$
|
—
|
|
|
$
|
24,783
|
|
|
$
|
24,783
|
|
|
$
|
—
|
|
|
$
|
24,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other indefinite-lived intangibles
|
$
|
286
|
|
|
$
|
—
|
|
|
$
|
286
|
|
|
$
|
286
|
|
|
$
|
—
|
|
|
$
|
286
|
|
Intangible assets with finite lives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Developed technology
|
13,100
|
|
|
(4,730
|
)
|
|
8,370
|
|
|
13,100
|
|
|
(3,093
|
)
|
|
10,007
|
|
||||||
Customer relationships
|
23,100
|
|
|
(4,917
|
)
|
|
18,183
|
|
|
23,100
|
|
|
(2,814
|
)
|
|
20,286
|
|
||||||
Total purchased intangible assets
|
$
|
36,486
|
|
|
$
|
(9,647
|
)
|
|
$
|
26,839
|
|
|
$
|
36,486
|
|
|
$
|
(5,907
|
)
|
|
$
|
30,579
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Developed technology, and patents and licensed technology
|
$
|
545
|
|
|
$
|
546
|
|
|
$
|
1,637
|
|
|
$
|
1,638
|
|
Customer relationships
|
702
|
|
|
636
|
|
|
2,103
|
|
|
1,907
|
|
||||
Total amortization expense
|
$
|
1,247
|
|
|
$
|
1,182
|
|
|
$
|
3,740
|
|
|
$
|
3,545
|
|
|
5.
|
WARRANTY OBLIGATIONS
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Warranty obligations, beginning of period
|
$
|
37,907
|
|
|
$
|
32,994
|
|
|
$
|
37,098
|
|
|
$
|
31,294
|
|
Accruals for warranties issued during period
|
1,939
|
|
|
1,571
|
|
|
4,229
|
|
|
3,741
|
|
||||
Changes in estimates
|
3,869
|
|
|
3,884
|
|
|
7,294
|
|
|
5,387
|
|
||||
Settlements
|
(3,274
|
)
|
|
(3,780
|
)
|
|
(9,122
|
)
|
|
(8,282
|
)
|
||||
Increase due to accretion expense
|
832
|
|
|
562
|
|
|
2,410
|
|
|
1,663
|
|
||||
Other
|
2,506
|
|
|
(607
|
)
|
|
1,870
|
|
|
821
|
|
||||
Warranty obligations, end of period
|
43,779
|
|
|
34,624
|
|
|
43,779
|
|
|
34,624
|
|
||||
Less: current portion
|
(10,760
|
)
|
|
(8,757
|
)
|
|
(10,760
|
)
|
|
(8,757
|
)
|
||||
Noncurrent
|
$
|
33,019
|
|
|
$
|
25,867
|
|
|
$
|
33,019
|
|
|
$
|
25,867
|
|
6.
|
FAIR VALUE MEASUREMENTS
|
•
|
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment.
|
•
|
Level 2—Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
|
•
|
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
|
|
September 30,
2020 |
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
|
Level 3
|
|
Level 3
|
||||
Liabilities:
|
|
|
|
||||
Warranty obligations
|
|
|
|
||||
Current
|
$
|
7,560
|
|
|
$
|
6,794
|
|
Non-current
|
18,188
|
|
|
13,012
|
|
||
Total warranty obligations measured at fair value
|
25,748
|
|
|
19,806
|
|
||
Total liabilities measured at fair value
|
$
|
25,748
|
|
|
$
|
19,806
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance at beginning of period
|
$
|
21,132
|
|
|
$
|
14,856
|
|
|
$
|
19,806
|
|
|
$
|
11,757
|
|
Accruals for warranties issued during period
|
1,939
|
|
|
1,571
|
|
|
4,229
|
|
|
3,741
|
|
||||
Changes in estimates
|
1,279
|
|
|
2,676
|
|
|
2,877
|
|
|
3,536
|
|
||||
Settlements
|
(1,940
|
)
|
|
(2,074
|
)
|
|
(5,444
|
)
|
|
(4,534
|
)
|
||||
Increase due to accretion expense
|
832
|
|
|
562
|
|
|
2,410
|
|
|
1,663
|
|
||||
Other
|
2,506
|
|
|
(607
|
)
|
|
1,870
|
|
|
821
|
|
||||
Balance at end of period
|
$
|
25,748
|
|
|
$
|
16,984
|
|
|
$
|
25,748
|
|
|
$
|
16,984
|
|
|
|
|
|
|
|
Percent Used
(Weighted Average)
|
||
Item Measured at Fair Value
|
|
Valuation Technique
|
|
Description of Significant Unobservable Input
|
|
September 30,
2020 |
|
December 31,
2019 |
Warranty obligations for microinverters sold since January 1, 2014
|
|
Discounted cash flows
|
|
Profit element and risk premium
|
|
15%
|
|
14%
|
|
|
Credit-adjusted risk-free rate
|
|
13%
|
|
16%
|
7.
|
RESTRUCTURING
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Redundancy and employee severance and benefit arrangements
|
$
|
—
|
|
|
$
|
469
|
|
|
$
|
—
|
|
|
$
|
1,568
|
|
Lease loss reserves (benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
||||
Total restructuring charges
|
$
|
—
|
|
|
$
|
469
|
|
|
$
|
—
|
|
|
$
|
1,468
|
|
|
8.
|
DEBT
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Convertible notes
|
|
|
|
||||
Notes due 2025
|
$
|
320,000
|
|
|
$
|
—
|
|
Less: unamortized discount and issuance costs
|
(68,510
|
)
|
|
—
|
|
||
Carrying amount of Notes due 2025
|
251,490
|
|
|
—
|
|
||
|
|
|
|
||||
Notes due 2024
|
132,000
|
|
|
132,000
|
|
||
Less: unamortized discount and issuance costs
|
(30,488
|
)
|
|
(35,815
|
)
|
||
Carrying amount of Notes due 2024
|
101,512
|
|
|
96,185
|
|
||
|
|
|
|
||||
Notes due 2023
|
5,000
|
|
|
5,000
|
|
||
Less: unamortized issuance costs
|
(112
|
)
|
|
(143
|
)
|
||
Carrying amount of Notes due 2023
|
4,888
|
|
|
4,857
|
|
||
|
|
|
|
||||
Sale of long-term financing receivable recorded as debt
|
2,232
|
|
|
4,501
|
|
||
Total carrying amount of debt
|
360,122
|
|
|
105,543
|
|
||
Less: current portion of convertible notes and long-term financing receivable recorded as debt
|
(103,670
|
)
|
|
(2,884
|
)
|
||
Long-term debt
|
$
|
256,452
|
|
|
$
|
102,659
|
|
|
|
Convertible note embedded derivative
|
|
||
(In thousands)
|
|
||
Fair value as of March 9, 2020
|
$
|
68,700
|
|
Change in the fair value
|
(23,600
|
)
|
|
Fair value as of March 31, 2020
|
45,100
|
|
|
Change in the fair value
|
71,200
|
|
|
Fair value as of May 20, 2020
|
$
|
116,300
|
|
|
Three Months Ended
September 30, 2020 |
|
Nine Months Ended
September 30, 2020 |
||||
|
(In thousands)
|
||||||
Contractual interest expense
|
$
|
200
|
|
|
$
|
449
|
|
Amortization of debt discount
|
3,110
|
|
|
6,922
|
|
||
Amortization of debt issuance costs
|
380
|
|
|
848
|
|
||
Total interest cost recognized
|
$
|
3,690
|
|
|
$
|
8,219
|
|
|
|
Convertible notes hedge
|
|
Warrants liability
|
||||
|
(In thousands)
|
||||||
Fair value as of March 9, 2020
|
$
|
89,056
|
|
|
$
|
71,552
|
|
Change in the fair value
|
(41,171
|
)
|
|
(32,915
|
)
|
||
Fair value as of March 31, 2020
|
47,885
|
|
|
38,637
|
|
||
Change in the fair value
|
69,223
|
|
|
57,715
|
|
||
Fair value as of May 20, 2020
|
$
|
117,108
|
|
|
$
|
96,352
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Contractual interest expense
|
$
|
330
|
|
|
$
|
330
|
|
|
$
|
990
|
|
|
$
|
422
|
|
Amortization of debt discount
|
1,645
|
|
|
1,523
|
|
|
4,828
|
|
|
1,939
|
|
||||
Amortization of debt issuance costs
|
166
|
|
|
165
|
|
|
498
|
|
|
210
|
|
||||
Total interest cost recognized
|
$
|
2,141
|
|
|
$
|
2,018
|
|
|
$
|
6,316
|
|
|
$
|
2,571
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Contractual interest expense
|
$
|
50
|
|
|
$
|
43
|
|
|
$
|
150
|
|
|
$
|
1,176
|
|
Amortization of debt issuance costs
|
10
|
|
|
10
|
|
|
30
|
|
|
235
|
|
||||
Total interest costs recognized
|
$
|
60
|
|
|
$
|
53
|
|
|
$
|
180
|
|
|
$
|
1,411
|
|
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Operating lease costs
|
$
|
1,274
|
|
|
$
|
1,161
|
|
|
$
|
3,776
|
|
|
$
|
2,909
|
|
|
September 30,
2020 |
|
December 31,
2019 |
||||
|
(In thousands)
|
||||||
Operating lease liabilities, current (Accrued liabilities)
|
$
|
4,245
|
|
|
$
|
3,170
|
|
Operating lease liabilities, noncurrent (Other liabilities)
|
12,417
|
|
|
9,542
|
|
||
Total operating lease liabilities
|
$
|
16,662
|
|
|
$
|
12,712
|
|
|
|
|
|
||||
Supplemental lease information:
|
|
|
|
||||
Weighted average remaining lease term
|
5.6 years
|
|
5.5 years
|
||||
Weighted average discount rate
|
8.1%
|
|
8.6%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
|
|
|
||||||||
Operating cash flows from operating leases
|
$
|
1,252
|
|
|
$
|
1,019
|
|
|
$
|
3,411
|
|
|
$
|
2,613
|
|
|
|
|
|
|
|
|
|
||||||||
Non-cash investing activities:
|
|
|
|
|
|
|
|
||||||||
Lease liabilities arising from obtaining right-of-use assets
|
$
|
3,798
|
|
|
$
|
—
|
|
|
$
|
6,739
|
|
|
$
|
4,834
|
|
|
|
Lease Amounts
|
||
|
(In thousands)
|
||
Year:
|
|
||
2020 (remaining three months)
|
$
|
1,345
|
|
2021
|
5,436
|
|
|
2022
|
4,155
|
|
|
2023
|
3,518
|
|
|
2024
|
2,523
|
|
|
2025 and thereafter
|
2,686
|
|
|
Total lease payments
|
19,663
|
|
|
Less: imputed lease interest
|
(3,001
|
)
|
|
Total lease liabilities
|
$
|
16,662
|
|
|
10.
|
STOCK-BASED COMPENSATION
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Cost of revenues
|
$
|
1,294
|
|
|
$
|
497
|
|
|
$
|
3,237
|
|
|
$
|
1,114
|
|
Research and development
|
4,248
|
|
|
1,411
|
|
|
9,430
|
|
|
3,255
|
|
||||
Sales and marketing
|
3,952
|
|
|
1,541
|
|
|
9,504
|
|
|
3,900
|
|
||||
General and administrative
|
4,905
|
|
|
1,996
|
|
|
12,043
|
|
|
5,013
|
|
||||
Restructuring
|
—
|
|
|
331
|
|
|
—
|
|
|
718
|
|
||||
Total
|
$
|
14,399
|
|
|
$
|
5,776
|
|
|
$
|
34,214
|
|
|
$
|
14,000
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands)
|
||||||||||||||
Stock options, RSUs, and PSUs
|
$
|
13,781
|
|
|
$
|
5,546
|
|
|
$
|
32,415
|
|
|
$
|
13,528
|
|
Employee stock purchase plan
|
618
|
|
|
230
|
|
|
1,799
|
|
|
472
|
|
||||
Total
|
$
|
14,399
|
|
|
$
|
5,776
|
|
|
$
|
34,214
|
|
|
$
|
14,000
|
|
|
•
|
Expected term—The expected term of the option awards represents the period of time between the grant date of the option awards and the date the option awards are either exercised, converted or canceled, including an estimate for those option awards still outstanding. The Company used the simplified method, as permitted by the SEC for companies with a limited history of stock option exercise activity, to determine the expected term for its option grants.
|
•
|
Expected volatility—The expected volatility was calculated based on the Company’s historical stock prices, supplemented as necessary with historical volatility of the common stock of several peer companies with characteristics similar to those of the Company.
|
•
|
Risk-free interest rate—The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximated the Company’s expected term.
|
•
|
Dividend yield—The dividend yield was based on the Company’s dividend history and the anticipated dividend payout over its expected term.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Weighted average grant date fair value
|
**
|
|
**
|
|
$
|
38.45
|
|
|
$
|
9.16
|
|
Expected term (in years)
|
**
|
|
**
|
|
3.8
|
|
|
3.8
|
|
||
Expected volatility
|
**
|
|
**
|
|
86.4
|
%
|
|
89.1
|
%
|
||
Annual risk-free rate of return
|
**
|
|
**
|
|
0.1
|
%
|
|
2.1
|
%
|
||
Dividend yield
|
**
|
|
**
|
|
—
|
%
|
|
—
|
%
|
|
|
**
|
No stock options were granted during the three months ended September 30, 2020 and 2019.
|
|
|
Number of
Shares Outstanding |
|
Weighted-
Average Exercise Price per Share |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value (1) |
|||||
|
(In thousands)
|
|
|
|
(Years)
|
|
(In thousands)
|
|||||
Outstanding at December 31, 2019
|
4,097
|
|
|
$
|
2.18
|
|
|
|
|
|
||
Granted
|
11
|
|
|
64.17
|
|
|
|
|
|
|||
Exercised
|
(1,062
|
)
|
|
2.41
|
|
|
|
|
$
|
56,357
|
|
|
Canceled
|
(82
|
)
|
|
6.94
|
|
|
|
|
|
|||
Outstanding at September 30, 2020
|
2,964
|
|
|
$
|
2.19
|
|
|
3.8
|
|
$
|
238,224
|
|
Vested and expected to vest at September 30, 2020
|
2,964
|
|
|
$
|
2.19
|
|
|
3.8
|
|
$
|
238,224
|
|
Exercisable at September 30, 2020
|
2,349
|
|
|
$
|
2.22
|
|
|
3.7
|
|
$
|
188,809
|
|
|
|
(1)
|
The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise. The intrinsic value of options outstanding, vested and expected to vest, and exercisable as of September 30, 2020 is based on the closing price of the last trading day during the period ended September 30, 2020. The Company’s stock fair value used in this computation was $82.59 per share.
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Prices
|
|
Number of
Shares |
|
Weighted-
Average Remaining Life |
|
Weighted-
Average Exercise Price |
|
Number of
Shares |
|
Weighted-
Average Exercise Price |
||||||
|
|
(In thousands)
|
|
(Years)
|
|
|
|
(In thousands)
|
|
|
||||||
$0.70 —– $1.11
|
|
687
|
|
|
4.3
|
|
$
|
0.82
|
|
|
554
|
|
|
$
|
0.82
|
|
$1.29 —– $1.29
|
|
1,000
|
|
|
4.0
|
|
1.29
|
|
|
750
|
|
|
1.29
|
|
||
$1.31 —– $1.31
|
|
709
|
|
|
3.5
|
|
1.31
|
|
|
563
|
|
|
1.31
|
|
||
$1.37 —– $14.58
|
|
557
|
|
|
3.1
|
|
5.44
|
|
|
479
|
|
|
5.96
|
|
||
$64.17 —– $64.17
|
|
11
|
|
|
6.6
|
|
64.17
|
|
|
3
|
|
|
64.17
|
|
||
Total
|
|
2,964
|
|
|
3.8
|
|
$
|
2.19
|
|
|
2,349
|
|
|
$
|
2.22
|
|
|
|
Number of
Shares Outstanding |
|
Weighted-
Average Fair Value per Share at Grant Date |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value (1) |
|||||
|
(In thousands)
|
|
|
|
(Years)
|
|
(In thousands)
|
|||||
Outstanding at December 31, 2019
|
4,263
|
|
|
$
|
7.19
|
|
|
|
|
|
||
Granted
|
1,262
|
|
|
40.76
|
|
|
|
|
|
|||
Vested
|
(1,705
|
)
|
|
6.87
|
|
|
|
|
$
|
78,855
|
|
|
Canceled
|
(84
|
)
|
|
20.78
|
|
|
|
|
|
|||
Outstanding at September 30, 2020
|
3,736
|
|
|
$
|
18.37
|
|
|
1.13
|
|
$
|
308,555
|
|
Expected to vest at September 30, 2020
|
3,736
|
|
|
$
|
18.37
|
|
|
1.13
|
|
$
|
308,555
|
|
|
|
(1)
|
The intrinsic value of RSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of September 30, 2020 is based on the closing price of the last trading day during the period ended September 30, 2020. The Company’s stock fair value used in this computation was $82.59 per share.
|
|
Number of
Shares Outstanding |
|
Weighted-
Average Fair Value per Share at Grant Date |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value (1) |
|||||
|
(In thousands)
|
|
|
|
(Years)
|
|
(In thousands)
|
|||||
Outstanding at December 31, 2019
|
955
|
|
|
$
|
9.83
|
|
|
|
|
|
||
Granted
|
989
|
|
|
31.12
|
|
|
|
|
|
|||
Vested
|
(1,450
|
)
|
|
10.20
|
|
|
|
|
$
|
52,144
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at September 30, 2020
|
494
|
|
|
$
|
51.10
|
|
|
0.4
|
|
$
|
40,793
|
|
|
|
(1)
|
The intrinsic value of PSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of September 30, 2020 is based on the closing price of the last trading day during the period ended September 30, 2020. The Company’s stock fair value used in this computation was $82.59 per share.
|
11.
|
INCOME TAXES
|
|
12.
|
NET INCOME PER SHARE
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
39,362
|
|
|
$
|
31,099
|
|
|
$
|
61,004
|
|
|
$
|
44,482
|
|
Notes due 2023 interest and financing costs, net
|
44
|
|
|
39
|
|
|
133
|
|
|
1,046
|
|
||||
Adjusted net income
|
$
|
39,406
|
|
|
$
|
31,138
|
|
|
$
|
61,137
|
|
|
$
|
45,528
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Shares used in basic per share amounts:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
126,109
|
|
|
122,123
|
|
|
125,084
|
|
|
114,720
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Shares used in diluted per share amounts:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
126,109
|
|
|
122,123
|
|
|
125,084
|
|
|
114,720
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Employee stock-based awards
|
6,330
|
|
|
9,200
|
|
|
7,123
|
|
|
8,937
|
|
||||
Warrants (issued in conjunction with Notes due 2024)
|
4,013
|
|
|
100
|
|
|
3,251
|
|
|
—
|
|
||||
Notes due 2024
|
4,468
|
|
|
1,288
|
|
|
3,849
|
|
|
385
|
|
||||
Notes due 2023
|
900
|
|
|
900
|
|
|
900
|
|
|
7,072
|
|
||||
Weighted average common shares outstanding for diluted calculation
|
141,820
|
|
|
133,611
|
|
|
140,207
|
|
|
131,114
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income per share
|
|
|
|
|
|
|
|
||||||||
Net income per share, basic
|
$
|
0.31
|
|
|
$
|
0.25
|
|
|
$
|
0.49
|
|
|
$
|
0.39
|
|
Net income per share, diluted
|
$
|
0.28
|
|
|
$
|
0.23
|
|
|
$
|
0.44
|
|
|
$
|
0.35
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||||||
Employee stock-based awards
|
36
|
|
|
11
|
|
|
64
|
|
|
112
|
|
Warrants (issued in conjunction with Notes due 2025)
|
2,342
|
|
|
—
|
|
|
2,832
|
|
|
—
|
|
Notes due 2025
|
854
|
|
|
—
|
|
|
1,458
|
|
|
—
|
|
Total
|
3,232
|
|
|
11
|
|
|
4,354
|
|
|
112
|
|
13.
|
RELATED PARTY
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Net revenues
|
$
|
178,503
|
|
|
$
|
180,057
|
|
|
$
|
(1,554
|
)
|
|
(1
|
)%
|
|
$
|
509,586
|
|
|
$
|
414,301
|
|
|
$
|
95,285
|
|
|
23
|
%
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Cost of revenues
|
$
|
83,522
|
|
|
$
|
115,351
|
|
|
$
|
(31,829
|
)
|
|
(28
|
)%
|
|
$
|
285,543
|
|
|
$
|
270,937
|
|
|
$
|
14,606
|
|
|
5
|
%
|
Gross profit
|
94,981
|
|
|
64,706
|
|
|
30,275
|
|
|
47
|
%
|
|
224,043
|
|
|
143,364
|
|
|
80,679
|
|
|
56
|
%
|
||||||
Gross margin
|
53.2
|
%
|
|
35.9
|
%
|
|
|
|
|
|
|
44.0
|
%
|
|
34.6
|
%
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Research and development
|
$
|
15,052
|
|
|
$
|
11,085
|
|
|
$
|
3,967
|
|
|
36
|
%
|
|
$
|
40,120
|
|
|
$
|
29,213
|
|
|
$
|
10,907
|
|
|
37
|
%
|
Percentage of net revenues
|
8
|
%
|
|
6
|
%
|
|
|
|
|
|
8
|
%
|
|
7
|
%
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Sales and marketing
|
$
|
14,645
|
|
|
$
|
9,551
|
|
|
$
|
5,094
|
|
|
53
|
%
|
|
$
|
38,788
|
|
|
$
|
26,038
|
|
|
$
|
12,750
|
|
|
49
|
%
|
Percentage of net revenues
|
8
|
%
|
|
5
|
%
|
|
|
|
|
|
8
|
%
|
|
6
|
%
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
General and administrative
|
$
|
13,525
|
|
|
$
|
9,895
|
|
|
$
|
3,630
|
|
|
37
|
%
|
|
$
|
37,810
|
|
|
$
|
28,358
|
|
|
$
|
9,452
|
|
|
33
|
%
|
Percentage of net revenues
|
8
|
%
|
|
5
|
%
|
|
|
|
|
|
7
|
%
|
|
7
|
%
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Restructuring charges
|
$
|
—
|
|
|
$
|
469
|
|
|
$
|
(469
|
)
|
|
(100
|
)%
|
|
$
|
—
|
|
|
$
|
1,468
|
|
|
$
|
(1,468
|
)
|
|
(100
|
)%
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Interest income
|
$
|
110
|
|
|
$
|
894
|
|
|
$
|
(784
|
)
|
|
(88
|
)%
|
|
$
|
1,483
|
|
|
$
|
1,698
|
|
|
$
|
(215
|
)
|
|
(13
|
)%
|
Interest expense
|
(5,993
|
)
|
|
(2,286
|
)
|
|
(3,707
|
)
|
|
162
|
%
|
|
(15,100
|
)
|
|
(7,388
|
)
|
|
(7,712
|
)
|
|
104
|
%
|
||||||
Other expense, net
|
(1,031
|
)
|
|
(943
|
)
|
|
(88
|
)
|
|
9
|
%
|
|
(1,302
|
)
|
|
(6,904
|
)
|
|
5,602
|
|
|
(81
|
)%
|
||||||
Change in fair value of derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
$
|
(44,348
|
)
|
|
$
|
—
|
|
|
$
|
(44,348
|
)
|
|
**
|
|||||
Total other expense, net
|
$
|
(6,914
|
)
|
|
$
|
(2,335
|
)
|
|
$
|
(4,579
|
)
|
|
(196
|
)%
|
|
$
|
(59,267
|
)
|
|
$
|
(12,594
|
)
|
|
$
|
(46,673
|
)
|
|
(371
|
)%
|
|
|
|
|
Three Months Ended
September 30, |
|
Change in
|
|
Nine Months Ended
September 30, |
|
Change in
|
||||||||||||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||
Income tax benefit (provision)
|
$
|
(5,483
|
)
|
|
$
|
(272
|
)
|
|
$
|
(5,211
|
)
|
|
**
|
|
$
|
12,946
|
|
|
$
|
(1,211
|
)
|
|
$
|
14,157
|
|
|
**
|
|
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Net cash provided by operating activities
|
$
|
132,154
|
|
|
$
|
36,796
|
|
Net cash used in investing activities
|
(11,707
|
)
|
|
(7,368
|
)
|
||
Net cash provided by financing activities
|
245,313
|
|
|
67,816
|
|
||
Effect of exchange rate changes on cash
|
(77
|
)
|
|
(435
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
365,683
|
|
|
$
|
96,809
|
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
2020 (remaining three months) (1)
|
|
2021-2022
|
|
2023-2024
|
|
Beyond 2024
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Notes due 2024 principal and interest
|
137,112
|
|
|
6,020
|
|
|
2,535
|
|
|
128,557
|
|
|
—
|
|
|||||
Notes due 2025 principal and interest
|
323,602
|
|
|
—
|
|
|
1,600
|
|
|
1,600
|
|
|
320,402
|
|
|||||
Total
|
$
|
460,714
|
|
|
$
|
6,020
|
|
|
$
|
4,135
|
|
|
$
|
130,157
|
|
|
$
|
320,402
|
|
|
|
(1)
|
Includes approximately $5.4 million in principal amount of Notes due 2024, of which we have elected to settle the aggregate principal amount of the Notes due 2024 in a combination of cash and any excess in shares of our common stock in accordance with the applicable indenture. Such conversion will be settled in December 2020 after the $0.6 million interest due on December 1, 2020.
|
|
|
|
|
|
|
•
|
$5.0 million aggregate principal amount of the Notes due 2023 were outstanding;
|
•
|
$132.0 million aggregate principal amount of the Notes due 2024 were outstanding; and
|
•
|
$320.0 million aggregate principal amount of the Notes due 2025 were outstanding (the foregoing, collectively, the “Convertible Notes”)
|
|
|
|
|
|
|
|
|
|
|
Incorporation by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
SEC File No.
|
|
Exhibit
|
|
Filing Date
|
|
Filed Herewith
|
|
|
8-K
|
|
001-35480
|
|
3.1
|
|
4/6/2012
|
|
|
||
|
|
10-Q
|
|
001-35480
|
|
3.1
|
|
8/9/2017
|
|
|
||
|
|
10-Q
|
|
001-35480
|
|
2.1
|
|
8/6/2018
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
3.1
|
|
5/27/2020
|
|
|
||
|
|
S-1/A
|
|
333-174925
|
|
3.5
|
|
3/12/2012
|
|
|
||
|
|
S-1/A
|
|
333-174925
|
|
4.1
|
|
3/12/2012
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.1
|
|
8/17/2018
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.1
|
|
8/17/2018
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.1
|
|
6/5/2019
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.1
|
|
6/5/2019
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.1
|
|
3/9/2020
|
|
|
||
|
|
8-K
|
|
001-35480
|
|
4.2
|
|
3/9/2020
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
32.1*
|
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Document.
|
|
|
|
|
|
|
|
|
|
X
|
104
|
|
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
*
|
The certifications attached as Exhibit 32.1 accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by Enphase Energy, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
|
|
ENPHASE ENERGY, INC.
|
|
||
|
|
|
|
|
|
By:
|
|
/s/ Eric Branderiz
|
|
|
|
|
Eric Branderiz
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
(Duly Authorized Officer)
|
|
|
1 Year Enphase Energy Chart |
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