Enphase Energy, Inc. (ENPH - Free Report) , a company that specializes in microinverter technology for the solar industry, has announced plans for generating annual operating expenses savings of $20 million.
Details of the Announcement
To achieve the aforesaid target, this global energy technology company will be trimming 11% of its global workforce and executing divestitures of its some non-core assets.
The company’s management believes that these initiatives are necessary to better align the company’s resources with its long-term growth strategy and to cash in on the available market opportunities. These initiatives are expected to render Enphase Energy a competitive edge amid dynamic market conditions.
Enphase Energy anticipates restructuring charges of nearly $3 million in the third quarter of 2016, including nearly $1.7 million of cash-based severance and related benefits, and nearly $1.3 million of non-cash expenses for asset impairment, and proper and equipment write-offs.
Projection for the Upcoming Quarters
Revenue for the third and fourth quarters are expected in the respective ranges of $87–$93 million and $90–$100 million.
Enphase Energy projects GAAP operating expenses for the third quarter in the range of $33-$35 million, including the aforementioned restructuring expenses of $3 million. Non-GAAP operating expenses are projected to be between $27 million and $29 million, excluding restructuring expenses of $3 million and stock-based compensation expense of $3.0 million.
For the fourth quarter, Enphase Energy anticipates GAAP operating expensesof $22.5–$27.5 million and non-GAAP operating expenses of $20–$25 million, excluding an estimated $2.5 million of stock-based compensation expense.
Zacks Rank and Key Picks
Enphase Energy carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space include Sunrun Inc. (RUN - Free Report) , Sunworks, Inc. (SUNW - Free Report) and Vivint Solar, Inc. (VSLR - Free Report) .
Sunrun has witnessed five upward estimate revisions for 2016 over the past 60 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunworks, a Zacks Rank #2 (Buy) stock, has seen one upward estimate revision for the full year over the last 60 days.
Vivint Solar has witnessed three upward estimate revisions for 2016 over the past 60 days. The stock carries a Zacks Rank #2 (Buy).
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