Enphase Energy lost $6.9 million in its third quarter

Microinverters by Petaluma's Enphase Energy convert direct-current (DC) electricity from solar panels into alternating current for use in homes and businesses.


Enphase Energy (Nasdaq: ENPH), Petaluma-based maker of solar microinverters and battery systems, on Nov. 8 reported third-quarter revenue of $77 million, up 3 percent from the second quarter. The company lost $6.9 million in the third quarter, about 8 cents a share.

The company’s stock rose nearly 20 percent on Nov. 8 to close at $1.75 a share.

In September the board of directors appointed Badri Kothandaraman to the CEO position as well as to the board. He succeeds founder Paul Nahi, who resigned from the top spot and from the board, effective Aug. 8. Kothandaraman, 45, had been COO since April.

In January 2017, Enphase Energy received an investment totaling $10 million from John Doerr, chairman of Kleiner Perkins Caulfield & Byers, and Thurman J. Rodgers, founder and former CEO of Cypress Semiconductor, a chip maker. The shares were purchased for about $1 a share. Rodgers also joined the board.

Enphase CEO Kothandaraman worked 21 years at Cypress Semiconductor until he left in September. For the previous five years he served as executive vice president for the 600-employee Data Communications division, which focused on USB 3.0 USB-C and Internet of Things products. He also ran Cypress’s 700-employee India business for the last four years of his service.

“We expect to introduce our seventh-generation IQ product worldwide in the first quarter of 2018,” Kothandaraman said in a statement.

With Kothandaraman’s appointment to the board and CEO position at Enphase Energy, there are two former executives from Cypress with leading positions at Enphase Energy. The board has six members. Rodgers, based in Woodside, in May acquired options giving him the right to buy, expiring May 2024, 111,052 shares of common stock at a price of 70 cents a share.

In January 2017, Enphase cut its workforce by 18 percent, roughly 75 jobs. A previous layoff occurred a few months earlier in the third quarter of 2016. The company now has about 190 employees in Petaluma.

James Dunn covers technology, biotech, law, the food industry, and banking and finance. Reach him at: james.dunn@busjrnl.com or 707-521-4257