Does Enphase need to clean house mainly in Finance Dept?
The reason being is that Enphase attracted a lot of people from high-tech given their proximity to those industries, and other industries. Finance people smell blood when a new company like Enphase may go public. They will head in droves to this new company. As such, Finance employees receive ridiculously huge salaries and options during this peroid of irrational exuberance. These new finance people always spend like drunken sailors more so when it goes public but also because they came from big successful companies like the high tech in the area.(don't be confused, they didn't make their former companies successful because they always smell blood and go where the money is). These people also always have a sense of entitlement even though they weren't there when the company started.
These same people will suck dry the company as they plot their exit strategy. Finance people always know when a company is going down far before anyone else. Hence the CFO split. Another indicator that your finance/acctg dept has been overtaken is you will discover if you look that a lot of people know each other from previous employment. It is a pack mentality when they smell blood (IPO). They also propogate like bunnies even into other departments. You will find finance people all of a sudden turning into marketing people, sales people, etc. Also, look around, you will see consultants everywhere you look Typically you will see that they have worked with these same many times before. Finance people that show up just before IPO's are lazy people yet act like they know stuff yet they hire consultants to do everything. Why, because this way they don't need to do much of anything and can constantly blame everything on consultants.Consultants won't fight back because they knew the game going in.
This always plays out in companies that go IPO. Nornally it is not a huge problem if the company has incredible sales which always go up, BUT when a company has sales issues, it always becomes a huge problem that can put the final nail in the company coffin.
So yes, Enphase appears to have a HUGE G&A problem that seems to be directly related to what I explained above. If Enphase was a tightly held company than I could say this didn't happen however with the CFO leaving I can say it is not a tightly held together company.
Another phenomenon that occurs many times and I have no clue if it happened here, but usually new Finance people will try to topple the CFO to place one of their own. Usually the next guy to come in comes from the people that smelled the blood or comes from an accouting firm like deloitte, young, PWC, etc. This only happens when there is money to be sucked out of the company. Hiring former big accounting firm employee as CFO means they simply will suck the money out of the company in the form of contracts(consulting) with their former big accounting firms. It seems there is no CFO (but double check, I don't have time) at Enphase and if that is the case then it is pretty clear there is no money to be made by being inside the company. If that is not the case, look to see where the CFO came from then ask was this choice the absolute best for the business. If not, why. Keep drilling into the why to understand where this company is headed.
Oddly enough, you don't even need to look at financials to figure out the success of a company. It is the people dummy! The founders I don't doubt are very smart people, but did they lose control of this company to the people they hired?