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Enphase Energy Reports Financial Results for the Second Quarter of 2020

Enphase Energy, Inc.

FREMONT, Calif., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of solar microinverters, announced today financial results for the second quarter of 2020, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported revenue of $125.5 million in the second quarter of 2020, along with a record 39.6% for non-GAAP gross margin. Our second quarter revenue decreased 39% sequentially, or 22% sequentially, excluding the impact of $44.5 million of safe harbor revenue in the first quarter of 2020. We shipped approximately 355 megawatts DC, or 1,087,662 microinverters.

Highlights for the second quarter of 2020 included:

  • Shipments of Enphase Encharge™ energy storage systems in June for pilot runs to installers

  • Revenue of $125.5 million

  • Cash flow from operations of $25.4 million; ending cash balance of $607.3 million

  • GAAP gross margin of 38.5%; record non-GAAP gross margin of 39.6%

  • GAAP operating expenses of $37.5 million; non-GAAP operating expenses of $26.0 million

  • GAAP operating income of $10.9 million; non-GAAP operating income of $23.7 million

  • GAAP net loss of $47.3 million, including a non-cash charge of $59.7 million from fair value changes related to our convertible notes issued in March 2020 due to an increase in our stock price

  • Non-GAAP net income of $23.5 million

  • GAAP basic and diluted net loss per share of $(0.38); non-GAAP diluted earnings per share of $0.17             

Our revenue and earnings for the second 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

 

Q2 2020

 

Q1 2020

 

Q2 2019

 

Q2 2020

 

Q1 2020

 

Q2 2019

Revenue

$

125,538

 

 

$

205,545

 

 

$

134,094

 

 

$

125,538

 

 

$

205,545

 

 

$

134,094

 

Gross margin

38.5

%

 

39.2

%

 

33.8

%

 

39.6

%

 

39.5

%

 

34.1

%

Operating expenses

$

37,533

 

 

$

35,963

 

 

$

27,872

 

 

$

26,024

 

 

$

28,508

 

 

$

22,478

 

Operating income

$

10,854

 

 

$

44,712

 

 

$

17,447

 

 

$

23,700

 

 

$

52,773

 

 

$

23,227

 

Net income (loss)

$

(47,294

)

 

$

68,936

 

 

$

10,618

 

 

$

23,549

 

 

$

51,875

 

 

$

23,173

 

Basic EPS

$

(0.38

)

 

$

0.56

 

 

$

0.09

 

 

$

0.19

 

 

$

0.42

 

 

$

0.20

 

Diluted EPS

$

(0.38

)

 

$

0.50

 

 

$

0.08

 

 

$

0.17

 

 

$

0.38

 

 

$

0.18

 

Our non-GAAP gross margin increased to 39.6% from 39.5% in the first quarter of 2020, driven by disciplined pricing and cost management. Non-GAAP operating expenses decreased to $26.0 million in the second quarter of 2020, compared to $28.5 million in the prior quarter, primarily due to our tight spending controls. Non-GAAP operating income was $23.7 million, compared to $52.8 million in the prior quarter.

We exited the second quarter with $607.3 million in cash and generated $25.4 million in cash flow from operations.  Inventory was $31.2 million at the end of the second quarter of 2020, compared to $34.6 million at the end of the first quarter of 2020. I am proud of our team’s excellent inventory management and control.

We shipped our Encharge energy storage systems in June for pilot runs to a few of our installers and the feedback has been good. Encharge storage systems feature Ensemble™ energy management technology, which powers the world’s first grid-agnostic microinverter-based storage system. We started Encharge production shipments in July to customers in North America. We are pleased with the initial feedback from our customers, who see the Encharge energy storage system as a safe, reliable and powerful option for energy independence. I want to thank our engineers worldwide who worked tirelessly to bring this breakthrough product to market.

We continue to focus relentlessly on customer experience. The employees in all four of our customer experience centers – the U.S., Europe, India, and Australia – are fully supporting installers and homeowners, while working from home. Our worldwide Net Promoter Score was 66% in the second quarter of 2020, a slight increase from 64% in the prior quarter. During the second quarter of 2020, we launched the online Enphase Community which gives installers and homeowners the ability to communicate directly about Enphase products. In addition, we opened online stores in Europe and Australia to better service installers and homeowners. These stores, along with our U.S. online store, are increasing the accessibility of our clean energy solutions.

We continue to navigate through the COVID-19 pandemic with strong support from our partners and customers. Our sales and operations teams were laser-focused on managing the channel during the second quarter of 2020, working closely with our installers and distributors. While we saw a rebound in customer demand in June and July, we are carefully monitoring the resurgence of the COVID-19 pandemic in several states. We have a resilient business model that enables strong cash flow generation even during difficult economic periods, enabling us to invest in product innovation and digital transformation. We are well-positioned with Ensemble and look forward to accelerating the introduction of new products over the next eighteen months.

BUSINESS HIGHLIGHTS

On June 1, 2020, Enphase Energy announced its expansion into Poland in collaboration with SmartX Sp. z o.o., a solar distributor with headquarters in Bytom, Poland. SmartX’s installer network throughout Poland offers both residential and small commercial microinverter systems, utilizing Enphase IQ 7™ family of microinverters including IQ 7, IQ 7+™ and IQ 7X™.

On June 25, 2020, Enphase Energy and Q Cells, a renowned total energy solutions provider, announced a strategic partnership to develop Enphase Energized™ Q CELLS AC Modules (ACMs) based on seventh-generation Enphase IQ™ microinverters. The ACMs are available from major distributors in the U.S. 

On July 6, 2020, Enphase Energy announced the launch of Enphase University, a combination of online and in-person training resources for solar and storage installers and Enphase system owners. Enphase University includes an integrated, web-based Learning Management System (LMS) that enables installers to complete training modules and manage training plans online.

On July 15, 2020, Enphase Energy and Maxeon Solar Technologies, SunPower’s planned spin-off, announced a strategic partnership to produce the new Enphase Energized Maxeon AC Module, featuring a factory-integrated seventh-generation Enphase IQ microinverter. The AC Module will be commercialized by Maxeon Solar Technologies to residential customers in key international markets starting in the fourth quarter of 2020.

On July 29, 2020, Enphase Energy announced that it began shipping Encharge energy storage systems to customers in North America during June. For the first time, homeowners can easily generate, store and control energy with technology, all designed by Enphase.

THIRD QUARTER 2020 FINANCIAL OUTLOOK

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

  • Revenue to be within a range of $160 million to $175 million

  • GAAP gross margin to be within a range of 36% to 39%; non-GAAP gross margin to be within a range of 37% to 40%, excluding stock-based compensation expenses

  • GAAP operating expenses to be within a range of $41.0 million to $43.0 million, including $13.0 million estimated for stock-based compensation expenses and acquisition related amortization

  • Non-GAAP operating expenses to be within a range of $28.0 million to $30.0 million, excluding $13.0 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 second quarter 2020 results and third 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 1782661. 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 one year. In addition, an audio replay of the conference call will be available by calling (855) 859-2056; participant passcode 1782661, 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 the impact of the COVID-19 pandemic, future financial performance, expense levels, liquidity sources, the capabilities, advantages, and performance of our technology and products, our business strategies, including anticipated trends, growth and developments in targeted markets, new products, performance in operations, and the performance of our partners. 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 28 million microinverters, and over 1.2 million Enphase systems have been deployed in more than 130 countries. For more information, visit www.enphase.com.

Enphase Energy®, the Enphase logo, Encharge, Ensemble, IQ, IQ 7, IQ 7+, IQ 7X, Enphase Energized, 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
June 30,

 

Six Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Net revenues

$

125,538

 

 

$

134,094

 

 

$

331,083

 

 

$

234,244

 

Cost of revenues

77,151

 

 

88,775

 

 

202,021

 

 

155,586

 

Gross profit

48,387

 

 

45,319

 

 

129,062

 

 

78,658

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

13,192

 

 

9,604

 

 

25,068

 

 

18,128

 

Sales and marketing

12,371

 

 

9,054

 

 

24,143

 

 

16,487

 

General and administrative

11,970

 

 

8,583

 

 

24,285

 

 

18,463

 

Restructuring charges

 

 

631

 

 

 

 

999

 

Total operating expenses

37,533

 

 

27,872

 

 

73,496

 

 

54,077

 

Income from operations

10,854

 

 

17,447

 

 

55,566

 

 

24,581

 

Other expense, net

 

 

 

 

 

 

 

Interest income

282

 

 

593

 

 

1,373

 

 

804

 

Interest expense

(5,952

)

 

(1,351

)

 

(9,107

)

 

(5,102

)

Other (expense) income, net

653

 

 

(5,480

)

 

(271

)

 

(5,961

)

Change in fair value of derivatives (1)

(59,692

)

 

 

 

(44,348

)

 

 

Total other expense, net

(64,709

)

 

(6,238

)

 

(52,353

)

 

(10,259

)

Income (loss) before income taxes

(53,855

)

 

11,209

 

 

3,213

 

 

14,322

 

Income tax benefit (provision)

6,561

 

 

(591

)

 

18,429

 

 

(939

)

Net income (loss)

$

(47,294

)

 

$

10,618

 

 

$

21,642

 

 

$

13,383

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

(0.38

)

 

$

0.09

 

 

$

0.17

 

 

$

0.12

 

Diluted

$

(0.38

)

 

$

0.08

 

 

$

0.16

 

 

$

0.11

 

Shares used in per share calculation:

 

 

 

 

 

 

 

Basic

125,603

 

 

113,677

 

 

124,567

 

 

110,951

 

Diluted

125,603

 

 

130,737

 

 

138,910

 

 

129,400

 

(1)  Change in fair value of derivatives of $59.7 million and $44.3 million for the three and six months ended June 30, 2020, respectively, 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)

 

June 30,
2020

 

December 31,
2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

607,254 

 

 

$

251,409 

 

Restricted cash

— 

 

 

44,700 

 

Accounts receivable, net

89,504 

 

 

145,413 

 

Inventory

31,186 

 

 

32,056 

 

Prepaid expenses and other assets

29,257 

 

 

26,079 

 

Total current assets

757,201 

 

 

499,657 

 

Property and equipment, net

32,972 

 

 

28,936 

 

Operating lease, right of use asset

11,462 

 

 

10,117 

 

Intangible assets, net

28,086 

 

 

30,579 

 

Goodwill

24,783 

 

 

24,783 

 

Other assets

49,551 

 

 

44,620 

 

Deferred tax assets, net

93,872 

 

 

74,531 

 

Total assets

$

997,927 

 

 

$

713,223 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

24,135 

 

 

$

57,474 

 

Accrued liabilities

46,691 

 

 

47,092 

 

Deferred revenues, current

40,256 

 

 

81,783 

 

Warranty obligations, current

10,170 

 

 

10,078 

 

Debt, current

102,271 

 

 

2,884 

 

Total current liabilities

223,523 

 

 

199,311 

 

Long-term liabilities:

 

 

 

Deferred revenues, noncurrent

110,977 

 

 

100,204 

 

Warranty obligations, noncurrent

27,737 

 

 

27,020 

 

Other liabilities

12,340 

 

 

11,817 

 

Debt, noncurrent

253,174 

 

 

102,659 

 

Total liabilities

627,751 

 

 

441,011 

 

Total stockholders’ equity

370,176 

 

 

272,212 

 

Total liabilities and stockholders’ equity

$

997,927 

 

 

$

713,223 

 


ENPHASE ENERGY, INC.

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

 

Three Months Ended

 

Six Months Ended

 

June 30,
2020

 

March 31,
2020

 

June 30,
2019

 

June 30,
2020

 

June 30,
2019

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(47,294

)

 

$

68,936

 

 

$

10,618

 

 

$

21,642

 

 

$

13,383

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

4,141

 

 

3,844

 

 

4,122

 

 

7,985

 

 

7,694

 

Provision for doubtful accounts

81

 

 

104

 

 

207

 

 

185

 

 

207

 

Non-cash interest expense

5,372

 

 

2,722

 

 

776

 

 

8,094

 

 

2,266

 

Financing fees on extinguishment of debt

 

 

 

 

 

 

 

 

2,152

 

Fees paid for repurchase and exchange of convertible notes due 2023

 

 

 

 

6,000

 

 

 

 

6,000

 

Stock-based compensation

12,300

 

 

7,515

 

 

4,934

 

 

19,815

 

 

8,224

 

Change in fair value of derivatives

59,692

 

 

(15,344

)

 

 

 

44,348

 

 

 

Deferred income taxes

(7,067

)

 

(12,500

)

 

 

 

(19,567

)

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

6,529

 

 

49,637

 

 

(15,838

)

 

56,166

 

 

(19,104

)

Inventory

3,430

 

 

(2,560

)

 

(7,123

)

 

870

 

 

(3,827

)

Prepaid expenses and other assets

(4,525

)

 

(5,009

)

 

(7,155

)

 

(9,534

)

 

(9,568

)

Accounts payable, accrued and other liabilities

(13,323

)

 

(22,066

)

 

11,954

 

 

(35,389

)

 

16,805

 

Warranty obligations

406

 

 

403

 

 

1,951

 

 

809

 

 

1,699

 

Deferred revenues

5,689

 

 

(36,460

)

 

4,326

 

 

(30,771

)

 

5,904

 

Net cash provided by operating activities

25,431

 

 

39,222

 

 

14,772

 

 

64,653

 

 

31,835

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

(4,451

)

 

(3,353

)

 

(2,518

)

 

(7,804

)

 

(3,176

)

Net cash used in investing activities

(4,451

)

 

(3,353

)

 

(2,518

)

 

(7,804

)

 

(3,176

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Issuance of convertible notes, net of issuance costs

(591

)

 

313,011

 

 

128,040

 

 

312,420

 

 

128,040

 

Purchase of convertible note hedges

 

 

(89,056

)

 

(36,313

)

 

(89,056

)

 

(36,313

)

Sale of warrants

 

 

71,552

 

 

29,819

 

 

71,552

 

 

29,819

 

Fees paid for repurchase and exchange of convertible notes due 2023

 

 

 

 

(6,000

)

 

 

 

(6,000

)

Principal payments and financing fees on debt

(485

)

 

(1,148

)

 

(391

)

 

(1,633

)

 

(45,122

)

Proceeds from exercise of equity awards and employee stock purchase plan

2,867

 

 

1,979

 

 

958

 

 

4,846

 

 

2,622

 

Payment of withholding taxes related to net share settlement of equity awards

(9,385

)

 

(34,267

)

 

(735

)

 

(43,652

)

 

(2,090

)

Net cash provided by (used in) financing activities

(7,594

)

 

262,071

 

 

115,378

 

 

254,477

 

 

70,956

 

Effect of exchange rate changes on cash and cash equivalents

24

 

 

(205

)

 

240

 

 

(181

)

 

107

 

Net increase in cash and cash equivalents

13,410

 

 

297,735

 

 

127,872

 

 

311,145

 

 

99,722

 

Cash, cash equivalents and restricted cash—Beginning of period

593,844

 

 

203,046

 

 

78,087

 

 

296,109

 

 

106,237

 

Cash and cash equivalents—End of period

$

607,254

 

 

$

500,781

 

 

$

205,959

 

 

$

607,254

 

 

$

205,959

 

 


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

 

Three Months Ended

 

Six Months Ended

 

June 30,
2020

 

March 31,
2020

 

June 30,
2019

 

June 30,
2020

 

June 30,
2019

Gross profit (GAAP)

$

48,387

 

 

$

80,675

 

 

$

45,319

 

 

$

129,062

 

 

$

78,658

 

Stock-based compensation

1,337

 

 

606

 

 

386

 

 

1,943

 

 

617

 

Gross profit (Non-GAAP)

$

49,724

 

 

$

81,281

 

 

$

45,705

 

 

$

131,005

 

 

$

79,275

 

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

38.5

%

 

39.2

%

 

33.8

%

 

39.0

%

 

33.6

%

Stock-based compensation

1.1

%

 

0.3

%

 

0.3

%

 

0.6

%

 

0.2

%

Gross margin (Non-GAAP)

39.6

%

 

39.5

%

 

34.1

%

 

39.6

%

 

33.8

%

 

 

 

 

 

 

 

 

 

 

Operating expenses (GAAP)

$

37,533

 

 

$

35,963

 

 

$

27,872

 

 

$

73,496

 

 

$

54,077

 

Stock-based compensation (1)

(10,963

)

 

(6,909

)

 

(4,217

)

 

(17,872

)

 

(7,220

)

Restructuring and asset impairment charges

 

 

 

 

(631

)

 

 

 

(999

)

Acquisition related expenses and amortization

(546

)

 

(546

)

 

(546

)

 

(1,092

)

 

(1,092

)

Operating expenses (Non-GAAP)

$

26,024

 

 

$

28,508

 

 

$

22,478

 

 

$

54,532

 

 

$

44,766

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

 

Research and development

$

3,263

 

 

$

1,919

 

 

$

1,128

 

 

$

5,182

 

 

$

1,844

 

Sales and marketing

3,610

 

 

1,942

 

 

1,360

 

 

5,552

 

 

2,359

 

General and administrative

4,090

 

 

3,048

 

 

1,729

 

 

7,138

 

 

3,017

 

Total

$

10,963

 

 

$

6,909

 

 

$

4,217

 

 

$

17,872

 

 

$

7,220

 

 

 

 

 

 

 

 

 

 

 

Income from operations (GAAP)

$

10,854

 

 

$

44,712

 

 

$

17,447

 

 

$

55,566

 

 

$

24,581

 

Stock-based compensation

12,300

 

 

7,515

 

 

4,603

 

 

19,815

 

 

7,837

 

Restructuring and asset impairment charges

 

 

 

 

631

 

 

 

 

999

 

Acquisition related expenses and amortization

546

 

 

546

 

 

546

 

 

1,092

 

 

1,092

 

Income from operations (Non-GAAP)

$

23,700

 

 

$

52,773

 

 

$

23,227

 

 

$

76,473

 

 

$

34,509

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

$

(47,294

)

 

$

68,936

 

 

$

10,618

 

 

$

21,642

 

 

$

13,383

 

Stock-based compensation

12,300

 

 

7,515

 

 

4,603

 

 

19,815

 

 

7,837

 

Restructuring and asset impairment charges

 

 

 

 

631

 

 

 

 

999

 

Acquisition related expenses and amortization

546

 

 

546

 

 

546

 

 

1,092

 

 

1,092

 

Non-recurring debt prepayment fees and non-cash interest

5,372

 

 

2,722

 

 

6,775

 

 

8,094

 

 

9,390

 

Change in fair value of derivatives

59,692

 

 

(15,344

)

 

 

 

44,348

 

 

 

Non-GAAP income tax adjustment

(7,067

)

 

(12,500

)

 

 

 

(19,567

)

 

 

Net income (Non-GAAP)

$

23,549

 

 

$

51,875

 

 

$

23,173

 

 

$

75,424

 

 

$

32,701

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic (GAAP)

$

(0.38

)

 

$

0.56

 

 

$

0.09

 

 

$

0.17

 

 

$

0.12

 

Stock-based compensation

0.10

 

 

0.06

 

 

0.04

 

 

0.16

 

 

0.07

 

Restructuring and asset impairment charges

 

 

 

 

 

 

 

 

0.01

 

Acquisition related expenses and amortization

 

 

 

 

0.01

 

 

0.01

 

 

0.01

 

Non-recurring debt prepayment fees and non-cash interest

0.05

 

 

0.02

 

 

0.06

 

 

0.07

 

 

0.08

 

Change in fair value of derivatives

0.48

 

 

(0.12

)

 

 

 

0.36

 

 

 

Non-GAAP income tax adjustment

(0.06

)

 

(0.10

)

 

 

 

(0.16

)

 

 

Net income per share, basic (Non-GAAP)

$

0.19

 

 

$

0.42

 

 

$

0.20

 

 

$

0.61

 

 

$

0.30

 

Shares used in basic per share calculation GAAP and Non-GAAP

125,603

 

 

123,531

 

 

113,677

 

 

124,567

 

 

110,951

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, diluted (GAAP)

$

(0.38

)

 

$

0.50

 

 

$

0.08

 

 

$

0.16

 

 

0.11

 

Stock-based compensation

0.09

 

 

0.06

 

 

0.04

 

 

0.14

 

 

0.06

 

Restructuring and asset impairment charges

 

 

 

 

0.01

 

 

 

 

0.01

 

Acquisition related expenses and amortization

 

 

 

 

 

 

0.01

 

 

0.01

 

Non-recurring debt prepayment fees and non-cash interest

0.04

 

 

0.02

 

 

0.05

 

 

0.06

 

 

0.07

 

Change in fair value of derivatives

0.48

 

 

(0.11

)

 

 

 

0.33

 

 

 

Non-GAAP income tax adjustment

(0.06

)

 

(0.09

)

 

 

 

(0.14

)

 

$

 

Net income per share, diluted (Non-GAAP) (2) (4)

$

0.17

 

 

$

0.38

 

 

$

0.18

 

 

$

0.56

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

Shares used in diluted per share calculation GAAP

125,603

 

 

138,104

 

 

130,737

 

 

138,910

 

 

129,400

 

Shares used in diluted per share calculation Non-GAAP (3) (4)

135,770

 

 

135,168

 

 

130,737

 

 

135,557

 

 

129,400

 

(2)  Calculation of non-GAAP diluted net income per share for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019 excludes convertible notes due 2023 interest expense, net of tax of less than $0.1 million, $0.1 million and $0.4 million, respectively, from non-GAAP net income. Calculation of non-GAAP diluted net income per share for the six months ended June 30, 2020 and June 30, 2019 excludes convertible notes due 2023 interest expense, net of tax of less than $0.1 million and $0.8 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 3,677 thousand shares and 2,936 thousand shares in the three months ended June 30, 2020 and March 31, 2020, respectively, and 3,353 thousand shares for the six months ended June 30, 2020 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.