Enphase Energy Inc (ENPH) 2019 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Enphase Energy First Quarter 2019 Financial Results Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference call, Ms. Christina Carrabino. You may begin, ma'am.

女士們、先生們，美好的一天，歡迎參加 Enphase Energy 2019 年第一季財務業績電話會議。（操作員指示）提醒一下，今天的會議正在錄製中。現在我想介紹今天電話會議的主持人克里斯蒂娜·卡拉比諾女士。您可以開始了，女士。

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's first quarter 2019 results. On today's call are Badri Kothandaraman, Enphase's President and Chief Executive Officer; Eric Branderiz, Chief Financial Officer; and Raghu Belur, Chief Products Officer. After the market closed today, Enphase issued a press release announcing the results for its first quarter ended March 31, 2019.

下午好，感謝您參加今天的電話會議，討論 Enphase Energy 2019 年第一季的業績。參加今天電話會議的有 Enphase 總裁兼執行長 Badri Kothandaraman；艾瑞克‧布蘭德里茲 (Eric Branderiz)，財務長；和 Raghu Belur，首席產品長。今天收盤後，Enphase 發布新聞稿，宣布截至 2019 年 3 月 31 日的第一季業績。

During this conference call, Enphase management will make forward-looking statements including, but not limited to, statements related to Enphase Energy's technology, products and financial performance; operations, including supply and lead times; and current and future market and customer demands and trends. These forward-looking statements involve significant risks and uncertainties, and Enphase Energy's actual results and the timing of events could differ materially from these expectations. For a more complete discussion of the risks and uncertainties, please see the company's annual report on Form 10-K for the year ended December 31, 2018, which is on file with the SEC and the quarterly report on Form 10-Q for the quarter ended March 31, 2019, which will be filed with the SEC in the second quarter of 2019. Enphase Energy cautions you not to place any undue reliance on forward-looking statements and undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in its expectations.

在本次電話會議期間，Enphase 管理階層將做出前瞻性聲明，包括但不限於與 Enphase Energy 的技術、產品和財務績效相關的聲明；運營，包括供應和交貨時間；當前和未來的市場和客戶需求和趨勢。這些前瞻性陳述涉及重大風險和不確定性，Enphase Energy 的實際結果和事件發生的時間可能與這些預期有重大差異。有關風險和不確定性的更完整討論，請參閱公司向 SEC 備案的截至 2018 年 12 月 31 日止年度的 10-K 表格年度報告以及該季度 10-Q 表格的季度報告截至2019年3月31日，將於2019年第二季向美國證券交易委員會備案。Enphase Energy 提醒您不要過度依賴前瞻性陳述，並且不承擔因新資訊、未來事件或預期變更而更新任何前瞻性陳述的責任或義務。

Also, please note that financial measures used on this call are expressed on a non-GAAP basis, unless otherwise noted, and have been adjusted to exclude certain charges. The company has provided a reconciliation of these non-GAAP financial measures to GAAP financial measures in its earnings release posted today, which can also be found in the Investor Relations section of its website. Now I'd like to introduce Badri Kothandaraman, President and Chief Executive Officer of Enphase Energy. Badri?

另請注意，除非另有說明，本次電話會議中使用的財務指標均以非公認會計原則為基礎，並已進行調整以排除某些費用。該公司在今天發布的收益報告中提供了這些非公認會計原則財務指標與公認會計原則財務指標的調節表，也可以在其網站的投資者關係部分找到。現在我想介紹一下Enphase Energy公司總裁兼執行長Badri Kothandaraman。巴德里？

Good afternoon, and thanks for joining us today to discuss our first quarter of 2019 financial results.

下午好，感謝您今天加入我們討論我們 2019 年第一季的財務表現。

We had another solid quarter. We reported revenue of $100.2 million. The demand from all of our customers was strong across the board. The biggest challenge in meeting this demand was component shortages. We are fully booked for Q2 '19 just as we were for Q1 '19. I will provide an update later in this call on our plans to mitigate component charges.

我們又度過了一個穩定的季度。我們報告的收入為 1.002 億美元。我們所有客戶的需求都很強勁。滿足這項需求的最大挑戰是零件短缺。我們 19 年第二季的預訂已滿，就像 19 年第一季一樣。我將在稍後的電話會議中提供有關我們降低組件費用的計劃的最新資訊。

Our non-GAAP gross margin in the first quarter was 33.5%, and our non-GAAP operating income was $11.3 million. Our non-GAAP gross margin was negatively impacted by 280 basis points due to expedite fees related to component shortages. The expedite fees were in the form of air shipments that we chose to make in order to service our customers better. We exited the first quarter with a cash balance of $78.1 million after repaying our high interest-bearing senior secured term loan of approximately $39.5 million plus accrued interest and fees. In addition, we reported $16.4 million of adjusted free cash flow in Q1.

我們第一季的非 GAAP 毛利率為 33.5%，非 GAAP 營業收入為 1,130 萬美元。由於與組件短缺相關的加急費用，我們的非 GAAP 毛利率受到 280 個基點的負面影響。加急費以空運的形式收取，我們選擇空運，以便更好地為客戶服務。在償還了約 3,950 萬美元的高息優先擔保定期貸款以及應計利息和費用後，我們第一季的現金餘額為 7,810 萬美元。此外，我們報告第一季調整後自由現金流為 1,640 萬美元。

An important area of focus for us that we have discussed since the second half of 2018 is the ease of doing business- how customers perceive us. Quality and customer service together constitute customer experience and are the cornerstones of our strategy.

自 2018 年下半年以來，我們一直在討論的一個重要關注領域是開展業務的便利性——客戶如何看待我們。品質和客戶服務共同構成了客戶體驗，也是我們策略的基石。

During Q1, we made several improvements in our customer call center metrics and online support. For example, our first call resolution metric has improved approximately by 15% over the past year, while our service on-the-go support tool has enabled over 50% of customer claims to be handled through self-service via their mobile devices.

在第一季度，我們對客戶呼叫中心指標和線上支援進行了多項改進。例如，我們的第一個呼叫解決指標在過去一年中提高了約 15%，而我們的行動服務支援工具使超過 50% 的客戶索賠能夠透過行動裝置透過自助服務處理。

We recently announced that over 2,500 homeowners have now joined our Enphase Upgrade Program, a program for early adopters of our legacy microinverters. This program represents our commitment to quality and service, and we appreciate the solar installers who do so much to support this program.

我們最近宣布，已有超過 2,500 名房主加入了我們的 Enphase 升級計劃，這是一項針對我們傳統微型逆變器早期採用者的計劃。該計劃代表了我們對品質和服務的承諾，我們感謝為支持該計劃做出巨大努力的太陽能安裝人員。

The key metric we use to measure customer experience is the Net Promoter Score, or NPS. This metric is calculated based on feedback from customer surveys on how likely customers or partners will recommend Enphase to a friend or colleague. Our NPS in North America was approximately 50% in Q1 compared to approximately 51% in the fourth quarter of 2018. Our target is to achieve a worldwide NPS of 60% or higher in the fourth quarter of 2019.

我們用來衡量客戶體驗的關鍵指標是淨推薦值（NPS）。該指標是根據客戶調查的回饋計算得出的，該調查涉及客戶或合作夥伴向朋友或同事推薦 Enphase 的可能性。第一季我們北美的 NPS 約為 50%，而 2018 年第四季約為 51%。我們的目標是在 2019 年第四季實現全球 NPS 達到 60% 或更高。

So turning to tariffs. The 10% 301 tariffs became effective in September of 2018, impacting Enphase microinverters and accessories. As we have said before, we shared the cost increases with our customers. We are continuing to execute on our plans to mitigate the 301 tariffs by extending our manufacturing agreement with Flex in Mexico starting in Q2 of '19. We are on track with our plan and expect to start shipping volume production from the Flex Mexico factory this quarter.

因此轉向關稅。10%的301關稅於2018年9月生效，對Enphase微型逆變器和配件產生影響。正如我們之前所說，我們與客戶分擔了成本的增加。我們將繼續執行減輕 301 關稅的計劃，從 19 年第二季開始延長與墨西哥 Flex 的製造協議。我們正在按計劃實施，預計本季將在 Flex 墨西哥工廠開始批量生產。

Now turning to our regions. Our U.S. and international mix for Q1 was 78% and 22%, respectively. Customer demand was strong in all regions in the first quarter; however, all regions were also impacted by component supply shortages. As a result, we continue to allocate supply carefully to each region during the first quarter.

現在轉向我們的地區。第一季我們的美國和國際組合分別為 78% 和 22%。第一季各地區客戶需求強勁；然而，所有地區也都受到零件供應短缺的影響。因此，我們在第一季繼續謹慎地向每個地區分配供應。

Our first quarter revenue in the U.S. was up 9% sequentially and up 80% year-on-year. The IQ 7 product family has been well received in the region, and we are pleased to see our customer base expand during the first quarter. U.S. revenue also included shipments of our IQ 7XS microinverters to SunPower.

我們第一季在美國的營收季增 9%，年增 80%。IQ 7 產品系列在該地區受到好評，我們很高興看到我們的客戶群在第一季擴大。美國收入還包括我們向 SunPower 發貨的 IQ 7XS 微型逆變器。

In Europe, our revenue was down 11% sequentially but up 2% year-on-year. Europe's growth in Q1 was impacted by component shortages, but we were able to meet customer demand with channel inventory. We expect the supply increases in Q2 '19 will help replenish the channel inventory in that region and service the increasing demand. Europe continues to be a target region for expansion as IQ 7 has been very well received and is particularly optimal for small systems.

在歐洲，我們的營收季減 11%，但年增 2%。歐洲第一季的成長受到零件短缺的影響，但我們能夠透過通路庫存滿足客戶需求。我們預計 19 年第二季的供應增加將有助於補充該地區的通路庫存並滿足不斷增長的需求。歐洲仍然是擴張的目標區域，因為 IQ 7 非常受歡迎，並且特別適合小型系統。

In APAC, our first quarter revenue was up 84% sequentially and down 54% year-on-year. We corrected the previously discussed inventory challenges in the channel as reflected by the sequential growth, and we continue to be optimistic about our growth opportunities in the region.

在亞太地區，我們第一季的營收季增 84%，年減 54%。我們糾正了先前討論的管道中的庫存挑戰，如連續成長所反映的那樣，我們繼續對該地區的成長機會持樂觀態度。

In Latin America, our first quarter revenue was up 78% sequentially and 16% up year-on-year. We experienced steady growth in Mexico during the quarter. Both Mexico and Puerto Rico are important markets for Enphase.

在拉丁美洲，我們第一季的營收季增 78%，年增 16%。本季我們在墨西哥經歷了穩定成長。墨西哥和波多黎各都是 Enphase 的重要市場。

We are also working with a few of our customers in North America on their ITC safe harbor opportunities. While it's still early and we do not have accurate volume forecast yet, we expect to have more information on the next earnings call. Nevertheless, our strategy is to ensure we are prepared with the right capacity in place to support these opportunities.

我們也與北美的一些客戶合作，利用他們的 ITC 安全港機會。雖然現在還為時過早，而且我們還沒有準確的銷售預測，但我們預計會在下一次財報電話會議上獲得更多資訊。儘管如此，我們的策略是確保我們做好準備並具備適當的能力來支持這些機會。

Now is the good time to talk about supply. As previously mentioned, in order to address the component shortages, we signed long-term contracts for high-voltage power transistors and expect additional supply, some of it starting as early as this quarter and most of it in the second half of this year. As a result, we expect to have a capacity of 2 million microinverters per quarter -- in the fourth quarter of 2019. This should also help us reduce our microinverter lead times and make them closer to our internal target of approximately 6 to 8 weeks.

現在是討論供應的好時機。如前所述，為了解決元件短缺問題，我們簽署了高壓功率晶體管的長期合同，並預計會有額外供應，其中一些最早將於本季度開始，大部分將在今年下半年開始。因此，我們預計 2019 年第四季每季的微型逆變器產能將達到 200 萬個。這也應該有助於我們縮短微型逆變器的交貨時間，並使它們更接近我們約 6 至 8 週的內部目標。

Now let's talk about our top line growth initiatives. We have 4 levers for profitable top line growth which I've talked about in the previous calls: the first one is IQ 7 regional expansion; the second one is high-power and high-performance products; the third one is AC modules; and the fourth one is Ensemble Solar and Storage technology.

現在讓我們來談談我們的營收成長計畫。我們有 4 個槓桿來實現利潤成長，我在之前的電話會議中談到：第一個是 IQ 7 的區域擴張；二是大功率、高性能產品；第三個是AC模組；第四個是Ensemble Solar and Storage技術。

The first lever for profitable top line growth is IQ 7 regional expansion. Approximately 94% of our microinverter shipments in Q1 were IQ 7, up from 84% in Q4, and our goal is to complete the transition of nearly all of our microinverters shipments to IQ 7 by the end of Q3.

獲利收入成長的第一個槓桿是 IQ 7 區域擴張。第一季我們約94% 的微型逆變器出貨量為IQ 7，高於第四季的84%，我們的目標是在第三季末完成幾乎所有微型逆變器出貨量向IQ 7的過渡。

The second lever for profitable top line growth is to release high-power and high-performance new products. As previously announced, we released our new product, the IQ 7A family of high-power microinverters, targeted for modules up to 450-watt DC. The IQ 7A is our highest power microinverter to date and is capable of producing as much as 366-watt AC of peak power at an average CEC efficiency of 97%. We shipped significant volumes of IQ 7AS to SunPower during the first quarter. They are expected to integrate the IQ 7As into their 66-cell NGT A-Series AC modules. General availability of IQ 7A microinverters for generic 72-cell modules in North America will follow in the second half of 2019. The pairing of high-efficiency solar modules with IQ 7A microinverters is a powerful combination that creates tremendous value for homeowners, particularly those whose roofs are space-constrained.

利潤成長的第二個槓桿是發布高功率和高性能的新產品。如同先前所宣布的，我們發布了新產品 IQ 7A 系列高功率微型逆變器，針對高達 450 瓦直流電的模組。IQ 7A 是我們迄今為止功率最高的微型逆變器，能夠以 97% 的平均 CEC 效率產生高達 366 瓦的交流峰值功率。我們在第一季向 SunPower 運送了大量 IQ 7AS。他們預計將 IQ 7A 整合到其 66 單元 NGT A 系列 AC 模組中。適用於通用 72 芯模組的 IQ 7A 微型逆變器將於 2019 年下半年在北美全面上市。高效能太陽能模組與 IQ 7A 微型逆變器的搭配是一個強大的組合，可以為房主創造巨大的價值，特別是那些屋頂空間有限的房主。

The third lever for profitable top line growth is AC modules. We had fewer shipments of our IQ 7XS microinverters to SunPower in the first quarter compared to the fourth quarter. We work with SunPower to ensure smooth product transition from their prior generation microinverters to IQ 7XS as they began ramping. As previously announced, we expect an acceleration of the ramp in the second quarter and throughout 2019.

獲利收入成長的第三個槓桿是交流模組。與第四季相比，第一季我們向 SunPower 的 IQ 7XS 微型逆變器出貨量有所減少。我們與 SunPower 合作，確保產品在其上一代微型逆變器開始量產時順利過渡到 IQ 7XS。正如先前宣布的那樣，我們預計第二季和 2019 年全年將加速成長。

In addition, the N330E Panasonic AC modules integrated with our IQ 7X microinverters, became available in March of 2019. These modules combine the efficiency of Panasonic's HIT solar panels with Enphase's highly-reliable IQ 7XS -- IQ 7X microinverters. We are also making steady progress with our other module partners, such as Solaria, in ramping AC modules. Since their release in October of 2017, Enphase AC modules from our module partners have been adopted by about 439 installers in the U.S. as of this date.

此外，整合了我們的 IQ 7X 微型逆變器的 N330E 松下交流模組已於 2019 年 3 月上市。這些模組將松下 HIT 太陽能板的效率與 Enphase 高度可靠的 IQ 7XS（IQ 7X 微型逆變器）結合在一起。我們也與 Solaria 等其他組件合作夥伴在交流組件的量產方面取得了穩定進展。自 2017 年 10 月發布以來，我們的模組合作夥伴提供的 Enphase AC 模組截至目前已被美國約 439 個安裝商採用。

The most critical driver for our profitable top line growth is the Ensemble "always-on" Solar and Storage technology. The Ensemble solution has 4 components: energy generation, which is [accomplished] (corrected by the company after the call) with the grid-agnostic microinverter IQ 8; energy storage, which is achieved by the Encharge battery with capacities of 3.3 kilowatt hour, 10 kilowatt-hour and 13.2 kilowatt-hour; communication and control, which consists of the Automatic Transfer Switch and the combiner box with the Envoy gateway; and the fourth and final component is Enlighten, which is the IoT cloud software.

我們獲利收入成長的最關鍵驅動力是 Ensemble「永遠在線」的太陽能和儲存技術。Ensemble 解決方案有 4 個組成部分： 發電，透過與電網無關的微型逆變器 IQ 8 [完成]（由公司在通話後更正）；儲能，由容量為3.3千瓦時、10千瓦時及13.2千瓦時的Encharge電池實現；通訊和控制，由自動轉換開關和帶有 Envoy 閘道的匯流箱組成；第四個也是最後一個元件是 Enlighten，它是物聯網雲端軟體。

As discussed last quarter, we plan to introduce Ensemble in a phased manner. We expect to release the Ensemble 1.0 solution in the fourth quarter of 2019, exclusively focused on the residential energy storage in North America.

正如上季所討論的，我們計劃分階段引入 Ensemble。我們預計在2019年第四季發布Ensemble 1.0解決方案，專門針對北美的住宅儲能。

Residential energy storage is enabled by the Encharge battery, which is designed to be a modular 3.3 kilowatt-hour solution. Encharge consists of LFP, which is lithium ion phosphate, cells, the Enphase battery management system, communications, software and most importantly, our IQ 8 grid-agnostic microinverter, all packaged together in a single enclosure. The 3.3 kilowatt-hour modularity is a differentiating feature that allows for ease of installation, flexibility and scalability while helping to streamline our supply chain as well.

住宅儲能由 Encharge 電池實現，該電池被設計為模組化 3.3 千瓦時解決方案。Encharge 由 LFP（即磷酸鋰離子）、電池、Enphase 電池管理系統、通訊、軟體以及最重要的是我們的 IQ 8 與電網無關的微型逆變器組成，所有這些都封裝在一個外殼中。3.3 千瓦時的模組化是一項與眾不同的功能，它易於安裝、具有靈活性和可擴展性，同時也有助於簡化我們的供應鏈。

The Ensemble 1.0 solution is designed to be compatible with IQ 6 and IQ 7 PV systems both for existing and new installs. Another key part of the Ensemble 1.0 solution is the Automatic Transfer Switch called Enpower, which allows a home to be isolated from the grid in the event of a grid failure, enabling the grid-agnostic function. We expect to release new generations of Enpower over time with enhanced software and hardware capability.

Ensemble 1.0 解決方案旨在與現有和新安裝的 IQ 6 和 IQ 7 光電系統相容。Ensemble 1.0解決方案的另一個關鍵部分是名為Enpower的自動轉換開關，它允許在電網故障時將家庭與電網隔離，從而實現與電網無關的功能。我們預計隨著時間的推移，將發布具有增強的軟體和硬體功能的新一代 Enpower。

Ensemble 2.0 is expected to follow 1.0 shortly after and will enable new IQ 8 PV installations. The next generation of Enpower, which will be part of Ensemble 2.0, will have the software and hardware capability of managing consumption in a fine-grained manner. Our goal is to continue providing additional value to our partners and customers with every new Ensemble release. We will continue to update you on a quarterly basis.

Ensemble 2.0 預計將在 1.0 之後不久推出，並將支援新的 IQ 8 光伏安裝。下一代Enpower將成為Ensemble 2.0的一部分，將具有以細粒度方式管理消耗的軟體和硬體能力。我們的目標是透過每個新的 Ensemble 版本繼續為我們的合作夥伴和客戶提供額外的價值。我們將繼續每季向您通報最新情況。

We are very close to delivering our final requirements of our pure off-grid IQ 8 microinverter solution to our partner and expect to ramp production in the second quarter. There has been a quarter delay here mainly involving software changes to get the customer experience right. We now expect to receive the final milestone payment of approximately $675,000 from our partner in the second quarter.

我們非常接近向合作夥伴交付純離網 IQ 8 微型逆變器解決方案的最終要求，並預計在第二季提高產量。這裡有一個季度的延遲，主要涉及軟體更改，以獲得正確的客戶體驗。現在，我們預計將在第二季從合作夥伴處收到約 675,000 美元的最終里程碑付款。

In summary, our top priority is to increase profitability quarter-on-quarter, creating further shareholder value. In the near term, our focus is to expand and optimize the supply chain to meet the additional demand while providing a superior customer experience. In the longer term, we are focused on product innovation to increase our revenue potential from approximately $2,000 per home to over $10,000 per home by leveraging Ensemble-based home energy management systems.

綜上所述，我們的首要任務是季度環比提高獲利能力，進一步創造股東價值。短期內，我們的重點是擴大和優化供應鏈以滿足額外需求，同時提供卓越的客戶體驗。從長遠來看，我們專注於產品創新，透過利用基於 Ensemble 的家庭能源管理系統，將我們的收入潛力從每個家庭約 2,000 美元增加到超過 10,000 美元。

With that, I will turn the call over to Eric for his review of our financial results. Eric?

這樣，我將把電話轉給埃里克，請他審查我們的財務表現。艾瑞克？

Thanks, Badri. I will provide more details relating to our first quarter of 2019 financial results as well as our business outlook for the second quarter. As a reminder, the financial measures that I'm going to provide are on a non-GAAP basis unless otherwise noted. We have provided a reconciliation of these non-GAAP to GAAP financial measures in our earnings release posted today, which can also be found in our Investor Relations sections of our website.

謝謝，巴德里。我將提供有關 2019 年第一季財務業績以及第二季業務前景的更多詳細資訊。提醒一下，除非另有說明，我將提供的財務指標均以非公認會計原則為基礎。我們在今天發布的收益報告中提供了這些非 GAAP 與 GAAP 財務指標的調整表，您也可以在我們網站的投資者關係部分找到該調整表。

Total revenue for the first quarter of 2019 was $100.2 million, an increase of 9% sequentially and an increase of 43% year-over-year. We shipped approximately 306 megawatts DC in the first quarter of 2019, an increase of megawatts of 19% sequentially and an increase of 71% from the year ago quarter. The megawatts shipped represented approximately 976,000 microinverters, approximately 94% of which was IQ 7. Both IQ 6 and IQ 7 represented 99% of Q1 microinverter shipments. I am pleased to report that since inception, we have now shipped more than 20 million microinverters globally.

2019年第一季總營收為1.002億美元，季增9%，年增43%。2019 年第一季度，我們的直流出貨量約為 306 兆瓦，比上一季成長 19%，比去年同期成長 71%。兆瓦級的微型逆變器出貨量約為 976,000 個，其中約 94% 為 IQ 7。IQ 6 和 IQ 7 均佔第一季微型逆變器出貨量的 99%。我很高興地向大家報告，自成立以來，我們現已在全球範圍內出貨了超過 2000 萬台微型逆變器。

Non-GAAP gross margin from the first quarter of 2019 was 33.5% compared to 30.7% for the fourth quarter. Even though we share some of the expedite fees with our partners, component shortages continue to negatively impact our Q1 non-GAAP gross margin by approximately 280 basis points.

2019 年第一季的非 GAAP 毛利率為 33.5%，而第四季為 30.7%。儘管我們與合作夥伴分擔一些加急費用，但組件短缺繼續對我們第一季非 GAAP 毛利率產生約 280 個基點的負面影響。

Non-GAAP operating expenses were $22.3 million for the first quarter of 2019 compared to $19.7 million in Q4 and $17.7 million in the first quarter of 2018. As I mentioned last quarter, 2018 was our first year of SOX auditor attestation and as a result, we incurred higher-than-expected expenses in internal audit plus additional consulting and advisory fees. These higher-than-normal expenses continued into Q1 2019.

2019 年第一季非 GAAP 營運費用為 2,230 萬美元，而第四季為 1,970 萬美元，2018 年第一季為 1,770 萬美元。正如我上季度提到的，2018 年是我們進行 SOX 審計師認證的第一年，因此，我們的內部審計費用以及額外的諮詢和諮詢費用高於預期。這些高於正常水平的支出一直持續到 2019 年第一季。

GAAP operating expenses were $26.2 million for the first quarter of 2019 compared to $23.2 million in Q4 and $20.8 million in the first quarter of 2018. GAAP operating expenses for the first quarter included $3 million of stock-based compensation, $546,000 of amortization for acquired intangible assets and $368,000 of restructuring expenses.

2019 年第一季的 GAAP 營運費用為 2,620 萬美元，而第四季為 2,320 萬美元，2018 年第一季為 2,080 萬美元。第一季的 GAAP 營運費用包括 300 萬美元的股票薪酬、546,000 美元的收購無形資產攤銷以及 368,000 美元的重組費用。

On a non-GAAP basis, income from operations was $11.3 million in the first quarter of 2019 compared to $8.6 million in Q4 and $861,000 in the year ago quarter. This improvement in operating income is reflective of our continued improved operational excellence and continued product leadership.

以非公認會計準則計算，2019 年第一季營運收入為 1,130 萬美元，而第四季為 860 萬美元，去年同期為 861,000 美元。營業收入的提高反映了我們持續改善的卓越營運和持續的產品領先地位。

On a GAAP basis, income from operations was $7.1 million in the first quarter of 2019.

以 GAAP 計算，2019 年第一季營運收入為 710 萬美元。

On a non-GAAP basis, net income for the first quarter of 2019 was $9.5 million compared to $5.1 million in Q4 and a loss of $1.3 million in the year ago quarter. This resulted in basic earnings per share of $0.09 and diluted earnings per share of $0.08 in the first quarter of 2019 compared to basic earnings per share of $0.05 and diluted earnings per share of $0.04 in the fourth quarter of 2018.

以非公認會計原則計算，2019 年第一季淨利為 950 萬美元，而第四季為 510 萬美元，去年同期虧損 130 萬美元。這導致 2019 年第一季的基本每股收益為 0.09 美元，稀釋每股收益為 0.08 美元，而 2018 年第四季的基本每股收益為 0.05 美元，稀釋每股收益為 0.04 美元。

GAAP net income for the first quarter of 2019 was $2.8 million compared to $709,000 in Q4 and a loss of $5.2 million in the first quarter of 2018. This resulted in basic earnings per share of $0.03 and diluted earnings per share of $0.02 in the first quarter of 2019 compared to basic and diluted earnings per share of $0.01 in the fourth quarter of 2018. We are happy to report that this was the second quarter in the company's history that we have achieved GAAP net profitability.

2019 年第一季 GAAP 淨利潤為 280 萬美元，而第四季為 709,000 美元，2018 年第一季虧損 520 萬美元。這導致 2019 年第一季基本每股收益為 0.03 美元，稀釋每股收益為 0.02 美元，而 2018 年第四季基本和稀釋每股收益為 0.01 美元。我們很高興地報告，這是公司歷史上第二個季度實現了 GAAP 淨利潤。

Now turning to the balance sheet. Inventory was $13 million in the first quarter of 2019 compared to $16.3 million in Q4 and $18.5 million in the year ago quarter. We ended at 18 days of inventories on hand as of March 31, 2019, significantly below our target of 30 days and down from 23 days in the fourth quarter and also down 32 days in the year ago quarter. Although most of the inventory reduction was due to high demand constraint by component shortages, inventory management continues to remain as one of our key cash management initiatives.

現在轉向資產負債表。2019 年第一季的庫存為 1,300 萬美元，而第四季為 1,630 萬美元，去年同期為 1,850 萬美元。截至 2019 年 3 月 31 日，我們的現有庫存為 18 天，遠低於我們 30 天的目標，低於第四季的 23 天，也低於去年同期的 32 天。儘管庫存減少的主要原因是組件短缺造成的高需求限制，但庫存管理仍然是我們關鍵的現金管理措施之一。

We exited the first quarter of 2019 with a total cash balance of $78.1 million compared with $106.2 million in Q4. As previously discussed, we repaid in full our high interest-bearing senior secured term loan with Tennenbaum Capital Partners. The repayment included a principal amount of approximately $39.5 million plus accrued interest and fees. We generated $17.1 million in cash flow from operations and $16.4 million in adjusted free cash flow for the first quarter of 2019.

2019 年第一季結束時，我們的現金餘額總額為 7,810 萬美元，而第四季為 1.062 億美元。如前所述，我們全額償還了 Tennenbaum Capital Partners 的高息優先擔保定期貸款。償還金額包括約 3,950 萬美元的本金以及應計利息和費用。2019 年第一季度，我們的營運現金流為 1,710 萬美元，調整後自由現金流為 1,640 萬美元。

Now let's discuss our outlook for the second quarter of 2019. We expect our revenue for the second quarter of 2019 to be within a range of $115 million to $125 million. Turning to margins. We expect GAAP and non-GAAP gross margin to be within a range of 32% to 35%. Note that our Q2 gross margin guidance includes a negative impact of approximately 250 to 350 basis points due to expedite fees resulting from component shortages. We expect our GAAP operating expenses to be within a range of $25 million to $27 million, including a total of approximately $4 million estimated for stock-based compensation, additional restructuring and acquisition-related expenses and amortization. We expect non-GAAP operating expenses to be within a range of $21 million to $23 million.

現在讓我們討論一下我們對 2019 年第二季的展望。我們預計 2019 年第二季的營收將在 1.15 億美元至 1.25 億美元之間。轉向邊緣。我們預計 GAAP 和非 GAAP 毛利率將在 32% 至 35% 之間。請注意，我們的第二季度毛利率指引包括由於組件短缺導致的加急費用而產生約 250 至 350 個基點的負面影響。我們預計我們的 GAAP 營運費用將在 2,500 萬美元至 2,700 萬美元之間，其中包括總計約 400 萬美元的股票薪酬、額外重組和收購相關費用及攤提。我們預計非 GAAP 營運費用將在 2,100 萬美元至 2,300 萬美元之間。

With that, I will now open the line for questions.

現在，我將開通提問熱線。

(Operator Instructions) Our first question comes from Philip Shen with Roth Capital Partners.

（操作員說明）我們的第一個問題來自 Roth Capital Partners 的 Philip Shen。

We'll move on to the next question. Our next question comes from Colin Rusch with Oppenheimer.

我們將繼續討論下一個問題。我們的下一個問題來自科林·魯什和奧本海默。

Can you talk a little bit about the operating leverage that you're seeing here? Are you expecting to hold your operating expenses flat here and see some additional leverage as you grow sales and revisit that 30-20-10 model? Or what can we expect going forward?

您能談談您在這裡看到的營運槓桿嗎？您是否希望在此保持營運支出不變，並隨著銷售額的增長並重新審視 30-20-10 模型而看到一些額外的槓桿作用？或者我們可以期待什麼？

Yes, that's Jeff, right?

是的，那是傑夫，對吧？

Colin.

科林.

Colin. So the framework that we are using, which is the 30-20-10 framework that we launched 1.5 years ago, almost 2 years ago, remains in place as our baseline for operating our business, right? So the operating leverage will be manifested over time. You can see that in the Q2 guidance, on the midpoint, we basically are already achieving some of that by looking at the midpoint is about 18% of the OpEx as a percentage of revenue, right? I would say that we'll continue making investment on critical areas, such as sales and marketing and the investments associated with R&D, for future development of products and -- which is part of what we do, which is innovation.

科林.因此，我們正在使用的框架，即我們在 1.5 年前（大約 2 年前）推出的 30-20-10 框架，仍然是我們經營業務的基準，對吧？所以經營槓桿會隨著時間的推移而顯現出來。您可以看到，在第二季的指導中，在中點上，我們基本上已經實現了其中一些目標，透過查看中點約為營運支出佔收入百分比的 18%，對嗎？我想說，我們將繼續在關鍵領域進行投資，例如銷售和行銷以及與研發相關的投資，以用於未來的產品開發，這是我們工作的一部分，即創新。

Okay. And then just on the battery product, can you talk a little bit about your expectations around pricing, how much of that's moving around, how much visibility you have into that at this point? And then as well as the movement on LFP supply, we're certainly seeing some interesting movements in terms of cost structure there. And what are you expecting in terms of cost for acquiring those cells as you go forward and move into a little bit higher volume?

好的。然後就電池產品而言，您能否談談您對定價的期望，其中有多少變化，您目前對此有多少了解？然後，除了 LFP 供應的變動之外，我們當然也看到了成本結構方面的一些有趣的變化。當您繼續前進並進入更高的產量時，您對獲取這些細胞的成本有何期望？

So Colin, it's a little bit early, but I'll share some of our preliminary reports. In general, if I take a look at the market pricing, the market pricing, not our pricing, the market pricing for a battery system is usually ranging from $600 per kilowatt-hour for the big guys, the Tier 1 guys, to anywhere more than $1,000 per kilowatt hours for the long-tail guys. We will obviously price it appropriately, taking the market dynamics into account.

科林，現在有點早，但我將分享我們的一些初步報告。一般來說，如果我看一下市場定價，市場定價，而不是我們的定價，電池系統的市場定價通常範圍從大公司、一級公司的每千瓦時 600 美元到任何其他地方。對於長尾企業來說，每千瓦時的成本超過1,000 美元。顯然，我們會考慮市場動態，對其進行適當定價。

With regarding the cost structure of the cells, we -- I mean you asked, again, we are not going to break out the cost of our battery cells. But we have partnered already with one supplier who we are buying the ACB, meaning the 1.5, the 1.2 kilowatt-hour battery from. They had given us extremely competitive pricing along with very high quality. We are in the process of signing an MSA with another very high-quality supplier with a great supply chain. So those 2 will put us in good position as far as both capacity and cost are concerned, and we expect to be very competitive.

關於電池的成本結構，我的意思是你再次問，我們不會透露電池的成本。但我們已經與一家供應商合作，我們正在從該供應商購買 ACB，即 1.5、1.2 千瓦時電池。他們為我們提供了極具競爭力的價格和非常高的品質。我們正在與另一家擁有完善供應鏈的優質供應商簽署 MSA。因此，就容量和成本而言，這兩者將使我們處於有利地位，並且我們預計將非常有競爭力。

Our next question comes from Philip Shen with Roth Capital Partners.

我們的下一個問題來自 Roth Capital Partners 的 Philip Shen。

Our next question comes from Eric Stine with Craig-Hallum.

我們的下一個問題來自埃里克·斯坦和克雷格·哈勒姆。

Just related to SunPower, and I know -- I don't know if you're willing to break this out specifically. But just curious maybe how that is trending versus your expectations. I guess what I'm getting at, obviously a very strong top line quarter and wondering if that was a major component of the strength or if this is your underlying business. And then as we get into the back half of the year, we're going to layer -- or the impact of the volumes of SunPower on top of that.

只是與 SunPower 相關，我知道——我不知道你是否願意具體說明這一點。但只是好奇這與你的期望相比趨勢如何。我想我的意思是，顯然這是一個非常強勁的營收季度，我想知道這是否是實力的主要組成部分，或者這是否是您的基礎業務。然後，當我們進入今年下半年時，我們將在此基礎上疊加 SunPower 銷售的影響。

The SunPower transition is going extremely well for us. They are a very important customer. We will do whatever it takes to serve them well. The -- of course, when SunPower is ramping with the Enphase product, I mean, we had to basically work with them to ensure that the inventory position is right, and therefore the numbers were a little bit lower in this quarter. But hey, we had extraordinary strength from all of the customers as well and therefore -- so even if their demand -- or if their -- if we ship less material to SunPower because of inventory reasons, we made it up with the other customers. But going forward, we should start seeing that business ramping in Q2 of '19 and -- as we said before. So there's no change to what we are thinking there.

SunPower 的轉型對我們來說進展順利。他們是非常重要的客戶。我們將盡一切努力為他們提供良好的服務。當然，當 SunPower 大力推廣 Enphase 產品時，我的意思是，我們基本上必須與他們合作，以確保庫存狀況正確，因此本季的數字略低一些。但是，嘿，我們也從所有客戶那裡獲得了非凡的力量，因此，即使他們有需求，或者如果他們的需求，如果我們由於庫存原因而減少向 SunPower 運送材料，我們也會與其他客戶進行彌補。但展望未來，我們應該開始看到該業務在 19 年第二季開始成長——正如我們之前所說。所以我們的想法沒有改變。

Okay. Got it. And obviously you're making quite a bit of progress with other AC module customers. Just curious what that's driving from the rest of -- I mean, because you've got a number of AC module partners, whether it's current partners or new partners in response to the trends you're seeing today.

好的。知道了。顯然，您與其他交流模組客戶的合作取得了相當大的進展。只是好奇這會從其他方面推動什麼 - 我的意思是，因為您有許多交流模組合作夥伴，無論是當前的合作夥伴還是針對您今天看到的趨勢的新合作夥伴。

Right. So we've started with AC modules in late 2017, and LG was our first AC module partner. We are thankful to them for that. And then since then, we have learned a lot on AC modules. We have now started shipping in AC modules only -- or the microinverters for AC modules to SunPower. We are shipping microinverters for AC modules to Panasonic. We are shipping to Solaria. I mean, AC modules is -- that is a cornerstone of our innovation where we basically absorb a certain activity in the field in the factory. And because of that, we are able to reduce the installation time. We are able to improve on logistics. We improved on quality. We improved on training. So it offers extraordinary value. The installers who ever have converted AC modules find it obviously difficult to go back to the screen.

正確的。因此，我們在 2017 年底開始推出交流模組，LG 是我們的第一個交流模組合作夥伴。我們為此感謝他們。從那時起，我們在交流模組上學到了很多東西。我們現在開始僅向 SunPower 運送交流模組，或用於交流模組的微型逆變器。我們正在向松下運送用於交流模組的微型逆變器。我們正在運送到索拉里亞。我的意思是，交流模組是我們創新的基石，我們基本上吸收了工廠領域的某些活動。正因為如此，我們能夠減少安裝時間。我們能夠改進物流。我們提高了品質。我們在訓練方面有所改進。因此它提供了非凡的價值。曾經轉換過交流模組的安裝人員發現顯然很難返回到螢幕。

So AC module is very important. We are continuing to work on it. It's becoming -- it's not that it's going to ramp heavily in one quarter, but in a slow and steady growth. For example, in Europe, we are working with a couple of very key module vendors in order to introduce AC modules. We will announce when we are ready. And we are also working with a few partners in APAC as well.

所以AC模組非常重要。我們正在繼續努力。它正在變得——並不是說它會在一個季度內大幅增長，而是緩慢而穩定的增長。例如，在歐洲，我們正在與幾個非常重要的模組供應商合作，以推出交流模組。當我們準備好時我們會宣布。我們也與亞太地區的一些合作夥伴合作。

Got it. Maybe last one for me, and I don't know if I missed this. Did you mention or did you give the number what 1Q was constrained by on the components and what that number looks like in Q2?

知道了。也許對我來說是最後一個，我不知道我是否錯過了這個。您是否提到或給出了 1Q 受到組件限制的數字以及該數字在 Q2 中的樣子？

No. We are not breaking out the number we were constrained by. No.

不。我們並沒有透露我們所受到的限制。不。

Our next question comes from Amit Dayal with H.C. Wainwright.

我們的下一個問題來自 Amit Dayal 和 H.C.溫賴特。

Congratulations, guys, on the strong quarter and the guidance. Just the year-over-year strength you're seeing, I mean, is this tied to any one partner or customer? I know you're doing well in the U.S. and Latin America from a geography perspective. But what's driving some of the strength? Are you taking market share from other players? Could you just maybe give some color on the...

恭喜夥計們，取得了強勁的季度業績和指導。我的意思是，您所看到的同比實力是否與任何一個合作夥伴或客戶有關？我知道從地理角度來看你們在美國和拉丁美洲做得很好。但是是什麼推動了一些力量呢？您是否正在從其他參與者那裡奪取市場份額？你能不能給它一些顏色...

Yes, actually 18 months back, Enphase was in a very different place. Our balance sheet was not in a great shape. P&L was hurting. I think in the last 18 months, with the hard work of a lot of people, we basically have turned the corner. Our balance sheet is very strong now. We are starting to make money. So customers -- a lot of the customers who were kind of nervous at that time to do business with us are now coming back. And most importantly, our product innovation hasn't stopped. Even during the most difficult of times, we introduced IQ 6 and IQ 7, and IQ 7 is a fantastic product. It is -- IQ 7 is best-in-class in terms of the number of components it has, the kind of power, the weight and in addition, the cable is a lot simpler cable. So product innovation has really been the root cause on why we are here.

是的，實際上 18 個月前，Enphase 處於一個非常不同的地方。我們的資產負債表狀況不佳。損益表很糟。我想在過去的18個月裡，在很多人的努力下，我們基本上已經度過了難關。我們的資產負債表現在非常強勁。我們開始賺錢了。所以客戶——很多當時對與我們做生意感到緊張的客戶現在又回來了。最重要的是，我們的產品創新並沒有停止。即使在最困難的時期，我們也推出了 IQ 6 和 IQ 7，IQ 7 是一款非常棒的產品。IQ 7 在組件數量、功率類型、重量方面都是同類中最好的，此外，電纜也簡單得多。因此，產品創新確實是我們在這裡的根本原因。

So that, combined with our great quality, great customer service, coupled with the strong balance sheet is the root cause probably of all -- I mean, of a lot of customers coming back. And having said that, where is this demand coming from? The demand is broad-based. It's coming from a lot of long-tail customers. In addition, we are seeing a bunch of Tier 2s as well cropping up. Of course, the AC modules are ramping. You know about that. And our SunPower relationship, again, is also important for us. Those are some of the vectors of our revenue growth.

因此，結合我們卓越的品質、優質的客戶服務，再加上強勁的資產負債表，這可能是所有客戶回歸的根本原因。話雖如此，這個需求從何而來？需求是廣泛的。它來自很多長尾客戶。此外，我們也看到大量 2 級企業的出現。當然，交流模組正在逐漸增加。你知道這一點。同樣，我們與 SunPower 的關係對我們也很重要。這些是我們收入成長的一些因素。

Understood. Are you potentially seeing this strength going to play out in the following -- in the second half of the year as well? I'm just trying to look further down the line a little bit. I don't know if you can share that or you have that level of visibility. But sequentially, it looks like you probably are in a position with Ensemble, et cetera, coming down in maybe the fourth quarter to continue sequentially.

明白了。您是否有可能看到這種優勢將在接下來的下半年發揮作用？我只是想進一步看一下。我不知道你是否可以分享這一點，或者你是否有這樣的知名度。但從順序上看，您可能處於 Ensemble 等的位置，可能會在第四季度繼續按順序繼續。

Yes, I mean, it's too early, Amit, to talk about the guidance for the second half, but we feel good. We have a lot of positive things happening. Ensemble is going to get released in the fourth quarter with a focus on the residential storage market. We are very excited about that. But we are going to take it one quarter at a time now.

是的，我的意思是，阿米特，現在談論下半年的指導還為時過早，但我們感覺很好。我們發生了很多正面的事情。Ensemble 將於第四季度發布，重點關注住宅儲存市場。我們對此感到非常興奮。但我們現在要一次一個季度地進行。

Just maybe one last one on the expedite fees. Now with Infineon coming online, is this now going away for us? Or should we expect this to continue playing out a little bit more?

也許只是關於加急費用的最後一項。現在，隨著英飛凌上線，這種情況對我們來說會消失嗎？或者我們應該期待這種情況繼續發生更多一點嗎？

In the long term, you should always expedite -- I mean, you should always expect a little bit of expedite, which is 1% to 2%. But anything in the 3% to 4%, et cetera, is egregious. That needs to go away. And it's probably going to go away only early next year or maybe the latter part of this year, which we will see. And again, Infineon is instrumental for us because we signed the contract with Infineon that enables a steady stream of supply in the second half with, in fact, some of it starting in Q2, yes. So we expect some level of expedite always, okay?

從長遠來看，你應該總是加速——我的意思是，你應該總是期待一點加速，即 1% 到 2%。但 3% 到 4% 之類的任何東西都是令人震驚的。那需要消失。它可能只會在明年初或今年下半年消失，我們將會看到這一點。英飛凌對我們也很有幫助，因為我們與英飛凌簽訂了合同，可以在下半年實現穩定的供應，事實上，其中一些從第二季度開始，是的。所以我們總是期望一定程度的加快，好嗎？

Our next question comes from Philip Shen with Roth Capital.

我們的下一個問題來自 Roth Capital 的 Philip Shen。

Let's try this again. Can you guys hear me okay?

讓我們再試一次。你們聽得到我說話嗎？

Yes.

是的。

Sincere apologies for the technical difficulties with my cellphone. But first question is on pricing. Apologies if you've already talked about some of this, but we've heard that you may have raised prices by 5% on April 1. Just want to confirm that that's just for the U.S. business. What percentage of the business does that apply to? And then looking forward, what's the outlook for pricing in general? With the lack of entrants from a competitor and the strength that you have now, what do you -- how do you expect pricing to trend independent of tariffs as we go through the year?

對於我的手機出現的技術困難，我們深感抱歉。但第一個問題是定價。如果您已經談論過其中的一些內容，我們深表歉意，但我們聽說您可能在 4 月 1 日將價格提高了 5%。我想確認一下，這只是針對美國業務。這適用於多少比例的業務？然後展望未來，定價的整體前景如何？由於缺乏競爭對手的進入者以及您現在擁有的實力，您預計今年的定價趨勢將如何獨立於關稅？

Yes, I mean -- yes, the -- yes, it is true. We did raise the pricing by 5% on April 1, correct, in North America. With -- regarding the pricing trends, I mean, we see pricing to be still right now. And like what I said, we are going to take it one quarter at a time, but right now we see pricing flat.

是的，我的意思是——是的，是的，這是真的。4 月 1 日，我們確實將北美的定價提高了 5%，這是正確的。關於定價趨勢，我的意思是，我們認為定價目前保持不變。就像我說的，我們將一次一個季度地進行，但現在我們看到定價持平。

Okay. Great. And I know you're not providing guidance for the back half, but was wondering if you could provide some broad brush strokes. So specifically, you talked about being fully booked for Q2. Can you provide some indication about how much Q3 might be booked? Perhaps talk about what the cadence of Q3 and 4 might be.

好的。偉大的。我知道您沒有為後半部分提供指導，但想知道您是否可以提供一些廣泛的筆觸。具體來說，您談到了第二季的預訂已滿。您能否提供一些有關第三季可能預訂的金額的資訊？也許可以談談第三季和第四季的節奏。

So Phil, yes, unfortunately, I cannot break out numbers for Q3 and Q4, but I'll say the same thing as I told Amit. We feel, I mean, we are in a very good spot in terms of the business. A lot of the business strength is due to the long-tail, Tier 2s, AC modules and our relationship with SunPower. Historically, you know that for the solar business, Q3 and Q4 are usually good. But having said that, you know the kind of business, the kind of government conditions we are at. So anything can change. So we are going to take it one quarter at a time, but we feel good.

所以菲爾，是的，不幸的是，我無法詳細說明第三季和第四季的數字，但我會說我告訴阿米特的同樣的話。我的意思是，我們覺得我們在業務方面處於非常有利的位置。許多業務實力歸功於長尾、Tier 2s、AC 模組以及我們與 SunPower 的關係。從歷史上看，您知道對於太陽能業務來說，第三季和第四季通常都不錯。但話雖如此，你知道我們所處的行業和政府條件。所以任何事都可能改變。所以我們打算一次只服用一個季度，但我們感覺很好。

Great. As for Q3 supply, how much of your U.S. demand you think could be addressed by your Mexico facility? Are we looking at maybe 50%? I know you started in the quarter of Q2 ramping up there. But are we looking at a vast majority?

偉大的。至於第三季的供應，您認為您的墨西哥工廠可以滿足多少美國需求？我們看到的可能是 50% 嗎？我知道你從第二季的季度開始就開始加速。但我們看到的是絕大多數嗎？

I mean it's a little bit early to quantify, but let me tell you my line of thinking. We take all of the product qualifications seriously. Mexico -- the Mexico product will be treated like a new product. We will not release it until we are absolutely confident that it is as reliable and as high quality as the China version. So basically, we are going to -- we are not going to get ahead of ourselves. We are confident of getting the qualifications done in this quarter. We will do a soft -- what we call as a soft ramp. We will do it -- we'll do a focus group. We will start with a few customers, then we will introduce on a broad scale. That's the color I can provide right now.

我的意思是現在量化還為時過早，但讓我告訴你我的想法。我們認真對待所有的產品資格。墨西哥—墨西哥產品將被視為新產品。在我們完全確信它與中國版本一樣可靠和高品質之前，我們不會發布它。所以基本上，我們不會超越自己。我們有信心在本季完成資格審查。我們將做一個軟的——我們稱之為軟坡道。我們會這麼做──我們會成立一個焦點小組。我們將從一些客戶開始，然後我們將進行大規模的介紹。這就是我現在可以提供的顏色。

Okay. And one last housekeeping set of questions. Eric, this might be more for you as it relates to one-timers. Just want to -- it seemed like a very clean quarter. But I wanted to just confirm were there -- besides the air shipments, was there -- were there any one-timers in costs? Were there any one-timers in revenue or even in G&A?

好的。還有最後一組內務問題。埃里克，這可能更適合你，因為它與一次性者有關。只是想——這看起來是一個非常乾淨的季度。但我想確認一下——除了空運之外，是否還有一次性成本？收入甚至一般管理費用方面是否有一次性的情況？

OpEx is the only one I come to mind for the -- a little bit of the legacy of the SOX attestation work that we started last year and finished with the Q1 10-K, right? So other than that, the OpEx front is pretty clean, right? It's pretty straightforward.

OpEx 是我想到的唯一一個——我們去年開始並在 Q1 10-K 中完成的 SOX 認證工作的一點遺產，對吧？除此之外，營運支出方面還很乾淨，對吧？這非常簡單。

Okay. Great. Thank you both. Congrats on the great quarter and the guide and just development and progress in general.

好的。偉大的。謝謝你們倆。祝賀偉大的季度和指導以及整體的發展和進步。

(Operator Instructions) Our next question comes from Maheep Mandloi with Crédit Suisse.

（操作員說明）我們的下一個問題來自瑞士信貸銀行的 Maheep Mandloi。

Just on the gross margins. Can you talk about how much of the guidance includes the impact of component shortages in Q2?

只是在毛利率上。您能談談指導中有多少內容包括第二季零件短缺的影響嗎？

Yes, as we said in the script, the 32% to 35% gross margin guidance includes 250 to 350 basis points spending for component shortages.

是的，正如我們在腳本中所說，32% 至 35% 的毛利率指導包括 250 至 350 個基點的零件短缺支出。

And just on safe harbor, and you said we will -- we can probably expect more details in Q3. But just based on your talks so far, what are customers looking for in the safe harbor just generally? It is microinverter? Or are they looking for AC modules? And have they talked about using your warehousing capacity? Anything else which we can learn on the next call on this thing -- in this regard?

就在安全港，你說過我們會的——我們可能會在第三季期待更多細節。但根據您迄今為止的談話，客戶一般在安全港尋找什麼？是微型逆變器嗎？或者他們正在尋找交流模組？他們是否討論過使用您的倉儲能力？在這方面，我們在下次電話會議上還可以了解什麼？

Yes, I mean, it's -- so Maheep, it's too early for us to be talking about the specific nature of demand right now. We know that our customers has a need, and right now it looks like it's going to be more of the microinverters. But we really don't have the right details to share with you, and that will be available in the next 3 months and we'll share it with you then.

是的，我的意思是，Maheep，我們現在談論需求的具體性質還為時過早。我們知道我們的客戶有需求，目前看來更多的是微型逆變器。但我們確實沒有正確的詳細資訊可以與您分享，這將在未來 3 個月內提供，屆時我們將與您分享。

Our next question comes from Brad Meikle with Williams Trading.

我們的下一個問題來自威廉斯貿易公司的布拉德·米克爾。

So it's the end of April. So essentially, you're saying by Q4, you'll have 2 million units of capacity. So you shipped about 970,000, I guess. And so you'll have more than twice as much capacity 5 months from now based on the way you're laying it out. So can you fill that in with a little bit of color on where that incremental demand is coming from? Like how you got to that number and how much of that may be -- even if it's not bookings, there may be some visibility on demand for even though you're not guiding on that period.

就這樣，四月底了。所以基本上，你說到第四季度，你將擁有 200 萬單位的產能。我猜你們的出貨量約為 97 萬件。因此，根據您的佈局方式，5 個月後您的容量將增加兩倍以上。那麼，您能否用一些顏色來說明增量需求的來源呢？就像你是如何達到這個數字的，以及其中可能有多少——即使不是預訂，即使你沒有在那段時間進行指導，也可能會有一些需求可見性。

Yes, so Brad, you are right. I mean we are planning for a 2 million unit capacity in Q4 of '19. We are putting in place our measures. That's how you saw the -- you saw the Infineon press release, et cetera. That's going to give us -- that's going to help us in terms of component shortages. And having said that, I'll go back to our profitable top line growth vectors. I mean the root cause of our profitable top line growth vectors is the clean balance sheet now, it's the great P&L and most importantly, our IQ product, IQ 7 product, and that product with the highest quality in terms of DPPM. Our long-term target is 500 DPPM. That is the one that is driving a lot of strength. And the strength is obviously across the board.

是的，所以布拉德，你是對的。我的意思是，我們計劃在 19 年第四季實現 200 萬輛的產能。我們正在採取措施。這就是你看到的——你看到了英飛凌的新聞稿，等等。這將幫助我們解決零件短缺問題。話雖如此，我還是要回到我們的獲利頂線成長向量。我的意思是，我們獲利的頂線成長向量的根本原因是現在乾淨的資產負債表，這是偉大的損益表，最重要的是，我們的IQ 產品，IQ 7 產品，以及在DPPM 方面具有最高品質的產品。我們的長期目標是 500 DPPM。那是驅動大量力量的動力。而且實力顯然是全面的。

And as you know, it's no secret, Enphase is primarily focused on long-tail customers because we think long-tail customers are -- we have a great value proposition for long-tail customers. They have -- very often they have crews of 4 to 8 people in total and they do limited number of jobs. And all they want is, is to make sure their product is very high quality and that customer service, when they call with a problem, it is solved immediately. So first call resolution is super important for the long-tail. And our job is really -- where we excel is to make that easy, so smooth for the long-tail. It's so easy to use our product that they just -- when they buy an Enphase product, they hopefully will not switch to anyone else. So that is our fundamental value proposition for long-tail. So we are seeing a lot of strength across long-tail.

如您所知，這不是什麼秘密，Enphase 主要關注長尾客戶，因為我們認為長尾客戶是——我們為長尾客戶提供了巨大的價值主張。他們的員工總數通常為 4 到 8 人，而且他們從事的工作數量有限。他們想要的只是確保他們的產品品質非常高，並且當他們打電話提出問題時，客戶服務會立即得到解決。因此，首次通話解決率對於長尾來說非常重要。我們的工作確實是──我們擅長的地方就是讓長尾變得簡單、順利。使用我們的產品是如此簡單，以至於當他們購買 Enphase 產品時，他們希望不會轉而使用其他任何產品。這就是我們長尾的基本價值主張。所以我們看到了長尾的強大力量。

In addition, we are seeing some of the Tier 2 customers, they are also growing in strength. As we talked about, AC modules. We talked about Panasonic, which we did a press release. We talked about our great partner, SunPower. We talked about Solaria. We have a few more in the works. So that is yet another -- AC modules is a -- makes long-tail a lot more easier because it's just, again, so easy to use. It absorbs a lot of field activity into the factory. And it comes with very high quality because it's already preassembled. So these all are actually together driving a lot of strength for us. It's too early for us to be talking about the second half. But like what I told you -- I mean, told in the call, historically, Q3 and Q4 are strong for the solar industry, and I hope it is true now, too.

另外，我們看到一些二級客戶，他們的實力也不斷增強。正如我們所討論的，交流模組。我們談到了松下，我們對此做了新聞稿。我們談到了我們偉大的合作夥伴 SunPower。我們談論了索拉里亞。我們還有更多項目正在進行中。這是另一個——交流模組——使長尾變得更加容易，因為它再次易於使用。它將大量的現場活動吸收到工廠中。而且它具有非常高的質量，因為它已經預先組裝好。所以這些其實共同為我們帶來了極大的力量。現在談論下半年還為時過早。但就像我告訴你的那樣——我的意思是，從歷史上看，第三季和第四季對太陽能產業來說是強勁的，我希望現在也是如此。

And the safe harbor is another piece as well which we need to get visibility on. So what we are doing is to prepare the company for the long term. Irrespective of whatever happens in the short term, we want to make sure we have the right capacity for the long term. And for now we have decided it is that number, 2 million units, getting to a 2 million unit capacity number in Q4 '19, and we'll keep you informed as we know better.

安全港也是我們需要了解的另一個部分。因此，我們正在做的是為公司的長期發展做好準備。無論短期內發生什麼，我們都希望確保我們擁有適當的長期能力。目前我們已經決定這個數字是 200 萬台，在 19 年第 4 季達到 200 萬台產能，我們會及時通知您。

Do you have a sense for what your market share would be? Let's say you were to ship all of that 2 million capacity, what -- there's some variation in the market share numbers that you see out there. But if you've gotten to that point at some point in time, do you have a sense for what that market share would be?

您知道您的市佔率是多少嗎？假設您要運送全部 200 萬個容量，您看到的市佔率數字會有一些變化。但是，如果您在某個時間點達到了這一點，您是否知道該市場份額會是多少？

Brad, I mean, look, I'm not going to speculate about market share because that involves I know -- I mean, that means I know the total available market and I don't really know what will the total available market be for the latter half. But what I can tell you is this: I'm -- I consider, yes, market share is important. But for me, the way I think about market share, it is an output of a lot of things. And what is an input is can I solve customer's problems? Can my solution be so easy for the customer to use? And how can I innovate to solve customer problems better than the competition? And how can I differentiate better? And therefore, how can I maintain the value on my product?

布拉德，我的意思是，聽著，我不會猜測市場份額，因為這涉及到我知道——我的意思是，這意味著我知道總的可用市場，但我真的不知道總的可用市場是什麼。後半段。但我可以告訴你的是：我認為，是的，市場佔有率很重要。但對我來說，我對市場佔有率的看法是，它是很多東西的結果。什麼是我可以解決客戶的問題？我的解決方案可以這麼方便客戶使用嗎？我如何創新才能比競爭對手更好地解決客戶問題？我怎樣才能更好地區分？因此，我如何才能保持產品的價值？

That is the most important thing, and that's why you see a product like Ensemble. Ensemble addresses the problem that you still -- solar still works when the grid is off. So that is a problem that we were -- we took and we addressed that problem, AC modules, is we wanted to absorb the field activities into the factory so that installers reduce the installation time, making it easier for the installation partner, while Ensemble makes it easier for the homeowner. We believe in order to generate a lot of value, we need to focus on both our homeowner as well as our installer partner, and that's really how we drive the company to focus on innovation, differentiation and creating value.

這是最重要的事情，也是為什麼你會看到像 Ensemble 這樣的產品。Ensemble 解決了您仍然存在的問題——太陽能在電網關閉時仍然可以工作。所以這就是我們面臨的一個問題——我們解決了這個問題，AC 模組，我們希望將現場活動吸收到工廠中，以便安裝人員減少安裝時間，使安裝合作夥伴更容易，同時 Ensemble讓房主更輕鬆。我們相信，為了創造大量價值，我們需要同時關注我們的房主和我們的安裝合作夥伴，這正是我們推動公司專注於創新、差異化和創造價值的方式。

The root of the question was really thinking about if you got back to the dominant market share that Enphase had 3, 4 years ago, is that more than 2 million units or is that 3 million units, kind of trying to frame the market. So any help you can give on that offline, that would be much appreciated.

問題的根源在於，如果你回到 Enphase 3、4 年前的主導市場份額，是超過 200 萬台還是 300 萬台，有點試圖框定市場。因此，如果您能在線下提供任何幫助，我們將不勝感激。

Our next question comes from Pavel Molchanov with Raymond James.

我們的下一個問題來自帕維爾·莫爾恰諾夫和雷蒙德·詹姆斯。

I want to go back to the gross margin guidance for Q2. If the supply chain loosening is indeed getting better in Q2 as you've said and you're also going to benefit from the final partnership payment, which I suppose carries 100% margin, why wouldn't the overall margin actually improve in Q2 versus Q1? Because you're guiding to basically flat at the midpoint.

我想回到第二季的毛利率指引。如果供應鏈鬆動確實如您所說在第二季度有所改善，並且您也將從最終的合作夥伴付款中受益，我認為該付款具有100% 的利潤，那麼為什麼第二季度的整體利潤率實際上不會有所改善？Q1？因為你的引導方向在中點基本上持平。

So Pavel, we have guided a range, 32% to 35%, number one. The second one is we are talking about an increased revenue number. And the -- and like what I said, some of the extra supply from our supply agreements is going to trickle down in Q2 of '19, but most of it in the second half of '19. Having said that, it is a delicate balance between exactly the date the customer needs product because they're going to go lines down and the date we can supply. So therefore, Q2 will still have expedite fees to the tune of 250 to 350 basis points. That's already in our gross margin guide.

所以帕維爾，我們指導了一個範圍，32% 到 35%，第一。第二個是我們正在談論增加的收入數字。就像我所說的，我們的供應協議中的一些額外供應將在 19 年第二季逐步下降，但大部分將在 19 年下半年下降。話雖如此，客戶需要產品的確切日期（因為他們要下線）與我們可以提供的日期之間存在著微妙的平衡。因此，第二季仍將有 250 至 350 個基點的加急費。這已經在我們的毛利率指南中了。

Okay. Let me also ask about warranty obligations. Given that revenue obviously is increasing, you referenced that was up, counter-seasonally in Q1, warranty obligations actually edged down in the quarter. Can you explain how that was?

好的。我還想問保固義務。鑑於收入明顯增加，您提到第一季反季節增加，保固義務實際上在本季略有下降。你能解釋一下那是怎麼回事嗎？

Look, I mean, we are running the company with an enormous focus on quality, and this started not only -- I mean, right from when we started the company, we -- after the first year or 2, we learned that the cornerstones of the company are quality customer service and product innovation. That's what we learned. So basically, if you look at our microinverter, if you look at our competition, the way other people do is the traditional microinverter has got 2 stages. We do it in 1 stage. And we do it in 1 stage because we have an ASIC, and that ASIC provides -- the ASIC has got a calculator in it that basically is predictive and it is able to reduce the number of stages from 2 stages to 1 stage. Because of that, there is reduced number of components. Because there is reduced number of components, the quality is inherently better, and that gets better and better and better with every microinverter generation.

聽著，我的意思是，我們在經營公司時非常注重質量，這不僅開始了——我的意思是，從我們創辦公司的時候開始，我們——在第一年或第二年之後，我們了解到基石公司的核心是優質的客戶服務和產品創新。這就是我們學到的。所以基本上，如果你看看我們的微型逆變器，如果你看看我們的競爭對手，其他人的做法是傳統的微型逆變器有兩個階段。我們分 1 階段完成。我們在一個階段中做到這一點，因為我們有一個 ASIC，而 ASIC 提供了 - ASIC 裡面有一個計算器，基本上是預測性的，它能夠將階段數量從 2 階段減少到 1 階段。因此，減少了組件數量。由於組件數量減少，品質本質上更好，隨著每一代微型逆變器的出現，品質都變得越來越好。

The second aspect is because we use lesser number of components and lesser number of stages, we generate lesser heat, which means that efficiency is higher. Because we generate lesser heat, we do not need metal casing. A plastic casing will do. So it is -- architecturally, we have designed a product that is correct by construction or quality. And our quality principles, the way we beat on quality in the last 2 years is it is a business process that is ingrained in us, which is we go into a room, we understand the failures that came in during that week. We are relentless until we dig deep and understand the reasons on why exactly the failure happened. And many of the failures like, for example, 70% of the failures are usually related to our suppliers. And we are dogmatic about going back to them and saying, "You need to change your design or we are going to remove you from the bill of materials."

第二個方面是因為我們使用更少數量的組件和更少的級數，所以我們產生的熱量更少，這意味著效率更高。因為我們產生的熱量較少，所以不需要金屬外殼。塑膠外殼就可以了。確實如此——從建築角度來說，我們設計的產品在結構或品質上都是正確的。我們的品質原則，過去兩年我們在品質方面取得勝利的方式是我們根深蒂固的業務流程，就是我們走進一個房間，我們了解那一週出現的故障。我們會堅持不懈，直到深入挖掘並了解失敗發生的確切原因。很多失敗，例如70%的失敗通常都與我們的供應商有關。我們教條式地回到他們那裡並說：“你需要改變你的設計，否則我們會把你從材料清單中刪除。”

So that's the process that we are getting better at. We are not perfect today, but our long-term target is 500 DPPM. 500 DPPM is 0.05%. We are not there today, but our quality principles are something that we very strongly believe in and that's how we run the company.

這就是我們正在變得更好的過程。今天我們並不完美，但我們的長期目標是 500 DPPM。500 DPPM 為 0.05%。雖然我們沒有達到今天的水平，但我們堅信品質原則，這也是我們經營公司的方式。

Okay. Just one quick one. As the battery becomes a more needle-moving revenue driver, do you plan to eventually break that out away from the microinverter megawatts?

好的。就快一點吧。隨著電池成為更重要的收入驅動因素，您是否計劃最終將其從微型逆變器兆瓦級中分離出來？

I think it's a good question. I need to debate it with my CFO, but I think it looks like that may not be a bad idea.

我認為這是一個好問題。我需要與我的財務長進行辯論，但我認為這似乎不是一個壞主意。

(Operator Instructions) Our next question comes from Amit Dayal with H.C. Wainwright.

（操作員說明）我們的下一個問題來自 Amit Dayal 和 H.C.溫賴特。

Badri, just on the long-tail/Tier 2 customers, are these -- is this sort of a reliable channel for growth, sustainable? Or is this something that has emerged now, could grow with you guys?

Badri，就長尾/二級客戶而言，這是一種可靠的成長管道嗎？可持續嗎？還是這是現在已經出現的東西，可以跟你一起成長？

I mean Tier 2 customers are actually, by definition, emerging customers because they actually emerge from Tier 3 or Tier 4 to Tier 2 and then on their way to Tier 1. So yes, they are sustainable. Yes, they've had a long-term relationship with us. Yes, they held us -- when we were down in the dumps, they actually held us. So the answer is yes.

我的意思是，根據定義，2 級客戶實際上是新興客戶，因為他們實際上從 3 級或 4 級到 2 級，然後再到 1 級。所以，是的，他們是可持續的。是的，他們與我們有著長期的合作關係。是的，他們支持了我們——當我們情緒低落時，他們確實支持了我們。所以答案是肯定的。

(Operator Instructions) I'm not showing any further questions at this time. I'd like to turn the call back to Badri Kothandaraman for closing.

（操作員說明）我目前不會提出任何進一步的問題。我想將電話轉回巴德里·科坦達拉曼 (Badri Kothandaraman) 以結束通話。

So thank you for joining us today and for your continued support of Enphase. We look forward to speaking with you again on our call next quarter.

感謝您今天加入我們並感謝您對 Enphase 的持續支持。我們期待在下個季度的電話會議上再次與您交談。

Ladies and gentlemen, that concludes today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。