Enphase threatened with de-listing due to low stock price
This risky strategy appears to have paid off in shipment volumes, with Enphase growing market share in the second half of 2016, but the company has also experienced persistent losses. These difficulties were compounded by residential market troubles in California during Q1, due largely to a combination of torrential rains and policy changes.
Battered by these troubles, Enphase’s stock fell below $1 per share in early May, which has triggered a warning from the NASDAQ exchange that if the company does not bring its stock price above $1 per share over the course of the next six months, it could be delisted.
This is far from the first time that a solar company has received such a letter, as a number of Chinese PV makers have been threatened with de-listing over the past few years. In most cases these companies were able to regain compliance.
It is a sign of larger precarity at Enphase, which has championed technological and business innovations such as its AC batteries and integrated Home Energy Solution, but has had more difficulty in getting and remaining profitable.
But despite larger troubles in the residential solar market in California and other leading states, Enphase is optimistic about the future. The company emphasizes its presence in the “long-tail” of residential solar installers, which is particularly notable given scaling back and reduced market share at Tesla and Vivint Solar.
Enphase also recently modified the terms of an agreement with its manufacturing partner Flextronics, and has emphasized that this may ensure continuity of supply as the company moves through rough times.
The company offered the following statement in response to an inquiry by pv magazine: