WASHINGTON, D.C. 20549

FORM 8-K

 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

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SOLAREDGE TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

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Registrant’s Telephone number, including area code: 972 (9) 957-6620

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):

 

☐          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.          Results of Operations and Financial Condition.

On November 9, 2016, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2016.  A copy of the press release announcing the Company’s financial results for the quarter ended September 30, 2016 is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.

This information, including the exhibits hereto, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.          Financial Statements and Exhibits.

(d)          List of Exhibits

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Exhibit Index

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SolarEdge Announces Quarter Ended September 30, 2016

Financial Results

 

FREMONT, Calif. — November 9, 2016. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in PV inverters, power optimizers, and module-level monitoring services, today announced its financial results for the quarter ended September 30, 2016.

 

Quarter Ended September 30, 2016 Highlights

 

·

Revenues for the quarter of $128.5 million

 

·

GAAP gross margin for the quarter of 32.6%

 

·

GAAP operating income for the quarter of $18.2 million

 

·

GAAP net income for the quarter of $15.6 million

 

·

Non-GAAP net income for the quarter of $20.9 million

 

·

GAAP net diluted earnings per share for the quarter of $0.35

 

·

Non-GAAP net diluted earnings per share for the quarter of $0.46

 

·

466 Megawatts (AC) of inverters shipped for the quarter

 

“The solar market is facing challenging times. Despite this, our financial parameters continue to be strong and we are confident in our strategy. We are focused on maintaining and growing our market share by adjusting our plans to the changing environment and continuing to invest in R&D for new innovative products and diligent cost reduction, while improving operational efficiency and increasing geographic diversification,” said Guy Sella, Founder, Chairman and CEO of SolarEdge.

 

Quarter Ended September 30, 2016 Summary

 

The Company reported revenues of $128.5 million, an increase of 3% from the prior quarter and an increase of 12% year over year.

 

GAAP gross margin reached 32.6%, up from 31.4% in the prior quarter and up 29.1% year over year.

 

GAAP operating expenses were $23.6 million, an increase of 11% from the prior quarter and an increase of 27% year over year.

 

GAAP operating income was $18.2 million, up from $17.9 million in the prior quarter and form $14.9 million year over year.

 

GAAP net income was $15.6 million, down from $17.3 million in the prior quarter and up from $14.4 million year over year.

 

 

Non-GAAP net income was $20.9 million, up from $19.9 million in the prior quarter and up from $16.3 million year over year.

 

GAAP net diluted earnings per shares (“EPS”) was $0.35, down from $0.39 in the prior quarter and up from $0.32 year over year.

 

Non-GAAP net diluted EPS was $0.46, up from $0.44 in the prior quarter and up from $0.36 year over year.

 

As of September 30, 2016, cash, cash equivalents, restricted cash and marketable securities totaled $206.7 million, compared to $186.6 million on June 30, 2016. As of September 30, 2016, the Company did not have any debt.

 

Outlook for the Quarter Ending December 31, 2016

 

The Company also provides guidance for the quarter ending December 31, 2016 as follows:

·

Revenues to be within the range of $110 million to $120 million;

 

·

Gross margins to be within the range of 30% to 32%.

 

Conference Call

 

The Company will host a conference call to discuss these results at 4:30 P.M. ET on Wednesday, November 9, 2016. The call will be available, live, to interested parties by dialing +1 877-852-6581. For international callers, please dial +1 719-325-4800. The Conference ID number is 5288310.  A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com

 

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

 

About SolarEdge

 

SolarEdge provides an intelligent inverter solution that has changed the way power is harvested and managed in solar photovoltaic systems. The SolarEdge DC optimized inverter system maximizes power generation at the individual PV module-level while lowering the cost of energy produced by the solar PV system. The SolarEdge system consists of power optimizers, inverters, storage solutions and a cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. SolarEdge is online at http://www.solaredge.com

 

 

Use of Non-GAAP Financial Measures

 

This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements.  These factors include, but are not limited to, the matters discussed in the section entitled “Risk Factors” of our Registration Statement on Form S-1 (including the related prospectus), Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed on August 17, 2016, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 9, 2016.  The Company 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.

Investor Contacts

SolarEdge Technologies, Inc.

Ronen Faier, Chief Financial Officer

+1 510-498-3263

Sapphire Investor Relations, LLC

Erica Mannion or Michael Funari

+1 617-542-6180

		Three months ended September 30,
		2016				2015
		Unaudited
Revenues		$	128,484			$	115,054
Cost of revenues			86,609				81,527
Gross profit			41,875				33,527
Operating expenses:
Research and development, net			9,935				6,991
Sales and marketing			10,036				8,244
General and administrative			3,664				3,418
Total operating expenses			23,635				18,653
Operating income			18,240				14,874
Financial income (expenses), net			390				(72	)
Income before taxes on income			18,630				14,802
Taxes on income			3,014				370
Net income		$	15,616			$	14,432

		September 30,				June 30,
		2016				2016
		Unaudited
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	90,014			$	74,032
Restricted cash			946				928
Marketable Securities			61,786				59,163
Trade receivables, net			84,898				72,737
Prepaid expenses and other accounts receivable			17,276				21,340
Inventories			68,434				81,550
Total current assets			323,354				309,750
PROPERTY AND EQUIPMENT, NET			30,377				27,831
LONG-TERM ASSETS:
Marketable securities			53,955				52,446
Prepaid expenses and lease deposits			437				399
Deferred tax assets, net			4,127				6,296
Intangible assets, net			695				716
Total assets		$	412,945			$	397,438
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables, net		$	40,282			$	48,481
Employees and payroll accruals			11,975				10,092
Warranty obligations			15,103				14,114
Deferred revenues			2,421				3,859
Accrued expenses and other accounts payable			8,719				10,725
Total current liabilities			78,500				87,271
LONG-TERM LIABILITIES
Warranty obligations			41,305				37,078
Deferred revenues			16,059				14,684
Lease incentive obligation			2,135				2,297
Total long-term liabilities			59,499				54,059
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock			4				4
Additional paid-in capital			302,587				299,214
Accumulated other comprehensive income			120				271
Accumulated deficit			(27,765	)			(43,381	)
Total stockholders’ equity			274,946				256,108
Total liabilities and stockholders’ equity		$	412,945			$	397,438

		Three months ended September 30,
		2016				2015
		Unaudited
Cash flows provided by operating activities:
Net income		$	15,616			$	14,432
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			1,271				738
Amortization of intangible assets			21				21
Amortization of premiums on available-for-sale marketable securities			332				-
Stock-based compensation			3,100				1,832
Realized losses on Cash Flow Hedges			-				1
Changes in assets and liabilities:
Inventories			13,120				(5,956	)
Prepaid expenses and other accounts receivable			4,176				11,811
Trade receivables, net			(12,102	)			(11,928	)
Deferred tax assets, net			2,180				-
Trade payables			(8,200	)			(13,500	)
Employees and payroll accruals			1,879				1,044
Warranty obligations			5,216				4,025
Deferred revenues			(63	)			1,970
Accrued expenses and other accounts payable			(2,015	)			1,467
Lease incentive obligation			(162	)			(11	)
Net cash provided by operating activities			24,369				5,946
Cash flows used in investing activities:
Purchase of property and equipment			(3,815	)			(3,292	)
Purchase of intangible assets			-				(800	)
Decrease (increase) in restricted cash			(18	)			51
Decrease (increase) in short and long-term lease deposits			(29	)			73
Investment in available-for-sale marketable securities			(19,928	)			-
Maturities of available-for-sale marketable securities			15,304				-
Net cash used in investing activities			(8,486	)			(3,968	)
Cash flows from financing activities:
Proceeds from issuance of shares upon exercise of options			273				17
Net cash provided by  financing activities			273				17
Increase  in cash and cash equivalents			16,156				1,995
Cash and cash equivalents at the beginning of the period			74,032				144,750
Effect of exchange rate differences on cash and cash equivalents			(174	)			(16	)
Cash and cash equivalents at the end of the period		$	90,014			$	146,729