SolarEdge Announces Fiscal Third Quarter Financial Results
Third Quarter 2015 Highlights
-
Record revenue of
$86.4 million , up 17.9% from last quarter and 182.7% year-over-year - GAAP gross margin of 27.4%
-
GAAP net income of
$6.0 million -
Non-GAAP net income of
$8.7 million - 248 Megawatts AC inverters shipped
“I am happy to report record revenues of
Revenues
The Company reported revenues of
Gross margins
GAAP gross margin was 27.4% up from 21.5% in the prior quarter and up from 20.4% in the third fiscal quarter of 2014. Non-GAAP gross margin was 27.6%, up from 21.6% in the prior quarter and 20.5% in the third fiscal quarter of 2014. This growth was driven mainly by cost reduction measures, reduction in the portion of air shipments compared to ocean freight and economies of scale related to the increased production volumes.
Operating expenses
GAAP operating expenses were
Operating income
GAAP operating income was
Financial Expenses
Financial expenses were
Net Income
GAAP net income was
EPS
Net diluted earnings per share (“EPS”) was
Cash
At
Outlook for the Fourth Quarter
The Company also provides guidance for the fourth fiscal quarter of 2015 as follows:
-
Revenues to be within the range of
$92 million to $96 million ; - Gross margins to be within the range of 26% to 28%.
Conference Call
The Company will host a conference call to discuss these results at
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 remain available for approximately 30 calendar days.
About
Use of Non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in this
release. Generally, a non-GAAP financial measure is a numerical measure
of a company's performance, financial position, or cash flows that
either exclude or include amounts that are not normally excluded or
included in the most directly comparable measure calculated and
presented in accordance with generally accepted accounting principles in
The Company uses these non-GAAP financial measures to analyze its
operating performance and future prospects, develop internal budgets and
financial goals, and to facilitate period-to-period comparisons.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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), Quarterly
Report on Form 10-Q for the quarter ended
SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||
Three months ended
March 31, |
Nine months ended
March 31, |
|||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Revenues |
$ |
86,399 |
$ |
30,560 |
$ |
226,658 |
$ | 88,644 | ||||||
Cost of revenues | 62,698 | 24,331 | 173,146 | 75,397 | ||||||||||
Gross profit | 23,701 | 6,229 | 53,512 | 13,247 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development, net | 5,490 | 4,864 | 15,317 | 13,686 | ||||||||||
Sales and marketing | 6,422 | 4,592 | 17,541 | 12,372 | ||||||||||
General and administrative | 1,990 | 1,318 | 4,270 | 3,120 | ||||||||||
Total operating expenses |
13,902 | 10,774 | 37,128 | 29,178 | ||||||||||
Operating income (loss) | 9,799 | (4,545 | ) | 16,384 | (15,931 | ) | ||||||||
Financial expenses, net | 3,436 | 626 | 3,378 | 2,317 | ||||||||||
Income (loss) before taxes on income | 6,363 | (5,171 | ) | 13,006 | (18,248 | ) | ||||||||
Taxes on income | 398 | 67 | 1,146 | 88 | ||||||||||
Net income (loss) |
$ |
5,965 |
$ |
(5,238 |
) |
$ |
11,860 |
$ |
(18,336 |
) |
||||
Net basic earnings (loss) per share of common stock |
$ |
0.01 |
$ |
(1.87 |
) |
$ |
0.02 |
$ |
(6.56 |
) |
||||
Net diluted earnings (loss) per share of common stock |
$ |
0.01 |
$ |
(1.87 |
) |
$ |
0.01 |
$ |
(6.56 |
) |
||||
Number of shares used in computing net basic earnings (loss) per share of common stock | 2,822,893 | 2,806,044 | 2,817,090 | 2,795,397 | ||||||||||
Number of shares used in computing net diluted earnings (loss) per share of common stock | 7,099,046 | 2,806,044 | 5,534,903 | 2,795,397 | ||||||||||
SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
March 31, | June 30, | |||||||
2015 | 2014 | |||||||
Unaudited | Audited | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 135,204 | $ | 9,754 | ||||
Restricted cash | 3,575 | 1,602 | ||||||
Trade receivables, net | 45,093 | 19,267 | ||||||
Prepaid expenses and other accounts receivable | 25,312 | 13,151 | ||||||
Inventories | 64,522 | 25,499 | ||||||
Total current assets | 273,706 | 69,273 | ||||||
Property and equipment, net | 11,903 | 5,351 | ||||||
Long-term lease deposit and prepaid expenses | 380 | 367 | ||||||
Long-term deferred charges | - | 7 | ||||||
Total assets | $ | 285,989 | $ | 74,998 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | ||||||||
Current liabilities: | ||||||||
Short term bank loan | $ | - | $ | 13,326 | ||||
Current maturities of term loan | - | 3,474 | ||||||
Trade payables | 36,233 | 36,815 | ||||||
Employees and payroll accruals | 6,017 | 5,210 | ||||||
Warranty obligations | 7,661 | 5,496 | ||||||
Deferred revenues | 1,098 | 1,729 | ||||||
Accrued expenses and other accounts payable | 52,428 | 6,893 | ||||||
Total current liabilities | 103,437 | 72,943 | ||||||
Long-term liabilities: | ||||||||
Warranty obligations | 20,238 | 12,685 | ||||||
Deferred revenues | 6,995 | 4,252 | ||||||
Warrants to purchase common stock | 2,830 | 765 | ||||||
Term loan | - | 3,444 | ||||||
Lease incentive obligation | 1,959 | - | ||||||
Total long-term liabilities | 32,022 | 21,146 | ||||||
Commitments and Contingent liabilities | ||||||||
Convertible Preferred Series A, B, C, D, D-1, D-2 and D-3 stock | - | 116,203 | ||||||
Stockholders’ equity (deficiency): | ||||||||
Share capital | ||||||||
Common stock | 4 |
* - |
||||||
Additional paid-in capital | 280,040 | 5,878 | ||||||
Accumulated other comprehensive loss | (263 | ) | (61 | ) | ||||
Accumulated deficit | (129,251 | ) | (141,111 | ) | ||||
Total stockholders’ equity (deficiency) | 150,530 | (135,294 | ) | |||||
Total liabilities and stockholders’ equity (deficiency) | $ | 285,989 | $ | 74,998 | ||||
SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
Nine months ended
March 31, |
||||||||
2015 | 2014 | |||||||
Cash flows used in operating activities: |
||||||||
Net income (loss) |
$ |
11,860 |
$ |
(18,336 |
) |
|||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation | 1,647 | 1,451 | ||||||
Stock-based compensation related to employee and non-employee consultants stock options | 1,750 | 791 | ||||||
Interest expenses related to Bank Loan | - | 36 | ||||||
Financial expenses (income), net related to term loan | (992 | ) | 506 | |||||
Remeasurement of warrants to purchase preferred and common stock | 2,065 | (45 | ) | |||||
Changes in assets and liabilities: | ||||||||
Inventories | (39,071 | ) | (10,406 | ) | ||||
Prepaid expenses and other accounts receivable | (12,198 | ) | (3,910 | ) | ||||
Trade receivables, net | (25,993 | ) | (4,102 | ) | ||||
Trade payables | (1,264 | ) | 14,270 | |||||
Employees and payroll accruals | 883 | 1,059 | ||||||
Warranty obligations | 9,718 | 6,743 | ||||||
Deferred revenues | 2,116 | (715 | ) | |||||
Accrued expenses and other accounts payable | 43,601 | (229 | ) | |||||
Lease incentive obligation | 2,243 | - | ||||||
Net cash used in operating activities | (3,635 | ) | (12,887 | ) | ||||
Cash flows used in investing activities: |
||||||||
Purchase of property and equipment | (8,254 | ) | (2,263 | ) | ||||
Increase in restricted cash | (1,973 | ) | (18 | ) | ||||
Decrease (increase) in long-term deposits | (24 | ) | 26 | |||||
Net cash used in investing activities | (10,251 | ) | (2,255 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from short-term bank loans | 23,000 | 16,361 | ||||||
Repayments of short-term bank loans | (36,326 | ) | (9,019 | ) | ||||
Payments of term loan | (5,919 | ) | (1,616 | ) | ||||
Proceeds from issuance of Series D-2 Convertible Preferred stock, net | - | 669 | ||||||
Proceeds from issuance of Series E Convertible Preferred stock, net | 24,712 | - | ||||||
Proceeds from IPO, net | 133,944 | - | ||||||
Receipt on account of shares | - | 7,115 | ||||||
Proceeds from exercise of employee stock options | 46 | 51 | ||||||
Net cash provided by financing activities | 139,457 | 13,561 | ||||||
Increase (decrease) in cash and cash equivalents | 125,571 | (1,581 | ) | |||||
Cash and cash equivalents at the beginning of the period | 9,754 | 13,142 | ||||||
Erosion due to exchange rate differences | (121 | ) | (89 | ) | ||||
Cash and cash equivalents at the end of the period |
$ |
135,204 |
$ |
11,472 |
||||
SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) |
||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Gross profit (GAAP) | $ | 23,701 | $ | 6,229 | $ | 53,512 | $ | 13,247 | ||||||||
Stock-based compensation cost of revenues | 140 | 33 | 254 | 80 | ||||||||||||
Gross profit (Non-GAAP) | $ | 23,841 | $ | 6,262 | $ | 53,766 | $ | 13,327 | ||||||||
Gross margin (GAAP) |
27.4 |
% |
20.4 |
% |
23.6 |
% |
14.9 |
% | ||||||||
Stock-based compensation |
0.2 |
% |
0.1 |
% |
0.1 |
% |
0.1 |
% | ||||||||
Gross margin (Non-GAAP) |
27.6 |
% |
20.5 |
% |
23.7 |
% |
15.0 |
% | ||||||||
Operating expenses (GAAP) | $ | 13,902 | $ | 10,774 | $ | 37,128 | $ | 29,178 | ||||||||
Stock-based compensation R&D | 183 | 102 | 449 | 288 | ||||||||||||
Stock-based compensation S&M | 292 | 74 | 545 | 215 | ||||||||||||
Stock-based compensation G&A | 355 | 69 | 502 | 208 | ||||||||||||
Operating expenses (Non-GAAP) | $ | 13,072 | $ | 10,529 | $ | 35,632 | $ | 28,647 | ||||||||
Operating income (loss) (GAAP) | $ | 9,799 |
$ |
(4,545 |
) |
$ | 16,384 |
$ |
(15,931 |
) |
||||||
Stock-based compensation | 970 | 278 | 1,750 | 791 | ||||||||||||
Operating income (loss) (Non-GAAP) | $ | 10,769 |
$ |
(4,267 |
) |
$ | 18,134 |
$ |
(15,140 |
) |
||||||
Finance expenses (GAAP) | $ | 3,436 | $ | 626 | $ | 3,378 | $ | 2,317 | ||||||||
Warrants remeasurement adjustment | 1,800 |
(8 |
) |
2,065 |
(45 |
) |
||||||||||
Finance expenses (Non-GAAP) | $ | 1,636 | $ | 634 | $ | 1,313 | $ | 2,362 | ||||||||
Net income (loss) (GAAP) | $ | 5,965 |
$ |
(5,238 |
) |
$ | 11,860 |
$ |
(18,336 |
) |
||||||
Stock-based compensation | 970 | 278 | 1,750 | 791 | ||||||||||||
Warrants remeasurement adjustment | 1,800 |
(8 |
) |
2,065 |
(45 |
) |
||||||||||
Net income (loss) (Non-GAAP) | $ | 8,735 |
$ |
(4,968 |
) |
$ | 15,675 |
$ |
(17,590 |
) |
||||||
Net basic earnings (loss) per share (GAAP) | $ | 0.01 |
$ |
(1.87 |
) |
$ | 0.02 |
$ |
(6.56 |
) |
||||||
Stock-based compensation | 0.03 | 0.01 | 0.05 | 0.03 | ||||||||||||
Warrants remeasurement adjustment | 0.04 | - | 0.07 | - | ||||||||||||
Additional earnings per share giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | 0.14 | 1.67 | 0.34 | 5.87 | ||||||||||||
Net basic earnings (loss) per share (Non-GAAP) | $ | 0.22 |
$ |
(0.19 |
) |
$ | 0.48 |
$ |
(0.66 |
) |
||||||
Number of shares used in computing net basic earnings (loss) per share (GAAP) | 2,822,893 | 2,806,044 | 2,817,090 | 2,795,397 | ||||||||||||
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | 36,297,931 | 23,697,300 | 30,025,279 | 23,665,917 | ||||||||||||
Number of shares used in computing net basic earnings (loss) per share (Non-GAAP) | 39,120,824 | 26,503,344 | 32,842,369 | 26,461,314 | ||||||||||||
Net diluted earnings (loss) per share (GAAP) | $ | 0.01 |
$ |
(1.87 |
) |
$ | 0.01 |
$ |
(6.56 |
) |
||||||
Stock-based compensation | 0.02 | 0.01 | 0.05 | 0.03 | ||||||||||||
Warrants remeasurement adjustment | 0.04 | - | 0.05 | - | ||||||||||||
Additional earnings per share giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | 0.13 | 1.67 | 0.32 | 5.87 | ||||||||||||
Net diluted earnings (loss) per share (Non-GAAP) | $ | 0.20 |
$ |
(0.19 |
) |
$ | 0.43 |
$ |
(0.66 |
) |
||||||
Number of shares used in computing net diluted earnings (loss) per share (GAAP) | 7,099,046 | 2,806,044 | 5,534,903 | 2,795,397 | ||||||||||||
Additional shares related Stock-based compensation | 647,474 | 670,669 | ||||||||||||||
Additional shares relate to warrants remeasurement adjustment | 103,777 | 36,839 | ||||||||||||||
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | 36,297,931 | 23,697,300 | 30,025,279 | 23,665,917 | ||||||||||||
Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP) | 44,148,228 | 26,503,344 | 36,267,690 | 26,461,314 | ||||||||||||
(1) | Assumes shares of common stock outstanding after accounting for (i) the automatic conversion of the shares of preferred stock then outstanding into common stock at the beginning of fiscal year 2015; and (ii) the issuance of 8,050,000 shares of common stock (associated with our initial public offering) at the beginning of the third fiscal quarter instead of the IPO closing date, March 31, 2015. |
Source:
Investor Contacts
SolarEdge Technologies, Inc.
Ronen
Faier, Chief Financial Officer, +1 510-498-3263
investors@solaredge.com
or
Sapphire
Investor Relations, LLC
Erica Mannion or Michael Funari, +1
415-471-2700
investors@solaredge.com