Press Release Details

SolarEdge Announces Fourth Quarter and Full Year 2020 Financial Results

February 16, 2021 at 4:05 PM EST

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 16, 2021-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy, today announced its financial results for the fourth quarter and year ended December 31, 2020.

Fourth Quarter 2020 Highlights

  • Revenues of $358.1 million
  • Revenues from solar products of $327.1 million
  • GAAP gross margin of 30.8%
  • Non-GAAP gross margin of 32.5%
  • GAAP gross margin from sale of solar products of 35.3%
  • Non-GAAP gross margin from sale of solar products of 36.2%
  • GAAP net income of $17.7 million
  • Non-GAAP net income of $55.7 million
  • GAAP net diluted earnings per share (“EPS”) of $0.33
  • Non-GAAP net diluted EPS of $0.98
  • 1.36 Gigawatts (AC) of inverters shipped

Full Year 2020 Highlights

  • Record revenues of $1.46 billion
  • Record revenues from solar products of $1.36 billion
  • GAAP gross margin of 31.6%
  • GAAP gross margin from sale of solar products of 34.3%
  • Non-GAAP gross margin from sale of solar products of 35.0%
  • GAAP net income of $140.3 million
  • Non-GAAP net income of $224.4 million
  • GAAP net diluted earnings per share (“EPS”) of $2.66
  • Non-GAAP net diluted EPS of $4.11
  • 6.1 Gigawatts (AC) of inverters shipped

“Our fourth quarter results are reflective of strength in the U.S. residential market and record revenues from outside of Europe and the U.S., led by Australia,” said Zvi Lando, CEO of SolarEdge. “The return to growth in installations in the U.S. residential market drove our sequential growth and return to the anticipated solar margins. Despite the global pandemic, we concluded the year with slight growth in revenues, healthy cash generation and are well positioned for 2021 and beyond, having invested significantly in development of new products to be released this year as well as development of our non-solar businesses, with readiness to supply full powertrain kits for the e-Mobility sector in Europe.”

Fourth Quarter 2020 Summary

The Company reported revenues of $358.1 million, up 6% from $338.1 million in the prior quarter and down 14% from $418.2 million in the same quarter last year.

Revenues related to the solar business were $327.1 million, up 5% from $312.5 million in the prior quarter and down 16% from $389.0 million in the same quarter last year.

GAAP gross margin was 30.8%, down from 32.0% in the prior quarter and down from 34.3% year over year.

Non-GAAP gross margin was 32.5%, down from 33.5% in the prior quarter and down from 35.5% year over year.

GAAP gross margin for the solar business was 35.3%, up from 34.1% in the prior quarter and down from 37.3% year over year.

Non-GAAP gross margin for the solar business was 36.2%, up from 34.8% in the prior quarter and down from 37.8% year over year.

GAAP operating expenses were $95.9 million, up 23% from $77.7 million in the prior quarter and up 3% from $92.7 million in the same quarter last year.

Non-GAAP operating expenses were $72.9 million, up 15% from $63.2 million in the prior quarter and up 15% from $63.1 million in the same quarter last year.

GAAP operating income was $14.4 million, down 53% from $30.4 million in the prior quarter and down 71% from $50.5 million in the same quarter last year.

Non-GAAP operating income was $43.5 million, down 13% from $50.0 million in the prior quarter and down 49% from $85.3 million in the same quarter last year.

GAAP net income was $17.7 million, down 60% from $43.8 million in the prior quarter and down 67% from $52.8 million in the same quarter last year.

Non-GAAP net income was $55.7 million, down 15% from $65.9 million in the prior quarter and down 36% from $87.4 million in the same quarter last year.

GAAP net diluted earnings per share (“EPS”) was $0.33, down from $0.83 in the prior quarter and down from $1.03 in the same quarter last year.

Non-GAAP net diluted EPS was $0.98, down from $1.21 in the prior quarter and down from $1.65 in the same quarter last year.

Cash flow from operating activities was $27.0 million, down from $28.4 million in the prior quarter and down from $83.1 million in the same quarter last year.

As of December 31, 2020, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $530.2 million, net of debt, compared to $553.8 million on September 30, 2020.

Full Year 2020 Summary

Total revenues of $1.46 billion, up 2% from $1.43 billion in the prior year.

GAAP gross margin was 31.6%, down from 33.6% in the prior year.

Non-GAAP gross margin was 33.0%, down from 34.9% in the prior year.

GAAP operating income was $142.6 million, down 25% from $189.9 million in the prior year.

Non-GAAP operating income was $218.8 million, down 21% from $276.8 million in the prior year.

GAAP net income was $140.3 million, down 4% from $146.5 million in the prior year.

Non-GAAP net income was $224.4 million, down 4% from $233.2 million in the prior year.

GAAP net diluted EPS was $2.66, down from $2.90 in the prior year.

Non-GAAP net diluted EPS was $4.11, down from $4.44 in the prior year.

Cash flow from operating activities of $222.7 million, down from $259.0 million in the prior year.

Outlook for the First Quarter 2021

The Company also provides guidance for the first quarter ending March 31, 2021 as follows:

  • Revenues to be within the range of $385 million to $405 million
  • Non GAAP gross margin expected to be within the range of 34% to 36%
  • Revenues from solar products to be within the range of $360 million to $375 million
  • Non GAAP gross margin from sale of solar products expected to be within the range of 36% to 38%

Conference Call

The Company will host a conference call to discuss these results at 4:30 P.M. ET on Tuesday, February 16, 2021. The call will be available, live, to interested parties by dialing 800-347-6311. For international callers, please dial +1 646-828-8143. The Conference ID number is 3276360. 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 is a global leader in smart energy. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by PV systems. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, UPS, electric vehicle powertrains, and grid services solutions. SolarEdge is online at solaredge.com

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. 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 United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

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. The Company believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

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 Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 27, 2020 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of February 16, 2021. 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.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands)

 

 

 

Three months ended

December 30,

 

Year ended

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

358,107

 

$

418,223

 

$

1,459,271

 

$

1,425,660

Cost of revenues

 

 

247,782

 

 

274,974

 

 

997,912

 

 

946,322

 

 

 

 

 

 

 

 

 

Gross profit

 

 

110,325

 

 

143,249

 

 

461,359

 

 

479,338

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

47,513

 

 

34,900

 

 

163,123

 

 

121,351

Sales and marketing

 

 

28,872

 

 

23,659

 

 

95,985

 

 

87,984

General and administrative

 

 

18,042

 

 

11,771

 

 

63,119

 

 

49,361

Other operating expenses (income), net

 

 

1,471

 

 

22,391

 

 

(3,429)

 

 

30,696

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

95,898

 

 

92,721

 

 

318,798

 

 

289,392

 

 

 

 

 

 

 

 

 

Operating income

 

 

14,427

 

 

50,528

 

 

142,561

 

 

189,946

 

 

 

 

 

 

 

 

 

Financial expenses (income), net

 

 

(10,380)

 

 

(11,058)

 

 

(21,105)

 

 

11,343

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

24,807

 

 

61,586

 

 

163,666

 

 

178,603

 

 

 

 

 

 

 

 

 

Income taxes

 

 

7,152

 

 

9,241

 

 

23,344

 

 

33,646

 

 

 

 

 

 

 

 

 

Net income

 

$

17,655

 

$

52,345

 

$

140,322

 

$

144,957

 

 

 

 

 

 

 

 

 

Net loss attributable to Non-controlling interests

 

 

-

 

 

433

 

 

-

 

 

1,592

 

 

 

 

 

 

 

 

 

Net income attributable to SolarEdge Technologies, Inc.

 

$

17,655

 

$

52,778

 

$

140,322

 

$

146,549

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

December 31,

 

 

2020

 

2019

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

827,146

 

$

223,901

Short-term bank deposits

 

 

60,096

 

 

5,010

Restricted bank deposits

 

 

2,611

 

 

27,558

Marketable securities

 

 

143,687

 

 

91,845

Trade receivables, net of allowances of $2,886 and $2,473, respectively

 

 

218,706

 

 

298,383

Inventories, net

 

 

331,696

 

 

170,798

Prepaid expenses and other current assets

 

 

135,399

 

 

115,268

Total current assets

 

 

1,719,341

 

 

932,763

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

Marketable securities

 

 

147,434

 

 

119,176

Deferred tax assets, net

 

 

11,676

 

 

16,298

Property, plant and equipment, net

 

 

303,408

 

 

176,963

Operating lease right-of-use assets, net

 

 

41,600

 

 

35,858

Intangible assets, net

 

 

67,818

 

 

74,008

Goodwill

 

 

140,479

 

 

129,654

Other long-term assets

 

 

5,353

 

 

9,904

Total long-term assets

 

 

717,768

 

 

561,861

 

 

 

 

 

Total assets

 

$

2,437,109

 

$

1,494,624

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Trade payables, net

 

$

162,051

 

$

157,148

Employees and payroll accruals

 

 

63,738

 

 

47,390

Current maturities of bank loans and accrued interest

 

 

16,894

 

 

15,673

Warranty obligations

 

 

62,614

 

 

65,112

Deferred revenues and customers advances

 

 

24,648

 

 

70,815

Accrued expenses and other current liabilities

 

 

106,154

 

 

80,576

Total current liabilities

 

 

436,099

 

 

436,714

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

Convertible senior notes, net

 

 

573,350

 

 

-

Warranty obligations

 

 

142,380

 

 

107,451

Deferred revenues

 

 

115,372

 

 

89,982

Deferred tax liabilities, net

 

 

8,593

 

 

4,461

Finance lease liabilities

 

 

26,173

 

 

2,399

Operating lease liabilities

 

 

35,194

 

 

30,213

Other long-term liabilities

 

 

14,191

 

 

11,734

Total long-term liabilities

 

 

915,253

 

 

246,240

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Common stock

 

 

5

 

 

5

Additional paid-in capital

 

 

603,891

 

 

475,792

Accumulated other comprehensive income (loss)

 

 

3,857

 

 

(1,809)

Retained earnings

 

 

478,004

 

 

337,682

Total stockholders’ equity

 

 

1,085,757

 

 

811,670

 

Total liabilities and stockholders’ equity

$

2,4307,109

$

1,494,624

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 

Year ended December 31,

 

 

2020

 

2019

Cash flows provided by operating activities:

 

 

 

 

Net income

 

$

140,322

 

$

144,957

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation of property, plant and equipment

 

 

22,355

 

 

17,261

Amortization of intangible assets

 

 

9,479

 

 

9,634

Amortization of debt discount and debt issuance costs

 

 

3,185

 

 

-

Amortization of premium and accretion of discount on available-for-sale marketable securities, net

 

 

1,168

 

 

92

Stock-based compensation expenses

 

 

67,309

 

 

60,353

Deferred income taxes, net

 

 

(2,738)

 

 

(6,037)

Loss from sale of business

 

 

-

 

 

5,269

Other items

 

 

2,451

 

 

713

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

 

(149,661)

 

 

(22,544)

Prepaid expenses and other assets

 

 

(3,276)

 

 

(67,323)

Trade receivables, net

 

 

86,538

 

 

(124,071)

Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences

 

 

1,409

 

 

2,192

Trade payables, net

 

 

3,333

 

 

47,837

Employees and payroll accruals

 

 

18,315

 

 

18,592

Warranty obligations

 

 

32,274

 

 

50,780

Deferred revenues and customers advances

 

 

(21,438)

 

 

83,137

Other liabilities

 

 

11,630

 

 

38,158

Net cash provided by operating activities

 

 

222,655

 

 

259,000

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Investment in available-for-sale marketable securities

 

 

(223,705)

 

 

(160,054)

Proceed from sales and maturities of available-for-sale marketable securities

 

 

141,839

 

 

142,744

Purchase of property, plant and equipment

 

 

(126,790)

 

 

(72,562)

Withdrawal from (investment in) bank deposits, net

 

 

(54,752)

 

 

4,860

Withdrawal from (investment in) restricted bank Deposits, net

 

 

25,267

 

 

(26,145)

Business combinations, net of cash acquired

 

 

-

 

 

(38,435)

Other investing activities

 

 

1,504

 

 

(3,261)

Net cash used in investing activities

 

 

(236,637)

 

 

(152,853)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of convertible senior notes, net

 

 

617,869

 

 

-

Repayment of bank loans

 

 

(15,595)

 

 

(9,514)

Proceeds from bank loans

 

 

16,944

 

 

249

Proceeds from exercise of stock-based awards

 

 

21,500

 

 

9,066

Change in non-controlling interests

 

 

-

 

 

(71,468)

Other financing activities

 

 

(234)

 

 

(1,354)

Net cash provided by (used in) financing activities

 

 

640,484

 

 

(73,021)

 

 

 

 

 

Increase in cash and cash equivalents

 

 

626,502

 

 

33,126

Cash and cash equivalents at the beginning of the period

 

 

223,901

 

 

187,764

Effect of exchange rate differences on cash and cash equivalents

 

 

(23,257)

 

 

3,011

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

$

827,146

 

$

223,901

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except share and per share data)

 

Reconciliation of GAAP to Non-GAAP Gross Profit

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Gross profit (GAAP)

110,325

 

108,063

 

143,249

 

461,359

 

479,338

Stock-based compensation

3,720

 

2,730

 

2,268

 

11,082

 

6,964

Cost of product adjustment

----

 

----

 

448

 

313

 

1,556

Amortization and depreciation of acquired assets

2,374

 

2,429

 

2,489

 

9,484

 

9,771

Gross profit (Non-GAAP)

116,419

 

113,222

 

148,454

 

482,238

 

497,629

 

Reconciliation of GAAP to Non-GAAP Gross Margin

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Gross margin (GAAP)

30.8%

 

32.0%

 

34.3%

 

31.6%

 

33.6%

Stock-based compensation

1.0%

 

0.8%

 

0.5%

 

0.8%

 

0.5%

Cost of product adjustment

----

 

----

 

0.1%

 

----

 

0.1%

Amortization and depreciation of acquired assets

0.7%

 

0.7%

 

0.6%

 

0.6%

 

0.7%

Gross margin (Non-GAAP)

32.5%

 

33.5%

 

35.5%

 

33.0%

 

34.9%

 

Reconciliation of GAAP to Non-GAAP Operating expenses

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Operating expenses (GAAP)

95,898

 

77,669

 

92,721

 

318,798

 

289,392

Stock-based compensation - R&D

(8,919)

 

(6,904)

 

(4,937)

 

(27,048)

 

(16,872)

Stock-based compensation - S&M

(8,710)

 

(4,066)

 

(3,157)

 

(19,413)

 

(11,062)

Stock-based compensation - G&A

(2,967)

 

(2,559)

 

916

 

(9,766)

 

(6,991)

Amortization and depreciation of acquired assets - R&D

(14)

 

(26)

 

(30)

 

(91)

 

(92)

Amortization and depreciation of acquired assets - S&M

(230)

 

(370)

 

33

 

(1,187)

 

(1,214)

Amortization and depreciation of acquired assets - G&A

(8)

 

(8)

 

45

 

(33)

 

(35)

Acquisition related expenses

----

 

----

 

----

 

----

 

(949)

Assets disposal

(649)

 

(558)

 

(56)

 

(1,207)

 

(622)

Other operating income (expenses)

(1,471)

 

----

 

(22,391)

 

3,429

 

(30,696)

Operating expenses (Non-GAAP)

72,930

 

63,178

 

63,144

 

263,482

 

220,859

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except share and per share data)

 

Reconciliation of GAAP to Non-GAAP Operating income

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Operating income (GAAP)

14,427

 

30,394

 

50,528

 

142,561

 

189,946

Cost of product adjustment

----

 

----

 

448

 

313

 

1,556

Stock-based compensation

24,316

 

16,259

 

9,446

 

67,309

 

41,889

Amortization and depreciation of acquired assets

2,626

 

2,833

 

2,441

 

10,795

 

11,112

Acquisition related expenses

----

 

----

 

----

 

----

 

949

Assets disposal

649

 

558

 

56

 

1,207

 

622

Other operating (income) expenses

1,471

 

----

 

22,391

 

(3,429)

 

30,696

Operating income (Non-GAAP)

43,489

 

50,044

 

85,310

 

218,756

 

276,770

 

Reconciliation of GAAP to Non-GAAP Financial expenses (income), net

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Financial expenses (income), net (GAAP)

(10,380)

 

(15,765)

 

(11,058)

 

(21,105)

 

11,343

Notes due 2025

(3,017)

 

(168)

 

----

 

(3,185)

 

----

Non cash interest

(1,305)

 

(1,254)

 

(1,055)

 

(4,887)

 

(3,645)

Currency fluctuation related to lease standard

(2,172)

 

(243)

 

(266)

 

(2,274)

 

(2,591)

Amortization and depreciation of acquired assets

----

 

----

 

348

 

(982)

 

348

Financial expenses (income), net (Non-GAAP)

(16,874)

 

(17,430)

 

(12,031)

 

(32,433)

 

5,455

 

Reconciliation of GAAP to Non-GAAP Tax on income

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Tax on income (GAAP)

7,152

 

2,408

 

9,241

 

23,344

 

33,646

Deferred taxes

(2,522)

 

(816)

 

1,114

 

3,434

 

6,037

Tax on income (Non-GAAP)

4,630

 

1,592

 

10,355

 

26,778

 

39,683

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except share and per share data)

 

Reconciliation of GAAP to Non-GAAP Net income

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Net income attributable to SolarEdge Technologies Inc. (GAAP)

17,655

 

43,751

 

52,778

 

140,322

 

146,549

Cost of product adjustment

----

 

----

 

448

 

313

 

1,556

Stock-based compensation

24,316

 

16,259

 

9,446

 

67,309

 

41,889

Amortization and depreciation of acquired assets

2,626

 

2,833

 

2,093

 

11,777

 

10,764

Acquisition related expenses

----

 

----

 

----

 

----

 

949

Assets disposal

649

 

558

 

56

 

1,207

 

622

Other operating (income) expenses

1,471

 

----

 

22,391

 

(3,429)

 

30,696

Notes due 2025

3,017

 

168

 

----

 

3,185

 

----

Non cash interest

1,305

 

1,254

 

1,055

 

4,887

 

3,645

Currency fluctuation related to lease standard

2,172

 

243

 

266

 

2,274

 

2,591

Deferred taxes

2,522

 

816

 

(1,114)

 

(3,434)

 

(6,037)

Net income attributable to SolarEdge Technologies Inc. (Non-GAAP)

55,733

 

65,882

 

87,419

 

224,411

 

233,224

 

Reconciliation of GAAP to Non-GAAP Net basic EPS

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Net basic earnings per share (GAAP)

0.34

 

0.87

 

1.08

 

2.79

 

3.06

Cost of product adjustment

----

 

----

 

0.01

 

0.01

 

0.03

Stock-based compensation

0.48

 

0.32

 

0.20

 

1.34

 

0.87

Amortization and depreciation of acquired assets

0.05

 

0.05

 

0.04

 

0.24

 

0.23

Acquisition related expenses

----

 

----

 

----

 

----

 

0.02

Assets disposal

0.01

 

0.01

 

----

 

0.02

 

0.01

Other operating (income) expenses

0.03

 

----

 

0.46

 

(0.07)

 

0.64

Notes due 2025

0.06

 

----

 

----

 

0.06

 

----

Non cash interest

0.02

 

0.03

 

0.02

 

0.10

 

0.08

Currency fluctuation related to lease standard

0.05

 

----

 

----

 

0.05

 

0.06

Deferred taxes

0.05

 

0.02

 

(0.02)

 

(0.07)

 

(0.13)

Net basic earnings per share (Non-GAAP)

1.09

 

1.30

 

1.79

 

4.47

 

4.87

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except share and per share data)

 

Reconciliation of GAAP to Non-GAAP Net diluted EPS

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Net diluted earnings per share (GAAP)

0.33

 

0.83

 

1.03

 

2.66

 

2.90

Cost of product adjustment

----

 

----

 

0.01

 

----

 

0.02

Nonvested PSUs

----

 

----

 

(0.01)

 

----

 

----

Stock-based compensation

0.44

 

0.28

 

0.15

 

1.20

 

0.68

Amortization and depreciation of acquired assets

0.05

 

0.05

 

0.04

 

0.21

 

0.22

Acquisition related expenses

----

 

----

 

----

 

----

 

0.02

Assets disposal

0.01

 

0.01

 

----

 

0.03

 

0.01

Other operating (income) expenses

0.03

 

----

 

0.43

 

(0.07)

 

0.59

Notes due 2025

0.02

 

----

 

----

 

0.02

 

----

Non cash interest

0.02

 

0.02

 

0.02

 

0.08

 

0.07

Currency fluctuation related to lease standard

0.04

 

----

 

----

 

0.05

 

0.05

Deferred taxes

0.04

 

0.02

 

(0.02)

 

(0.07)

 

(0.12)

Net diluted earnings per share (Non-GAAP)

0.98

 

1.21

 

1.65

 

4.11

 

4.44

 

Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS

Three months ended

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Number of shares used in computing net diluted earnings per share (GAAP)

53,496,384

 

53,144,188

 

50,966,778

 

52,795,475

 

50,195,661

Stock-based compensation

865,179

 

1,134,877

 

1,774,490

 

1,138,517

 

2,011,807

Notes due 2025

2,276,818

 

----

 

----

 

618,701

 

----

Number of shares used in computing net diluted earnings per share (Non-GAAP)

56,638,381

 

54,279,065

 

52,741,268

 

54,552,693

 

52,207,468

 

Investor Contacts
SolarEdge Technologies, Inc.
Ronen Faier, Chief Financial Officer
+1 510-498-3263
investors@solaredge.com

Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
+1 617-542-6180
investors@solaredge.com

Source: SolarEdge Technologies, Inc.