SolarEdge Announces Quarter Ended September 30, 2016 Financial Results
Quarter Ended
-
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
Quarter Ended
The Company reported revenues of
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
GAAP operating income was
GAAP net income was
Non-GAAP net income was
GAAP net diluted earnings per shares (“EPS”) was
Non-GAAP net diluted EPS was
As of
Outlook for the Quarter Ending
The Company also provides guidance for the quarter ending
-
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
A replay of the webcast will be available in the Investor Relations section of the Company’s website approximately two hours after the conclusion of the call and will 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. 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 Registration Statement on Form S-1 (including the related
prospectus), Annual Report on Form 10-K for the fiscal year ended
| SOLAREDGE TECHNOLOGIES INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (In thousands, except per share data) | |||||||
|
Three months ended |
|||||||
| 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 | |||
| SOLAREDGE TECHNOLOGIES INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| 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 | ||||
| SOLAREDGE TECHNOLOGIES INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
|
Three months ended |
||||||||
| 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 | ||||
| SOLAREDGE TECHNOLOGIES INC. | |||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||
| (In thousands, except per share data) | |||||||||
| (unaudited) | |||||||||
| Reconciliation of GAAP to Non-GAAP Gross Profit | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Gross profit (GAAP) | 41,875 | 39,113 | 33,527 | ||||||
| Stock-based compensation | 385 | 310 | 180 | ||||||
| Gross profit (Non-GAAP) | 42,260 | 39,423 | 33,707 | ||||||
| Reconciliation of GAAP to Non-GAAP Gross Margin | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Gross margin (GAAP) | 32.6 | % | 31.4 | % | 29.1 | % | |||
| Stock-based compensation | 0.3 | % | 0.2 | % | 0.2 | % | |||
| Gross margin (Non-GAAP) | 32.9 | % | 31.6 | % | 29.3 | % | |||
| Reconciliation of GAAP to Non-GAAP Operating expenses | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Operating expenses (GAAP) | 23,635 | 21,229 | 18,653 | ||||||
| Stock-based compensation R&D | 927 | 747 | 395 | ||||||
| Stock-based compensation S&M | 849 | 730 | 616 | ||||||
| Stock-based compensation G&A | 939 | 613 | 641 | ||||||
| Operating expenses (Non-GAAP) | 20,920 | 19,138 | 17,001 | ||||||
| Reconciliation of GAAP to Non-GAAP Operating income | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Operating income (GAAP) | 18,240 | 17,884 | 14,874 | ||||||
| Stock-based compensation | 3,100 | 2,401 | 1,832 | ||||||
| Operating income (Non-GAAP) | 21,340 | 20,285 | 16,706 | ||||||
| Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit) | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Tax on income (Tax benefit) (GAAP) | 3,014 | 84 | 370 | ||||||
| Tax expenses due to utilization of deferred tax asset | (2,179 | ) | (247 | ) | ---- | ||||
| Tax on income (Tax benefit) (Non-GAAP) | 835 | (163 | ) | 370 | |||||
| Reconciliation of GAAP to Non-GAAP Net income | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Net income (GAAP) | 15,616 | 17,273 | 14,432 | ||||||
| Stock-based compensation | 3,100 | 2,401 | 1,832 | ||||||
| Tax expenses due to utilization of deferred tax asset | 2,179 | 247 | ---- | ||||||
| Net income (Non-GAAP) | 20,895 | 19,921 | 16,264 | ||||||
| Reconciliation of GAAP to Non-GAAP Net basic EPS | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Net basic earnings per share (GAAP) | 0.38 | 0.42 | 0.37 | ||||||
| Stock-based compensation | 0.08 | 0.06 | 0.04 | ||||||
| Tax expenses due to utilization of deferred tax asset | 0.05 | 0.01 | ---- | ||||||
| Net basic earnings per share (Non-GAAP) | 0.51 | 0.49 | 0.41 | ||||||
| Reconciliation of GAAP to Non-GAAP Net diluted EPS | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Net diluted earnings per share (GAAP) | 0.35 | 0.39 | 0.32 | ||||||
| Stock-based compensation | 0.06 | 0.04 | 0.04 | ||||||
| Tax expenses due to utilization of deferred tax asset | 0.05 | 0.01 | ---- | ||||||
| Net diluted earnings per share (Non-GAAP) | 0.46 | 0.44 | 0.36 | ||||||
| Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS | |||||||||
| Three months ended | |||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||
| Number of shares used in computing net diluted earnings per share (GAAP) | 43,995,227 | 44,463,087 | 44,455,964 | ||||||
| Stock-based compensation | 1,742,211 | 1,216,866 | 686,470 | ||||||
| Number of shares used in computing net diluted earnings per share (Non-GAAP) | 45,737,438 | 45,679,953 | 45,142,434 | ||||||
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Source:
Investor Contacts
SolarEdge Technologies, Inc.
Ronen
Faier, +1 510-498-3263
Chief Financial Officer
investors@solaredge.com
or
Sapphire
Investor Relations, LLC
Erica Mannion or Michael Funari, +1
617-542-6180
investors@solaredge.com