Press Release Details

SolarEdge Announces Third Quarter 2019 Financial Results

November 6, 2019 at 4:05 PM EST

Revenues surpass $1 billion in first three quarters of 2019

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 6, 2019-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy, today announced its financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights

  • Record revenues of $410.6 million
  • Record revenues from solar products of $387.8 million
  • GAAP gross margin of 33.9%
  • GAAP gross margin from sale of solar products of 35.0%
  • Non-GAAP gross margin from sale of solar products of 35.4%
  • GAAP net income of $41.6 million
  • Record Non-GAAP net income of $63.6 million
  • GAAP net diluted earnings per share (“EPS”) of $0.81
  • Record Non-GAAP net diluted EPS of $1.21
  • 1.5 Gigawatts (AC) of inverters shipped

“Our performance this quarter was at the upper range of our guidance, with record revenues, record non-GAAP profitability and record cash generation,” said Zvi Lando, Acting CEO and VP Global Sales of SolarEdge. “While we are pleased with the financial and operational results, this was a somber quarter for the Company due to the untimely passing of Mr. Guy Sella, Founder, Chairman and CEO of SolarEdge. Guy was not only our CEO and Chairman but a technological visionary, a role model and dear friend and will be greatly missed. SolarEdge management, most of whom have been leading the company together with Guy for many years, are dedicated to continue to strive for excellence in innovation and execution. We believe we are well positioned for continued growth both in our core business as leaders of PV inverter technology and in our new businesses of lithium-ion cells and batteries, e-mobility powertrain solutions and uninterruptible power supply systems.”

Third Quarter 2019 Summary

The Company reported record revenues of $410.6 million, up 26% from $325.0 million in the prior quarter and up 74% from $236.6 million in the same quarter last year.

Revenues related to the solar business were $387.8 million, up 26% from $306.7 million in the prior quarter and up 66% from $233.8 million in the same quarter last year.

GAAP gross margin was 33.9%, slightly down from 34.1% in the prior quarter and up from 33.0% year over year. This quarter’s gross margins were negatively impacted by increased air shipments as well as the increase in U.S. tariffs on China made products.

Non-GAAP gross margin was 35.1%, down from 35.7% in the prior quarter and up from 33.6% year over year.

GAAP gross margin for the solar business was 35.0%, down from 36.4% in the prior quarter and up from 33.9% year over year.

Non-GAAP gross margin for the solar business was 35.4%, down from 36.9% in the prior quarter and up from 34.4% year over year.

GAAP operating expenses were $73.3 million, up 12% from $65.3 million in the prior quarter and up 67% from $43.9 million in the same quarter last year. Operating expenses this quarter include $8.3 million non-recurring expense related to acceleration of equity awards and other payments related to the untimely death of Mr. Guy Sella, former Chairman, CEO and Founder of the Company.

Non-GAAP operating expenses were $54.8 million, relatively flat to $54.9 million in the prior quarter and up 48% from $37.0 million in the same quarter last year.

GAAP operating income was $66.0 million, up 46% from $45.4 million in the prior quarter and up 94% from $34.0 million in the same quarter last year.

Non-GAAP operating income was $89.2 million, up 46% from $61.0 million in the prior quarter and up 110% from $42.5 million in the same quarter last year.

GAAP net income was $41.6 million, up 26% from $33.1 million in the prior quarter and down 9% from $45.6 million in the same quarter last year.

Non-GAAP net income was $63.6 million, up 29% from $49.3 million in the prior quarter and up 49% from $42.7 million in the same quarter last year.

GAAP net diluted EPS was $0.81, up from $0.66 in the prior quarter and down from $0.95 in the same quarter last year.

Non-GAAP net diluted EPS was $1.21, up from $0.94 in the prior quarter and up from $0.86 in the same quarter last year.

Cash flow from operating activities was $68.7 million, up from $50.8 million in the prior quarter and up from $34.3 million in the same quarter last year.

As of September 30, 2019, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $432.9 million, compared to $373.6 million on June 30, 2019.

Outlook for the Fourth Quarter 2019

The Company also provides guidance for the fourth quarter ending December 31, 2019 as follows:

  • Revenues to be within the range of $410 million to $420 million
  • Gross margin expected to be within the range of 32% to 34%
  • Revenues from solar products to be within the range of $388 million to $398 million
  • Gross margin from sale of solar products expected to be within the range of 33% to 35%

Conference Call

The Company will host a conference call to discuss these results at 4:30 P.M. ET on Wednesday, November 6, 2019. The call will be available, live, to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The Conference ID number is 5370286. 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, 2018, filed on February 28, 2019, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 6, 2019. 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 OPERATIONS

(In thousands, except per share data)

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Revenues

 

$

410,556

 

 

$

236,578

 

 

$

1,007,437

 

$

673,567

 

Cost of revenues

 

 

271,247

 

 

 

158,596

 

 

 

671,348

 

 

434,042

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

139,309

 

 

 

77,982

 

 

 

336,089

 

 

239,525

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

30,747

 

 

 

20,109

 

 

 

86,451

 

 

57,535

 

Sales and marketing

 

 

22,026

 

 

 

16,938

 

 

 

64,325

 

 

49,097

 

General and administrative

 

 

12,214

 

 

 

6,898

 

 

 

37,590

 

 

17,427

 

Non recurring expenses

 

 

8,305

 

 

 

-

 

 

 

8,305

 

 

-

 

Total operating expenses

 

 

73,292

 

 

 

43,945

 

 

 

196,671

 

 

124,059

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

66,017

 

 

 

34,037

 

 

 

139,418

 

 

115,466

 

 

 

 

 

 

 

 

 

 

Financial expenses, net

 

 

17,023

 

 

 

689

 

 

 

22,401

 

 

2,585

 

 

 

 

 

 

 

 

 

 

Income before taxes on income

 

 

48,994

 

 

 

33,348

 

 

 

117,017

 

 

112,881

 

 

 

 

 

 

 

 

 

 

Taxes on income (tax benefit)

 

 

7,270

 

 

 

(12,295

)

 

 

24,405

 

 

(3,016

)

 

 

 

 

 

 

 

 

 

Net income

 

$

41,724

 

 

$

45,643

 

 

$

92,612

 

$

115,897

 

 

 

 

 

 

 

 

 

 

Net loss (income) attributable to non-controlling interests

 

 

(97

)

 

 

-

 

 

 

1,159

 

 

-

 

 

 

 

 

 

 

 

 

 

Net income attributable to SolarEdge Technologies, Inc.

 

$

41,627

 

 

$

45,643

 

 

$

93,771

 

$

115,897

 

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2019

 

2018

 

 

 

(Unaudited)

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

247,342

 

 

$

187,764

 

 

Short-term bank deposits

 

 

5,769

 

 

 

9,870

 

 

Restricted bank deposits

 

 

1,600

 

 

 

824

 

 

Marketable securities

 

 

85,343

 

 

 

118,680

 

 

Trade receivables, net

 

 

292,232

 

 

 

173,579

 

 

Prepaid expenses and other current assets

 

 

68,234

 

 

 

45,073

 

 

Inventories, net

 

 

134,283

 

 

 

141,519

 

 

Total current assets

 

 

834,803

 

 

 

677,309

 

 

 

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

 

Marketable securities

 

 

92,871

 

 

 

74,256

 

 

Operating lease right-of-use assets

 

 

34,601

 

 

 

-

 

 

Property, plant and equipment, net

 

 

149,675

 

 

 

119,329

 

 

Deferred tax assets, net

 

 

17,180

 

 

 

14,699

 

 

Intangible assets, net and goodwill

 

 

200,795

 

 

 

73,378

 

 

Other long term assets

 

 

7,667

 

 

 

5,501

 

 

Total long-term assets

 

 

502,789

 

 

 

287,163

 

 

 

 

 

 

 

 

Total assets

 

$

1,337,592

 

 

$

964,472

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Trade payables, net

 

$

132,230

 

 

$

107,079

 

 

Employees and payroll accruals

 

 

44,386

 

 

 

29,053

 

 

Current maturities of bank loans and accrued interest

 

 

16,912

 

 

 

16,639

 

 

Warranty obligations

 

 

45,887

 

 

 

28,868

 

 

Deferred revenues

 

 

15,006

 

 

 

14,351

 

 

Accrued expenses and other current liabilities

 

 

80,986

 

 

 

29,728

 

 

Total current liabilities

 

 

335,407

 

 

 

225,718

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

Bank loans

 

 

4,055

 

 

 

3,510

 

 

Warranty obligations

 

 

125,467

 

 

 

92,958

 

 

Deferred revenues

 

 

81,934

 

 

 

60,670

 

 

Operating lease liabilities

 

 

29,117

 

 

 

-

 

 

Deferred tax liabilities, net

 

 

7,762

 

 

 

1,499

 

 

Other long term liabilities

 

 

16,662

 

 

 

9,391

 

 

Total long-term liabilities

 

 

264,997

 

 

 

168,028

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

5

 

 

 

5

 

 

Additional paid-in capital

 

 

450,459

 

 

 

371,794

 

 

Accumulated other comprehensive loss

 

 

(3,356

)

 

 

(524

)

 

Retained earnings

 

 

284,904

 

 

 

191,133

 

 

Total SolarEdge Technologies, Inc. stockholders’ equity

 

 

732,012

 

 

 

562,408

 

 

Non-controlling interests

 

 

5,176

 

 

 

8,318

 

 

Total stockholders’ equity

 

 

737,188

 

 

 

570,726

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,337,592

 

 

$

964,472

 

 

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 

Nine months ended September 30,

 

 

2019

 

2018

 

 

(Unaudited)

Cash flows provided by operating activities:

 

 

 

 

Net income

 

$

92,612

 

 

$

115,897

 

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

 

 

 

 

Depreciation of property, plant and equipment

 

 

12,532

 

 

 

7,997

 

Amortization of intangible assets

 

 

7,514

 

 

 

404

 

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

 

 

-

 

 

 

1,242

 

Stock-based compensation

 

 

38,685

 

 

 

21,927

 

Loss from disposal of assets

 

 

566

 

 

 

64

 

Realized gain from cash flow hedge

 

 

-

 

 

 

(9

)

Realized loss from sale of available-for-sale marketable securities

 

 

91

 

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

 

15,746

 

 

 

(18,120

)

Prepaid expenses and other assets

 

 

(19,795

)

 

 

(4,800

)

Trade receivables, net

 

 

(114,572

)

 

 

(42,418

)

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

 

 

2,138

 

 

 

(222

)

Deferred tax assets and liabilities, net

 

 

(4,923

)

 

 

(4,789

)

Trade payables, net

 

 

21,301

 

 

 

14,006

 

Employees and payroll accruals

 

 

15,329

 

 

 

1,200

 

Warranty obligations

 

 

49,633

 

 

 

28,847

 

Deferred revenues

 

 

19,516

 

 

 

21,576

 

Other liabilities

 

 

39,561

 

 

 

(597

)

Net cash provided by operating activities

 

 

175,934

 

 

 

142,205

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Business combination, net of cash acquired

 

 

(38,435

)

 

 

(11,223

)

Purchase of property, plant and equipment

 

 

(39,679

)

 

 

(30,051

)

Withdrawal from (investment in) bank deposits

 

 

4,101

 

 

 

(8,123

)

Investment in restricted bank deposits

 

 

(243

)

 

 

(201

)

Investment in available-for-sale marketable securities

 

 

(103,711

)

 

 

(143,150

)

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

 

 

119,570

 

 

 

71,632

 

Net cash used in investing activities

 

$

(58,397

)

 

$

(121,116

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from borrowing loans

 

$

232

 

 

$

-

 

Repayment of bank loans, net

 

 

(5,142

)

 

 

-

 

Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards

 

 

4,940

 

 

 

7,915

 

Purchase of land and building under finance lease

 

 

(1,248

)

 

 

-

 

Change in non-controlling interests

 

 

(67,089

)

 

 

-

 

Net cash provided by (used in) financing activities

 

$

(68,307

)

 

$

7,915

 

 

 

 

 

 

Increase in cash and cash equivalents and restricted cash

 

 

49,230

 

 

 

29,004

 

Cash, cash equivalents and restricted cash at the beginning of the period

 

 

187,764

 

 

 

163,163

 

Effect of exchange rate differences on cash, cash equivalents and restricted cash

 

 

10,348

 

 

 

731

 

Cash, cash equivalents and restricted cash at the end of the period

 

$

247,342

 

 

$

192,898

 

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands, except gross profit and per share data)

(Unaudited)

 
Reconciliation of GAAP to Non-GAAP Gross Profit
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
 
Gross profit (GAAP)

139,309

 

110,670

 

77,982

 

336,089

 

239,525

Stock-based compensation

1,691

 

1,651

 

1,127

 

4,696

 

3,019

Cost of product adjustment

107

 

319

 

208

 

1,108

 

208

Amortization and depreciation of acquired assets

2,898

 

3,307

 

193

 

7,282

 

193

Gross profit (Non-GAAP)

144,005

 

115,947

 

79,510

 

349,175

 

242,945

 
Reconciliation of GAAP to Non-GAAP Gross Margin
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Gross margin (GAAP)

33.9%

 

34.1%

 

33.0%

 

33.4%

 

35.6%

Stock-based compensation

0.4%

 

0.5%

 

0.5%

 

0.5%

 

0.5%

Cost of product adjustment

0.0%

 

0.1%

 

0.1%

 

0.1%

 

0.0%

Amortization and depreciation of acquired assets

0.8%

 

1.0%

 

0.1%

 

0.7%

 

0.0%

Gross margin (Non-GAAP)

35.1%

 

35.7%

 

33.6%

 

34.7%

 

36.1%

 
Reconciliation of GAAP to Non-GAAP Operating expenses
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Operating expenses (GAAP)

73,292

 

65,317

 

43,945

 

196,671

 

124,059

Stock-based compensation R&D

(4,269)

 

(4,176)

 

(2,988)

 

(11,935)

 

(7,975)

Stock-based compensation S&M

(2,779)

 

(2,722)

 

(2,250)

 

(7,905)

 

(6,548)

Stock-based compensation G&A

(2,628)

 

(2,823)

 

(1,585)

 

(7,907)

 

(4,385)

Amortization and depreciation of acquired assets - R&D

(17)

 

(9)

 

(110)

 

(62)

 

(110)

Amortization and depreciation of acquired assets - S&M

(440)

 

51

 

(29)

 

(1,247)

 

(29)

Amortization and depreciation of acquired assets - G&A

(54)

 

(26)

 

----

 

(80)

 

----

Non recurring expenses

(8,305)

 

----

 

----

 

(8,305)

 

----

Assets disposal

(14)

 

(552)

 

----

 

(566)

 

----

Acquisition related expenses

----

 

(151)

 

----

 

(949)

 

----

Operating expenses (Non-GAAP)

54,786

 

54,909

 

36,983

 

157,715

 

105,012

 
Reconciliation of GAAP to Non-GAAP Operating income
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Operating income (GAAP)

66,017

 

45,353

 

34,037

 

139,418

 

115,466

Cost of product adjustment

107

 

319

 

208

 

1,108

 

208

Stock-based compensation

11,367

 

11,372

 

7,950

 

32,443

 

21,927

Amortization and depreciation of acquired assets

3,409

 

3,291

 

332

 

8,671

 

332

Non recurring expenses

8,305

 

----

 

----

 

8,305

 

----

Acquisition related expenses

----

 

151

 

----

 

949

 

----

Assets disposal

14

 

552

 

----

 

566

 

----

Operating income (Non-GAAP)

89,219

 

61,038

 

42,527

 

191,460

 

137,933

 
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Financial expenses (income), net (GAAP)

17,023

 

(773)

 

689

 

22,401

 

2,585

Non cash interest

(955)

 

(850)

 

(640)

 

(2,590)

 

(1,720)

Currency fluctuation due to new lease standard adoption

(800)

 

(577)

 

----

 

(2,325)

 

----

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

15,268

 

(2,200)

 

49

 

17,486

 

865

 
Reconciliation of GAAP to Non-GAAP Tax on income (tax benefit)
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Tax on income (tax benefit) (GAAP)

7,270

 

13,213

 

(12,295)

 

24,405

 

(3,016)

Deferred tax realized (asset)

2,963

 

987

 

1,771

 

4,923

 

4,789

Transition tax of foreign earnings

----

 

----

 

10,305

 

----

 

9,485

Tax on income (tax benefit) (Non-GAAP)

10,233

 

14,200

 

(219)

 

29,328

 

11,258

 
Reconciliation of GAAP to Non-GAAP Net income attributable to SolarEdge Technologies Inc.
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Net income attributable to SolarEdge Technologies Inc. (GAAP)

41,627

 

33,128

 

45,643

 

93,771

 

115,897

Cost of product adjustment

107

 

319

 

208

 

1,108

 

208

Stock-based compensation

11,367

 

11,372

 

7,950

 

32,443

 

21,927

Amortization and depreciation of acquired assets

3,409

 

3,291

 

332

 

8,671

 

332

Non recurring expenses

8,305

 

----

 

----

 

8,305

 

----

Acquisition related expenses

----

 

151

 

----

 

949

 

----

Assets disposal

14

 

552

 

----

 

566

 

----

Non cash interest

955

 

850

 

640

 

2,590

 

1,720

Currency fluctuation due to new lease standard adoption

800

 

577

 

----

 

2,325

 

----

Deferred tax realized (asset)

(2,963)

 

(987)

 

(1,771)

 

(4,923)

 

(4,789)

Transition tax of foreign earnings

----

 

----

 

(10,305)

 

----

 

(9,485)

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

63,621

 

49,253

 

42,697

 

145,805

 

125,810

 
Reconciliation of GAAP to Non-GAAP Net basic earnings per share
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Net basic earnings per share (GAAP)

0.86

 

0.69

 

1.00

 

1.97

 

2.57

Cost of product adjustment

0.01

 

0.01

 

0.00

 

0.02

 

0.00

Stock-based compensation

0.23

 

0.24

 

0.17

 

0.68

 

0.49

Amortization and depreciation of acquired assets

0.07

 

0.07

 

0.01

 

0.18

 

0.01

Non recurring expenses

0.17

 

----

 

----

 

0.17

 

----

Acquisition related expenses

----

 

----

 

----

 

0.02

 

----

Assets disposal

----

 

0.01

 

----

 

0.01

 

0.00

Non cash interest

0.02

 

0.02

 

0.01

 

0.06

 

0.04

Currency fluctuation due to new lease standard adoption

0.02

 

0.01

 

----

 

0.05

 

----

Deferred tax realized (asset)

(0.06)

 

(0.02)

 

(0.04)

 

(0.10)

 

(0.11)

Transition tax of foreign earnings

----

 

----

 

(0.23)

 

----

 

(0.21)

Net basic earnings per share (Non-GAAP)

1.32

 

1.03

 

0.94

 

3.06

 

2.80

 
Reconciliation of GAAP to Non-GAAP Net diluted earnings per share
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Net diluted earnings per share (GAAP)

0.81

 

0.66

 

0.95

 

1.87

 

2.41

Cost of product adjustment

----

 

----

 

----

 

0.01

 

----

Stock-based compensation

0.19

 

0.19

 

0.13

 

0.54

 

0.38

Amortization and depreciation of acquired assets

0.07

 

0.07

 

0.01

 

0.18

 

----

Non recurring expenses

0.16

 

----

 

----

 

0.16

 

----

Acquisition related expenses

----

 

----

 

----

 

0.02

 

----

Assets disposal

----

 

0.01

 

----

 

0.01

 

----

Non cash interest

0.02

 

0.02

 

0.01

 

0.05

 

0.04

Currency fluctuation due to new lease standard adoption

0.02

 

0.01

 

----

 

0.05

 

----

Deferred tax realized (asset)

(0.06)

 

(0.02)

 

(0.03)

 

(0.10)

 

(0.10)

Transition tax of foreign earnings

----

 

----

 

(0.21)

 

----

 

(0.19)

Net diluted earnings per share (Non-GAAP)

1.21

 

0.94

 

0.86

 

2.79

 

2.54

Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted earnings per share
Three months ended Nine months ended
September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Number of shares used in computing net diluted earnings per share (GAAP)

51,081,594

 

49,940,034

 

48,281,240

 

49,935,638

 

48,091,185

Stock-based compensation

1,375,391

 

2,130,135

 

1,463,633

 

2,090,912

 

1,446,775

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

52,456,985

 

52,070,169

 

49,744,873

 

52,026,550

 

49,537,960

 

Source: SolarEdge Technologies, Inc.

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