UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported):  August 3, 2020
 
 
SOLAREDGE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
 

 
         
Delaware
 
001-36894
 
20-5338862
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
     
1 Hamada Street, Herziliya Pituach, Israel
 
4673335
(Address of Principal executive offices)
 
(Zip Code)

Registrant’s Telephone number, including area code: 972 (9) 957-6620
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.0001 per share
SEDG
Nasdaq Global Select Market

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))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 240.12b-2 of this chapter).

Emerging growth company         
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          
 


Item 2.02.          Results of Operations and Financial Condition.

On August 3, 2020, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, this information, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including the exhibits hereto be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

Exhibit No.
 
Description
 
 
Exhibit 104
 
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.


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.

 
SOLAREDGE TECHNOLOGIES, INC.
   
Date:  August 3, 2020
By:      /s/ Ronen Faier
 
Name: Ronen Faier
Title:   Chief Financial Officer



Exhibit 99.1

SolarEdge Announces Second Quarter 2020 Financial Results

FREMONT, Calif. — August 3, 2020. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2020.
 
Second Quarter 2020 Highlights

Revenues of $331.9 million
Revenues from solar products of $310.1 million
GAAP gross margin of 31.0%
GAAP gross margin from sale of solar products of 33.1%
Non-GAAP gross margin from sale of solar products of 33.8%
GAAP net income of $36.7 million
Non-GAAP net income of $52.1 million
GAAP net diluted earnings per share (“EPS”) of $0.70
Non-GAAP net diluted EPS of $0.97
1.44 Gigawatts (AC) of inverters shipped

“This quarter, despite the challenges caused by COVID 19, we maintained healthy profitability while generating cash from operating activity,” said Zivi Lando, CEO of SolarEdge. “Our global strength, and in particular our loyal customer base in the Netherlands, Germany, Italy and Australia, softened the decline in U.S. demand this past quarter. While the pandemic has created many operational challenges, I am confident in our financial strength and grateful for the trust of our customers and dedication of our employees which enable us to continue to focus on product innovation and execution of our long term plans even in these challenging times.”
 
Second Quarter 2020 Summary
 
The Company reported revenues of $331.9 million, down 23% from $431.2 million in the prior quarter and up 2% from $325.0 million in the same quarter last year.
 
Revenues related to the solar business were $310.1 million, down 24% from $407.6 million in the prior quarter and up 1% from $306.7 million in the same quarter last year.
 
GAAP gross margin was 31.0%, down from 32.5% in the prior quarter and down from 34.1% year over year.
 
Non-GAAP gross margin was 32.4%, down from 33.6% in the prior quarter and down from 35.7% year over year.

 
GAAP gross margin for the solar business was 33.1%, down from 34.6% in the prior quarter and down from 36.4% year over year.
 
Non-GAAP gross margin for the solar business was 33.8%, down from 35.0% in the prior quarter and down from 36.9% year over year.
 
GAAP operating expenses were $73.0 million, up 1% from $72.2 million in the prior quarter and up 12% from $65.3 million in the same quarter last year.
 
Non-GAAP operating expenses were $61.1 million, down 8% from $66.3 million in the prior quarter and up 11% from $54.9 million in the same quarter last year.
 
GAAP operating income was $30.0 million, down 56% from $67.8 million in the prior quarter and down 34% from $45.4 million in the same quarter last year.
 
Non-GAAP operating income was $46.6 million, down 41% from $78.6 million in the prior quarter and down 24% from $61.0 million in the same quarter last year.
 
GAAP net income was $36.7 million, down 13% from $42.2 million in the prior quarter and up 11% from $33.1 million in the same quarter last year.
 
Non-GAAP net income was $52.1 million, up 3% from $50.7 million in the prior quarter and up 6% from $49.3 million in the same quarter last year.
 
GAAP net diluted EPS was $0.70, down from $0.81 in the prior quarter and up from $0.66 in the same quarter last year.
 
Non-GAAP net diluted EPS was $0.97, up from $0.95 in the prior quarter and up from $0.94 in the same quarter last year.
 
Cash flow from operating activities was $59.3 million, down from $107.7 million in the prior quarter and up from $50.8 million in the same quarter last year.
 
As of June 30, 2020, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $592.7 million, compared to $467.5 million on December 31, 2019.

Outlook for the Third Quarter 2020
 
The Company also provides guidance for the third quarter ending September 30, 2020 as follows:

Revenues to be within the range of $325 million to $350 million
Non-GAAP Gross margin expected to be within the range of 32% to 34%
Revenues from solar products to be within the range of $305 million to $325 million
Non-GAAP 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 Monday, August 3, 2020. The call will be available, live, to interested parties by dialing 800-256-1007. For international callers, please dial +1 323-994-2093. The Conference ID number is 7031770.  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 technology. 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 the PV system. 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, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of August 3, 2020.  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
investors@solaredge.com

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

SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)

   
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
                         
Revenues
 
$
331,851
   
$
325,010
   
$
763,069
   
$
596,881
 
Cost of revenues
   
228,888
     
214,340
     
520,098
     
400,101
 
                                 
Gross profit
   
102,963
     
110,670
     
242,971
     
196,780
 
                                 
Operating expenses:
                               
                                 
Research and development
   
38,098
     
29,505
     
74,793
     
55,704
 
Sales and marketing
   
20,936
     
22,127
     
45,189
     
42,299
 
General and administrative
   
13,964
     
13,685
     
30,149
     
25,376
 
Other operating income
   
-
     
-
     
(4,900
)
   
-
 
                                 
Total operating expenses
   
72,998
     
65,317
     
145,231
     
123,379
 
                                 
Operating income
   
29,965
     
45,353
     
97,740
     
73,401
 
                                 
Financial income (expenses), net
   
11,565
     
773
     
(5,040
)
   
(5,378
)
                                 
Income before income taxes
   
41,530
     
46,126
     
92,700
     
68,023
 
                                 
Income taxes
   
4,862
     
13,213
     
13,784
     
17,135
 
                                 
Net income
 
$
36,668
   
$
32,913
   
$
78,916
   
$
50,888
 
                                 
Net loss attributable to Non-controlling interests
   
-
     
215
     
-
     
1,256
 
                                 
Net income attributable to SolarEdge Technologies, Inc.
 
$
36,668
   
$
33,128
   
$
78,916
   
$
52,144
 


SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)

   
June 30,
   
December 31,
 
   
2020
   
2019
 
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
428,372
   
$
223,901
 
Short-term bank deposits
   
3,432
     
5,010
 
Restricted bank deposits
   
2,135
     
27,558
 
Marketable securities
   
113,032
     
91,845
 
Trade receivables, net of allowances of $6,273 and $2,473, respectively
   
181,700
     
298,383
 
Prepaid expenses and other current assets
   
79,867
     
115,268
 
Inventories, net
   
264,460
     
170,798
 
Total current assets
   
1,072,998
     
932,763
 
                 
LONG-TERM ASSETS:
               
   Marketable securities
   
45,684
     
119,176
 
   Operating lease right-of-use assets, net
   
36,951
     
35,858
 
   Property, plant and equipment, net
   
226,416
     
176,963
 
   Deferred tax assets, net
   
19,121
     
16,298
 
   Intangible assets, net
   
68,211
     
74,008
 
Goodwill
   
128,279
     
129,654
 
   Other long-term assets
   
8,166
     
9,904
 
 Total long-term assets
   
532,828
     
561,861
 
                 
Total assets
 
$
1,605,826
   
$
1,494,624
 
                 
CURRENT LIABILITIES:
               
Trade payables, net
 
$
158,264
   
$
157,148
 
Employees and payroll accruals
   
48,764
     
47,390
 
Current maturities of bank loans and accrued interest
   
15,256
     
15,673
 
Warranty obligations
   
68,674
     
65,112
 
Deferred revenues and customers advances
   
25,625
     
70,815
 
Accrued expenses and other current liabilities
   
88,482
     
80,576
 
Total current liabilities
   
405,065
     
436,714
 
                 
LONG-TERM LIABILITIES:
               
Bank loans
   
-
     
173
 
Warranty obligations
   
124,010
     
107,451
 
Deferred revenues
   
103,181
     
89,982
 
Operating lease liabilities
   
29,991
     
30,213
 
Deferred tax liabilities, net
   
1,112
     
4,461
 
Other long-term liabilities
   
17,666
     
13,960
 
Total long-term liabilities
   
275,960
     
246,240
 
                 
STOCKHOLDERS’ EQUITY:
               
                 
Common stock
   
5
     
5
 
Additional paid-in capital
   
511,640
     
475,792
 
Accumulated other comprehensive loss
   
(3,442
)
   
(1,809
)
Retained earnings
   
416,598
     
337,682
 
Total stockholders’ equity
   
924,801
     
811,670
 
                 
Total liabilities and stockholders’ equity
 
$
1,605,826
   
$
1,494,624
 



SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

   
Six months ended
June 30,
 
   
2020
   
2019
 
Cash flows provided by operating activities:
           
Net income
 
$
78,916
   
$
50,888
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation of property, plant and equipment
   
10,646
     
8,147
 
Amortization of intangible assets
   
4,615
     
4,895
 
Amortization of premium and accretion of discount on available-for-sale marketable securities, net
   
373
     
(12
)
Stock-based compensation expenses
   
26,734
     
21,076
 
Deferred income tax benefit, net
   
(6,424
)
   
(1,960
)
Other adjustments, net
   
(1
)
   
643
 
Changes in assets and liabilities:
               
Inventories, net
   
(94,230
)
   
1,723
 
Prepaid expenses and other assets
   
37,066
     
(2,574
)
Trade receivables, net
   
116,045
     
(56,562
)
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences
   
(451
)
   
1,466
 
Trade payables, net
   
(1,823
)
   
5,493
 
Employees and payroll accruals
   
1,457
     
5,151
 
Warranty obligations
   
20,198
     
28,860
 
       Deferred revenues and customers advances
   
(31,834
)
   
11,764
 
       Other liabilities
   
5,768
     
28,236
 
Net cash provided by operating activities
   
167,055
     
107,234
 
                 
Cash flows from investing activities:
               
Proceeds from sales and maturities of available-for-sale marketable securities
   
89,739
     
68,407
 
Purchase of property, plant and equipment
   
(53,706
)
   
(22,244
)
Investment in available-for-sale marketable securities
   
(36,815
)
   
(63,655
)
Withdrawal from (investment in) restricted bank deposits
   
25,634
     
(203
)
Business combination, net of cash acquired
   
-
     
(38,435
)
Other investing activities
   
2,024
     
3,909
 
Net cash provided by (used in) in investing activities
 
$
26,876
   
$
(52,221
)
                 
Cash flows from financing activities:
               
Repayment of bank loans
 
$
(15,119
)
 
$
(4,891
)
Proceeds from bank loans
   
15,113
     
216
 
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
   
9,114
     
3,764
 
Change in Non-controlling interests
   
-
     
(66,474
)
Other financing activities
   
(112
)
   
-
 
Net cash provided by (used in) financing activities
   
8,996
     
(67,385
)
                 
Increase (decrease) in cash and cash equivalents
   
202,927
     
(12,372
)
Cash and cash equivalents at the beginning of the period
   
223,901
     
187,764
 
Effect of exchange rate differences on cash and cash equivalents
   
1,544
     
1,183
 
                 
Cash and cash equivalents at the end of the period
 
$
428,372
   
$
176,575
 


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
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Gross profit (GAAP)
   
102,963
     
140,008
     
110,670
     
242,971
     
196,780
 
Stock-based compensation
   
2,359
     
2,273
     
1,651
     
4,632
     
3,005
 
Cost of product adjustment
   
----
     
313
     
319
     
313
     
1,001
 
Amortization and depreciation of acquired assets
   
2,325
     
2,356
     
3,307
     
4,681
     
4,384
 
Gross profit (Non-GAAP)
   
107,647
     
144,950
     
115,947
     
252,597
     
205,170
 

   
Reconciliation of GAAP to Non-GAAP Gross Margin
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Gross margin (GAAP)
   
31.0
%
   
32.5
%
   
34.1
%
   
31.8
%
   
33.0
%
Stock-based compensation
   
0.7
%
   
0.5
%
   
0.5
%
   
0.6
%
   
0.5
%
Cost of product adjustment
   
----
     
0.1
%
   
0.1
%
   
----
     
0.2
%
Amortization and depreciation of acquired assets
   
0.7
%
   
0.5
%
   
1.0
%
   
0.6
%
   
0.7
%
Gross margin (Non-GAAP)
   
32.4
%
   
33.6
%
   
35.7
%
   
33.1
%
   
34.4
%

   
Reconciliation of GAAP to Non-GAAP Operating expenses
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Operating expenses (GAAP)
   
72,998
     
72,233
     
65,317
     
145,231
     
123,379
 
Stock-based compensation - R&D
   
(5,847
)
   
(5,378
)
   
(4,176
)
   
(11,225
)
   
(7,666
)
Stock-based compensation - S&M
   
(3,445
)
   
(3,192
)
   
(2,722
)
   
(6,637
)
   
(5,126
)
Stock-based compensation - G&A
   
(2,310
)
   
(1,930
)
   
(2,823
)
   
(4,240
)
   
(5,279
)
Amortization and depreciation of acquired assets - R&D
   
(25
)
   
(26
)
   
(9
)
   
(51
)
   
(45
)
Amortization and depreciation of acquired assets - S&M
   
(292
)
   
(295
)
   
51
     
(588
)
   
(807
)
Amortization and depreciation of acquired assets - G&A
   
(9
)
   
(8
)
   
(26
)
   
(17
)
   
(26
)
Acquisition related expenses
   
----
     
----
     
(151
)
   
----
     
(949
)
Assets disposal
   
----
     
----
     
(552
)
   
----
     
(552
)
Other operating income (expenses)
   
----
     
4,900
     
----
     
4,900
     
----
 
Operating expenses (Non-GAAP)
   
61,070
     
66,303
     
54,909
     
127,373
     
102,929
 




   
Reconciliation of GAAP to Non-GAAP Operating income
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Operating income (GAAP)
   
29,965
     
67,775
     
45,353
     
97,740
     
73,401
 
Cost of product adjustment
   
----
     
313
     
319
     
313
     
1,001
 
Stock-based compensation
   
13,961
     
12,773
     
11,372
     
26,734
     
21,076
 
Amortization and depreciation of acquired assets
   
2,651
     
2,686
     
3,291
     
5,337
     
5,262
 
Acquisition related expenses
   
----
     
----
     
151
     
----
     
949
 
Assets disposal
   
----
     
----
     
552
     
----
     
552
 
Other operating ( income) expenses
   
----
     
(4,900
)
   
----
     
(4,900
)
   
----
 
Operating income (Non-GAAP)
   
46,577
     
78,647
     
61,038
     
125,224
     
102,241
 

   
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Financial expenses (income), net (GAAP)
   
(11,565
)
   
16,605
     
(773
)
   
5,040
     
5,378
 
Non cash interest
   
(1,200
)
   
(1,128
)
   
(850
)
   
(2,328
)
   
(1,635
)
Currency fluctuation related to lease standard
   
(892
)
   
1,033
     
(577
)
   
141
     
(1,525
)
Amortization and depreciation of acquired assets
   
----
     
(982
)
   
----
     
(982
)
   
----
 
Financial expenses (income), net (Non-GAAP)
   
(13,657
)
   
15,528
     
(2,200
)
   
1,871
     
2,218
 

   
Reconciliation of GAAP to Non-GAAP Tax on income
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Tax on income (GAAP)
   
4,862
     
8,922
     
13,213
     
13,784
     
17,135
 
Deferred tax realized (asset)
   
3,236
     
3,536
     
987
     
6,772
     
1,960
 
Tax on income (Non-GAAP)
   
8,098
     
12,458
     
14,200
     
20,556
     
19,095
 



   
Reconciliation of GAAP to Non-GAAP Net income
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Net income attributable to Solaredge Technologies Inc. (GAAP)
   
36,668
     
42,248
     
33,128
     
78,916
     
52,144
 
Cost of product adjustment
   
----
     
313
     
319
     
313
     
1,001
 
Stock-based compensation
   
13,961
     
12,773
     
11,372
     
26,734
     
21,076
 
Amortization and depreciation of acquired assets
   
2,651
     
3,668
     
3,291
     
6,319
     
5,262
 
Acquisition related expenses
   
----
     
----
     
151
     
----
     
949
 
Assets disposal
   
----
     
----
     
552
     
----
     
552
 
Other operating ( income) expenses
   
----
     
(4,900
)
   
----
     
(4,900
)
   
----
 
Non cash interest
   
1,200
     
1,128
     
850
     
2,328
     
1,635
 
Currency fluctuation related to lease standard
   
892
     
(1,033
)
   
577
     
(141
)
   
1,525
 
Deferred tax realized (asset)
   
(3,236
)
   
(3,536
)
   
(987
)
   
(6,772
)
   
(1,960
)
Net income attributable to Solaredge Technologies Inc. (Non-GAAP)
   
52,136
     
50,661
     
49,253
     
102,797
     
82,184
 

   
Reconciliation of GAAP to Non-GAAP Net basic EPS
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Net basic earnings per share (GAAP)
   
0.74
     
0.86
     
0.69
     
1.59
     
1.10
 
Cost of product adjustment
   
----
     
0.01
     
0.01
     
0.01
     
0.02
 
Stock-based compensation
   
0.28
     
0.25
     
0.24
     
0.54
     
0.45
 
Amortization and depreciation of acquired assets
   
0.05
     
0.08
     
0.07
     
0.13
     
0.11
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
0.02
 
Other operating ( income) expenses
   
----
     
(0.10
)
   
----
     
(0.10
)
   
----
 
Assets disposal
   
----
     
----
     
0.01
     
----
     
0.01
 
Non cash interest
   
0.02
     
0.02
     
0.02
     
0.05
     
0.03
 
Currency fluctuation related to lease standard
   
0.02
     
(0.02
)
   
0.01
     
----
     
0.04
 
Deferred tax realized (asset)
   
(0.06
)
   
(0.07
)
   
(0.02
)
   
(0.14
)
   
(0.04
)
Net basic earnings per share (Non-GAAP)
   
1.05
     
1.03
     
1.03
     
2.08
     
1.74
 



   
Reconciliation of GAAP to Non-GAAP Net diluted EPS
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Net diluted earnings per share (GAAP)
   
0.70
     
0.81
     
0.66
     
1.51
     
1.05
 
Cost of product adjustment
   
----
     
0.01
     
----
     
----
     
0.02
 
Stock-based compensation
   
0.24
     
0.21
     
0.19
     
0.47
     
0.35
 
Amortization and depreciation of acquired assets
   
0.05
     
0.07
     
0.07
     
0.11
     
0.11
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
0.01
 
Other operating ( income) expenses
   
----
     
(0.09
)
   
----
     
(0.09
)
   
----
 
Assets disposal
   
----
     
----
     
0.01
     
----
     
0.01
 
Non cash interest
   
0.02
     
0.02
     
0.02
     
0.05
     
0.04
 
Currency fluctuation related to lease standard
   
0.02
     
(0.02
)
   
0.01
     
----
     
0.03
 
Deferred tax realized (asset)
   
(0.06
)
   
(0.06
)
   
(0.02
)
   
(0.13
)
   
(0.04
)
Net diluted earnings per share (Non-GAAP)
   
0.97
     
0.95
     
0.94
     
1.92
     
1.58
 

   
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
 
   
Three months ended
   
Six months ended
 
   
June 30, 2020
   
March 31, 2020
   
June 30, 2019
   
June 30, 2020
   
June 30, 2019
 
Number of shares used in computing net diluted earnings per share (GAAP)
   
52,536,437
     
52,172,720
     
49,940,034
     
52,357,838
     
49,358,280
 
Stock-based compensation
   
1,154,279
     
1,399,732
     
2,130,135
     
1,277,006
     
2,448,673
 
Number of shares used in computing net diluted earnings per share (Non-GAAP)
   
53,690,716
     
53,572,452
     
52,070,169
     
53,634,844
     
51,806,953