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):  November 2, 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
The 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 November 2, 2020, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 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:  November 2, 2020
By: /s/ Ronen Faier
 
 
Name:  Ronen Faier
Title:    Chief Financial Officer
 






Exhibit 99.1


SolarEdge Announces Third Quarter 2020 Financial Results

FREMONT, Calif. — November 2, 2020. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2020.
 
Third Quarter 2020 Highlights
 

Revenues of $338.1 million
 

Revenues from solar products of $312.5 million
 

GAAP gross margin of 32.0%
 

GAAP gross margin from sale of solar products of 34.1%


Non-GAAP gross margin from sale of solar products of 34.8%
 

GAAP net income of $43.8 million
 

Non-GAAP net income of $65.9 million
 

GAAP net diluted earnings per share (“EPS”) of $0.83
 

Non-GAAP net diluted EPS of $1.21
 

1.45 Gigawatts (AC) of inverters shipped
 
“Our third quarter results reflect significant growth in Europe, despite the current economic slowdown caused by the global pandemic,” said Zivi Lando, CEO of SolarEdge. “Our solar business outside the U.S. reached an all-time high and the U.S. market is showing signs of return to pre-pandemic installation levels. In our non-solar business, our e-Mobility team is gearing up to deliver to our customer the first significant batch of full powertrain solutions for assembly in electric vehicles in the fourth quarter. In addition to continuing to generate significant cash from operations this quarter, we raised $618 million, net of expenses, in convertible debt providing additional support for our continued organic and non-organic growth.”
 


Third Quarter 2020 Summary
 
The Company reported revenues of $338.1 million, up 2% from $331.9 million in the prior quarter and down 18% from $410.6 million in the same quarter last year.
 
Revenues related to the solar business were $312.5 million, up 1% from $310.1 million in the prior quarter and down 19% from $387.8 million in the same quarter last year.
 
GAAP gross margin was 32.0%, up from 31.0% in the prior quarter and down from 33.9% year over year.
 
Non-GAAP gross margin was 33.5%, up from 32.4% in the prior quarter and down from 35.1% year over year.
 
GAAP gross margin for the solar business was 34.1%, up from 33.1% in the prior quarter and down from 35.0% year over year.
 
Non-GAAP gross margin for the solar business was 34.8%, up from 33.8% in the prior quarter and down from 35.4% year over year.
 
GAAP operating expenses were $77.7 million, up 6% from $73.0 million in the prior quarter and up 6% from $73.3 million in the same quarter last year.
 
Non-GAAP operating expenses were $63.2 million, up 3% from $61.1 million in the prior quarter and up 15% from $54.8 million in the same quarter last year.
 
GAAP operating income was $30.4 million, up 1% from $30.0 million in the prior quarter and down 54% from $66.0 million in the same quarter last year.
 
Non-GAAP operating income was $50.0 million, up 7% from $46.6 million in the prior quarter and down 44% from $89.2 million in the same quarter last year.
 
GAAP net income was $43.8 million, up 19% from $36.7 million in the prior quarter and up 5% from $41.6 million in the same quarter last year.
 
Non-GAAP net income was $65.9 million, up 26% from $52.1 million in the prior quarter and up 4% from $63.6 million in the same quarter last year.
 
GAAP net diluted EPS was $0.83, up from $0.70 in the prior quarter and up from $0.81 in the same quarter last year.
 
Non-GAAP net diluted EPS was $1.21, up from $0.97 in the prior quarter and same as in the same quarter last year.
 
Cash flow from operating activities was $28.4 million, down from $59.3 million in the prior quarter and down from $68.7 million in the same quarter last year.
 
As of September 30, 2020, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $553.8 million, net of debt, compared to $577.4 million on June 30, 2020.


 
Outlook for the Fourth Quarter 2020
 
The Company also provides guidance for the fourth quarter ending December 31, 2020 as follows:


Revenues to be within the range of $345 million to $365 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 $320 million to $335 million

Non-GAAP Gross margin from sale of solar products expected to be within the range of 34% to 36%

Conference Call
 
The Company will host a conference call to discuss these results at 4:30 P.M. ET on Monday, November 2, 2020. The call will be available, live, to interested parties by dialing 800-458-4121. For international callers, please dial +1 323-794-2093. The Conference ID number is 7783916.  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 website 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 November 2, 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
September 30,
   
Nine months ended
September 30,
 
   
2020
   
2019
   
2020
   
2019
 
                         
Revenues
 
$
338,095
   
$
410,556
   
$
1,101,164
   
$
1,007,437
 
Cost of revenues
   
230,032
     
271,247
     
750,130
     
671,348
 
                                 
Gross profit
   
108,063
     
139,309
     
351,034
     
336,089
 
                                 
Operating expenses:
                               
                                 
Research and development
   
40,817
     
30,747
     
115,610
     
86,451
 
Sales and marketing
   
21,924
     
22,026
     
67,113
     
64,325
 
General and administrative
   
14,928
     
12,214
     
45,077
     
37,590
 
Other operating expenses (income)
   
-
     
8,305
     
(4,900
)
   
8,305
 
                                 
Total operating expenses
   
77,669
     
73,292
     
222,900
     
196,671
 
                                 
Operating income
   
30,394
     
66,017
     
128,134
     
139,418
 
                                 
Financial expenses (income), net
   
(15,765
)
   
17,023
     
(10,725
)
   
22,401
 
                                 
Income before income taxes
   
46,159
     
48,994
     
138,859
     
117,017
 
                                 
Income taxes
   
2,408
     
7,270
     
16,192
     
24,405
 
                                 
Net income
 
$
43,751
   
$
41,724
   
$
122,667
   
$
92,612
 
                                 
Net loss (income) attributable to Non-controlling interests
   
-
     
(97
)
   
-
     
1,159
 
                                 
Net income attributable to SolarEdge Technologies, Inc.
 
$
43,751
   
$
41,627
   
$
122,667
   
$
93,771
 




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

   
September 30,
   
December 31,
 
   
2020
   
2019
 
CURRENT ASSETS:
           
 Cash and cash equivalents
 
$
1,048,109
   
$
223,901
 
 Short-term bank deposits
   
20,011
     
5,010
 
 Restricted bank deposits
   
2,242
     
27,558
 
 Marketable securities
   
110,585
     
91,845
 
 Trade receivables, net of allowances of $6,690 and $2,473, respectively
   
183,141
     
298,383
 
 Prepaid expenses and other current assets
   
83,866
     
115,268
 
 Inventories, net
   
297,027
     
170,798
 
Total current assets
   
1,744,981
     
932,763
 
                 
LONG-TERM ASSETS:
               
    Marketable securities
   
21,003
     
119,176
 
    Deferred tax assets, net
   
10,678
     
16,298
 
    Other long-term assets
   
5,609
     
9,904
 
    Property, plant and equipment, net
   
257,717
     
176,963
 
    Operating lease right-of-use assets, net
   
36,965
     
35,858
 
 Intangible assets, net
   
68,122
     
74,008
 
    Goodwill
   
133,221
     
129,654
 
Total long-term assets
   
533,315
     
561,861
 
                 
Total assets
 
$
2,278,296
   
$
1,494,624
 
                 
CURRENT LIABILITIES:
               
Trade payables, net
 
$
122,106
   
$
157,148
 
Employees and payroll accruals
   
50,814
     
47,390
 
Current maturities of bank loans and accrued interest
   
15,642
     
15,673
 
Warranty obligations
   
65,080
     
65,112
 
Deferred revenues and customers advances
   
27,267
     
70,815
 
Accrued expenses and other current liabilities
   
101,628
     
80,576
 
Total current liabilities
   
382,537
     
436,714
 
                 
LONG-TERM LIABILITIES:
               
Convertible senior notes, net
   
570,332
     
-
 
Warranty obligations
   
130,614
     
107,451
 
Deferred revenues
   
109,439
     
89,982
 
Deferred tax liabilities, net
   
5,195
     
4,461
 
Operating lease liabilities
   
29,442
     
30,213
 
Other long-term liabilities
   
18,700
     
14,133
 
Total long-term liabilities
   
863,722
     
246,240
 
                 
STOCKHOLDERS’ EQUITY:
               
Common stock
   
5
     
5
 
Additional paid-in capital
   
574,326
     
475,792
 
Accumulated other comprehensive loss
   
(2,643
)
   
(1,809
)
Retained earnings
   
460,349
     
337,682
 
Total stockholders’ equity
   
1,032,037
     
811,670
 
                 
Total liabilities and stockholders’ equity
 
$
2,278,296
   
$
1,494,624
 




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

 

 
Nine months ended
September 30,
 
   
2020
   
2019
 
Cash flows provided by operating activities:
           
Net income
 
$
122,667
   
$
92,612
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation of property, plant and equipment
   
16,376
     
12,532
 
Amortization of intangible assets
   
7,081
     
7,514
 
Amortization of debt discount and debt issuance costs
   
168
     
-
 
Amortization of premium and accretion of discount on available-for-sale marketable securities, net
   
602
     
-
 
Stock-based compensation expenses
   
42,993
     
38,685
 
Deferred income tax benefit, net
   
(5,263
)
   
(4,923
)
Other adjustments, net
   
224
     
657
 
Changes in assets and liabilities:
               
Inventories, net
   
(121,999
)
   
15,746
 
Prepaid expenses and other assets
   
37,871
     
(19,795
)
Trade receivables, net
   
118,044
     
(114,572
)
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences
   
(459
)
   
2,138
 
Trade payables, net
   
(35,499
)
   
21,301
 
Employees and payroll accruals
   
3,132
     
15,329
 
Warranty obligations
   
23,155
     
49,633
 
       Deferred revenues and customers advances
   
(24,283
)
   
19,516
 
       Other liabilities
   
10,619
     
39,561
 
Net cash provided by operating activities
   
195,429
     
175,934
 
                 
Cash flows from investing activities:
               
Proceeds from sales and maturities of available-for-sale marketable securities
   
116,419
     
119,570
 
Purchase of property, plant and equipment
   
(90,553
)
   
(39,679
)
Investment in available-for-sale marketable securities
   
(36,781
)
   
(103,711
)
Withdrawal from (investment in) restricted bank deposits
   
25,538
     
(243
)
Business combination, net of cash acquired
   
-
     
(38,435
)
Withdrawal from (investment in) bank deposits
   
(14,667
)
   
4,101
 
Other investing activities
   
743
     
-
 
Net cash provided by (used in) in investing activities
 
$
699
   
$
(58,397
)
                 
Cash flows from financing activities:
               
Proceeds from issuance of convertible senior notes, net
 
$
618,269
   
$
-
 
Repayment of bank loans
   
(15,194
)
   
(5,142
)
Proceeds from bank loans
   
15,185
     
232
 
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
   
19,205
     
4,940
 
Change in Non-controlling interests
   
-
     
(67,089
)
Other financing activities
   
(152
)
   
(1,248
)
Net cash provided by (used in) financing activities
   
637,313
     
(68,307
)
                 
Increase in cash and cash equivalents
   
833,441
     
49,230
 
Cash and cash equivalents at the beginning of the period
   
223,901
     
187,764
 
Effect of exchange rate differences on cash and cash equivalents
   
(9,233
)
   
10,348
 
                 
Cash and cash equivalents at the end of the period
 
$
1,048,109
   
$
247,342
 



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, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Gross profit (GAAP)
   
108,063
     
102,963
     
139,309
     
351,034
     
336,089
 
Stock-based compensation
   
2,730
     
2,359
     
1,691
     
7,362
     
4,696
 
Cost of product adjustment
   
----
     
----
     
107
     
313
     
1,108
 
Amortization and depreciation of acquired assets
   
2,429
     
2,325
     
2,898
     
7,110
     
7,282
 
Gross profit (Non-GAAP)
   
113,222
     
107,647
     
144,005
     
365,819
     
349,175
 

   
Reconciliation of GAAP to Non-GAAP Gross Margin
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Gross margin (GAAP)
   
32.0
%
   
31.0
%
   
33.9
%
   
31.9
%
   
33.4
%
Stock-based compensation
   
0.8
%
   
0.7
%
   
0.4
%
   
0.7
%
   
0.5
%
Cost of product adjustment
   
----
     
----
     
----
     
----
     
0.1
%
Amortization and depreciation of acquired assets
   
0.7
%
   
0.7
%
   
0.8
%
   
0.6
%
   
0.7
%
Gross margin (Non-GAAP)
   
33.5
%
   
32.4
%
   
35.1
%
   
33.2
%
   
34.7
%

   
Reconciliation of GAAP to Non-GAAP Operating expenses
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Operating expenses (GAAP)
   
77,669
     
72,998
     
73,292
     
222,900
     
196,671
 
Stock-based compensation - R&D
   
(6,904
)
   
(5,847
)
   
(4,269
)
   
(18,129
)
   
(11,935
)
Stock-based compensation - S&M
   
(4,066
)
   
(3,445
)
   
(2,779
)
   
(10,703
)
   
(7,905
)
Stock-based compensation - G&A
   
(2,559
)
   
(2,310
)
   
(2,628
)
   
(6,799
)
   
(7,907
)
Amortization and depreciation of acquired assets - R&D
   
(26
)
   
(25
)
   
(17
)
   
(77
)
   
(62
)
Amortization and depreciation of acquired assets - S&M
   
(370
)
   
(292
)
   
(440
)
   
(957
)
   
(1,247
)
Amortization and depreciation of acquired assets - G&A
   
(8
)
   
(9
)
   
(54
)
   
(25
)
   
(80
)
Acquisition related expenses
   
----
     
----
     
----
     
----
     
(949
)
Assets disposal
   
(558
)
   
----
     
(14
)
   
(558
)
   
(566
)
Other operating income (expenses)
   
----
     
----
     
(8,305
)
   
4,900
     
(8,305
)
Operating expenses (Non-GAAP)
   
63,178
     
61,070
     
54,786
     
190,552
     
157,715
 




   
Reconciliation of GAAP to Non-GAAP Operating income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Operating income (GAAP)
   
30,394
     
29,965
     
66,017
     
128,134
     
139,418
 
Cost of product adjustment
   
----
     
----
     
107
     
313
     
1,108
 
Stock-based compensation
   
16,259
     
13,961
     
11,367
     
42,993
     
32,443
 
Amortization and depreciation of acquired assets
   
2,833
     
2,651
     
3,409
     
8,169
     
8,671
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
949
 
Assets disposal
   
558
     
----
     
14
     
558
     
566
 
Other operating (income) expenses
   
----
     
----
     
8,305
     
(4,900
)
   
8,305
 
Operating income (Non-GAAP)
   
50,044
     
46,577
     
89,219
     
175,267
     
191,460
 

   
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Financial expenses (income), net (GAAP)
   
(15,765
)
   
(11,565
)
   
17,023
     
(10,725
)
   
22,401
 
Notes due 2025
   
(168
)
   
----
     
----
     
(168
)
   
----
 
Non cash interest
   
(1,254
)
   
(1,200
)
   
(955
)
   
(3,582
)
   
(2,590
)
Currency fluctuation related to lease standard
   
(243
)
   
(892
)
   
(800
)
   
(102
)
   
(2,325
)
Amortization and depreciation of acquired assets
   
----
     
----
     
----
     
(982
)
   
----
 
Financial expenses (income), net (Non-GAAP)
   
(17,430
)
   
(13,657
)
   
15,268
     
(15,559
)
   
17,486
 

   
Reconciliation of GAAP to Non-GAAP Tax on income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Tax on income (GAAP)
   
2,408
     
4,862
     
7,270
     
16,192
     
24,405
 
Deferred taxes
   
(816
)
   
3,236
     
2,963
     
5,956
     
4,923
 
Tax on income (Non-GAAP)
   
1,592
     
8,098
     
10,233
     
22,148
     
29,328
 




   
Reconciliation of GAAP to Non-GAAP Net income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Net income attributable to Solaredge Technologies Inc. (GAAP)
   
43,751
     
36,668
     
41,627
     
122,667
     
93,771
 
Cost of product adjustment
   
----
     
----
     
107
     
313
     
1,108
 
Stock-based compensation
   
16,259
     
13,961
     
11,367
     
42,993
     
32,443
 
Amortization and depreciation of acquired assets
   
2,833
     
2,651
     
3,409
     
9,151
     
8,671
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
949
 
Assets disposal
   
558
     
----
     
14
     
558
     
566
 
Other operating (income) expenses
   
----
     
----
     
8,305
     
(4,900
)
   
8,305
 
Notes due 2025
   
168
     
----
     
----
     
168
     
----
 
Non cash interest
   
1,254
     
1,200
     
955
     
3,582
     
2,590
 
Currency fluctuation related to lease standard
   
243
     
892
     
800
     
102
     
2,325
 
Deferred taxes
   
816
     
(3,236
)
   
(2,963
)
   
(5,956
)
   
(4,923
)
Net income attributable to Solaredge Technologies Inc. (Non-GAAP)
   
65,882
     
52,136
     
63,621
     
168,678
     
145,805
 

   
Reconciliation of GAAP to Non-GAAP Net basic EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Net basic earnings per share (GAAP)
   
0.87
     
0.74
     
0.86
     
2.46
     
1.97
 
Cost of product adjustment
   
----
     
----
     
0.01
     
0.01
     
0.02
 
Stock-based compensation
   
0.32
     
0.28
     
0.23
     
0.86
     
0.68
 
Amortization and depreciation of acquired assets
   
0.05
     
0.05
     
0.07
     
0.18
     
0.18
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
0.02
 
Assets disposal
   
0.01
     
----
     
----
     
0.01
     
0.01
 
Other operating ( income) expenses
   
----
     
----
     
0.17
     
(0.10
)
   
0.17
 
Notes due 2025
   
----
     
----
     
----
     
----
     
----
 
Non cash interest
   
0.03
     
0.02
     
0.02
     
0.08
     
0.06
 
Currency fluctuation related to lease standard
   
----
     
0.02
     
0.02
     
----
     
0.05
 
Deferred taxes
   
0.02
     
(0.06
)
   
(0.06
)
   
(0.12
)
   
(0.10
)
Net basic earnings per share (Non-GAAP)
   
1.30
     
1.05
     
1.32
     
3.38
     
3.06
 



   
Reconciliation of GAAP to Non-GAAP Net diluted EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Net diluted earnings per share (GAAP)
   
0.83
     
0.70
     
0.81
     
2.33
     
1.87
 
Cost of product adjustment
   
----
     
----
     
----
     
0.01
     
0.01
 
Stock-based compensation
   
0.28
     
0.24
     
0.19
     
0.74
     
0.54
 
Amortization and depreciation of acquired assets
   
0.05
     
0.05
     
0.07
     
0.17
     
0.18
 
Acquisition related expenses
   
----
     
----
     
----
     
----
     
0.02
 
Assets disposal
   
0.01
     
----
     
----
     
0.01
     
0.01
 
Other operating ( income) expenses
   
----
     
----
     
0.16
     
(0.09
)
   
0.16
 
Notes due 2025
   
----
     
----
     
----
     
----
     
----
 
Non cash interest
   
0.02
     
0.02
     
0.02
     
0.07
     
0.05
 
Currency fluctuation related to lease standard
   
----
     
0.02
     
0.02
     
----
     
0.05
 
Deferred taxes
   
0.02
     
(0.06
)
   
(0.06
)
   
(0.11
)
   
(0.10
)
Net diluted earnings per share (Non-GAAP)
   
1.21
     
0.97
     
1.21
     
3.13
     
2.79
 

   
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2020
   
June 30, 2020
   
September 30, 2019
   
September 30, 2020
   
September 30, 2019
 
Number of shares used in computing net diluted earnings per share (GAAP)
   
53,144,188
     
52,536,437
     
51,081,594
     
52,623,675
     
49,935,638
 
Stock-based compensation
   
1,134,877
     
1,154,279
     
1,375,391
     
1,229,630
     
2,090,912
 
Number of shares used in computing net diluted earnings per share (Non-GAAP)
   
54,279,065
     
53,690,716
     
52,456,985
     
53,853,305
     
52,026,550