SolarEdge Announces Fiscal First Quarter Financial Results
Fiscal First Quarter 2016 Highlights
-
Record revenue of
$115.1 million , up 16.9% from last quarter and 71.8% year-over-year - GAAP gross margin of 29.1%
-
GAAP net income of
$14.4 million -
Non-GAAP net income of
$16.3 million - 356 Megawatts (AC) of inverters shipped
“We are very satisfied with another strong quarter of record revenues
and improved gross margins,” said
Revenues
The Company reported revenues of
Gross margins
GAAP gross margin was 29.1%, up from 28.7% in the prior quarter and up from 20.9% in the fiscal first quarter of 2015. Non-GAAP gross margin was 29.3%, up from 28.9% in the prior quarter and 21.0% in the fiscal first quarter of 2015. This growth was driven primarily by the execution of planned cost reduction measures, increased supply chain efficiencies and economies of scale related to the increased production volumes.
Operating expenses
GAAP operating expenses were
Operating income
GAAP operating income was
Financial Expenses
Financial expenses were
Net Income
GAAP net income was
EPS
GAAP net diluted earnings per share (“EPS”) was
Cash
At
Outlook for the Fiscal Second Quarter 2016
The Company provides guidance for the fiscal second quarter of 2016 as follows:
-
Revenues to be within the range of
$118.0 million to $121.0 million ; - Gross margins to be within the range of 28.0% to 30.0%.
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 web site approximately two hours after the conclusion of the call and 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.
For a reconciliation of non-GAAP measures to their most comparable GAAP measures, please see “Reconciliation on Non-GAAP Measures” below.
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 revenues, gross margins, other
financial 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 Company’s 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
September 30, |
|||||||
| 2015 | 2014 | ||||||
| unaudited | |||||||
| Revenues | $ | 115,054 | $ | 66,969 | |||
| Cost of revenues | 81,527 | 52,939 | |||||
| Gross profit | 33,527 | 14,030 | |||||
| Operating expenses: | |||||||
| Research and development, net | 6,991 | 5,059 | |||||
| Sales and marketing | 8,244 | 5,461 | |||||
| General and administrative | 3,418 | 1,159 | |||||
|
Total operating expenses |
18,653 | 11,679 | |||||
| Operating income | 14,874 | 2,351 | |||||
| Financial income (expenses), net | (72 | ) | 516 | ||||
| Income before taxes on income | 14,802 | 2,867 | |||||
| Taxes on income | 370 | 347 | |||||
| Net income | $ | 14,432 | $ | 2,520 | |||
| Net basic earnings per share of common stock | $ | 0.37 | $ | 0.00 | |||
| Net diluted earnings per share of common stock | $ | 0.32 | $ | 0.00 | |||
| Weighted average number of shares used in computing net basic earnings per share of common stock | 39,301,620 | 2,812,684 | |||||
| Weighted average number of shares used in computing net diluted earnings per share of common stock | 44,455,964 | 2,812,684 | |||||
| (1) | GAAP net basic and diluted earnings per share are materially different between fiscal first quarter 2016 and fiscal first quarter 2015 since under GAAP, preferred shares do not participate in the earnings per share calculation and for the fiscal first quarter 2015, prior to the Company’s initial public offering, preferred shares were entitled to a dividend distribution which, if distributed, would have exceeded the net income for the relevant period. |
|
SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
| September 30, | June 30, | |||||||
| 2015 | 2015 | |||||||
| unaudited | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 146,729 | $ | 144,750 | ||||
| Restricted cash | 3,588 | 3,639 | ||||||
| Trade receivables, net | 47,366 | 35,428 | ||||||
| Prepaid expenses and other accounts receivable | 20,733 | 32,645 | ||||||
| Inventories | 79,907 | 73,950 | ||||||
|
Total current assets |
298,323 | 290,412 | ||||||
| Property and equipment, net | 17,272 | 14,717 | ||||||
| Long-term lease deposit and prepaid expenses | 601 | 529 | ||||||
| Long-term deferred charges | 779 | - | ||||||
|
Total assets |
$ | 316,975 | $ | 305,658 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Trade payables | $ | 67,180 | $ | 80,684 | ||||
| Employees and payroll accruals | 7,898 | 6,814 | ||||||
| Warranty obligations | 10,587 | 9,431 | ||||||
| Deferred revenues | 2,175 | 1,676 | ||||||
| Accrued expenses and other accounts payable | 8,459 | 6,987 | ||||||
|
Total current liabilities |
96,299 | 105,592 | ||||||
| Long-term liabilities: | ||||||||
| Warranty obligations | 25,317 | 22,448 | ||||||
| Deferred revenues | 9,760 | 8,289 | ||||||
| Lease incentive obligation | 2,374 | 2,385 | ||||||
| Total long-term liabilities | 37,451 | 33,122 | ||||||
| Commitments and Contingent liabilities | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Share capital | 4 | 4 | ||||||
| Additional paid-in capital | 289,004 | 287,152 | ||||||
| Accumulated other comprehensive loss | (225 | ) | (222 | ) | ||||
| Accumulated deficit | (105,558 | ) | (119,990 | ) | ||||
|
Total stockholders’ equity |
183,225 | 166,944 | ||||||
|
Total liabilities and stockholders’ equity |
$ | 316,975 | $ | 305,658 | ||||
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SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
||||||||
|
Three months ended
September 30, |
||||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
|
Cash flows provided by (used in) operating activities: |
||||||||
| Net income | $ | 14,432 | $ | 2,520 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 738 | 542 | ||||||
| Amortization of intangible assets | 21 | - | ||||||
| Stock-based compensation related to employee and non-employee consultants stock options | 1,832 | 320 | ||||||
| Realized losses on Cash Flow Hedges | 1 | - | ||||||
| Interest expenses related to Bank Loan | - | 24 | ||||||
| Financial income, net related to term loan | - | (491 | ) | |||||
| Remeasurement of warrants to purchase preferred and common stock | - | (15 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Inventories | (5,956 | ) | (4,311 | ) | ||||
| Prepaid expenses and other accounts receivable | 11,811 | (5,527 | ) | |||||
| Trade receivables, net | (11,928 | ) | (7,565 | ) | ||||
| Trade payables | (13,500 | ) | 9,871 | |||||
| Employees and payroll accruals | 1,044 | 390 | ||||||
| Warranty obligations | 4,025 | 3,101 | ||||||
| Deferred revenues | 1,970 | 864 | ||||||
| Accrued expenses and other accounts payable | 1,467 | 19 | ||||||
| Lease incentive obligation | (11 | ) | - | |||||
| Net cash provided by (used in) operating activities | 5,946 | (258 | ) | |||||
|
Cash flows used in investing activities: |
||||||||
| Purchase of property and equipment | (3,292 | ) | (1,002 | ) | ||||
| Purchase of intangible assets | (800 | ) | - | |||||
| Decrease in restricted cash | 51 | 13 | ||||||
| Decrease in short and long-term deposits | 73 | 29 | ||||||
| Net cash used in investing activities | (3,968 | ) | (960 | ) | ||||
|
Cash flows from financing activities: |
||||||||
| Proceeds from short-term bank loans | - | 6,000 | ||||||
| Proceeds from issuance of Series E Convertible Preferred stock | - | 20,998 | ||||||
| Payments of term loan | - | (798 | ) | |||||
| Proceeds from exercise of employee stock options | 17 | 8 | ||||||
| Net cash provided by financing activities | 17 | 26,208 | ||||||
| Increase in cash and cash equivalents | 1,995 | 24,990 | ||||||
| Cash and cash equivalents at the beginning of the period | 144,750 | 9,754 | ||||||
| Erosion due to exchange rate differences | (16 | ) | (2 | ) | ||||
| Cash and cash equivalents at the end of the period | 146,729 | 34,742 | ||||||
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SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (unaudited) |
|||||||||
| Three months ended | |||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
| Gross profit (GAAP) | 33,527 | 28,271 | 14,030 | ||||||
| Stock-based compensation | 180 | 188 | 37 | ||||||
| Gross profit (Non-GAAP) | 33,707 | 28,459 | 14,067 | ||||||
| Gross margin (GAAP) | 29.1 | % | 28.7 | % | 20.9 | % | |||
| Stock-based compensation | 0.2 | % | 0.2 | % | 0.1 | % | |||
| Gross margin (Non-GAAP) | 29.3 | % | 28.9 | % | 21.0 | % | |||
| Operating expenses (GAAP) | 18,653 | 16,398 | 11,679 | ||||||
| Stock-based compensation R&D | 395 | 184 | 111 | ||||||
| Stock-based compensation S&M | 616 | 263 | 101 | ||||||
| Stock-based compensation G&A | 641 | 569 | 71 | ||||||
| Operating expenses (Non-GAAP) | 17,001 | 15,382 | 11,396 | ||||||
| Operating income (GAAP) | 14,874 | 11,873 | 2,351 | ||||||
| Stock-based compensation | 1,832 | 1,204 | 320 | ||||||
| Operating income (Non-GAAP) | 16,706 | 13,077 | 2,671 | ||||||
| Finance expenses (Income) (GAAP) | 72 | 1,699 | (516 | ) | |||||
| Warrants remeasurement | ---- | 3,285 | (15 | ) | |||||
| Finance expenses (Non-GAAP) | 72 | (1,586 | ) | (501 | ) | ||||
| Net income (loss) (GAAP) | 14,432 | 9,261 | 2,520 | ||||||
| Stock-based compensation | 1,832 | 1,204 | 320 | ||||||
| Warrants remeasurement | ---- | 3,285 | (15 | ) | |||||
| Net income (loss) (Non-GAAP) | 16,264 | 13,750 | 2,825 | ||||||
| Net basic earnings (loss) per share (GAAP) | 0.37 | 0.24 | ---- | ||||||
| Stock-based compensation | 0.04 | 0.03 | 0.01 | ||||||
| Warrants remeasurement | ---- | 0.08 | ---- | ||||||
| Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | ---- | ---- | 0.09 | ||||||
| Net basic earnings (loss) per share (Non-GAAP) | 0.41 | 0.35 | 0.10 | ||||||
| Number of shares used in computing net basic earnings (loss) per share (GAAP) | 39,301,620 | 39,160,372 | 2,812,684 | ||||||
| Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | ---- | ---- | 25,575,898.76 | ||||||
| Number of shares used in computing net basic earnings (loss) per share (Non-GAAP) | 39,301,620 | 39,160,372 | 28,388,583 | ||||||
| Net diluted earnings (loss) per share (GAAP) | 0.32 | 0.21 | ---- | ||||||
| Stock-based compensation | 0.04 | 0.02 | ---- | ||||||
| Warrants remeasurement | ---- | 0.08 | ---- | ||||||
| Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | ---- | ---- | 0.09 | ||||||
| Net diluted earnings (loss) per share (Non-GAAP) | 0.36 | 0.31 | 0.09 | ||||||
| Number of shares used in computing net diluted earnings (loss) per share (GAAP) | 44,455,964 | 44,473,080 | 2,812,684 | ||||||
| Stock-based compensation | 686,470 | 319,840 | 1,552,809 | ||||||
| Warrants remeasurement | 0 | 126,634 | 0 | ||||||
| Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1) | ---- | ---- | 25,575,898.76 | ||||||
| Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP) | 45,142,434 | 44,919,554 | 29,941,392 | ||||||
| (1) Assumes shares of common stock outstanding after accounting for the automatic conversion of the shares of preferred stock then outstanding into common stock at the beginning of fiscal year 2015. | |||||||||
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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