|
|
|
|
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
(Address of Principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
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))
|
Exhibit No.
|
Description
|
|
Exhibit 104
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
|
SOLAREDGE TECHNOLOGIES, INC.
|
|||
Date: May 6, 2020
|
By:
|
/s/ Ronen Faier | |
Name: Ronen Faier | |||
Title: Chief Financial Officer | |||
• |
Record revenues of $431.2 million
|
• |
Record revenues from solar products of $407.6 million
|
• |
GAAP gross margin of 32.5%
|
• |
GAAP gross margin from sale of solar products of 34.6%
|
• |
Non-GAAP gross margin from sale of solar products of 35.0%
|
• |
GAAP net income of $42.2 million
|
• |
Non-GAAP net income of $50.7 million
|
• |
GAAP net diluted earnings per share (“EPS”) of $0.81
|
• |
Non-GAAP net diluted EPS of $0.95
|
• |
Record 1.85 Gigawatts (AC) of inverters shipped
|
• |
Revenues to be within the range of $305 million to $335 million
|
• |
Gross margin expected to be within the range of 30% to 32%
|
• |
Revenues from solar products to be within the range of $285 million to $315 million
|
• |
Gross margin from sale of solar products expected to be within the range of 32% to 34%
|
Three months ended
March 31,
|
||||||||
2020
|
2019
|
|||||||
Revenues
|
$
|
431,218
|
$
|
271,871
|
||||
Cost of revenues
|
291,210
|
185,761
|
||||||
Gross profit
|
140,008
|
86,110
|
||||||
Operating expenses:
|
||||||||
Research and development
|
36,695
|
26,199
|
||||||
Sales and marketing
|
24,253
|
20,172
|
||||||
General and administrative
|
16,185
|
11,691
|
||||||
Other operating income
|
(4,900
|
)
|
-
|
|||||
Total operating expenses
|
72,233
|
58,062
|
||||||
Operating income
|
67,775
|
28,048
|
||||||
Financial expenses, net
|
16,605
|
6,151
|
||||||
Income before income taxes
|
51,170
|
21,897
|
||||||
Income taxes
|
8,922
|
3,922
|
||||||
Net income
|
$
|
42,248
|
$
|
17,975
|
||||
Net loss attributable to Non-controlling interests
|
-
|
1,041
|
||||||
Net income attributable to SolarEdge Technologies, Inc.
|
$
|
42,248
|
$
|
19,016
|
March 31,
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
324,072
|
$
|
223,901
|
||||
Short-term bank deposits
|
8,085
|
5,010
|
||||||
Restricted bank deposits
|
27,515
|
27,558
|
||||||
Marketable securities
|
95,143
|
91,845
|
||||||
Trade receivables, net of allowances of $4,509 and $2,473, respectively
|
235,673
|
298,383
|
||||||
Prepaid expenses and other current assets
|
66,874
|
115,268
|
||||||
Inventories, net
|
198,557
|
170,798
|
||||||
Total
current assets
|
955,919
|
932,763
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
103,863
|
119,176
|
||||||
Operating lease right-of-use assets, net
|
37,896
|
35,858
|
||||||
Property, plant and equipment, net
|
195,982
|
176,963
|
||||||
Deferred tax assets, net
|
17,095
|
16,298
|
||||||
Intangible assets, net
|
69,111
|
74,008
|
||||||
Goodwill
|
125,520
|
129,654
|
||||||
Other long-term assets
|
8,454
|
9,904
|
||||||
Total
long-term assets
|
557,921
|
561,861
|
||||||
Total
assets
|
$
|
1,513,840
|
$
|
1,494,624
|
||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
139,138
|
$
|
157,148
|
||||
Employees and payroll accruals
|
58,894
|
47,390
|
||||||
Current maturities of bank loans and accrued interest
|
15,048
|
15,673
|
||||||
Warranty obligations
|
70,158
|
65,112
|
||||||
Deferred revenues and customers advances
|
30,706
|
70,815
|
||||||
Accrued expenses and other current liabilities
|
75,737
|
80,576
|
||||||
Total
current liabilities
|
389,681
|
436,714
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Bank loans
|
-
|
173
|
||||||
Warranty obligations
|
116,099
|
107,451
|
||||||
Deferred revenues
|
98,134
|
89,982
|
||||||
Operating lease liabilities
|
30,336
|
30,213
|
||||||
Deferred tax liabilities, net
|
2,202
|
4,461
|
||||||
Other long-term liabilities
|
10,970
|
13,960
|
||||||
Total
long-term liabilities
|
257,741
|
246,240
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock
|
5
|
5
|
||||||
Additional paid-in capital
|
491,873
|
475,792
|
||||||
Accumulated other comprehensive loss
|
(5,390
|
)
|
(1,809
|
)
|
||||
Retained earnings
|
379,930
|
337,682
|
||||||
Total stockholders’ equity
|
866,418
|
811,670
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,513,840
|
$
|
1,494,624
|
Three months ended
March 31,
|
||||||||
2020
|
2019
|
|||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
42,248
|
$
|
17,975
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property, plant and equipment
|
5,004
|
3,870
|
||||||
Amortization of intangible assets
|
2,321
|
1,971
|
||||||
Amortization of premium and accretion of discount on available-for-sale marketable
securities, net
|
120
|
(59
|
)
|
|||||
Stock-based compensation expenses
|
12,773
|
9,704
|
||||||
Deferred income tax benefit, net
|
(2,859
|
)
|
(973
|
)
|
||||
Other expenses, net
|
235
|
186
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories, net
|
(29,004
|
)
|
964
|
|||||
Prepaid expenses and other assets
|
49,888
|
10,885
|
||||||
Trade receivables, net
|
59,420
|
(7,379
|
)
|
|||||
Operating lease right-of-use assets and liabilities, net and effect of exchange rate
differences
|
(1,247
|
)
|
828
|
|||||
Trade payables, net
|
(17,589
|
)
|
(21,720
|
)
|
||||
Employees and payroll accruals
|
11,821
|
3,250
|
||||||
Warranty obligations
|
13,809
|
14,947
|
||||||
Deferred revenues and customers advances
|
(31,729
|
)
|
1,730
|
|||||
Other liabilities
|
(7,466
|
)
|
20,271
|
|||||
Net cash provided by operating activities
|
107,745
|
56,450
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sales and maturities of available-for-sale marketable securities
|
42,333
|
44,575
|
||||||
Purchase of property, plant and equipment
|
(27,053
|
)
|
(10,620
|
)
|
||||
Investment in available-for-sale marketable securities
|
(31,924
|
)
|
(15,316
|
)
|
||||
Withdrawal from (investment in) bank deposits
|
(3,316
|
)
|
3,813
|
|||||
Withdrawal from (investment in) restricted bank deposits
|
36
|
(182
|
)
|
|||||
Business combination, net of cash acquired
|
-
|
(39,315
|
)
|
|||||
Net cash used in investing activities
|
$
|
(19,924
|
)
|
$
|
(17,045
|
)
|
||
Cash flows from financing activities:
|
||||||||
Repayment of bank loans
|
$
|
(15,232
|
)
|
$
|
(1,003
|
)
|
||
Proceeds from bank loans
|
15,295
|
51
|
||||||
Proceeds from issuance of shares under stock purchase plan and upon exercise of
stock-based awards
|
3,308
|
309
|
||||||
Change in Non-controlling interests
|
-
|
(1,987
|
)
|
|||||
Other financing activities
|
(56
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
$
|
3,315
|
$
|
(2,630
|
)
|
|||
Increase in cash, cash equivalents and restricted cash
|
91,136
|
36,775
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
223,901
|
187,764
|
||||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash
|
9,035
|
1,939
|
||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
324,072
|
$
|
226,478
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Gross profit (GAAP)
|
140,008
|
143,249
|
86,110
|
|||||||||
Stock-based compensation
|
2,273
|
2,268
|
1,354
|
|||||||||
Cost of product adjustment
|
313
|
448
|
682
|
|||||||||
Amortization and depreciation of acquired assets
|
2,356
|
2,489
|
1,077
|
|||||||||
Gross profit (Non-GAAP)
|
144,950
|
148,454
|
89,223
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Gross margin (GAAP)
|
32.5
|
%
|
34.3
|
%
|
31.7
|
%
|
||||||
Stock-based compensation
|
0.5
|
%
|
0.5
|
%
|
0.5
|
%
|
||||||
Cost of product adjustment
|
0.1
|
%
|
0.1
|
%
|
0.2
|
%
|
||||||
Amortization and depreciation of acquired assets
|
0.5
|
%
|
0.6
|
%
|
0.4
|
%
|
||||||
Gross margin (Non-GAAP)
|
33.6
|
%
|
35.5
|
%
|
32.8
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Operating expenses (GAAP)
|
72,233
|
92,721
|
58,062
|
|||||||||
Stock-based compensation - R&D
|
(5,378
|
)
|
(4,937
|
)
|
(3,490
|
)
|
||||||
Stock-based compensation - S&M
|
(3,192
|
)
|
(3,157
|
)
|
(2,404
|
)
|
||||||
Stock-based compensation - G&A
|
(1,930
|
)
|
916
|
(2,456
|
)
|
|||||||
Amortization and depreciation of acquired assets - R&D
|
(26
|
)
|
(30
|
)
|
(36
|
)
|
||||||
Amortization and depreciation of acquired assets - S&M
|
(295
|
)
|
33
|
(858
|
)
|
|||||||
Amortization and depreciation of acquired assets - G&A
|
(8
|
)
|
45
|
----
|
||||||||
Acquisition related expenses
|
----
|
----
|
(798
|
)
|
||||||||
Assets disposal
|
----
|
(56
|
)
|
----
|
||||||||
Other operating income (expenses)
|
4,900
|
(22,391
|
)
|
----
|
||||||||
Operating expenses (Non-GAAP)
|
66,303
|
63,144
|
48,020
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Operating income (GAAP)
|
67,775
|
50,528
|
28,048
|
|||||||||
Cost of product adjustment
|
313
|
448
|
682
|
|||||||||
Stock-based compensation
|
12,773
|
9,446
|
9,704
|
|||||||||
Amortization and depreciation of acquired assets
|
2,686
|
2,441
|
1,971
|
|||||||||
Acquisition related expenses
|
----
|
----
|
798
|
|||||||||
Assets disposal
|
----
|
56
|
----
|
|||||||||
Other operating ( income) expenses
|
(4,900
|
)
|
22,391
|
----
|
||||||||
Operating income (Non-GAAP)
|
78,647
|
85,310
|
41,203
|
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Financial expenses (income), net (GAAP)
|
16,605
|
(11,058
|
)
|
6,151
|
||||||||
Non cash interest
|
(1,128
|
)
|
(1,055
|
)
|
(785
|
)
|
||||||
Currency fluctuation related to lease standard
|
1,033
|
(266
|
)
|
(948
|
)
|
|||||||
Amortization and depreciation of acquired assets
|
(982
|
)
|
348
|
----
|
||||||||
Financial expenses (income), net (Non-GAAP)
|
15,528
|
(12,031
|
)
|
4,418
|
Reconciliation of GAAP to Non-GAAP Tax on income (tax benefit)
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Tax on income (GAAP)
|
8,922
|
9,241
|
3,922
|
|||||||||
Deferred tax realized (asset)
|
3,536
|
1,114
|
973
|
|||||||||
Tax on income (Non-GAAP)
|
12,458
|
10,355
|
4,895
|
Reconciliation of GAAP to Non-GAAP Net income attributable to Solaredge Technologies Inc.
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Net income attributable to Solaredge Technologies Inc. (GAAP)
|
42,248
|
52,778
|
19,016
|
|||||||||
Cost of product adjustment
|
313
|
448
|
682
|
|||||||||
Stock-based compensation
|
12,773
|
9,446
|
9,704
|
|||||||||
Amortization and depreciation of acquired assets
|
3,668
|
2,093
|
1,971
|
|||||||||
Acquisition related expenses
|
----
|
----
|
798
|
|||||||||
Assets disposal
|
----
|
56
|
----
|
|||||||||
Other operating ( income) expenses
|
(4,900
|
)
|
22,391
|
----
|
||||||||
Non cash interest
|
1,128
|
1,055
|
785
|
|||||||||
Currency fluctuation related to lease standard
|
(1,033
|
)
|
266
|
948
|
||||||||
Deferred tax realized (asset)
|
(3,536
|
)
|
(1,114
|
)
|
(973
|
)
|
||||||
Net income attributable to Solaredge Technologies Inc. (Non-GAAP)
|
50,661
|
87,419
|
32,931
|
Reconciliation of GAAP to Non-GAAP Net basic earnings per share
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Net basic earnings per share (GAAP)
|
0.86
|
1.08
|
0.40
|
|||||||||
Cost of product adjustment
|
0.01
|
0.01
|
0.02
|
|||||||||
Stock-based compensation
|
0.25
|
0.20
|
0.21
|
|||||||||
Amortization and depreciation of acquired assets
|
0.08
|
0.04
|
0.04
|
|||||||||
Acquisition related expenses
|
----
|
----
|
0.01
|
|||||||||
Other operating ( income) expenses
|
(0.10
|
)
|
0.46
|
----
|
||||||||
Non cash interest
|
0.02
|
0.02
|
0.02
|
|||||||||
Currency fluctuation related to lease standard
|
(0.02
|
)
|
----
|
0.02
|
||||||||
Deferred tax realized (asset)
|
(0.07
|
)
|
(0.02
|
)
|
(0.02
|
)
|
||||||
Net basic earnings per share (Non-GAAP)
|
1.03
|
1.79
|
0.70
|
Reconciliation of GAAP to Non-GAAP Net diluted earnings per share
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Net diluted earnings per share (GAAP)
|
0.81
|
1.03
|
0.39
|
|||||||||
Cost of product adjustment
|
0.01
|
0.01
|
0.01
|
|||||||||
Nonvested PSUs
|
----
|
(0.01
|
)
|
----
|
||||||||
Stock-based compensation
|
0.21
|
0.15
|
0.17
|
|||||||||
Amortization and depreciation of acquired assets
|
0.07
|
0.04
|
0.04
|
|||||||||
Acquisition related expenses
|
----
|
----
|
0.01
|
|||||||||
Other operating ( income) expenses
|
(0.09
|
)
|
0.43
|
----
|
||||||||
Non cash interest
|
0.02
|
0.02
|
0.02
|
|||||||||
Currency fluctuation related to lease standard
|
(0.02
|
)
|
----
|
0.02
|
||||||||
Deferred tax realized (asset)
|
(0.06
|
)
|
(0.02
|
)
|
(0.02
|
)
|
||||||
Net diluted earnings per share (Non-GAAP)
|
0.95
|
1.65
|
0.64
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted earnings per share
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
52,172,720
|
50,966,778
|
47,020,218
|
|||||||||
Stock-based compensation
|
1,399,732
|
1,774,490
|
4,766,230
|
|||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
53,572,452
|
52,741,268
|
51,786,448
|