|
|
|
|
|
(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: August 3, 2020
|
By: /s/ Ronen Faier
|
Name: Ronen Faier
Title: Chief Financial Officer
|
•
|
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
|
•
|
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%
|
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
|
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
|
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
|
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
|