|
|
|
|
|
(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: November 2, 2020
|
By: /s/ Ronen Faier
|
|
Name: Ronen Faier
Title: Chief Financial
Officer
|
• |
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
|
• |
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%
|
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
|
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
|
|
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
|
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
|