|
|
|
|
|
(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 2, 2021
|
By: /s/ Ronen Faier
|
Name: Ronen Faier
Title: Chief Financial
Officer
|
• |
Revenues of $480.1 million
|
• |
Revenues from solar segment of $431.5 million
|
• |
GAAP gross margin of 32.5%
|
• |
Non-GAAP gross margin of 33.9%
|
• |
Gross margin from solar segment of 37.4%
|
• |
GAAP net income of $45.1 million
|
• |
Non-GAAP net income of $72.5 million
|
• |
GAAP net diluted earnings per share (“EPS”) of $0.82
|
• |
Non-GAAP net diluted EPS of $1.28
|
• |
1.64 Gigawatts (AC) of inverters shipped
|
• |
Revenues to be within the range of $520 million to $540 million
|
• |
Non-GAAP gross margin expected to be within the range of 32% to 34%
|
• |
Revenues from solar segment to be within the
range of $460 million to $480 million
|
• |
Gross margin from solar segment expected to
be within the range of 35% to 37%
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues
|
$
|
480,057
|
$
|
331,851
|
$
|
885,546
|
$
|
763,069
|
||||||||
Cost of revenues
|
323,865
|
228,888
|
589,280
|
520,098
|
||||||||||||
Gross profit
|
156,192
|
102,963
|
296,266
|
242,971
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
52,664
|
38,098
|
99,641
|
74,793
|
||||||||||||
Sales and marketing
|
29,458
|
20,936
|
56,369
|
45,189
|
||||||||||||
General and administrative
|
19,370
|
13,964
|
39,219
|
30,149
|
||||||||||||
Other operating expenses (income), net
|
(859
|
)
|
-
|
1,350
|
(4,900
|
)
|
||||||||||
Total operating expenses
|
100,633
|
72,998
|
196,579
|
145,231
|
||||||||||||
Operating income
|
55,559
|
29,965
|
99,687
|
97,740
|
||||||||||||
Financial income (expenses), net
|
(1,743
|
)
|
11,565
|
(7,840
|
)
|
(5,040
|
)
|
|||||||||
Income before income taxes
|
53,816
|
41,530
|
91,847
|
92,700
|
||||||||||||
Income taxes
|
8,724
|
4,862
|
16,679
|
13,784
|
||||||||||||
Net income
|
$
|
45,092
|
$
|
36,668
|
$
|
75,168
|
$
|
78,916
|
June 30,
2021
|
December 31,
2020
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
524,112
|
$
|
827,146
|
||||
Short-term bank deposits
|
13,562
|
60,096
|
||||||
Restricted bank deposits
|
2,504
|
2,611
|
||||||
Marketable securities
|
145,686
|
143,687
|
||||||
Trade receivables, net of allowances of $2,826 and $2,886, respectively
|
343,652
|
218,706
|
||||||
Inventories, net
|
321,915
|
331,696
|
||||||
Prepaid expenses and other current assets
|
137,480
|
135,399
|
||||||
Total
current assets
|
1,488,911
|
1,719,341
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
457,362
|
147,434
|
||||||
Deferred tax assets, net
|
19,962
|
11,676
|
||||||
Property, plant and equipment, net
|
340,319
|
303,408
|
||||||
Operating lease right-of-use assets, net
|
38,302
|
41,600
|
||||||
Intangible assets, net
|
61,855
|
67,818
|
||||||
Goodwill
|
135,981
|
140,479
|
||||||
Other long-term assets
|
21,633
|
5,353
|
||||||
Total
long-term assets
|
1,075,414
|
717,768
|
||||||
Total assets
|
$
|
2,564,325
|
$
|
2,437,109
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
141,174
|
$
|
162,051
|
||||
Employees and payroll accruals
|
58,340
|
63,738
|
||||||
Current maturities of bank loans and accrued interest
|
139
|
16,894
|
||||||
Warranty obligations
|
64,855
|
62,614
|
||||||
Deferred revenues and customers advances
|
16,144
|
24,648
|
||||||
Accrued expenses and other current liabilities
|
118,933
|
106,154
|
||||||
Total
current liabilities
|
399,585
|
436,099
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Convertible senior notes, net
|
620,082
|
573,350
|
||||||
Warranty obligations
|
167,312
|
142,380
|
||||||
Deferred revenues
|
128,109
|
115,372
|
||||||
Deferred tax liabilities, net
|
-
|
8,593
|
||||||
Finance lease liabilities
|
25,525
|
26,173
|
||||||
Operating lease liabilities
|
31,153
|
35,194
|
||||||
Other long-term liabilities
|
14,766
|
14,191
|
||||||
Total
long-term liabilities
|
986,947
|
915,253
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of June 30, 2021 and December 31, 2020; issued and outstanding: 52,263,976 and 51,560,936 shares as of June 30, 2021 and December 31, 2020,
respectively
|
5
|
5
|
||||||
Additional paid-in capital
|
625,268
|
603,891
|
||||||
Accumulated other comprehensive income (loss)
|
(3,536
|
)
|
3,857
|
|||||
Retained earnings
|
556,056
|
478,004
|
||||||
Total stockholders’ equity
|
1,177,793
|
1,085,757
|
||||||
Total liabilities and stockholders’
equity
|
$
|
2,564,325
|
$
|
2,437,109
|
Six months ended
June 30,
|
||||||||
2021
|
2020
|
|||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
75,168
|
$
|
78,916
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property, plant and equipment
|
14,008
|
10,646
|
||||||
Amortization of intangible assets
|
4,871
|
4,615
|
||||||
Amortization of debt discount and debt issuance costs
|
1,450
|
-
|
||||||
Amortization of premium and accretion of discount on available-for-sale marketable
securities, net
|
3,558
|
373
|
||||||
Stock-based compensation expenses
|
47,205
|
26,734
|
||||||
Deferred income taxes, net
|
(3,931
|
)
|
(6,424
|
)
|
||||
Loss from disposal of assets
|
2,051
|
-
|
||||||
Exchange rate fluctuations and other items, net
|
12,983
|
(452
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Inventories, net
|
13,229
|
(94,230
|
)
|
|||||
Prepaid expenses and other assets
|
(20,356
|
)
|
37,066
|
|||||
Trade receivables, net
|
(128,564
|
)
|
116,045
|
|||||
Trade payables, net
|
(20,120
|
)
|
(1,823
|
)
|
||||
Employees and payroll accruals
|
9,734
|
1,457
|
||||||
Warranty obligations
|
27,298
|
20,198
|
||||||
Deferred revenues and customers advances
|
4,524
|
(31,834
|
)
|
|||||
Other liabilities
|
19,660
|
5,768
|
||||||
Net cash provided by operating activities
|
62,768
|
167,055
|
||||||
Cash flows from investing activities:
|
||||||||
Investment in available-for-sale marketable
securities
|
(422,470
|
)
|
(36,815
|
)
|
||||
Proceeds from sales and maturities of available-for-
sale marketable securities
|
103,763
|
89,739
|
||||||
Purchase of property, plant and equipment
|
(65,267
|
)
|
(53,706
|
)
|
||||
Withdrawal from bank deposits, net
|
46,534
|
25,634
|
||||||
Other investing activities
|
1,442
|
2,024
|
||||||
Net cash provided by (used in) investing activities
|
$
|
(335,998
|
)
|
$
|
26,876
|
|||
Cash flows from financing activities:
|
||||||||
Repayment of bank loans
|
$
|
(16,385
|
)
|
$
|
(15,119
|
)
|
||
Proceeds from bank loans
|
-
|
15,113
|
||||||
Proceeds from exercise of stock-based awards and payment of withholding taxes
|
(4,196
|
)
|
9,114
|
|||||
Other financing activities
|
(625
|
)
|
(112
|
)
|
||||
Net cash provided by (used in) financing activities
|
(21,206
|
)
|
8,996
|
|||||
Increase (decrease) in cash and cash equivalents
|
(294,436
|
)
|
202,927
|
|||||
Cash and cash equivalents at the beginning of the period
|
827,146
|
223,901
|
||||||
Effect of exchange rate differences on cash and cash equivalents
|
(8,598
|
)
|
1,544
|
|||||
Cash and cash equivalents at the end of the period
|
$
|
524,112
|
$
|
428,372
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Gross profit (GAAP)
|
156,192
|
140,074
|
102,963
|
296,266
|
242,971
|
|||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
|
||||||||||||
Stock-based compensation
|
4,291
|
5,790
|
2,359
|
10,081
|
4,632
|
|||||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
|
|||||||||||||||
Amortization and depreciation of acquired assets
|
2,401
|
2,312
|
2,325
|
4,713
|
4,681
|
|||||||||||||||
Gross profit (Non-GAAP)
|
162,785
|
148,090
|
107,647
|
310,875
|
252,597
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Gross margin (GAAP)
|
32.5
|
%
|
34.5
|
%
|
31.0
|
%
|
33.5
|
%
|
31.8
|
%
|
||||||||||
Revenues from finance component
|
0.0
|
%
|
0.0
|
%
|
----
|
0.0
|
%
|
----
|
||||||||||||
Stock-based compensation
|
0.9
|
%
|
1.4
|
%
|
0.7
|
%
|
1.1
|
%
|
0.6
|
%
|
||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.0
|
%
|
||||||||||||||
Amortization and depreciation of acquired assets
|
0.5
|
%
|
0.6
|
%
|
0.7
|
%
|
0.5
|
%
|
0.6
|
%
|
||||||||||
Gross margin (Non-GAAP)
|
33.9
|
%
|
36.5
|
%
|
32.4
|
%
|
35.1
|
%
|
33.1
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Operating expenses (GAAP)
|
100,633
|
95,946
|
72,998
|
196,579
|
145,231
|
|||||||||||||||
Stock-based compensation - R&D
|
(9,805
|
)
|
(8,798
|
)
|
(5,847
|
)
|
(18,603
|
)
|
(11,225
|
)
|
||||||||||
Stock-based compensation - S&M
|
(5,780
|
)
|
(5,435
|
)
|
(3,445
|
)
|
(11,215
|
)
|
(6,637
|
)
|
||||||||||
Stock-based compensation - G&A
|
(4,176
|
)
|
(3,130
|
)
|
(2,310
|
)
|
(7,306
|
)
|
(4,240
|
)
|
||||||||||
Amortization and depreciation of acquired assets - R&D
|
(9
|
)
|
(12
|
)
|
(25
|
)
|
(21
|
)
|
(51
|
)
|
||||||||||
Amortization and depreciation of acquired assets - S&M
|
(236
|
)
|
(237
|
)
|
(292
|
)
|
(473
|
)
|
(588
|
)
|
||||||||||
Amortization and depreciation of acquired assets - G&A
|
(7
|
)
|
(8
|
)
|
(9
|
)
|
(15
|
)
|
(17
|
)
|
||||||||||
Assets sale (disposal)
|
----
|
62
|
----
|
62
|
----
|
|||||||||||||||
Other operating income (expenses)
|
859
|
(2,209
|
)
|
----
|
(1,350
|
)
|
4,900
|
|||||||||||||
Operating expenses (Non-GAAP)
|
81,479
|
76,179
|
61,070
|
157,658
|
127,373
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Operating income (GAAP)
|
55,559
|
44,128
|
29,965
|
99,687
|
97,740
|
|||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
|
||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
|
|||||||||||||||
Stock-based compensation
|
24,052
|
23,153
|
13,961
|
47,205
|
26,734
|
|||||||||||||||
Amortization and depreciation of acquired assets
|
2,653
|
2,569
|
2,651
|
5,222
|
5,337
|
|||||||||||||||
Assets (sale) disposal
|
----
|
(62
|
)
|
----
|
(62
|
)
|
----
|
|||||||||||||
Other operating (income) expenses
|
(859
|
)
|
2,209
|
----
|
1,350
|
(4,900
|
)
|
|||||||||||||
Operating income (Non-GAAP)
|
81,306
|
71,911
|
46,577
|
153,217
|
125,224
|
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Financial expenses (income), net (GAAP)
|
1,743
|
6,097
|
(11,565
|
)
|
7,840
|
5,040
|
||||||||||||||
Notes due 2025
|
(726
|
)
|
(724
|
)
|
----
|
(1,450
|
)
|
----
|
||||||||||||
Non cash interest
|
(1,439
|
)
|
(1,336
|
)
|
(1,200
|
)
|
(2,775
|
)
|
(2,328
|
)
|
||||||||||
Currency fluctuation related to lease standard
|
(1,300
|
)
|
2,289
|
(892
|
)
|
989
|
141
|
|||||||||||||
Amortization and depreciation of acquired assets
|
----
|
----
|
----
|
----
|
(982
|
)
|
||||||||||||||
Financial expenses (income), net (Non-GAAP)
|
(1,722
|
)
|
6,326
|
(13,657
|
)
|
4,604
|
1,871
|
Reconciliation of GAAP to Non-GAAP Tax on income
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Tax on income (GAAP)
|
8,724
|
7,955
|
4,862
|
16,679
|
13,784
|
|||||||||||||||
Deferred taxes
|
1,789
|
2,141
|
3,236
|
3,930
|
6,772
|
|||||||||||||||
Tax on income (Non-GAAP)
|
10,513
|
10,096
|
8,098
|
20,609
|
20,556
|
Reconciliation of GAAP to Non-GAAP Net income
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Net income (GAAP)
|
45,092
|
30,076
|
36,668
|
75,168
|
78,916
|
|||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
|
||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
|
|||||||||||||||
Stock-based compensation
|
24,052
|
23,153
|
13,961
|
47,205
|
26,734
|
|||||||||||||||
Amortization and depreciation of acquired assets
|
2,653
|
2,569
|
2,651
|
5,222
|
6,319
|
|||||||||||||||
Assets (sale) disposal
|
----
|
(62
|
)
|
----
|
(62
|
)
|
----
|
|||||||||||||
Other operating (income) expenses
|
(859
|
)
|
2,209
|
----
|
1,350
|
(4,900
|
)
|
|||||||||||||
Notes due 2025
|
726
|
724
|
----
|
1,450
|
----
|
|||||||||||||||
Non cash interest
|
1,439
|
1,336
|
1,200
|
2,775
|
2,328
|
|||||||||||||||
Currency fluctuation related to lease standard
|
1,300
|
(2,289
|
)
|
892
|
(989
|
)
|
(141
|
)
|
||||||||||||
Deferred taxes
|
(1,789
|
)
|
(2,141
|
)
|
(3,236
|
)
|
(3,930
|
)
|
(6,772
|
)
|
||||||||||
Net income (Non GAAP)
|
72,515
|
55,489
|
52,136
|
128,004
|
102,797
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Net basic earnings per share (GAAP)
|
0.87
|
0.58
|
0.74
|
1.45
|
1.59
|
|||||||||||||||
Revenues from finance component
|
(0.01
|
)
|
0.00
|
----
|
(0.01
|
)
|
----
|
|||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.01
|
|||||||||||||||
Stock-based compensation
|
0.47
|
0.45
|
0.28
|
0.91
|
0.54
|
|||||||||||||||
Amortization and depreciation of acquired assets
|
0.05
|
0.05
|
0.05
|
0.10
|
0.13
|
|||||||||||||||
Assets (sale) disposal
|
----
|
0.00
|
----
|
----
|
----
|
|||||||||||||||
Other operating (income) expenses
|
(0.02
|
)
|
0.04
|
----
|
0.03
|
(0.10
|
)
|
|||||||||||||
Notes due 2025
|
0.01
|
0.01
|
----
|
0.03
|
----
|
|||||||||||||||
Non cash interest
|
0.03
|
0.03
|
0.02
|
0.05
|
0.05
|
|||||||||||||||
Currency fluctuation related to lease standard
|
0.03
|
(0.05
|
)
|
0.02
|
(0.02
|
)
|
0.00
|
|||||||||||||
Deferred taxes
|
(0.04
|
)
|
(0.04
|
)
|
(0.06
|
)
|
(0.07
|
)
|
(0.14
|
)
|
||||||||||
Net basic earnings per share (Non-GAAP)
|
1.39
|
1.07
|
1.05
|
2.47
|
2.08
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Net diluted earnings per share (GAAP)
|
0.82
|
0.55
|
0.70
|
1.36
|
1.51
|
|||||||||||||||
Revenues from finance component
|
(0.01
|
)
|
0.00
|
----
|
0.00
|
----
|
||||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.00
|
|||||||||||||||
Stock-based compensation
|
0.42
|
0.40
|
0.24
|
0.81
|
0.47
|
|||||||||||||||
Amortization and depreciation of acquired assets
|
0.04
|
0.04
|
0.05
|
0.09
|
0.11
|
|||||||||||||||
Assets (sale) disposal
|
----
|
0.00
|
----
|
----
|
----
|
|||||||||||||||
Other operating (income) expenses
|
(0.01
|
)
|
0.04
|
----
|
0.03
|
(0.09
|
)
|
|||||||||||||
Notes due 2025
|
0.00
|
0.00
|
----
|
0.00
|
----
|
|||||||||||||||
Non cash interest
|
0.03
|
0.03
|
0.02
|
0.05
|
0.05
|
|||||||||||||||
Currency fluctuation related to lease standard
|
0.02
|
(0.04
|
)
|
0.02
|
(0.01
|
)
|
0.00
|
|||||||||||||
Deferred taxes
|
(0.03
|
)
|
(0.04
|
)
|
(0.06
|
)
|
(0.07
|
)
|
(0.13
|
)
|
||||||||||
Net diluted earnings per share (Non-GAAP)
|
1.28
|
0.98
|
0.97
|
2.26
|
1.92
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
||||||||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
52,076,208
|
55,997,136
|
52,536,437
|
51,903,123
|
52,357,838
|
|||||||||||||||
Stock-based compensation
|
2,357,845
|
766,187
|
1,154,279
|
2,558,676
|
1,277,006
|
|||||||||||||||
Notes due 2025
|
2,276,818
|
----
|
----
|
2,276,818
|
----
|
|||||||||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
56,710,871
|
56,763,323
|
53,690,716
|
56,738,617
|
53,634,844
|