UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported):  November 2, 2021
 
 
SOLAREDGE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
 

 
Delaware
 
001-36894
 
20-5338862
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
     
1 Hamada Street, Herziliya Pituach, Israel
 
4673335
(Address of Principal executive offices)
 
(Zip Code)

Registrant’s Telephone number, including area code: 972 (9) 957-6620
 
Not Applicable
(Former name or former address, if changed since last report.)
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.0001 per share
SEDG
The Nasdaq Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
 

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))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company         
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          
 


Item 2.02.          Results of Operations and Financial Condition.

On November 2, 2021, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, this information, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including the exhibits hereto be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

Exhibit No.
 
Description
 
 
Exhibit 104
 
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SOLAREDGE TECHNOLOGIES, INC.
   
Date:  November 2, 2021
By: /s/ Ronen Faier
 
Name: Ronen Faier
Title:   Chief Financial Officer



Exhibit 99.1

SolarEdge Announces Third Quarter 2021 Financial Results

MILPITAS, Calif. — November 2, 2021. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2021.
 
Third Quarter 2021 Highlights
 

Record revenues of $526.4 million
 

Record revenues from solar segment of $476.8 million
 

GAAP gross margin of 32.8%
 

Non-GAAP gross margin of 34.0%
 

Gross margin from solar segment of 36.6%
 

GAAP net income of $53.0 million
 

Non-GAAP net income of $82.1 million
 

GAAP net diluted earnings per share (“EPS”) of $0.96
 

Non-GAAP net diluted EPS of $1.45
 

1.9 Gigawatts (AC) of inverters shipped
 
“We are pleased with our record revenues in the third quarter amid the unprecedented global logistics and supply chain challenges,” said Zvi Lando, Chief Executive Officer of SolarEdge. “Despite a twelve week covid-related shutdown in our Vietnam manufacturing facility during the quarter, we were able to supply products to meet the growing demand of our customers.  We are exiting the third quarter with record backlog for the fourth quarter of 2021 and the first quarter of 2022 and will continue navigating the various challenges in order to support our customers’ businesses.”

Third Quarter 2021 Summary
 
The Company reported revenues of $526.4 million, up 10% from $480.1 million in the prior quarter and up 56% from $338.1 million in the same quarter last year.
 
Revenues from the solar segment were $476.8 million, up 11% from $431.4 million in the prior quarter and up 53% from $312.5 million in the same quarter last year.
 
GAAP gross margin was 32.8%, up from 32.5% in the prior quarter and up from 32.0% in the same quarter last year.
 
Non-GAAP gross margin was 34.0%, up from 33.9% in the prior quarter and up from 33.5% in the same quarter last year.

 
Gross margin from the solar segment was 36.6%, down from 37.4% in the prior quarter and up from 34.8% in the same quarter last year.
 
GAAP operating expenses were $106.1 million, up 5% from $100.6 million in the prior quarter and up 37% from $77.7 million in the same quarter last year.
 
Non-GAAP operating expenses were $83.8 million, up 3% from $81.5 million in the prior quarter and up 33% from $63.2 million in the same quarter last year.
 
GAAP operating income was $66.4 million, up 20% from $55.6 million in the prior quarter and up 119% from $30.4 million in the same quarter last year.
 
Non-GAAP operating income was $95.2 million, up 17% from $81.3 million in the prior quarter and up 90% from $50.0 million in the same quarter last year.
 
GAAP net income was $53.0 million, up 18% from $45.1 million in the prior quarter and up 21% from $43.8 million in the same quarter last year.
 
Non-GAAP net income was $82.1 million, up 13% from $72.5 million in the prior quarter and up 25% from $65.9 million in the same quarter last year.
 
GAAP net diluted EPS was $0.96, up from $0.82 in the prior quarter and up from $0.83 in the same quarter last year.
 
Non-GAAP net diluted EPS was $1.45, up from $1.28 in the prior quarter and up from $1.21 in the same quarter last year.
 
Cash flow from operating activities was $61.8 million, up from $38.7 million in the prior quarter and up from $28.4 million in the same quarter last year.
 
As of September 30, 2021, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $524.1 million, net of debt, compared to $509.3 million on June 30, 2021.
 
Outlook for the Fourth Quarter 2021
 
The Company also provides guidance for the fourth quarter ending December 31, 2021 as follows:


Revenues to be within the range of $530 million to $560 million

Non-GAAP gross margin expected to be within the range of 30% to 32%

Revenues from solar segment to be within the range of $490 million to $515 million

Gross margin from solar segment expected to be within the range of 31% to 34%
 

Conference Call
 
The Company will host a conference call to discuss these results at 4:30 p.m. ET on Tuesday, November 2, 2021. The call will be available, live, to interested parties by dialing 800-635-7637. For international callers, please dial +1 334-777-6980. The Conference ID number is 5961090.  A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com
 
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 will remain available for approximately 30 calendar days.
 
About SolarEdge
 
SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, UPS, electric vehicle powertrains, and grid services solutions. SolarEdge is online at www.solaredge.com
 
Use of Non-GAAP Financial Measures
 
The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. 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 United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
 
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. The Company believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

 
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 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 the section entitled “Risk Factors” of our Annual Report on Form 10-K/A for the year ended December 31, 2020, filed on February 19, 2021 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 2, 2021.  The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investor Contacts
SolarEdge Technologies, Inc.
Ronen Faier, Chief Financial Officer
+1 510-498-3263
investors@solaredge.com

Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
+1 617-542-6180
investors@solaredge.com

SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands)

   
Three months ended
September 30,
   
Nine months ended
September 30,
 
   
2021
   
2020
   
2021
   
2020
 
Revenues
 
$
526,404
   
$
338,095
   
$
1,411,950
   
$
1,101,164
 
Cost of revenues
   
353,843
     
230,032
     
943,123
     
750,130
 
Gross profit
   
172,561
     
108,063
     
468,827
     
351,034
 
Operating expenses:
                               
Research and development
   
55,666
     
40,817
     
155,307
     
115,610
 
Sales and marketing
   
29,383
     
21,924
     
85,752
     
67,113
 
General and administrative
   
21,098
     
14,928
     
60,317
     
45,077
 
Other operating expenses (income), net
   
-
     
-
     
1,350
     
(4,900
)
Total operating expenses
   
106,147
     
77,669
     
302,726
     
222,900
 
Operating income
   
66,414
     
30,394
     
166,101
     
128,134
 
Financial income (expenses), net
   
(5,751
)
   
15,765
     
(13,591
)
   
10,725
 
Income before income taxes
   
60,663
     
46,159
     
152,510
     
138,859
 
Income taxes
   
7,615
     
2,408
     
24,294
     
16,192
 
Net income
 
$
53,048
   
$
43,751
   
$
128,216
   
$
122,667
 



SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

   
September 30,
2021
   
December 31,
2020
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
526,588
   
$
827,146
 
Short-term bank deposits
   
10,122
     
60,096
 
Restricted bank deposits
   
1,064
     
2,611
 
Marketable securities
   
145,459
     
143,687
 
Trade receivables, net of allowances of $2,826 and $2,886, respectively
   
416,244
     
218,706
 
Inventories, net
   
304,713
     
331,696
 
Prepaid expenses and other current assets
   
148,364
     
135,399
 
Total current assets
   
1,552,554
     
1,719,341
 
LONG-TERM ASSETS:
               
   Marketable securities
   
473,315
     
147,434
 
   Deferred tax assets, net
   
21,827
     
11,676
 
   Property, plant and equipment, net
   
353,344
     
303,408
 
   Operating lease right-of-use assets, net
   
39,314
     
41,600
 
   Intangible assets, net
   
61,639
     
67,818
 
   Goodwill
   
131,757
     
140,479
 
   Other long-term assets
   
23,083
     
5,353
 
Total long-term assets
   
1,104,279
     
717,768
 
Total assets
 
$
2,656,833
   
$
2,437,109
 
 LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Trade payables, net
 
$
137,621
   
$
162,051
 
Employees and payroll accruals
   
63,845
     
63,738
 
Current maturities of bank loans and accrued interest
   
141
     
16,894
 
Warranty obligations
   
67,096
     
62,614
 
Deferred revenues and customers advances
   
16,939
     
24,648
 
Accrued expenses and other current liabilities
   
119,865
     
106,154
 
Total current liabilities
   
405,507
     
436,099
 
LONG-TERM LIABILITIES:
               
Convertible senior notes, net
   
620,808
     
573,350
 
Warranty obligations
   
179,967
     
142,380
 
Deferred revenues
   
136,269
     
115,372
 
Deferred tax liabilities, net
   
405
     
8,593
 
Finance lease liabilities
   
25,375
     
26,173
 
Operating lease liabilities
   
31,509
     
35,194
 
Other long-term liabilities
   
14,910
     
14,191
 
Total long-term liabilities
   
1,009,243
     
915,253
 
COMMITMENTS AND CONTINGENT LIABILITIES
               
STOCKHOLDERS’ EQUITY:
               
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2021 and December 31, 2020; issued and outstanding: 52,519,490 and 51,560,936 shares as of September 30, 2021 and December 31, 2020, respectively
   
5
     
5
 
Additional paid-in capital
   
652,109
     
603,891
 
Accumulated other comprehensive income (loss)
   
(19,135
)
   
3,857
 
Retained earnings
   
609,104
     
478,004
 
Total stockholders’ equity
   
1,242,083
     
1,085,757
 
Total liabilities and stockholders’ equity
 
$
2,656,833
   
$
2,437,109
 



SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Nine months ended
September 30,
 
   
2021
   
2020
 
Cash flows provided by operating activities:
           
Net income
 
$
128,216
   
$
122,667
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation of property, plant and equipment
   
21,492
     
16,376
 
Amortization of intangible assets
   
7,487
     
7,081
 
Amortization of debt discount and debt issuance costs
   
2,175
     
168
 
Amortization of premium and accretion of discount on available-for-sale marketable securities, net
   
6,301
     
602
 
Stock-based compensation expenses
   
73,390
     
42,993
 
Deferred income taxes, net
   
(6,686
)
   
(5,263
)
Loss from disposal of assets
   
2,013
     
-
 
Exchange rate fluctuations and other items, net
   
13,086
     
(235
)
Changes in assets and liabilities:
               
Inventories, net
   
30,678
     
(121,999
)
Prepaid expenses and other assets
   
(14,977
)
   
37,871
 
Trade receivables, net
   
(206,131
)
   
118,044
 
Trade payables, net
   
(22,959
)
   
(35,499
)
Employees and payroll accruals
   
14,321
     
3,132
 
Warranty obligations
   
42,368
     
23,155
 
Deferred revenues and customers advances
   
13,723
     
(24,283
)
Other liabilities
   
20,055
     
10,619
 
Net cash provided by operating activities
   
124,552
     
195,429
 
Cash flows from investing activities:
               
Investment in available-for-sale marketable securities
   
(511,615
)
   
(36,781
)
Proceeds from sales and maturities of available-for-sale marketable securities
   
174,817
     
116,419
 
Purchase of property, plant and equipment
   
(94,135
)
   
(90,553
)
Withdrawal from (investment in) bank deposits, net
   
50,020
     
(14,667
)
Investment in privately held company
   
(16,643
)
   
-
 
Payment for asset acquisition, net of cash acquired
   
(2,996
)
   
-
 
Withdrawal from restricted bank deposits
   
46
     
25,538
 
Other investing activities
   
2,547
     
743
 
Net cash provided by (used in) investing activities
 
$
(397,959
)
 
$
699
 
Cash flows from financing activities:
               
Repayment of bank loans
 
$
(16,219
)
 
$
(15,194
)
Proceeds from exercise of stock-based awards and payment of withholding taxes
   
(2,274
)
   
19,205
 
Proceeds from issuance of convertible senior notes, net
   
-
     
618,269
 
Proceeds from bank loans
   
-
     
15,185
 
Other financing activities
   
(939
)
   
(152
)
Net cash provided by (used in) financing activities
   
(19,432
)
   
637,313
 
Increase (decrease) in cash and cash equivalents
   
(292,839
)
   
833,441
 
Cash and cash equivalents at the beginning of the period
   
827,146
     
223,901
 
Effect of exchange rate differences on cash and cash equivalents
   
(7,719
)
   
(9,233
)
Cash and cash equivalents at the end of the period
 
$
526,588
   
$
1,048,109
 



SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands, except share and per share data)

   
Reconciliation of GAAP to Non-GAAP Gross Profit
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Gross profit (GAAP)
   
172,561
     
156,192
     
108,063
     
468,827
     
351,034
 
  Revenues from finance component
   
(111
)
   
(99
)
   
----
     
(296
)
   
----
 
  Stock-based compensation
   
4,289
     
4,291
     
2,730
     
14,370
     
7,362
 
  Cost of product adjustment
   
----
     
----
     
----
     
----
     
313
 
  Amortization and depreciation of acquired assets
   
2,341
     
2,401
     
2,429
     
7,054
     
7,110
 
Gross profit (Non-GAAP)
   
179,080
     
162,785
     
113,222
     
489,955
     
365,819
 

   
Reconciliation of GAAP to Non-GAAP Gross Margin
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Gross margin (GAAP)
   
32.8
%
   
32.5
%
   
32.0
%
   
33.2
%
   
31.9
%
  Revenues from finance component
   
0.0
%
   
0.0
%
   
----
     
0.0
%
   
----
 
  Stock-based compensation
   
0.8
%
   
0.9
%
   
0.8
%
   
1.0
%
   
0.7
%
  Cost of product adjustment
   
----
     
----
     
----
     
----
     
0.0
%
  Amortization and depreciation of acquired assets
   
0.4
%
   
0.5
%
   
0.7
%
   
0.5
%
   
0.6
%
Gross margin (Non-GAAP)
   
34.0
%
   
33.9
%
   
33.5
%
   
34.7
%
   
33.2
%

   
Reconciliation of GAAP to Non-GAAP Operating expenses
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Operating expenses (GAAP)
   
106,147
     
100,633
     
77,669
     
302,726
     
222,900
 
  Stock-based compensation - R&D
   
(11,949
)
   
(9,805
)
   
(6,904
)
   
(30,552
)
   
(18,129
)
  Stock-based compensation - S&M
   
(5,737
)
   
(5,780
)
   
(4,066
)
   
(16,952
)
   
(10,703
)
  Stock-based compensation - G&A
   
(4,210
)
   
(4,176
)
   
(2,559
)
   
(11,516
)
   
(6,799
)
  Amortization and depreciation of acquired assets - R&D
   
(207
)
   
(9
)
   
(26
)
   
(228
)
   
(77
)
  Amortization and depreciation of acquired assets - S&M
   
(229
)
   
(236
)
   
(370
)
   
(702
)
   
(957
)
  Amortization and depreciation of acquired assets - G&A
   
(8
)
   
(7
)
   
(8
)
   
(23
)
   
(25
)
  Assets sale (disposal)
   
37
     
----
     
(558
)
   
99
     
(558
)
  Other operating income (expenses)
   
----
     
859
     
----
     
(1,350
)
   
4,900
 
Operating expenses (Non-GAAP)
   
83,844
     
81,479
     
63,178
     
241,502
     
190,552
 



SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands, except share and per share data)

   
Reconciliation of GAAP to Non-GAAP Operating income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Operating income (GAAP)
   
66,414
     
55,559
     
30,394
     
166,101
     
128,134
 
  Revenues from finance component
   
(111
)
   
(99
)
   
----
     
(296
)
   
----
 
  Cost of product adjustment
   
----
     
----
     
----
     
----
     
313
 
  Stock-based compensation
   
26,185
     
24,052
     
16,259
     
73,390
     
42,993
 
  Amortization and depreciation of acquired assets
   
2,785
     
2,653
     
2,833
     
8,007
     
8,169
 
  Assets (sale) disposal
   
(37
)
   
----
     
558
     
(99
)
   
558
 
  Other operating (income) expenses
   
----
     
(859
)
   
----
     
1,350
     
(4,900
)
Operating income (Non-GAAP)
   
95,236
     
81,306
     
50,044
     
248,453
     
175,267
 

   
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Financial expenses (income), net (GAAP)
   
5,751
     
1,743
     
(15,765
)
   
13,591
     
(10,725
)
Notes due 2025
   
(726
)
   
(726
)
   
(168
)
   
(2,176
)
   
(168
)
Non-cash interest
   
(1,469
)
   
(1,439
)
   
(1,254
)
   
(4,244
)
   
(3,582
)
Currency fluctuation related to lease standard
   
(574
)
   
(1,300
)
   
(243
)
   
415
     
(102
)
Amortization and depreciation of acquired assets
   
----
     
----
     
----
     
----
     
(982
)
Financial expenses (income), net (Non-GAAP)
   
2,982
     
(1,722
)
   
(17,430
)
   
7,586
     
(15,559
)

   
Reconciliation of GAAP to Non-GAAP Tax on income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Tax on income (GAAP)
   
7,615
     
8,724
     
2,408
     
24,294
     
16,192
 
Deferred taxes
   
2,528
     
1,789
     
(816
)
   
6,458
     
5,956
 
Tax on income (Non-GAAP)
   
10,143
     
10,513
     
1,592
     
30,752
     
22,148
 



SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands, except share and per share data)

   
Reconciliation of GAAP to Non-GAAP Net income
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Net income (GAAP)
   
53,048
     
45,092
     
43,751
     
128,216
     
122,667
 
Revenues from finance component
   
(111
)
   
(99
)
   
----
     
(296
)
   
----
 
Cost of product adjustment
   
----
     
----
     
----
     
----
     
313
 
Stock-based compensation
   
26,185
     
24,052
     
16,259
     
73,390
     
42,993
 
Amortization and depreciation of acquired assets
   
2,785
     
2,653
     
2,833
     
8,007
     
9,151
 
Assets (sale) disposal
   
(37
)
   
----
     
558
     
(99
)
   
558
 
Other operating (income) expenses
   
----
     
(859
)
   
----
     
1,350
     
(4,900
)
Notes due 2025
   
726
     
726
     
168
     
2,176
     
168
 
Non-cash interest
   
1,469
     
1,439
     
1,254
     
4,244
     
3,582
 
Currency fluctuation related to lease standard
   
574
     
1,300
     
243
     
(415
)
   
102
 
Deferred taxes
   
(2,528
)
   
(1,789
)
   
816
     
(6,458
)
   
(5,956
)
Net income (Non-GAAP)
   
82,111
     
72,515
     
65,882
     
210,115
     
168,678
 

   
Reconciliation of GAAP to Non-GAAP Net basic EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Net basic earnings per share (GAAP)
   
1.01
     
0.87
     
0.87
     
2.46
     
2.46
 
Revenues from finance component
   
0.00
     
(0.01
)
   
----
     
0.00
     
----
 
Cost of product adjustment
   
----
     
----
     
----
     
----
     
0.01
 
Stock-based compensation
   
0.50
     
0.47
     
0.32
     
1.41
     
0.86
 
Amortization and depreciation of acquired assets
   
0.05
     
0.05
     
0.05
     
0.15
     
0.18
 
Assets (sale) disposal
   
0.00
     
----
     
0.01
     
0.00
     
0.01
 
Other operating (income) expenses
   
----
     
(0.02
)
   
----
     
0.03
     
(0.10
)
Notes due 2025
   
0.02
     
0.01
     
0.00
     
0.04
     
0.00
 
Non-cash interest
   
0.03
     
0.03
     
0.03
     
0.08
     
0.08
 
Currency fluctuation related to lease standard
   
0.01
     
0.03
     
0.00
     
(0.01
)
   
0.00
 
Deferred taxes
   
(0.05
)
   
(0.04
)
   
0.02
     
(0.12
)
   
(0.12
)
Net basic earnings per share (Non-GAAP)
   
1.57
     
1.39
     
1.30
     
4.04
     
3.38
 



SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands, except share and per share data)

   
Reconciliation of GAAP to Non-GAAP Net diluted EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Net diluted earnings per share (GAAP)
   
0.96
     
0.82
     
0.83
     
2.32
     
2.33
 
Revenues from finance component
   
0.00
     
(0.01
)
   
----
     
(0.01
)
   
----
 
Cost of product adjustment
   
----
     
----
     
----
     
----
     
0.01
 
Stock-based compensation
   
0.45
     
0.42
     
0.28
     
1.27
     
0.74
 
Amortization and depreciation of acquired assets
   
0.05
     
0.04
     
0.05
     
0.14
     
0.17
 
Assets (sale) disposal
   
0.00
     
----
     
0.01
     
0.00
     
0.01
 
Other operating (income) expenses
   
----
     
(0.01
)
   
----
     
0.02
     
(0.09
)
Notes due 2025
   
0.00
     
0.00
     
0.00
     
0.01
     
0.00
 
Non-cash interest
   
0.03
     
0.03
     
0.02
     
0.08
     
0.07
 
Currency fluctuation related to lease standard
   
0.01
     
0.02
     
0.00
     
(0.01
)
   
0.00
 
Deferred taxes
   
(0.05
)
   
(0.03
)
   
0.02
     
(0.11
)
   
(0.11
)
Net diluted earnings per share (Non-GAAP)
   
1.45
     
1.28
     
1.21
     
3.71
     
3.13
 

   
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
 
   
Three months ended
   
Nine months ended
 
   
September 30, 2021
   
June 30, 2021
   
September 30, 2020
   
September 30, 2021
   
September 30, 2020
 
Number of shares used in computing net diluted earnings per share (GAAP)
   
55,929,000
     
55,930,562
     
53,144,188
     
55,955,441
     
52,623,675
 
Stock-based compensation
   
653,967
     
780,309
     
1,134,877
     
733,488
     
1,229,630
 
Number of shares used in computing net diluted earnings per share (Non-GAAP)
   
56,582,967
     
56,710,871
     
54,279,065
     
56,688,929
     
53,853,305