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)
|
☐
|
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
|
|
SOLAREDGE TECHNOLOGIES, INC.
|
|||
Date: February 14, 2018
|
By:
|
/s/ Ronen Faier | |
Name: | Ronen Faier | ||
Title: | Chief Financial Officer |
· |
Total revenues of $189.3 million
|
· |
GAAP gross margin of 37.5%
|
· |
GAAP net diluted EPS of $0.42
|
· |
Non-GAAP net diluted EPS of $0.85
|
· |
766 Megawatts (AC) of inverters shipped
|
· |
Total revenues of $607.0 million
|
· |
GAAP gross margin of 35.4%
|
· |
GAAP net diluted EPS of $1.85
|
· |
Non-GAAP net diluted EPS of $2.43
|
· |
2.5 Gigawatts (AC) of inverters shipped
|
· |
Revenues to be within the range of $200 million to $210 million;
|
· |
Gross margins expected to remain flat within the range of 36% to 38%
|
Three months ended
December 31,
|
Year ended
December 31,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
189,340
|
$
|
111,513
|
$
|
607,045
|
$
|
489,954
|
||||||||
Cost of revenues
|
118,370
|
72,488
|
392,279
|
329,207
|
||||||||||||
Gross profit
|
70,970
|
39,025
|
214,766
|
160,747
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
16,420
|
10,344
|
54,966
|
38,220
|
||||||||||||
Sales and marketing
|
14,079
|
10,408
|
50,032
|
38,200
|
||||||||||||
General and administrative
|
5,900
|
3,126
|
18,682
|
13,317
|
||||||||||||
Total operating expenses
|
36,399
|
23,878
|
123,680
|
89,737
|
||||||||||||
Operating income
|
34,571
|
15,147
|
91,086
|
71,010
|
||||||||||||
Financial income (expenses), net
|
1,487
|
(3,179
|
)
|
9,158
|
(1,287
|
)
|
||||||||||
Income before taxes on income
|
36,058
|
11,968
|
100,244
|
69,723
|
||||||||||||
Taxes on income
|
16,556
|
2,203
|
16,072
|
6,270
|
||||||||||||
Net income
|
$
|
19,502
|
$
|
9,765
|
$
|
84,172
|
$
|
63,453
|
December 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
163,163
|
$
|
104,683
|
||||
Restricted cash
|
1,516
|
897
|
||||||
Marketable securities
|
77,264
|
74,465
|
||||||
Trade receivables, net
|
109,528
|
71,041
|
||||||
Prepaid expenses and other accounts receivable
|
42,223
|
21,347
|
||||||
Inventories
|
82,992
|
67,363
|
||||||
Total current assets
|
476,686
|
339,796
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
103,120
|
44,262
|
||||||
Property, equipment and intangible assets, net
|
52,297
|
37,381
|
||||||
Prepaid expenses and lease deposits
|
862
|
489
|
||||||
Deferred tax assets, net
|
8,340
|
2,815
|
||||||
Total long term assets
|
164,619
|
84,947
|
||||||
Total assets
|
$
|
641,305
|
$
|
424,743
|
||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
69,488
|
$
|
34,001
|
||||
Employees and payroll accruals
|
22,544
|
13,018
|
||||||
Warranty obligations
|
14,785
|
13,616
|
||||||
Deferred revenues
|
2,559
|
1,202
|
||||||
Accrued expenses and other accounts payables
|
20,378
|
8,648
|
||||||
Total current liabilities
|
129,754
|
70,485
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Warranty obligations
|
64,026
|
44,759
|
||||||
Deferred revenues
|
31,453
|
18,660
|
||||||
Lease incentive obligation
|
1,765
|
2,061
|
||||||
Non-current tax liabilities
|
16,840
|
-
|
||||||
Total long-term liabilities
|
114,084
|
65,480
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Share capital
|
4
|
4
|
||||||
Additional paid-in capital
|
331,902
|
307,098
|
||||||
Accumulated other comprehensive loss
|
(611
|
)
|
(324
|
)
|
||||
Retained earnings (Accumulated deficit)
|
66,172
|
(18,000
|
)
|
|||||
Total stockholders’ equity
|
397,467
|
288,778
|
||||||
Total liabilities and stockholders’ equity
|
$
|
641,305
|
$
|
424,743
|
Year ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
||||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
84,172
|
$
|
63,453
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property, equipment and intangible assets
|
7,155
|
4,935
|
||||||
Amortization of premium and accretion of discount on available-for-sale marketable securities
|
2,061
|
1,178
|
||||||
Stock-based compensation
|
17,564
|
11,632
|
||||||
Realized losses on Cash Flow Hedges
|
-
|
2
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories
|
(15,690
|
)
|
20,118
|
|||||
Prepaid expenses and other accounts receivable
|
(21,937
|
)
|
3,671
|
|||||
Trade receivables, net
|
(38,139
|
)
|
(24,448
|
)
|
||||
Deferred tax assets, net
|
(5,455
|
)
|
3,799
|
|||||
Trade payables
|
35,455
|
(27,963
|
)
|
|||||
Employees and payroll accruals
|
9,394
|
201
|
||||||
Warranty obligations
|
20,436
|
17,481
|
||||||
Deferred revenues
|
14,106
|
6,467
|
||||||
Accrued expenses, other accounts payable and non-current tax liabilities
|
27,839
|
2,208
|
||||||
Lease incentive obligation
|
(296
|
)
|
(259
|
)
|
||||
Net cash provided by operating activities
|
136,665
|
82,475
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(21,382
|
)
|
(21,079
|
)
|
||||
Purchase of intangible assets
|
-
|
(600
|
)
|
|||||
Decrease (increase) in restricted cash
|
(619
|
)
|
2,520
|
|||||
Decrease (increase) in long-term lease deposit
|
-
|
(11
|
)
|
|||||
Investment in available-for-sale marketable securities
|
(143,675
|
)
|
(106,509
|
)
|
||||
Maturities of available-for-sale marketable securities
|
80,269
|
39,132
|
||||||
Net cash used in investing activities
|
$
|
(85,407
|
)
|
$
|
(86,547
|
)
|
||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
|
7,240
|
2,785
|
||||||
Net cash provided by financing activities
|
7,240
|
2,785
|
||||||
Increase (decrease) in cash and cash equivalents
|
58,498
|
(1,287
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
104,683
|
106,150
|
||||||
Effect of exchange rate differences on cash and cash equivalents
|
(18
|
)
|
(180
|
)
|
||||
Cash and cash equivalents at the end of the period
|
$
|
163,163
|
$
|
104,683
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Gross profit (GAAP)
|
70,970
|
58,054
|
39,025
|
214,766
|
160,747
|
|||||||||||||||
Stock-based compensation
|
703
|
538
|
486
|
2,251
|
1,427
|
|||||||||||||||
Gross profit (Non-GAAP)
|
71,673
|
58,592
|
39,511
|
217,017
|
162,174
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Gross margin (GAAP)
|
37.5
|
%
|
34.9
|
%
|
35.0
|
%
|
35.4
|
%
|
32.8
|
%
|
||||||||||
Stock-based compensation
|
0.4
|
%
|
0.3
|
%
|
0.4
|
%
|
0.3
|
%
|
0.3
|
%
|
||||||||||
Gross margin (Non-GAAP)
|
37.9
|
%
|
35.2
|
%
|
35.4
|
%
|
35.7
|
%
|
33.1
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Operating expenses (GAAP)
|
36,399
|
32,658
|
23,878
|
123,680
|
89,737
|
|||||||||||||||
Stock-based compensation R&D
|
1,795
|
1,423
|
1,134
|
5,703
|
3,532
|
|||||||||||||||
Stock-based compensation S&M
|
1,714
|
1,439
|
1,003
|
5,387
|
3,424
|
|||||||||||||||
Stock-based compensation G&A
|
1,170
|
1,137
|
877
|
4,224
|
3,248
|
|||||||||||||||
Operating expenses (Non-GAAP)
|
31,720
|
28,659
|
20,864
|
108,366
|
79,532
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Operating income (GAAP)
|
34,571
|
25,396
|
15,147
|
91,086
|
71,010
|
|||||||||||||||
Stock-based compensation
|
5,382
|
4,537
|
3,500
|
17,565
|
11,632
|
|||||||||||||||
Operating income (Non-GAAP)
|
39,953
|
29,933
|
18,647
|
108,651
|
82,642
|
Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit)
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Tax on income (Tax benefit) (GAAP)
|
16,556
|
91
|
2,203
|
16,072
|
6,270
|
|||||||||||||||
Deferred tax realized (asset)
|
(2,392
|
)
|
959
|
(1,473
|
)
|
(5,456
|
)
|
(3,799
|
)
|
|||||||||||
One-time transition tax of foreign earnings
|
18,735
|
----
|
----
|
18,735
|
----
|
|||||||||||||||
Tax on income (Tax benefit) (Non-GAAP)
|
213
|
1,050
|
730
|
2,793
|
2,471
|
Reconciliation of GAAP to Non-GAAP Net income
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Net income (GAAP)
|
19,502
|
27,971
|
9,765
|
84,172
|
63,453
|
|||||||||||||||
Stock-based compensation
|
5,382
|
4,537
|
3,500
|
17,565
|
11,632
|
|||||||||||||||
Deferred tax realized (asset)
|
(2,392
|
)
|
(959
|
)
|
1,473
|
(5,456
|
)
|
3,799
|
||||||||||||
One-time transition tax of foreign earnings
|
18,735
|
----
|
----
|
18,735
|
----
|
|||||||||||||||
Net income (Non-GAAP)
|
41,227
|
31,549
|
14,738
|
115,016
|
78,884
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Net basic earnings per share (GAAP)
|
0.45
|
0.66
|
0.24
|
1.99
|
1.56
|
|||||||||||||||
Stock-based compensation
|
0.12
|
0.11
|
0.08
|
0.42
|
0.28
|
|||||||||||||||
Deferred tax realized (asset)
|
(0.05
|
)
|
(0.03
|
)
|
0.04
|
(0.13
|
)
|
0.09
|
||||||||||||
One-time transition tax of foreign earnings
|
0.43
|
----
|
----
|
0.44
|
----
|
|||||||||||||||
Net basic earnings per share (Non-GAAP)
|
0.95
|
0.74
|
0.36
|
2.72
|
1.93
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Net diluted earnings per share (GAAP)
|
0.42
|
0.61
|
0.22
|
1.85
|
1.44
|
|||||||||||||||
Stock-based compensation
|
0.10
|
0.07
|
0.07
|
0.30
|
0.20
|
|||||||||||||||
Deferred tax realized (asset)
|
(0.05
|
)
|
(0.02
|
)
|
0.03
|
(0.12
|
)
|
0.08
|
||||||||||||
One-time transition tax of foreign earnings
|
0.38
|
----
|
----
|
0.40
|
----
|
|||||||||||||||
Net diluted earnings per share (Non-GAAP)
|
0.85
|
0.66
|
0.32
|
2.43
|
1.72
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
12 months ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
46,876,328
|
46,131,556
|
43,683,458
|
45,425,307
|
44,182,934
|
|||||||||||||||
Stock-based compensation
|
1,375,527
|
1,535,258
|
2,399,308
|
1,907,423
|
1,607,565
|
|||||||||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
48,251,855
|
47,666,814
|
46,082,766
|
47,332,730
|
45,790,499
|