Delaware
|
|
001-36894
|
|
20-5338862
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
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1 HaMada Street, Herziliya Pituach, Israel
|
|
4673335
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(Address of Principal executive offices)
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|
(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
|
Description
|
SOLAREDGE TECHNOLOGIES, INC.
|
|||
Date: May 9, 2018
|
By:
|
/s/ Ronen Faier | |
Name: | Ronen Faier | ||
Title: | Chief Financial Officer | ||
· |
Total revenues of $209.9 million
|
· |
GAAP gross margin of 37.9%
|
· |
GAAP net diluted EPS of $0.75
|
· |
Non-GAAP net diluted EPS of $0.87
|
· |
800 Megawatts (AC) of inverters shipped
|
· |
Revenues to be within the range of $220 million to $230 million;
|
· |
Gross margins expected to remain flat within the range of 36% to 38%.
|
Three months ended
March 31,
|
||||||||
2018
|
2017
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
209,871
|
$
|
115,054
|
||||
Cost of revenues
|
130,274
|
76,378
|
||||||
Gross profit
|
79,597
|
38,676
|
||||||
Operating expenses:
|
||||||||
Research and development
|
17,875
|
11,458
|
||||||
Sales and marketing
|
16,205
|
10,775
|
||||||
General and administrative
|
4,689
|
4,439
|
||||||
Total operating expenses
|
38,769
|
26,672
|
||||||
Operating income
|
40,828
|
12,004
|
||||||
Financial income, net
|
584
|
1,410
|
||||||
Other expenses
|
64
|
-
|
||||||
Income before taxes on income
|
41,348
|
13,414
|
||||||
Taxes on income (tax benefit)
|
5,662
|
(761
|
)
|
|||||
Net income
|
$
|
35,686
|
$
|
14,175
|
March 31,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
229,219
|
$
|
163,163
|
||||
Restricted cash
|
1,766
|
1,516
|
||||||
Marketable securities
|
81,229
|
77,264
|
||||||
Trade receivables, net
|
127,479
|
109,528
|
||||||
Prepaid expenses and other accounts receivable
|
33,156
|
42,223
|
||||||
Inventories
|
98,363
|
82,992
|
||||||
Total current assets
|
571,212
|
476,686
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
88,554
|
103,120
|
||||||
Property, equipment and intangible assets, net
|
61,161
|
52,297
|
||||||
Prepaid expenses and lease deposits
|
787
|
862
|
||||||
Deferred tax assets, net
|
9,847
|
8,340
|
||||||
Total long term assets
|
160,349
|
164,619
|
||||||
Total assets
|
$
|
731,561
|
$
|
641,305
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
83,091
|
$
|
69,488
|
||||
Employees and payroll accruals
|
29,733
|
22,544
|
||||||
Warranty obligations
|
16,605
|
14,785
|
||||||
Deferred revenues
|
3,010
|
2,559
|
||||||
Accrued expenses and other accounts payable
|
26,170
|
20,378
|
||||||
Total current liabilities
|
158,609
|
129,754
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Warranty obligations
|
71,590
|
64,026
|
||||||
Deferred revenues
|
41,866
|
31,453
|
||||||
Lease incentive obligation
|
1,690
|
1,765
|
||||||
Non-current tax liabilities
|
17,595
|
16,840
|
||||||
Total long-term liabilities
|
132,741
|
114,084
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock
|
4
|
4
|
||||||
Additional paid-in capital
|
343,356
|
331,902
|
||||||
Accumulated other comprehensive loss
|
(1,135
|
)
|
(611
|
)
|
||||
Retained earnings
|
97,986
|
66,172
|
||||||
Total stockholders’ equity
|
440,211
|
397,467
|
||||||
Total liabilities and stockholders’ equity
|
$
|
731,561
|
$
|
641,305
|
Three months ended
March 31,
|
||||||||
2018
|
2017
|
|||||||
Unaudited
|
||||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
35,686
|
$
|
14,175
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property, equipment and intangible assets
|
2,430
|
1,520
|
||||||
Amortization of premiums on available-for-sale marketable securities
|
778
|
383
|
||||||
Stock-based compensation
|
6,849
|
3,612
|
||||||
Deferred tax assets, net
|
(1,321
|
)
|
(1,333
|
)
|
||||
Loss on disposals of fixed assets
|
64
|
-
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories
|
(15,348
|
)
|
6,453
|
|||||
Prepaid expenses and other accounts receivable
|
9,210
|
(4,583
|
)
|
|||||
Trade receivables, net
|
(17,935
|
)
|
(8,070
|
)
|
||||
Trade payables, net
|
13,595
|
9,734
|
||||||
Employees and payroll accruals
|
7,153
|
(1,272
|
)
|
|||||
Warranty obligations
|
9,384
|
2,750
|
||||||
Deferred revenues
|
6,981
|
2,060
|
||||||
Accrued expenses and other accounts payable
|
6,527
|
311
|
||||||
Lease incentive obligation
|
(74
|
)
|
(74
|
)
|
||||
Net cash provided by operating activities
|
63,979
|
25,666
|
||||||
Cash flows used in investing activities:
|
||||||||
Purchase of property and equipment
|
(11,325
|
)
|
(1,872
|
)
|
||||
Increase in short and long-term lease deposits
|
-
|
(66
|
)
|
|||||
Investment in available-for-sale marketable securities
|
(25,436
|
)
|
(24,070
|
)
|
||||
Maturities of available-for-sale marketable securities
|
34,500
|
15,665
|
||||||
Net cash used in investing activities
|
(2,261
|
)
|
(10,343
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of shares upon exercise of options
|
4,605
|
371
|
||||||
Net cash provided by financing activities
|
4,605
|
371
|
||||||
Net increase in cash, cash equivalents and restricted cash
|
66,323
|
15,694
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
164,679
|
105,580
|
||||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash
|
(17
|
)
|
(350
|
)
|
||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
230,985
|
$
|
120,924
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Gross profit (GAAP)
|
79,597
|
70,970
|
38,676
|
|||||||||
Stock-based compensation
|
924
|
703
|
493
|
|||||||||
Gross profit (Non-GAAP)
|
80,521
|
71,673
|
39,169
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Gross margin (GAAP)
|
37.9
|
%
|
37.5
|
%
|
33.6
|
%
|
||||||
Stock-based compensation
|
0.5
|
%
|
0.4
|
%
|
0.4
|
%
|
||||||
Gross margin (Non-GAAP)
|
38.4
|
%
|
37.9
|
%
|
34.0
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Operating expenses (GAAP)
|
38,769
|
36,399
|
26,672
|
|||||||||
Stock-based compensation R&D
|
2,382
|
1,795
|
1,205
|
|||||||||
Stock-based compensation S&M
|
2,204
|
1,714
|
1,030
|
|||||||||
Stock-based compensation G&A
|
1,339
|
1,170
|
884
|
|||||||||
Operating expenses (Non-GAAP)
|
32,844
|
31,720
|
23,553
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Operating income (GAAP)
|
40,828
|
34,571
|
12,004
|
|||||||||
Stock-based compensation
|
6,849
|
5,382
|
3,612
|
|||||||||
Operating income (Non-GAAP)
|
47,677
|
39,953
|
15,616
|
Reconciliation of GAAP to Non-GAAP Financial income, net
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Financial income, net (GAAP)
|
584
|
1,487
|
1,410
|
|||||||||
Non cash interest
|
512
|
----
|
----
|
|||||||||
Financial income, net (Non-GAAP)
|
1,096
|
1,487
|
1,410
|
Reconciliation of GAAP to Non-GAAP Other expenses
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Other expenses (GAAP)
|
64
|
----
|
----
|
|||||||||
Fixed Assets disposal
|
64
|
----
|
----
|
|||||||||
Other expenses (Non-GAAP)
|
----
|
----
|
----
|
Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit)
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Tax on income (Tax benefit) (GAAP)
|
5,662
|
16,556
|
(761
|
)
|
||||||||
Deferred tax realized (asset)
|
(1,321
|
)
|
(2,392
|
)
|
(1,332
|
)
|
||||||
Transition tax of foreign earnings
|
820
|
18,735
|
----
|
|||||||||
Tax on income (Tax benefit) (Non-GAAP)
|
6,163
|
213
|
571
|
Reconciliation of GAAP to Non-GAAP Net income
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Net income (GAAP)
|
35,686
|
19,502
|
14,175
|
|||||||||
Stock-based compensation
|
6,849
|
5,382
|
3,612
|
|||||||||
Non cash interest
|
512
|
----
|
----
|
|||||||||
FA disposal
|
64
|
----
|
----
|
|||||||||
Deferred tax realized (asset)
|
(1,321
|
)
|
(2,392
|
)
|
(1,332
|
)
|
||||||
Transition tax of foreign earnings
|
820
|
18,735
|
----
|
|||||||||
Net income (Non-GAAP)
|
42,610
|
41,227
|
16,455
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Net basic earnings per share (GAAP)
|
0.81
|
0.45
|
0.34
|
|||||||||
Stock-based compensation
|
0.15
|
0.12
|
0.09
|
|||||||||
Non cash interest
|
0.01
|
----
|
----
|
|||||||||
FA disposal
|
----
|
----
|
----
|
|||||||||
Deferred tax realized (asset)
|
(0.03
|
)
|
(0.05
|
)
|
(0.03
|
)
|
||||||
Transition tax of foreign earnings
|
0.02
|
0.43
|
----
|
|||||||||
Net basic earnings per share (Non-GAAP)
|
0.96
|
0.95
|
0.40
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Net diluted earnings per share (GAAP)
|
0.75
|
0.42
|
0.32
|
|||||||||
Stock-based compensation
|
0.12
|
0.10
|
0.06
|
|||||||||
Non cash interest
|
0.01
|
----
|
----
|
|||||||||
FA disposal
|
----
|
----
|
----
|
|||||||||
Deferred tax realized (asset)
|
(0.03
|
)
|
(0.05
|
)
|
(0.02
|
)
|
||||||
Transition tax of foreign earnings
|
0.02
|
0.38
|
----
|
|||||||||
Net diluted earnings per share (Non-GAAP)
|
0.87
|
0.85
|
0.36
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
47,673,522
|
46,876,328
|
43,837,505
|
|||||||||
Stock-based compensation
|
1,535,408
|
1,375,527
|
2,490,662
|
|||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
49,208,930
|
48,251,855
|
46,328,167
|