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)
|
☐
|
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: August 2, 2018
|
By:
|
/s/ Ronen Faier |
Name: | Ronen Faier | |
Title: | Chief Financial Officer |
· |
Total revenues of $227.1 million
|
· |
GAAP gross margin of 36.1%
|
· |
GAAP net diluted EPS of $0.72
|
· |
Non-GAAP net diluted EPS of $0.82
|
· |
985 Megawatts (AC) of inverters shipped
|
· |
Revenues to be within the range of $230 million to $240 million;
|
· |
Gross margins expected to remain flat within the range of 36% to 38%.
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
227,118
|
$
|
136,099
|
$
|
436,989
|
$
|
251,153
|
||||||||
Cost of revenues
|
145,172
|
89,033
|
275,446
|
165,411
|
||||||||||||
Gross profit
|
81,946
|
47,066
|
161,543
|
85,742
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
19,551
|
12,725
|
37,426
|
24,183
|
||||||||||||
Sales and marketing
|
15,954
|
11,961
|
32,159
|
22,736
|
||||||||||||
General and administrative
|
5,776
|
3,265
|
10,465
|
7,704
|
||||||||||||
Total operating expenses
|
41,281
|
27,951
|
80,050
|
54,623
|
||||||||||||
Operating income
|
40,665
|
19,115
|
81,493
|
31,119
|
||||||||||||
Financial income (expenses), net
|
(2,480
|
)
|
3,595
|
(1,896
|
)
|
5,005
|
||||||||||
Other expenses
|
-
|
-
|
64
|
-
|
||||||||||||
Income before taxes on income
|
38,185
|
22,710
|
79,533
|
36,124
|
||||||||||||
Taxes on income (tax benefit)
|
3,617
|
186
|
9,279
|
(575
|
)
|
|||||||||||
Net income
|
$
|
34,568
|
$
|
22,524
|
$
|
70,254
|
$
|
36,699
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
214,540
|
$
|
163,163
|
||||
Restricted cash
|
2,049
|
1,516
|
||||||
Marketable Securities
|
134,821
|
77,264
|
||||||
Trade receivables, net
|
118,103
|
109,528
|
||||||
Prepaid expenses and other accounts receivable
|
44,520
|
42,223
|
||||||
Inventories
|
102,014
|
82,992
|
||||||
Total current assets
|
616,047
|
476,686
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
86,144
|
103,120
|
||||||
Property, equipment and intangible assets, net
|
68,532
|
52,297
|
||||||
Prepaid expenses and lease deposits
|
956
|
862
|
||||||
Deferred tax assets, net
|
11,551
|
8,340
|
||||||
Total long term assets
|
167,183
|
164,619
|
||||||
Total assets
|
$
|
783,230
|
$
|
641,305
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
81,610
|
$
|
69,488
|
||||
Employees and payroll accruals
|
23,510
|
22,544
|
||||||
Warranty obligations
|
18,964
|
14,785
|
||||||
Deferred revenues
|
3,407
|
2,559
|
||||||
Accrued expenses and other accounts payable
|
26,480
|
20,378
|
||||||
Total current liabilities
|
153,971
|
129,754
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Warranty obligations
|
78,327
|
64,026
|
||||||
Deferred revenues
|
47,595
|
31,453
|
||||||
Lease incentive obligation
|
1,616
|
1,765
|
||||||
Non-current tax liabilities
|
16,830
|
16,840
|
||||||
Total long-term liabilities
|
144,368
|
114,084
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock
|
5
|
4
|
||||||
Additional paid-in capital
|
353,470
|
331,902
|
||||||
Accumulated other comprehensive loss
|
(1,138
|
)
|
(611
|
)
|
||||
Retained earnings
|
132,554
|
66,172
|
||||||
Total stockholders’ equity
|
484,891
|
397,467
|
||||||
Total liabilities and stockholders’ equity
|
$
|
783,230
|
$
|
641,305
|
Six months ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Unaudited
|
||||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
70,254
|
$
|
36,699
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property, equipment and intangible assets
|
5,053
|
3,130
|
||||||
Amortization of premiums on available-for-sale marketable securities
|
1,014
|
791
|
||||||
Stock-based compensation
|
13,977
|
7,646
|
||||||
Deferred tax assets, net
|
(3,018
|
)
|
(2,105
|
)
|
||||
Loss on disposals of fixed assets
|
64
|
-
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories
|
(18,952
|
)
|
11,153
|
|||||
Prepaid expenses and other accounts receivable
|
(2,135
|
)
|
(12,675
|
)
|
||||
Trade receivables, net
|
(9,203
|
)
|
(8,399
|
)
|
||||
Trade payables, net
|
12,143
|
2,007
|
||||||
Employees and payroll accruals
|
1,028
|
1,206
|
||||||
Warranty obligations
|
18,479
|
6,965
|
||||||
Deferred revenues
|
13,120
|
6,935
|
||||||
Accrued expenses and other accounts payable
|
6,194
|
3,958
|
||||||
Lease incentive obligation
|
(148
|
)
|
(148
|
)
|
||||
Net cash provided by operating activities
|
107,870
|
57,163
|
||||||
Cash flows used in investing activities:
|
||||||||
Purchase of property and equipment
|
(21,385
|
)
|
(7,611
|
)
|
||||
Investment in available-for-sale marketable securities
|
(89,389
|
)
|
(74,106
|
)
|
||||
Maturities of available-for-sale marketable securities
|
46,825
|
31,674
|
||||||
Net cash used in investing activities
|
(63,949
|
)
|
(50,043
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
|
7,591
|
2,123
|
||||||
Net cash provided by financing activities
|
7,591
|
2,123
|
||||||
Net increase in cash, cash equivalents and restricted cash
|
51,512
|
9,243
|
||||||
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
|
398
|
(274
|
)
|
|||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
216,589
|
$
|
114,549
|
Reconciliation of Non-GAAP Financial Measures
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Gross profit (GAAP)
|
81,946
|
79,597
|
47,066
|
161,543
|
85,742
|
|||||||||||||||
Stock-based compensation
|
968
|
924
|
517
|
1,892
|
1,010
|
|||||||||||||||
Gross profit (Non-GAAP)
|
82,914
|
80,521
|
47,583
|
163,435
|
86,752
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Gross margin (GAAP)
|
36.1
|
%
|
37.9
|
%
|
34.6
|
%
|
37.0
|
%
|
34.1
|
%
|
||||||||||
Stock-based compensation
|
0.4
|
%
|
0.5
|
%
|
0.4
|
%
|
0.4
|
%
|
0.4
|
%
|
||||||||||
Gross margin (Non-GAAP)
|
36.5
|
%
|
38.4
|
%
|
35.0
|
%
|
37.4
|
%
|
34.5
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Operating expenses (GAAP)
|
41,281
|
38,769
|
27,951
|
80,050
|
54,623
|
|||||||||||||||
Stock-based compensation R&D
|
2,605
|
2,382
|
1,280
|
4,987
|
2,485
|
|||||||||||||||
Stock-based compensation S&M
|
2,094
|
2,204
|
1,204
|
4,298
|
2,234
|
|||||||||||||||
Stock-based compensation G&A
|
1,461
|
1,339
|
1,033
|
2,800
|
1,917
|
|||||||||||||||
Operating expenses (Non-GAAP)
|
35,121
|
32,844
|
24,434
|
67,965
|
47,987
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Operating income (GAAP)
|
40,665
|
40,828
|
19,115
|
81,493
|
31,119
|
|||||||||||||||
Stock-based compensation
|
7,128
|
6,849
|
4,034
|
13,977
|
7,646
|
|||||||||||||||
Operating income (Non-GAAP)
|
47,793
|
47,677
|
23,149
|
95,470
|
38,765
|
Reconciliation of GAAP to Non-GAAP Financial income, net
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Financial income (expenses), net (GAAP)
|
(2,480
|
)
|
584
|
3,595
|
(1,896
|
)
|
5,005
|
|||||||||||||
Non cash interest
|
568
|
512
|
----
|
1,080
|
----
|
|||||||||||||||
Financial income (expenses), net (Non-GAAP)
|
(1,912
|
)
|
1,096
|
3,595
|
(816
|
)
|
5,005
|
Reconciliation of GAAP to Non-GAAP Other expenses
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Other expenses (GAAP)
|
----
|
64
|
----
|
64
|
----
|
|||||||||||||||
Fixed Assets disposal
|
----
|
64
|
----
|
64
|
----
|
|||||||||||||||
Other expenses (Non-GAAP)
|
----
|
----
|
----
|
----
|
----
|
Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit)
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Tax on income (Tax benefit) (GAAP)
|
3,617
|
5,662
|
186
|
9,279
|
(575
|
)
|
||||||||||||||
Deferred tax realized (asset)
|
(1,697
|
)
|
(1,321
|
)
|
(773
|
)
|
(3,018
|
)
|
(2,105
|
)
|
||||||||||
Transition tax of foreign earnings
|
----
|
820
|
----
|
820
|
----
|
|||||||||||||||
Tax on income (Tax benefit) (Non-GAAP)
|
5,314
|
6,163
|
959
|
11,477
|
1,530
|
Reconciliation of GAAP to Non-GAAP Net income
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Net income (GAAP)
|
34,568
|
35,686
|
22,524
|
70,254
|
36,699
|
|||||||||||||||
Stock-based compensation
|
7,128
|
6,849
|
4,034
|
13,977
|
7,646
|
|||||||||||||||
Non cash interest
|
568
|
512
|
----
|
1,080
|
----
|
|||||||||||||||
Fixed Assets disposal
|
----
|
64
|
----
|
64
|
----
|
|||||||||||||||
Deferred tax realized (asset)
|
(1,697
|
)
|
(1,321
|
)
|
(773
|
)
|
(3,018
|
)
|
(2,105
|
)
|
||||||||||
Transition tax of foreign earnings
|
----
|
820
|
----
|
820
|
----
|
|||||||||||||||
Net income (Non-GAAP)
|
40,567
|
42,610
|
25,785
|
83,177
|
42,240
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Net basic earnings per share (GAAP)
|
0.76
|
0.81
|
0.54
|
1.57
|
0.88
|
|||||||||||||||
Stock-based compensation
|
0.16
|
0.15
|
0.10
|
0.31
|
0.19
|
|||||||||||||||
Non cash interest
|
0.01
|
0.01
|
----
|
0.03
|
----
|
|||||||||||||||
FA disposal
|
----
|
----
|
----
|
----
|
----
|
|||||||||||||||
Deferred tax realized (asset)
|
(0.03
|
)
|
(0.03
|
)
|
(0.02
|
)
|
(0.07
|
)
|
(0.05
|
)
|
||||||||||
Transition tax of foreign earnings
|
----
|
0.02
|
----
|
0.02
|
----
|
|||||||||||||||
Net basic earnings per share (Non-GAAP)
|
0.90
|
0.96
|
0.62
|
1.86
|
1.02
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Net diluted earnings per share (GAAP)
|
0.72
|
0.75
|
0.50
|
1.46
|
0.83
|
|||||||||||||||
Stock-based compensation
|
0.12
|
0.12
|
0.06
|
0.24
|
0.12
|
|||||||||||||||
Non cash interest
|
0.01
|
0.01
|
----
|
0.03
|
----
|
|||||||||||||||
FA disposal
|
----
|
----
|
----
|
----
|
----
|
|||||||||||||||
Deferred tax realized (asset)
|
(0.03
|
)
|
(0.03
|
)
|
(0.01
|
)
|
(0.06
|
)
|
(0.05
|
)
|
||||||||||
Transition tax of foreign earnings
|
----
|
0.02
|
----
|
0.01
|
----
|
|||||||||||||||
Net diluted earnings per share (Non-GAAP)
|
0.82
|
0.87
|
0.55
|
1.68
|
0.90
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
||||||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
June 30, 2018
|
June 30, 2017
|
||||||||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
48,291,280
|
47,673,522
|
44,831,590
|
47,984,817
|
44,335,521
|
|||||||||||||||
Stock-based compensation
|
1,341,286
|
1,535,408
|
2,228,246
|
1,438,347
|
2,359,454
|
|||||||||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
49,632,566
|
49,208,930
|
47,059,836
|
49,423,164
|
46,694,975
|