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: May 6, 2019
|
By:
|
/s/ Rachel Prishkolnik
|
|
Name:
|
Rachel Prishkolnik
|
||
Title:
|
VP General Counsel and Corporate Secretary
|
· |
Record revenues of $271.9 million
|
· |
Record revenues from solar products of $253.1 million
|
· |
GAAP gross margin of 31.7%
|
· |
Non-GAAP gross margin from sale of solar products of 34.3%
|
· |
GAAP net diluted EPS of $0.39
|
· |
Non-GAAP net diluted EPS of $0.64
|
· |
1.1 Gigawatts (AC) of inverters shipped
|
· |
Revenues to be within the range of $310 million to $320 million
|
· |
Gross margin expected to be within the range of 32% to 34%
|
· |
Revenues from solar products to be within the range of $290 million to $300 million
|
· |
Gross margin from sale of solar products expected to be within the range of 33% to 35%
|
Three months ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
271,871
|
$
|
209,871
|
||||
Cost of revenues
|
185,761
|
130,274
|
||||||
Gross profit
|
86,110
|
79,597
|
||||||
Operating expenses:
|
||||||||
Research and development
|
26,199
|
17,875
|
||||||
Sales and marketing
|
20,172
|
16,205
|
||||||
General and administrative
|
11,691
|
4,753
|
||||||
Total operating expenses
|
58,062
|
38,833
|
||||||
Operating income
|
28,048
|
40,764
|
||||||
Financial expenses (income), net
|
6,151
|
(584
|
)
|
|||||
Income before taxes on income
|
21,897
|
41,348
|
||||||
Taxes on income
|
3,922
|
5,662
|
||||||
Net income
|
$
|
17,975
|
$
|
35,686
|
||||
Net loss attributable to Non-controlling interests
|
1,041
|
-
|
||||||
Net income attributable to SolarEdge Technologies, Inc.
|
$
|
19,016
|
$
|
35,686
|
March 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
226,478
|
$
|
191,633
|
||||
Short-term bank deposits
|
6,057
|
6,001
|
||||||
Restricted cash
|
1,811
|
1,628
|
||||||
Marketable securities
|
107,064
|
118,680
|
||||||
Trade receivables, net
|
187,496
|
173,579
|
||||||
Prepaid expenses and other current assets
|
37,828
|
45,073
|
||||||
Inventories
|
150,798
|
141,519
|
||||||
Total current assets
|
717,532
|
678,113
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
57,252
|
74,256
|
||||||
Operating lease right-of-use assets
|
30,839
|
-
|
||||||
Property, plant and equipment, net
|
132,988
|
119,329
|
||||||
Deferred tax assets, net
|
14,589
|
14,699
|
||||||
Intangible assets, net and Goodwill
|
211,420
|
73,378
|
||||||
Other non-current assets
|
12,303
|
4,697
|
||||||
Total long term assets
|
459,391
|
286,359
|
||||||
Total assets
|
$
|
1,176,923
|
$
|
964,472
|
||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
90,190
|
$
|
107,079
|
||||
Employees and payroll accruals
|
31,524
|
29,053
|
||||||
Current maturities of bank loans and accrued interest
|
17,233
|
16,639
|
||||||
Warranty obligations
|
35,229
|
28,868
|
||||||
Deferred revenues
|
13,527
|
14,351
|
||||||
Accrued expenses and other current liabilities
|
60,369
|
29,728
|
||||||
Total current liabilities
|
248,072
|
225,718
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Bank loans
|
7,029
|
3,510
|
||||||
Warranty obligations
|
101,517
|
92,958
|
||||||
Deferred revenues
|
66,037
|
60,670
|
||||||
Operating lease liabilities
|
24,790
|
-
|
||||||
Deferred tax liabilities, net
|
8,544
|
1,499
|
||||||
Other non-current liabilities
|
23,417
|
9,391
|
||||||
Total long-term liabilities
|
231,334
|
168,028
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock
|
5
|
5
|
||||||
Additional paid-in capital
|
417,385
|
371,794
|
||||||
Accumulated other comprehensive loss
|
(1,220
|
)
|
(524
|
)
|
||||
Retained earnings
|
210,149
|
191,133
|
||||||
Total SolarEdge Technologies, Inc. stockholders’ equity
|
626,319
|
562,408
|
||||||
Non-controlling interests
|
71,198
|
8,318
|
||||||
Total stockholders’ equity
|
697,517
|
570,726
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,176,923
|
$
|
964,472
|
Three months ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
Cash flows provided by operating activities:
|
||||||||
Net income
|
$
|
17,975
|
$
|
35,686
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property, plant and equipment
|
3,870
|
2,394
|
||||||
Amortization of intangible assets
|
1,971
|
36
|
||||||
Amortization of premium and accretion of discount on available-for-sale marketable securities
|
(59
|
)
|
778
|
|||||
Stock-based compensation
|
9,704
|
6,849
|
||||||
Capital loss from disposal of equipment
|
66
|
64
|
||||||
Realized loss from sale of available-for-sale marketable securities
|
120
|
-
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories
|
964
|
(15,348
|
)
|
|||||
Prepaid expenses and other assets
|
10,885
|
9,210
|
||||||
Trade receivables, net
|
(7,379
|
)
|
(17,935
|
)
|
||||
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences
|
828
|
(74
|
)
|
|||||
Deferred tax assets and liabilities, net
|
(973
|
)
|
(1,321
|
)
|
||||
Trade payables, net
|
(21,720
|
)
|
13,595
|
|||||
Employees and payroll accruals
|
3,250
|
7,153
|
||||||
Warranty obligations
|
14,947
|
9,384
|
||||||
Deferred revenues
|
1,730
|
6,981
|
||||||
Other liabilities
|
20,271
|
6,527
|
||||||
Net cash provided by operating activities
|
56,450
|
63,979
|
||||||
Cash flows from investing activities:
|
||||||||
Business combination, net of cash acquired
|
(39,315
|
)
|
-
|
|||||
Purchase of property, plant and equipment
|
(10,620
|
)
|
(11,325
|
)
|
||||
Investment in short term bank deposits
|
(56
|
)
|
-
|
|||||
Investment in available-for-sale marketable securities
|
(15,316
|
)
|
(25,436
|
)
|
||||
Proceeds from sales and maturities of available-for-sale marketable securities
|
44,575
|
34,500
|
||||||
Net cash used in investing activities
|
$
|
(20,732
|
)
|
$
|
(2,261
|
)
|
||
Cash flows from financing activities:
|
||||||||
Proceeds from bank loans borrowing
|
$
|
51
|
$
|
-
|
||||
Payments of bank loans
|
(1,003
|
)
|
-
|
|||||
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
|
309
|
4,605
|
||||||
Change in Non-controlling interests
|
(1,987
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
(2,630
|
)
|
4,605
|
|||||
Increase in cash, cash equivalents and restricted cash
|
33,088
|
66,323
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
193,261
|
164,679
|
||||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash
|
1,940
|
(17
|
)
|
|||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
228,289
|
$
|
230,985
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Gross profit (GAAP)
|
86,110
|
79,711
|
79,597
|
|||||||||
Stock-based compensation
|
1,354
|
1,323
|
924
|
|||||||||
Cost of product adjustment
|
682
|
398
|
----
|
|||||||||
Intangible assets amortization
|
1,077
|
----
|
----
|
|||||||||
Gross profit (Non-GAAP)
|
89,223
|
81,432
|
80,521
|
|||||||||
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Gross margin (GAAP)
|
31.7
|
%
|
30.2
|
%
|
37.9
|
%
|
||||||
Stock-based compensation
|
0.5
|
%
|
0.5
|
%
|
0.5
|
%
|
||||||
Cost of product adjustment
|
0.2
|
%
|
0.2
|
%
|
0.0
|
%
|
||||||
Intangible assets amortization
|
0.4
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||
Gross margin (Non-GAAP)
|
32.8
|
%
|
30.9
|
%
|
38.4
|
%
|
||||||
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Operating expenses (GAAP)
|
58,062
|
55,322
|
38,833
|
|||||||||
Stock-based compensation R&D
|
(3,490
|
)
|
(3,230
|
)
|
(2,382
|
)
|
||||||
Stock-based compensation S&M
|
(2,404
|
)
|
(2,564
|
)
|
(2,204
|
)
|
||||||
Stock-based compensation G&A
|
(2,456
|
)
|
(1,574
|
)
|
(1,339
|
)
|
||||||
Intangible assets amortization - R&D
|
(36
|
)
|
(652
|
)
|
----
|
|||||||
Intangible assets amortization - S&M
|
(858
|
)
|
(101
|
)
|
----
|
|||||||
Acquisition related expenses
|
(798
|
)
|
(2,140
|
)
|
----
|
|||||||
Operating expenses (Non-GAAP)
|
48,020
|
45,061
|
32,908
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Operating income (GAAP)
|
28,048
|
24,389
|
40,764
|
|||||||||
Cost of product adjustment
|
682
|
398
|
----
|
|||||||||
Stock-based compensation
|
9,704
|
8,691
|
6,849
|
|||||||||
Intangible assets amortization
|
1,971
|
753
|
----
|
|||||||||
Acquisition related expenses
|
798
|
2,140
|
----
|
|||||||||
Operating income (Non-GAAP)
|
41,203
|
36,371
|
47,613
|
|||||||||
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Financial expenses (income), net (GAAP)
|
6,151
|
(288
|
)
|
584
|
||||||||
Non cash interest
|
(785
|
)
|
(769
|
)
|
512
|
|||||||
Currency fluctuation due to new lease standard adoption
|
(948
|
)
|
----
|
----
|
||||||||
Intangible assets amortization
|
----
|
528
|
----
|
|||||||||
Financial expenses (income), net (Non-GAAP)
|
4,418
|
(529
|
)
|
1,096
|
||||||||
Reconciliation of GAAP to Non-GAAP Other expenses
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Other expenses (GAAP)
|
----
|
435
|
----
|
|||||||||
Fixed assets disposal
|
----
|
(435
|
)
|
----
|
||||||||
Other expenses (income) (Non-GAAP)
|
----
|
----
|
----
|
|||||||||
Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit)
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Tax on income (Tax benefit) (GAAP)
|
3,922
|
12,093
|
5,662
|
|||||||||
Deferred tax asset
|
973
|
2,304
|
1,321
|
|||||||||
Transition tax of foreign earnings
|
----
|
(8,189
|
)
|
(820
|
)
|
|||||||
Tax on income (Tax benefit) (Non-GAAP)
|
4,895
|
6,208
|
6,163
|
Reconciliation of GAAP to Non-GAAP Net income
attributable to Solaredge Technologies Inc.
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Net income attributable to Solaredge Technologies Inc. (GAAP)
|
19,016
|
12,936
|
35,686
|
|||||||||
Cost of product adjustment
|
682
|
398
|
----
|
|||||||||
Stock-based compensation
|
9,704
|
8,691
|
6,849
|
|||||||||
Intangible assets amortization
|
1,971
|
225
|
----
|
|||||||||
Acquisition related expenses
|
798
|
2,140
|
----
|
|||||||||
Non cash interest
|
785
|
769
|
512
|
|||||||||
Currency fluctuation due to new lease standard adoption
|
948
|
----
|
----
|
|||||||||
Fixed Assets disposal
|
----
|
435
|
----
|
|||||||||
Deferred tax asset
|
(973
|
)
|
(2,304
|
)
|
(1,321
|
)
|
||||||
Transition tax of foreign earnings
|
----
|
8,189
|
820
|
|||||||||
Net income attributable to Solaredge Technologies Inc. (Non-GAAP)
|
32,931
|
31,479
|
42,546
|
|||||||||
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Net basic earnings per share (GAAP)
|
0.40
|
0.28
|
0.81
|
|||||||||
Cost of product adjustment
|
0.02
|
0.01
|
----
|
|||||||||
Stock-based compensation
|
0.21
|
0.19
|
0.15
|
|||||||||
Intangible assets amortization
|
0.04
|
0.01
|
----
|
|||||||||
Acquisition related expenses
|
0.01
|
0.04
|
----
|
|||||||||
Non cash interest
|
0.02
|
0.02
|
0.01
|
|||||||||
Currency fluctuation due to new lease standard adoption
|
0.02
|
----
|
----
|
|||||||||
Fixed Assets disposal
|
----
|
0.01
|
----
|
|||||||||
Deferred tax asset
|
(0.02
|
)
|
(0.05
|
)
|
(0.03
|
)
|
||||||
Transition tax of foreign earnings
|
----
|
0.18
|
0.02
|
|||||||||
Net basic earnings per share (Non-GAAP)
|
0.70
|
0.69
|
0.96
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Net diluted earnings per share (GAAP)
|
0.39
|
0.27
|
0.75
|
|||||||||
Cost of product adjustment
|
0.01
|
0.01
|
----
|
|||||||||
Stock-based compensation
|
0.17
|
0.16
|
0.12
|
|||||||||
Intangible assets amortization
|
0.04
|
0.01
|
----
|
|||||||||
Acquisition related expenses
|
0.01
|
0.04
|
----
|
|||||||||
Non cash interest
|
0.02
|
0.01
|
0.01
|
|||||||||
Currency fluctuation due to new lease standard adoption
|
0.02
|
----
|
----
|
|||||||||
Fixed Assets disposal
|
----
|
0.01
|
----
|
|||||||||
Deferred tax asset
|
(0.02
|
)
|
(0.04
|
)
|
(0.03
|
)
|
||||||
Transition tax of foreign earnings
|
----
|
0.16
|
0.02
|
|||||||||
Net diluted earnings per share (Non-GAAP)
|
0.64
|
0.63
|
0.87
|
|||||||||
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
||||||||||||
Three months ended
|
||||||||||||
March 31, 2019
|
December 31, 2018
|
March 31, 2018
|
||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
47,020,218
|
47,637,478
|
47,673,522
|
|||||||||
Stock-based compensation
|
4,766,230
|
2,204,179
|
1,535,408
|
|||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
51,786,448
|
49,841,657
|
49,208,930
|