UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 6, 2019
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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(Address of Principal executive offices)
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(Zip Code)
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Registrant’s Telephone number, including area code: 972 (9 ) 957-6620
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 6, 2019, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial
results for the first quarter ended September 30, 2019. 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
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Exhibit No.
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Description
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| Exhibit 104 |
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
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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.
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SOLAREDGE TECHNOLOGIES, INC.
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Date: November 6, 2019
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By:
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/s/ Rachel Prishkolnik
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Name:
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Rachel Prishkolnik
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Title:
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VP General Counsel and Corporate Secretary
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Exhibit 99.1
SolarEdge Announces Third Quarter
2019 Financial Results
Revenues surpass $1 billion in first three quarters of 2019
FREMONT, Calif. — November 6, 2019.
SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy, today announced its financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights
| • |
Record revenues of $410.6 million
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| • |
Record revenues from solar products of $387.8 million
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| • |
GAAP gross margin of 33.9%
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| • |
GAAP gross margin from sale of solar products of 35.0%
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Non-GAAP gross margin from sale of solar products of 35.4%
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| • |
GAAP net income of $41.6 million
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| • |
Record Non-GAAP net income of $63.6 million
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| • |
GAAP net diluted earnings per share (“EPS”) of $0.81
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Record Non-GAAP net diluted EPS of $1.21
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1.5 Gigawatts (AC) of inverters shipped
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“Our performance this quarter was at the upper range of our guidance, with record revenues, record non-GAAP profitability and record cash
generation,” said Zvi Lando, Acting CEO and VP Global Sales of SolarEdge. “While we are pleased with the financial and operational results, this was a somber quarter for the Company due to the untimely passing of Mr. Guy Sella, Founder, Chairman
and CEO of SolarEdge. Guy was not only our CEO and Chairman but a technological visionary, a role model and dear friend and will be greatly missed. SolarEdge management, most of whom have been leading the company together with Guy for many years,
are dedicated to continue to strive for excellence in innovation and execution. We believe we are well positioned for continued growth both in our core business as leaders of PV inverter technology and in our new businesses of lithium-ion cells and
batteries, e-mobility powertrain solutions and uninterruptible power supply systems.”
Third Quarter 2019 Summary
The Company reported record revenues of $410.6 million, up 26% from $325.0 million in the prior quarter and up 74% from $236.6 million in
the same quarter last year.
Revenues related to the solar business were $387.8 million, up 26% from $306.7 million in the prior quarter and up 66% from $233.8
million in the same quarter last year.
GAAP gross margin was 33.9%, slightly down from 34.1% in the prior quarter and up from 33.0% year over year. This quarter’s gross margins
were negatively impacted by increased air shipments as well as the increase in U.S. tariffs on China made products.
Non-GAAP gross margin was 35.1%, down from 35.7% in the prior quarter and up from 33.6% year over year.
GAAP gross margin for the solar business was 35.0%, down from 36.4% in the prior quarter and up from 33.9% year over year.
Non-GAAP gross margin for the solar business was 35.4%, down from 36.9% in the prior quarter and up from 34.4% year over year.
GAAP operating expenses were $73.3 million, up 12% from $65.3 million in the prior quarter and up 67% from $43.9 million in the same
quarter last year. Operating expenses this quarter include $8.3 million non-recurring expense related to acceleration of equity awards and other payments related to the untimely death of Mr. Guy Sella, former Chairman, CEO and Founder of the
Company.
Non-GAAP operating expenses were $54.8 million, relatively flat to $54.9 million in the prior quarter and up 48% from $37.0 million in
the same quarter last year.
GAAP operating income was $66.0 million, up 46% from $45.4 million in the prior quarter and up 94% from $34.0 million in the same quarter
last year.
Non-GAAP operating income was $89.2 million, up 46% from $61.0 million in the prior quarter and up 110% from $42.5 million in the same
quarter last year.
GAAP net income was $41.6 million, up 26% from $33.1 million in the prior quarter and down 9% from $45.6 million in the same quarter last
year.
Non-GAAP net income was $63.6 million, up 29% from $49.3 million in the prior quarter and up 49% from $42.7 million in the same quarter
last year.
GAAP net diluted EPS was $0.81, up from $0.66 in the prior quarter and down from $0.95 in the same quarter last year.
Non-GAAP net diluted EPS was $1.21, up from $0.94 in the prior quarter and up from $0.86 in the same quarter last year.
Cash flow from operating activities was $68.7 million, up from $50.8 million in the prior quarter and up from $34.3 million in the same
quarter last year.
As of September 30, 2019, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $432.9
million, compared to $373.6 million on June 30, 2019.
Outlook for the Fourth Quarter 2019
The Company also provides guidance for the fourth quarter ending December 31, 2019 as follows:
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Revenues to be within the range of $410 million to $420 million
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| • |
Gross margin expected to be within the range of 32% to 34%
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Revenues from solar products to be within the range of $388 million to $398 million
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| • |
Gross margin from sale of solar products expected to be within the range of 33% to 35%
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Conference Call
The Company will host a conference call to discuss these results at 4:30 P.M. ET on Wednesday, November 6, 2019. The call will be
available, live, to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The Conference ID number is 5370286. 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. 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 PV systems. 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 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 for the year ended December 31, 2018, filed on February 28, 2019, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 6, 2019. 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 OPERATIONS
(In thousands, except per share data)
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Three months ended
September 30,
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Nine months ended
September 30,
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2019
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2018
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2019
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2018
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(Unaudited)
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(Unaudited)
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Revenues
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$
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410,556
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$
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236,578
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$
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1,007,437
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$
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673,567
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Cost of revenues
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271,247
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158,596
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671,348
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434,042
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||||||||||||
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Gross profit
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139,309
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77,982
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336,089
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239,525
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Operating expenses:
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Research and development
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30,747
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20,109
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86,451
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57,535
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Sales and marketing
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22,026
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16,938
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64,325
|
49,097
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||||||||||||
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General and administrative
|
12,214
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6,898
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37,590
|
17,427
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||||||||||||
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Non recurring expenses
|
8,305
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-
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8,305
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-
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||||||||||||
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Total
operating expenses
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73,292
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43,945
|
196,671
|
124,059
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||||||||||||
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Operating income
|
66,017
|
34,037
|
139,418
|
115,466
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||||||||||||
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Financial expenses, net
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17,023
|
689
|
22,401
|
2,585
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||||||||||||
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Income before taxes on income
|
48,994
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33,348
|
117,017
|
112,881
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||||||||||||
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Taxes on income (tax benefit)
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7,270
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(12,295
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)
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24,405
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(3,016
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)
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||||||||||
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Net income
|
$
|
41,724
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$
|
45,643
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$
|
92,612
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$
|
115,897
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||||||||
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Net loss (income) attributable to non-controlling interests
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(97
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)
|
-
|
1,159
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-
|
|||||||||||
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Net income attributable to SolarEdge Technologies, Inc.
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$
|
41,627
|
$
|
45,643
|
$
|
93,771
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$
|
115,897
|
||||||||
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
September 30,
|
December 31,
|
|||||||
|
2019
|
2018
|
|||||||
|
(Unaudited)
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
247,342
|
$
|
187,764
|
||||
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Short-term bank deposits
|
5,769
|
9,870
|
||||||
|
Restricted bank deposits
|
1,600
|
824
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||||||
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Marketable securities
|
85,343
|
118,680
|
||||||
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Trade receivables, net
|
292,232
|
173,579
|
||||||
|
Prepaid expenses and other current assets
|
68,234
|
45,073
|
||||||
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Inventories, net
|
134,283
|
141,519
|
||||||
|
Total
current assets
|
834,803
|
677,309
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Marketable securities
|
92,871
|
74,256
|
||||||
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Operating lease right-of-use assets
|
34,601
|
-
|
||||||
|
Property, plant and equipment, net
|
149,675
|
119,329
|
||||||
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Deferred tax assets, net
|
17,180
|
14,699
|
||||||
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Intangible assets, net and goodwill
|
200,795
|
73,378
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||||||
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Other long term assets
|
7,667
|
5,501
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||||||
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Total long-term assets
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502,789
|
287,163
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||||||
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Total
assets
|
$
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1,337,592
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$
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964,472
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||||
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CURRENT LIABILITIES:
|
||||||||
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Trade payables, net
|
$
|
132,230
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$
|
107,079
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||||
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Employees and payroll accruals
|
44,386
|
29,053
|
||||||
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Current maturities of bank loans and accrued interest
|
16,912
|
16,639
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||||||
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Warranty obligations
|
45,887
|
28,868
|
||||||
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Deferred revenues
|
15,006
|
14,351
|
||||||
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Accrued expenses and other current liabilities
|
80,986
|
29,728
|
||||||
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Total
current liabilities
|
335,407
|
225,718
|
||||||
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LONG-TERM LIABILITIES:
|
||||||||
|
Bank loans
|
4,055
|
3,510
|
||||||
|
Warranty obligations
|
125,467
|
92,958
|
||||||
|
Deferred revenues
|
81,934
|
60,670
|
||||||
|
Operating lease liabilities
|
29,117
|
-
|
||||||
|
Deferred tax liabilities, net
|
7,762
|
1,499
|
||||||
|
Other long term liabilities
|
16,662
|
9,391
|
||||||
|
Total
long-term liabilities
|
264,997
|
168,028
|
||||||
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STOCKHOLDERS’ EQUITY:
|
||||||||
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Common stock
|
5
|
5
|
||||||
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Additional paid-in capital
|
450,459
|
371,794
|
||||||
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Accumulated other comprehensive loss
|
(3,356
|
)
|
(524
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)
|
||||
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Retained earnings
|
284,904
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191,133
|
||||||
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Total
SolarEdge Technologies, Inc. stockholders’ equity
|
732,012
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562,408
|
||||||
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Non-controlling interests
|
5,176
|
8,318
|
||||||
|
Total
stockholders’ equity
|
737,188
|
570,726
|
||||||
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Total
liabilities and stockholders’ equity
|
$
|
1,337,592
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$
|
964,472
|
||||
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Nine months ended September 30,
|
||||||||
|
2019
|
2018
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash flows provided by operating activities:
|
||||||||
|
Net income
|
$
|
92,612
|
$
|
115,897
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation of property, plant and equipment
|
12,532
|
7,997
|
||||||
|
Amortization of intangible assets
|
7,514
|
404
|
||||||
|
Amortization of premium and accretion of discount on available-for-sale marketable
securities
|
-
|
1,242
|
||||||
|
Stock-based compensation
|
38,685
|
21,927
|
||||||
|
Loss from disposal of assets
|
566
|
64
|
||||||
|
Realized gain from cash flow hedge
|
-
|
(9
|
)
|
|||||
|
Realized loss from sale of available-for-sale marketable securities
|
91
|
-
|
||||||
|
Changes in assets and liabilities:
|
||||||||
|
Inventories, net
|
15,746
|
(18,120
|
)
|
|||||
|
Prepaid expenses and other assets
|
(19,795
|
)
|
(4,800
|
)
|
||||
|
Trade receivables, net
|
(114,572
|
)
|
(42,418
|
)
|
||||
|
Operating lease right-of-use assets and liabilities, net and effect of exchange rate
differences
|
2,138
|
(222
|
)
|
|||||
|
Deferred tax assets and liabilities, net
|
(4,923
|
)
|
(4,789
|
)
|
||||
|
Trade payables, net
|
21,301
|
14,006
|
||||||
|
Employees and payroll accruals
|
15,329
|
1,200
|
||||||
|
Warranty obligations
|
49,633
|
28,847
|
||||||
|
Deferred revenues
|
19,516
|
21,576
|
||||||
|
Other liabilities
|
39,561
|
(597
|
)
|
|||||
|
Net cash provided by operating activities
|
175,934
|
142,205
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Business combination, net of cash acquired
|
(38,435
|
)
|
(11,223
|
)
|
||||
|
Purchase of property, plant and equipment
|
(39,679
|
)
|
(30,051
|
)
|
||||
|
Withdrawal from (investment in) bank deposits
|
4,101
|
(8,123
|
)
|
|||||
|
Investment in restricted bank deposits
|
(243
|
)
|
(201
|
)
|
||||
|
Investment in available-for-sale marketable securities
|
(103,711
|
)
|
(143,150
|
)
|
||||
|
Proceeds from sales and maturities of available-for-sale marketable securities
|
119,570
|
71,632
|
||||||
|
Net cash used in investing activities
|
$
|
(58,397
|
)
|
$
|
(121,116
|
)
|
||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from borrowing loans
|
$
|
232
|
$
|
-
|
||||
|
Repayment of bank loans, net
|
(5,142
|
)
|
-
|
|||||
|
Proceeds from issuance of shares under stock purchase plan and upon exercise of
stock-based awards
|
4,940
|
7,915
|
||||||
|
Purchase of land and building under finance lease
|
(1,248
|
)
|
-
|
|||||
|
Change in non-controlling interests
|
(67,089
|
)
|
-
|
|||||
|
Net cash provided by (used in) financing activities
|
$
|
(68,307
|
)
|
$
|
7,915
|
|||
|
Increase in cash and cash equivalents and restricted cash
|
49,230
|
29,004
|
||||||
|
Cash, cash equivalents and restricted cash at the beginning of the period
|
187,764
|
163,163
|
||||||
|
Effect of exchange rate differences on cash, cash equivalents and restricted cash
|
10,348
|
731
|
||||||
|
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
247,342
|
$
|
192,898
|
||||
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except gross profit and per share data)
(Unaudited)
|
Reconciliation of GAAP to Non-GAAP Gross Profit
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Gross profit (GAAP)
|
139,309
|
110,670
|
77,982
|
336,089
|
239,525
|
|||||||||||||||
|
Stock-based compensation
|
1,691
|
1,651
|
1,127
|
4,696
|
3,019
|
|||||||||||||||
|
Cost of product adjustment
|
107
|
319
|
208
|
1,108
|
208
|
|||||||||||||||
|
Amortization and depreciation of acquired assets
|
2,898
|
3,307
|
193
|
7,282
|
193
|
|||||||||||||||
|
Gross profit (Non-GAAP)
|
144,005
|
115,947
|
79,510
|
349,175
|
242,945
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Gross Margin
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Gross margin (GAAP)
|
33.9
|
%
|
34.1
|
%
|
33.0
|
%
|
33.4
|
%
|
35.6
|
%
|
||||||||||
|
Stock-based compensation
|
0.4
|
%
|
0.5
|
%
|
0.5
|
%
|
0.5
|
%
|
0.5
|
%
|
||||||||||
|
Cost of product adjustment
|
0.0
|
%
|
0.1
|
%
|
0.1
|
%
|
0.1
|
%
|
0.0
|
%
|
||||||||||
|
Amortization and depreciation of acquired assets
|
0.8
|
%
|
1.0
|
%
|
0.1
|
%
|
0.7
|
%
|
0.0
|
%
|
||||||||||
|
Gross margin (Non-GAAP)
|
35.1
|
%
|
35.7
|
%
|
33.6
|
%
|
34.7
|
%
|
36.1
|
%
|
||||||||||
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Operating expenses (GAAP)
|
73,292
|
65,317
|
43,945
|
196,671
|
124,059
|
|||||||||||||||
|
Stock-based compensation R&D
|
(4,269
|
)
|
(4,176
|
)
|
(2,988
|
)
|
(11,935
|
)
|
(7,975
|
)
|
||||||||||
|
Stock-based compensation S&M
|
(2,779
|
)
|
(2,722
|
)
|
(2,250
|
)
|
(7,905
|
)
|
(6,548
|
)
|
||||||||||
|
Stock-based compensation G&A
|
(2,628
|
)
|
(2,823
|
)
|
(1,585
|
)
|
(7,907
|
)
|
(4,385
|
)
|
||||||||||
|
Amortization and depreciation of acquired assets - R&D
|
(17
|
)
|
(9
|
)
|
(110
|
)
|
(62
|
)
|
(110
|
)
|
||||||||||
|
Amortization and depreciation of acquired assets - S&M
|
(440
|
)
|
51
|
(29
|
)
|
(1,247
|
)
|
(29
|
)
|
|||||||||||
|
Amortization and depreciation of acquired assets - G&A
|
(54
|
)
|
(26
|
)
|
----
|
(80
|
)
|
----
|
||||||||||||
|
Non recurring expenses
|
(8,305
|
)
|
----
|
----
|
(8,305
|
)
|
----
|
|||||||||||||
|
Assets disposal
|
(14
|
)
|
(552
|
)
|
----
|
(566
|
)
|
----
|
||||||||||||
|
Acquisition related expenses
|
----
|
(151
|
)
|
----
|
(949
|
)
|
----
|
|||||||||||||
|
Operating expenses (Non-GAAP)
|
54,786
|
54,909
|
36,983
|
157,715
|
105,012
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Operating income
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Operating income (GAAP)
|
66,017
|
45,353
|
34,037
|
139,418
|
115,466
|
|||||||||||||||
|
Cost of product adjustment
|
107
|
319
|
208
|
1,108
|
208
|
|||||||||||||||
|
Stock-based compensation
|
11,367
|
11,372
|
7,950
|
32,443
|
21,927
|
|||||||||||||||
|
Amortization and depreciation of acquired assets
|
3,409
|
3,291
|
332
|
8,671
|
332
|
|||||||||||||||
|
Non recurring expenses
|
8,305
|
----
|
----
|
8,305
|
----
|
|||||||||||||||
|
Acquisition related expenses
|
----
|
151
|
----
|
949
|
----
|
|||||||||||||||
|
Assets disposal
|
14
|
552
|
----
|
566
|
----
|
|||||||||||||||
|
Operating income (Non-GAAP)
|
89,219
|
61,038
|
42,527
|
191,460
|
137,933
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Financial expenses (income), net (GAAP)
|
17,023
|
(773
|
)
|
689
|
22,401
|
2,585
|
||||||||||||||
|
Non cash interest
|
(955
|
)
|
(850
|
)
|
(640
|
)
|
(2,590
|
)
|
(1,720
|
)
|
||||||||||
|
Currency fluctuation due to new lease standard adoption
|
(800
|
)
|
(577
|
)
|
----
|
(2,325
|
)
|
----
|
||||||||||||
|
Financial expenses (income), net (Non-GAAP)
|
15,268
|
(2,200
|
)
|
49
|
17,486
|
865
|
||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Tax on income (tax benefit)
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Tax on income (tax benefit) (GAAP)
|
7,270
|
13,213
|
(12,295
|
)
|
24,405
|
(3,016
|
)
|
|||||||||||||
|
Deferred tax realized (asset)
|
2,963
|
987
|
1,771
|
4,923
|
4,789
|
|||||||||||||||
|
Transition tax of foreign earnings
|
----
|
----
|
10,305
|
----
|
9,485
|
|||||||||||||||
|
Tax on income (tax benefit) (Non-GAAP)
|
10,233
|
14,200
|
(219
|
)
|
29,328
|
11,258
|
||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Net income attributable to Solaredge Technologies Inc.
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Net income attributable to Solaredge Technologies Inc. (GAAP)
|
41,627
|
33,128
|
45,643
|
93,771
|
115,897
|
|||||||||||||||
|
Cost of product adjustment
|
107
|
319
|
208
|
1,108
|
208
|
|||||||||||||||
|
Stock-based compensation
|
11,367
|
11,372
|
7,950
|
32,443
|
21,927
|
|||||||||||||||
|
Amortization and depreciation of acquired assets
|
3,409
|
3,291
|
332
|
8,671
|
332
|
|||||||||||||||
|
Non recurring expenses
|
8,305
|
----
|
----
|
8,305
|
----
|
|||||||||||||||
|
Acquisition related expenses
|
----
|
151
|
----
|
949
|
----
|
|||||||||||||||
|
Assets disposal
|
14
|
552
|
----
|
566
|
----
|
|||||||||||||||
|
Non cash interest
|
955
|
850
|
640
|
2,590
|
1,720
|
|||||||||||||||
|
Currency fluctuation due to new lease standard adoption
|
800
|
577
|
----
|
2,325
|
----
|
|||||||||||||||
|
Deferred tax realized (asset)
|
(2,963
|
)
|
(987
|
)
|
(1,771
|
)
|
(4,923
|
)
|
(4,789
|
)
|
||||||||||
|
Transition tax of foreign earnings
|
----
|
----
|
(10,305
|
)
|
----
|
(9,485
|
)
|
|||||||||||||
|
Net income attributable to Solaredge Technologies Inc. (Non-GAAP)
|
63,621
|
49,253
|
42,697
|
145,805
|
125,810
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Net basic earnings per share
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Net basic earnings per share (GAAP)
|
0.86
|
0.69
|
1.00
|
1.97
|
2.57
|
|||||||||||||||
|
Cost of product adjustment
|
0.01
|
0.01
|
0.00
|
0.02
|
0.00
|
|||||||||||||||
|
Stock-based compensation
|
0.23
|
0.24
|
0.17
|
0.68
|
0.49
|
|||||||||||||||
|
Amortization and depreciation of acquired assets
|
0.07
|
0.07
|
0.01
|
0.18
|
0.01
|
|||||||||||||||
|
Non recurring expenses
|
0.17
|
----
|
----
|
0.17
|
----
|
|||||||||||||||
|
Acquisition related expenses
|
----
|
----
|
----
|
0.02
|
----
|
|||||||||||||||
|
Assets disposal
|
----
|
0.01
|
----
|
0.01
|
0.00
|
|||||||||||||||
|
Non cash interest
|
0.02
|
0.02
|
0.01
|
0.06
|
0.04
|
|||||||||||||||
|
Currency fluctuation due to new lease standard adoption
|
0.02
|
0.01
|
----
|
0.05
|
----
|
|||||||||||||||
|
Deferred tax realized (asset)
|
(0.06
|
)
|
(0.02
|
)
|
(0.04
|
)
|
(0.10
|
)
|
(0.11
|
)
|
||||||||||
|
Transition tax of foreign earnings
|
----
|
----
|
(0.23
|
)
|
----
|
(0.21
|
)
|
|||||||||||||
|
Net basic earnings per share (Non-GAAP)
|
1.32
|
1.03
|
0.94
|
3.06
|
2.80
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Net diluted earnings per share
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Net diluted earnings per share (GAAP)
|
0.81
|
0.66
|
0.95
|
1.87
|
2.41
|
|||||||||||||||
|
Cost of product adjustment
|
----
|
----
|
----
|
0.01
|
----
|
|||||||||||||||
|
Stock-based compensation
|
0.19
|
0.19
|
0.13
|
0.54
|
0.38
|
|||||||||||||||
|
Amortization and depreciation of acquired assets
|
0.07
|
0.07
|
0.01
|
0.18
|
----
|
|||||||||||||||
|
Non recurring expenses
|
0.16
|
----
|
----
|
0.16
|
----
|
|||||||||||||||
|
Acquisition related expenses
|
----
|
----
|
----
|
0.02
|
----
|
|||||||||||||||
|
Assets disposal
|
----
|
0.01
|
----
|
0.01
|
----
|
|||||||||||||||
|
Non cash interest
|
0.02
|
0.02
|
0.01
|
0.05
|
0.04
|
|||||||||||||||
|
Currency fluctuation due to new lease standard adoption
|
0.02
|
0.01
|
----
|
0.05
|
----
|
|||||||||||||||
|
Deferred tax realized (asset)
|
(0.06
|
)
|
(0.02
|
)
|
(0.03
|
)
|
(0.10
|
)
|
(0.10
|
)
|
||||||||||
|
Transition tax of foreign earnings
|
----
|
----
|
(0.21
|
)
|
----
|
(0.19
|
)
|
|||||||||||||
|
Net diluted earnings per share (Non-GAAP)
|
1.21
|
0.94
|
0.86
|
2.79
|
2.54
|
|||||||||||||||
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted earnings per share
|
||||||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
||||||||||||||||
|
Number of shares used in computing net diluted earnings per share (GAAP)
|
51,081,594
|
49,940,034
|
48,281,240
|
49,935,638
|
48,091,185
|
|||||||||||||||
|
Stock-based compensation
|
1,375,391
|
2,130,135
|
1,463,633
|
2,090,912
|
1,446,775
|
|||||||||||||||
|
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
52,456,985
|
52,070,169
|
49,744,873
|
52,026,550
|
49,537,960
|
|||||||||||||||