SolarEdge announces Second Quarter 2017 financial results

FREMONT, Calif. — August 2, 2017. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in PV inverters, power optimizers, and module-level monitoring services, today announced its financial results for the second quarter 2017 ended June 30, 2017.

Second Quarter 2017 Highlights 

• Record revenues for the quarter of $136.1 million
• GAAP gross margin for the quarter of 34.6%
• GAAP operating income for the quarter of $19.1 million
• GAAP net income for the quarter of $22.5 million
• Non-GAAP net income for the quarter of $25.8 million
• GAAP net diluted earnings per share for the quarter of $0.50
• Non-GAAP net diluted earnings per share for the quarter of $0.55
• Cash flow from operating activities of $31.6 million
• 563 Megawatts (AC) of inverters shipped for the quarter

“The second quarter of 2017 was a record quarter for us with record revenues, record gross margins, record non-GAAP profitability and record cash generation” said Guy Sella, Founder, Chairman and CEO of SolarEdge.

“Our sales in markets outside of the United States continued to grow this quarter further strengthening our diversified revenue base.

Our continued cost reduction led by the HD-wave roll out allowed us to further increase profitability and cash flow generation.

This quarter we also unveiled the next generation power optimizer, large capacity commercial inverter and announced the launch of the first PV inverter-integrated EV (electric vehicle) charger demonstrating our continued innovation and technological leadership.”

Quarter Ended June 30, 2017 Summary 
The Company reported record revenues of $136.1 million, up 18% from the prior quarter and up 9% year over year.

GAAP gross margin reached 34.6%, up from 33.6% in the prior quarter and up from 31.4% year over year.

GAAP operating expenses were $28.0 million, an increase of 5% from the prior quarter and 32% year over year.

GAAP operating income was $19.1 million, up 59% from $12.0 million in the prior quarter and up from $17.9 million year over year.

GAAP net income was $22.5 million, up 59% from $14.2 million in the prior quarter and up from $17.3 million year over year.

Record non-GAAP net income was $25.8 million, up 57% from $16.5 million in the prior quarter and up from $19.9 million year over year.

GAAP net diluted earnings per shares (“EPS”) was $0.50, up from $0.32 in the prior quarter and up from $0.39 year over year.

Non-GAAP net diluted EPS was $0.55, up from $0.36 in the prior quarter and up from $0.44 year over year.

As of June 30, 2017, cash, cash equivalents, restricted cash and marketable securities totaled $274.7 million, compared to $247.6 million on March 31, 2017.

Outlook for the Quarter Ending September 30, 2017
The Company also provides guidance for the quarter ending September 30, 2017 as follows:

• Revenues to be within the range of $155 million to $165 million;
• Gross margins to be within the range of 33% to 35%.

Conference Call
The Company will host a conference call to discuss these results at 4:30 P.M. EDT on Wednesday, August 2, 2017. The call will be available, live, to interested parties by dialing 888-778-9065. For international callers, please dial +1 719-457-2085.

The Conference ID number is 6182964.  A live webcast will also be available in the Investors Relations section of the Company’s website at: https://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.