SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Highlights
- Revenues of $331.9 million
- Revenues from solar products of $310.1 million
- GAAP gross margin of 31.0%
- GAAP gross margin from sale of solar products of 33.1%
- Non-GAAP gross margin from sale of solar products of 33.8%
- GAAP net income of $36.7 million
- Non-GAAP net income of $52.1 million
- GAAP net diluted earnings per share (“EPS”) of $0.70
- Non-GAAP net diluted EPS of $0.97
- 1.44 Gigawatts (AC) of inverters shipped
“This quarter, despite the challenges caused by COVID 19, we maintained healthy profitability while generating cash from operating activity,” said Zivi Lando, CEO of SolarEdge. “Our global strength, and in particular our loyal customer base in the Netherlands, Germany, Italy and Australia, softened the decline in U.S. demand this past quarter. While the pandemic has created many operational challenges, I am confident in our financial strength and grateful for the trust of our customers and dedication of our employees which enable us to continue to focus on product innovation and execution of our long term plans even in these challenging times.”
Second Quarter 2020 Summary
The Company reported revenues of $331.9 million, down 23% from $431.2 million in the prior quarter and up 2% from $325.0 million in the same quarter last year.
Revenues related to the solar business were $310.1 million, down 24% from $407.6 million in the prior quarter and up 1% from $306.7 million in the same quarter last year.
GAAP gross margin was 31.0%, down from 32.5% in the prior quarter and down from 34.1% year over year.
Non-GAAP gross margin was 32.4%, down from 33.6% in the prior quarter and down from 35.7% year over year.
GAAP gross margin for the solar business was 33.1%, down from 34.6% in the prior quarter and down from 36.4% year over year.
Non-GAAP gross margin for the solar business was 33.8%, down from 35.0% in the prior quarter and down from 36.9% year over year.
GAAP operating expenses were $73.0 million, up 1% from $72.2 million in the prior quarter and up 12% from $65.3 million in the same quarter last year.
Non-GAAP operating expenses were $61.1 million, down 8% from $66.3 million in the prior quarter and up 11% from $54.9 million in the same quarter last year.
GAAP operating income was $30.0 million, down 56% from $67.8 million in the prior quarter and down 34% from $45.4 million in the same quarter last year.
Non-GAAP operating income was $46.6 million, down 41% from $78.6 million in the prior quarter and down 24% from $61.0 million in the same quarter last year.
GAAP net income was $36.7 million, down 13% from $42.2 million in the prior quarter and up 11% from $33.1 million in the same quarter last year.
Non-GAAP net income was $52.1 million, up 3% from $50.7 million in the prior quarter and up 6% from $49.3 million in the same quarter last year.
GAAP net diluted EPS was $0.70, down from $0.81 in the prior quarter and up from $0.66 in the same quarter last year.
Non-GAAP net diluted EPS was $0.97, up from $0.95 in the prior quarter and up from $0.94 in the same quarter last year.
Cash flow from operating activities was $59.3 million, down from $107.7 million in the prior quarter and up from $50.8 million in the same quarter last year.
As of June 30, 2020, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $592.7 million, compared to $467.5 million on December 31, 2019.
Outlook for the Third Quarter 2020
The Company also provides guidance for the third quarter ending September 30, 2020 as follows:
- Revenues to be within the range of $325 million to $350 million
- Non-GAAP Gross margin expected to be within the range of 32% to 34%
- Revenues from solar products to be within the range of $305 million to $325 million
- Non-GAAP Gross margin from sale of solar products expected 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. ET on Monday, August 3, 2020. The call will be available, live, to interested parties by dialing 800-256-1007. For international callers, please dial +1 323-994-2093. The Conference ID number is 7031770. 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 technology. 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 the PV system. 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, 2019, filed on February 27, 2020, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of August 3, 2020. 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.
|
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
331,851
|
|
$
|
325,010
|
|
$
|
763,069
|
|
$
|
596,881
|
|
Cost of revenues
|
|
|
228,888
|
|
|
214,340
|
|
|
520,098
|
|
|
400,101
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
102,963
|
|
|
110,670
|
|
|
242,971
|
|
|
196,780
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
38,098
|
|
|
29,505
|
|
|
74,793
|
|
|
55,704
|
|
Sales and marketing
|
|
|
20,936
|
|
|
22,127
|
|
|
45,189
|
|
|
42,299
|
|
General and administrative
|
|
|
13,964
|
|
|
13,685
|
|
|
30,149
|
|
|
25,376
|
|
Other operating income
|
|
|
-
|
|
|
-
|
|
|
(4,900)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
72,998
|
|
|
65,317
|
|
|
145,231
|
|
|
123,379
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
29,965
|
|
|
45,353
|
|
|
97,740
|
|
|
73,401
|
|
|
|
|
|
|
|
|
|
|
|
Financial income (expenses), net
|
|
|
11,565
|
|
|
773
|
|
|
(5,040)
|
|
|
(5,378)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
41,530
|
|
|
46,126
|
|
|
92,700
|
|
|
68,023
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
4,862
|
|
|
13,213
|
|
|
13,784
|
|
|
17,135
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
36,668
|
|
$
|
32,913
|
|
$
|
78,916
|
|
$
|
50,888
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Non-controlling interests
|
|
|
-
|
|
|
215
|
|
|
-
|
|
|
1,256
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to SolarEdge Technologies, Inc.
|
|
$
|
36,668
|
|
$
|
33,128
|
|
$
|
78,916
|
|
$
|
52,144
|
|
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2020
|
|
2019
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
428,372
|
|
$
|
223,901
|
|
Short-term bank deposits
|
|
|
3,432
|
|
|
5,010
|
|
Restricted bank deposits
|
|
|
2,135
|
|
|
27,558
|
|
Marketable securities
|
|
|
113,032
|
|
|
91,845
|
|
Trade receivables, net of allowances of $6,273 and $2,473, respectively
|
|
|
181,700
|
|
|
298,383
|
|
Prepaid expenses and other current assets
|
|
|
79,867
|
|
|
115,268
|
|
Inventories, net
|
|
|
264,460
|
|
|
170,798
|
|
Total current assets
|
|
|
1,072,998
|
|
|
932,763
|
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
Marketable securities
|
|
|
45,684
|
|
|
119,176
|
|
Operating lease right-of-use assets, net
|
|
|
36,951
|
|
|
35,858
|
|
Property, plant and equipment, net
|
|
|
226,416
|
|
|
176,963
|
|
Deferred tax assets, net
|
|
|
19,121
|
|
|
16,298
|
|
Intangible assets, net
|
|
|
68,211
|
|
|
74,008
|
|
Goodwill
|
|
|
128,279
|
|
|
129,654
|
|
Other long-term assets
|
|
|
8,166
|
|
|
9,904
|
|
Total long-term assets
|
|
|
532,828
|
|
|
561,861
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,605,826
|
|
$
|
1,494,624
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Trade payables, net
|
|
$
|
158,264
|
|
$
|
157,148
|
|
Employees and payroll accruals
|
|
|
48,764
|
|
|
47,390
|
|
Current maturities of bank loans and accrued interest
|
|
|
15,256
|
|
|
15,673
|
|
Warranty obligations
|
|
|
68,674
|
|
|
65,112
|
|
Deferred revenues and customers advances
|
|
|
25,625
|
|
|
70,815
|
|
Accrued expenses and other current liabilities
|
|
|
88,482
|
|
|
80,576
|
|
Total current liabilities
|
|
|
405,065
|
|
|
436,714
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
Bank loans
|
|
|
-
|
|
|
173
|
|
Warranty obligations
|
|
|
124,010
|
|
|
107,451
|
|
Deferred revenues
|
|
|
103,181
|
|
|
89,982
|
|
Operating lease liabilities
|
|
|
29,991
|
|
|
30,213
|
|
Deferred tax liabilities, net
|
|
|
1,112
|
|
|
4,461
|
|
Other long-term liabilities
|
|
|
17,666
|
|
|
13,960
|
|
Total long-term liabilities
|
|
|
275,960
|
|
|
246,240
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
5
|
|
|
5
|
|
Additional paid-in capital
|
|
|
511,640
|
|
|
475,792
|
|
Accumulated other comprehensive loss
|
|
|
(3,442)
|
|
|
(1,809)
|
|
Retained earnings
|
|
|
416,598
|
|
|
337,682
|
|
Total stockholders’ equity
|
|
|
924,801
|
|
|
811,670
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,605,826
|
|
$
|
1,494,624
|
|
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
2020
|
|
2019
|
|
Cash flows provided by operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
78,916
|
|
$
|
50,888
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation of property, plant and equipment
|
|
|
10,646
|
|
|
8,147
|
|
Amortization of intangible assets
|
|
|
4,615
|
|
|
4,895
|
|
Amortization of premium and accretion of discount on available-for-sale marketable securities, net
|
|
|
373
|
|
|
(12)
|
|
Stock-based compensation expenses
|
|
|
26,734
|
|
|
21,076
|
|
Deferred income tax benefit, net
|
|
|
(6,424)
|
|
|
(1,960)
|
|
Other adjustments, net
|
|
|
(1)
|
|
|
643
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Inventories, net
|
|
|
(94,230)
|
|
|
1,723
|
|
Prepaid expenses and other assets
|
|
|
37,066
|
|
|
(2,574)
|
|
Trade receivables, net
|
|
|
116,045
|
|
|
(56,562)
|
|
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences
|
|
|
(451)
|
|
|
1,466
|
|
Trade payables, net
|
|
|
(1,823)
|
|
|
5,493
|
|
Employees and payroll accruals
|
|
|
1,457
|
|
|
5,151
|
|
Warranty obligations
|
|
|
20,198
|
|
|
28,860
|
|
Deferred revenues and customers advances
|
|
|
(31,834)
|
|
|
11,764
|
|
Other liabilities
|
|
|
5,768
|
|
|
28,236
|
|
Net cash provided by operating activities
|
|
|
167,055
|
|
|
107,234
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Proceeds from sales and maturities of available-for-sale marketable securities
|
|
|
89,739
|
|
|
68,407
|
|
Purchase of property, plant and equipment
|
|
|
(53,706)
|
|
|
(22,244)
|
|
Investment in available-for-sale marketable securities
|
|
|
(36,815)
|
|
|
(63,655)
|
|
Withdrawal from (investment in) restricted bank deposits
|
|
|
25,634
|
|
|
(203)
|
|
Business combination, net of cash acquired
|
|
|
-
|
|
|
(38,435)
|
|
Other investingactivities
|
|
|
2,024
|
|
|
3,909
|
|
Net cash provided by (used in) in investing activities
|
|
$
|
26,876
|
|
$
|
(52,221)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Repayment of bank loans
|
|
$
|
(15,119)
|
|
$
|
(4,891)
|
|
Proceeds from bank loans
|
|
|
15,113
|
|
|
216
|
|
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards
|
|
|
9,114
|
|
|
3,764
|
|
Change in Non-controlling interests
|
|
|
-
|
|
|
(66,474)
|
|
Other financing activities
|
|
|
(112)
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
8,996
|
|
|
(67,385)
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
202,927
|
|
|
(12,372)
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
223,901
|
|
|
187,764
|
|
Effect of exchange rate differences on cash and cash equivalents
|
|
|
1,544
|
|
|
1,183
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
$
|
428,372
|
|
$
|
176,575
|
|
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 |
|
Six months ended |
|
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
| Gross profit (GAAP) |
|
102,963
|
|
140,008
|
|
110,670
|
|
242,971
|
|
196,780
|
| Stock-based compensation |
|
2,359
|
|
2,273
|
|
1,651
|
|
4,632
|
|
3,005
|
| Cost of product adjustment |
|
----
|
|
313
|
|
319
|
|
313
|
|
1,001
|
| Amortization and depreciation of acquired assets |
|
2,325
|
|
2,356
|
|
3,307
|
|
4,681
|
|
4,384
|
| Gross profit (Non-GAAP) |
|
107,647
|
|
144,950
|
|
115,947
|
|
252,597
|
|
205,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Gross Margin |
|
|
Three months ended |
|
Six months ended |
|
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
| Gross margin (GAAP) |
|
31.0%
|
|
32.5%
|
|
34.1%
|
|
31.8%
|
|
33.0%
|
| Stock-based compensation |
|
0.7%
|
|
0.5%
|
|
0.5%
|
|
0.6%
|
|
0.5%
|
| Cost of product adjustment |
|
----
|
|
0.1%
|
|
0.1%
|
|
----
|
|
0.2%
|
| Amortization and depreciation of acquired assets |
|
0.7%
|
|
0.5%
|
|
1.0%
|
|
0.6%
|
|
0.7%
|
| Gross margin (Non-GAAP) |
|
32.4%
|
|
33.6%
|
|
35.7%
|
|
33.1%
|
|
34.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating expenses
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Operating expenses (GAAP) |
|
72,998
|
|
72,233
|
|
65,317
|
|
145,231
|
|
123,379
|
| Stock-based compensation - R&D |
|
(5,847)
|
|
(5,378)
|
|
(4,176)
|
|
(11,225)
|
|
(7,666)
|
| Stock-based compensation - S&M |
|
(3,445)
|
|
(3,192)
|
|
(2,722)
|
|
(6,637)
|
|
(5,126)
|
| Stock-based compensation - G&A |
|
(2,310)
|
|
(1,930)
|
|
(2,823)
|
|
(4,240)
|
|
(5,279)
|
| Amortization and depreciation of acquired assets - R&D |
|
(25)
|
|
(26)
|
|
(9)
|
|
(51)
|
|
(45)
|
| Amortization and depreciation of acquired assets - S&M |
|
(292)
|
|
(295)
|
|
51
|
|
(588)
|
|
(807)
|
| Amortization and depreciation of acquired assets - G&A |
|
(9)
|
|
(8)
|
|
(26)
|
|
(17)
|
|
(26)
|
| Acquisition related expenses |
|
----
|
|
----
|
|
(151)
|
|
----
|
|
(949)
|
| Assets disposal |
|
----
|
|
----
|
|
(552)
|
|
----
|
|
(552)
|
| Other operating income (expenses) |
|
----
|
|
4,900
|
|
----
|
|
4,900
|
|
----
|
| Operating expenses (Non-GAAP) |
|
61,070
|
|
66,303
|
|
54,909
|
|
127,373
|
|
102,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating income
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Operating income (GAAP) |
|
29,965
|
|
67,775
|
|
45,353
|
|
97,740
|
|
73,401
|
| Cost of product adjustment |
|
----
|
|
313
|
|
319
|
|
313
|
|
1,001
|
| Stock-based compensation |
|
13,961
|
|
12,773
|
|
11,372
|
|
26,734
|
|
21,076
|
| Amortization and depreciation of acquired assets |
|
2,651
|
|
2,686
|
|
3,291
|
|
5,337
|
|
5,262
|
| Acquisition related expenses |
|
----
|
|
----
|
|
151
|
|
----
|
|
949
|
| Assets disposal |
|
----
|
|
----
|
|
552
|
|
----
|
|
552
|
| Other operating ( income) expenses |
|
----
|
|
(4,900)
|
|
----
|
|
(4,900)
|
|
----
|
| Operating income (Non-GAAP) |
|
46,577
|
|
78,647
|
|
61,038
|
|
125,224
|
|
102,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Financial expenses (income), net (GAAP) |
|
(11,565)
|
|
16,605
|
|
(773)
|
|
5,040
|
|
5,378
|
| Non cash interest |
|
(1,200)
|
|
(1,128)
|
|
(850)
|
|
(2,328)
|
|
(1,635)
|
| Currency fluctuation related to lease standard |
|
(892)
|
|
1,033
|
|
(577)
|
|
141
|
|
(1,525)
|
| Amortization and depreciation of acquired assets |
|
----
|
|
(982)
|
|
----
|
|
(982)
|
|
----
|
| Financial expenses (income), net (Non-GAAP) |
|
(13,657)
|
|
15,528
|
|
(2,200)
|
|
1,871
|
|
2,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Tax on income
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Tax on income (GAAP) |
|
4,862
|
|
8,922
|
|
13,213
|
|
13,784
|
|
17,135
|
| Deferred tax realized (asset) |
|
3,236
|
|
3,536
|
|
987
|
|
6,772
|
|
1,960
|
| Tax on income (Non-GAAP) |
|
8,098
|
|
12,458
|
|
14,200
|
|
20,556
|
|
19,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Net income
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Net income attributable to SolarEdge Technologies Inc. (GAAP) |
|
36,668
|
|
42,248
|
|
33,128
|
|
78,916
|
|
52,144
|
| Cost of product adjustment |
|
----
|
|
313
|
|
319
|
|
313
|
|
1,001
|
| Stock-based compensation |
|
13,961
|
|
12,773
|
|
11,372
|
|
26,734
|
|
21,076
|
| Amortization and depreciation of acquired assets |
|
2,651
|
|
3,668
|
|
3,291
|
|
6,319
|
|
5,262
|
| Acquisition related expenses |
|
----
|
|
----
|
|
151
|
|
----
|
|
949
|
| Assets disposal |
|
----
|
|
----
|
|
552
|
|
----
|
|
552
|
| Other operating ( income) expenses |
|
----
|
|
(4,900)
|
|
----
|
|
(4,900)
|
|
----
|
| Non cash interest |
|
1,200
|
|
1,128
|
|
850
|
|
2,328
|
|
1,635
|
| Currency fluctuation related to lease standard |
|
892
|
|
(1,033)
|
|
577
|
|
(141)
|
|
1,525
|
| Deferred tax realized (asset) |
|
(3,236)
|
|
(3,536)
|
|
(987)
|
|
(6,772)
|
|
(1,960)
|
| Net income attributable to SolarEdge Technologies Inc. (Non-GAAP) |
|
52,136
|
|
50,661
|
|
49,253
|
|
102,797
|
|
82,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Net basic earnings per share (GAAP) |
|
0.74
|
|
0.86
|
|
0.69
|
|
1.59
|
|
1.10
|
| Cost of product adjustment |
|
----
|
|
0.01
|
|
0.01
|
|
0.01
|
|
0.02
|
| Stock-based compensation |
|
0.28
|
|
0.25
|
|
0.24
|
|
0.54
|
|
0.45
|
| Amortization and depreciation of acquired assets |
|
0.05
|
|
0.08
|
|
0.07
|
|
0.13
|
|
0.11
|
| Acquisition related expenses |
|
----
|
|
----
|
|
----
|
|
----
|
|
0.02
|
| Other operating ( income) expenses |
|
----
|
|
(0.10)
|
|
----
|
|
(0.10)
|
|
----
|
| Assets disposal |
|
----
|
|
----
|
|
0.01
|
|
----
|
|
0.01
|
| Non cash interest |
|
0.02
|
|
0.02
|
|
0.02
|
|
0.05
|
|
0.03
|
| Currency fluctuation related to lease standard |
|
0.02
|
|
(0.02)
|
|
0.01
|
|
----
|
|
0.04
|
| Deferred tax realized (asset) |
|
(0.06)
|
|
(0.07)
|
|
(0.02)
|
|
(0.14)
|
|
(0.04)
|
| Net basic earnings per share (Non-GAAP) |
|
1.05
|
|
1.03
|
|
1.03
|
|
2.08
|
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Net diluted earnings per share (GAAP) |
|
0.70
|
|
0.81
|
|
0.66
|
|
1.51
|
|
1.05
|
| Cost of product adjustment |
|
----
|
|
0.01
|
|
----
|
|
----
|
|
0.02
|
| Stock-based compensation |
|
0.24
|
|
0.21
|
|
0.19
|
|
0.47
|
|
0.35
|
| Amortization and depreciation of acquired assets |
|
0.05
|
|
0.07
|
|
0.07
|
|
0.11
|
|
0.11
|
| Acquisition related expenses |
|
----
|
|
----
|
|
----
|
|
----
|
|
0.01
|
| Other operating ( income) expenses |
|
----
|
|
(0.09)
|
|
----
|
|
(0.09)
|
|
----
|
| Assets disposal |
|
----
|
|
----
|
|
0.01
|
|
----
|
|
0.01
|
| Non cash interest |
|
0.02
|
|
0.02
|
|
0.02
|
|
0.05
|
|
0.04
|
| Currency fluctuation related to lease standard |
|
0.02
|
|
(0.02)
|
|
0.01
|
|
----
|
|
0.03
|
| Deferred tax realized (asset) |
|
(0.06)
|
|
(0.06)
|
|
(0.02)
|
|
(0.13)
|
|
(0.04)
|
| Net diluted earnings per share (Non-GAAP) |
|
0.97
|
|
0.95
|
|
0.94
|
|
1.92
|
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
| Number of shares used in computing net diluted earnings per share (GAAP) |
|
52,536,437
|
|
52,172,720
|
|
49,940,034
|
|
52,357,838
|
|
49,358,280
|
| Stock-based compensation |
|
1,154,279
|
|
1,399,732
|
|
2,130,135
|
|
1,277,006
|
|
2,448,673
|
| Number of shares used in computing net diluted earnings per share (Non-GAAP) |
|
53,690,716
|
|
53,572,452
|
|
52,070,169
|
|
53,634,844
|
|
51,806,953
|
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