• |
Revenues of $480.1 million
|
• |
Revenues from solar segment of $431.5 million
|
• |
GAAP gross margin of 32.5%
|
• |
Non-GAAP gross margin of 33.9%
|
• |
Gross margin from solar segment of 37.4%
|
• |
GAAP net income of $45.1 million
|
• |
Non-GAAP net income of $72.5 million
|
• |
GAAP net diluted earnings per share ('EPS') of $0.82
|
• |
Non-GAAP net diluted EPS of $1.28
|
• |
1.64 Gigawatts (AC) of inverters shipped
|
• |
Revenues to be within the range of $520 million to $540 million
|
• |
Non-GAAP gross margin expected to be within the range of 32% to 34%
|
• |
Revenues from solar segment to be within the range of $460 million to $480 million
|
• |
Gross margin from solar segment expected to be within the range of 35% to 37%
|
Three months ended
June 30,
|
Six months ended
June 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Revenues
|
$
|
480,057
|
$
|
331,851
|
$
|
885,546
|
$
|
763,069
| ||||||||
Cost of revenues
|
323,865
|
228,888
|
589,280
|
520,098
| ||||||||||||
Gross profit
|
156,192
|
102,963
|
296,266
|
242,971
| ||||||||||||
Operating expenses:
| ||||||||||||||||
Research and development
|
52,664
|
38,098
|
99,641
|
74,793
| ||||||||||||
Sales and marketing
|
29,458
|
20,936
|
56,369
|
45,189
| ||||||||||||
General and administrative
|
19,370
|
13,964
|
39,219
|
30,149
| ||||||||||||
Other operating expenses (income), net
|
(859
|
)
|
-
|
1,350
|
(4,900
|
)
| ||||||||||
Total operating expenses
|
100,633
|
72,998
|
196,579
|
145,231
| ||||||||||||
Operating income
|
55,559
|
29,965
|
99,687
|
97,740
| ||||||||||||
Financial income (expenses), net
|
(1,743
|
)
|
11,565
|
(7,840
|
)
|
(5,040
|
)
| |||||||||
Income before income taxes
|
53,816
|
41,530
|
91,847
|
92,700
| ||||||||||||
Income taxes
|
8,724
|
4,862
|
16,679
|
13,784
| ||||||||||||
Net income
|
$
|
45,092
|
$
|
36,668
|
$
|
75,168
|
$
|
78,916
|
June 30,
2021
|
December 31,
2020
| |||||||
ASSETS
| ||||||||
CURRENT ASSETS:
| ||||||||
Cash and cash equivalents
|
$
|
524,112
|
$
|
827,146
| ||||
Short-term bank deposits
|
13,562
|
60,096
| ||||||
Restricted bank deposits
|
2,504
|
2,611
| ||||||
Marketable securities
|
145,686
|
143,687
| ||||||
Trade receivables, net of allowances of $2,826 and $2,886, respectively
|
343,652
|
218,706
| ||||||
Inventories, net
|
321,915
|
331,696
| ||||||
Prepaid expenses and other current assets
|
137,480
|
135,399
| ||||||
Total current assets
|
1,488,911
|
1,719,341
| ||||||
LONG-TERM ASSETS:
| ||||||||
Marketable securities
|
457,362
|
147,434
| ||||||
Deferred tax assets, net
|
19,962
|
11,676
| ||||||
Property, plant and equipment, net
|
340,319
|
303,408
| ||||||
Operating lease right-of-use assets, net
|
38,302
|
41,600
| ||||||
Intangible assets, net
|
61,855
|
67,818
| ||||||
Goodwill
|
135,981
|
140,479
| ||||||
Other long-term assets
|
21,633
|
5,353
| ||||||
Total long-term assets
|
1,075,414
|
717,768
| ||||||
Total assets
|
$
|
2,564,325
|
$
|
2,437,109
| ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
| ||||||||
CURRENT LIABILITIES:
| ||||||||
Trade payables, net
|
$
|
141,174
|
$
|
162,051
| ||||
Employees and payroll accruals
|
58,340
|
63,738
| ||||||
Current maturities of bank loans and accrued interest
|
139
|
16,894
| ||||||
Warranty obligations
|
64,855
|
62,614
| ||||||
Deferred revenues and customers advances
|
16,144
|
24,648
| ||||||
Accrued expenses and other current liabilities
|
118,933
|
106,154
| ||||||
Total current liabilities
|
399,585
|
436,099
| ||||||
LONG-TERM LIABILITIES:
| ||||||||
Convertible senior notes, net
|
620,082
|
573,350
| ||||||
Warranty obligations
|
167,312
|
142,380
| ||||||
Deferred revenues
|
128,109
|
115,372
| ||||||
Deferred tax liabilities, net
|
-
|
8,593
| ||||||
Finance lease liabilities
|
25,525
|
26,173
| ||||||
Operating lease liabilities
|
31,153
|
35,194
| ||||||
Other long-term liabilities
|
14,766
|
14,191
| ||||||
Total long-term liabilities
|
986,947
|
915,253
| ||||||
COMMITMENTS AND CONTINGENT LIABILITIES
| ||||||||
STOCKHOLDERS' EQUITY:
| ||||||||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of June 30, 2021 and December 31, 2020; issued and outstanding: 52,263,976 and 51,560,936 shares as of June 30, 2021 and December 31, 2020, respectively
|
5
|
5
| ||||||
Additional paid-in capital
|
625,268
|
603,891
| ||||||
Accumulated other comprehensive income (loss)
|
(3,536
|
)
|
3,857
| |||||
Retained earnings
|
556,056
|
478,004
| ||||||
Total stockholders' equity
|
1,177,793
|
1,085,757
| ||||||
Total liabilities and stockholders' equity
|
$
|
2,564,325
|
$
|
2,437,109
|
Six months ended
June 30,
| ||||||||
2021
|
2020
| |||||||
Cash flows provided by operating activities: | ||||||||
Net income
|
$
|
75,168
|
$
|
78,916
| ||||
Adjustments to reconcile net income to net cash provided by operating activities:
| ||||||||
Depreciation of property, plant and equipment
|
14,008
|
10,646
| ||||||
Amortization of intangible assets
|
4,871
|
4,615
| ||||||
Amortization of debt discount and debt issuance costs
|
1,450
|
-
| ||||||
Amortization of premium and accretion of discount on available-for-sale marketable securities, net
|
3,558
|
373
| ||||||
Stock-based compensation expenses
|
47,205
|
26,734
| ||||||
Deferred income taxes, net
|
(3,931
|
)
|
(6,424
|
)
| ||||
Loss from disposal of assets
|
2,051
|
-
| ||||||
Exchange rate fluctuations and other items, net
|
12,983
|
(452
|
)
| |||||
Changes in assets and liabilities:
| ||||||||
Inventories, net
|
13,229
|
(94,230
|
)
| |||||
Prepaid expenses and other assets
|
(20,356
|
)
|
37,066
| |||||
Trade receivables, net
|
(128,564
|
)
|
116,045
| |||||
Trade payables, net
|
(20,120
|
)
|
(1,823
|
)
| ||||
Employees and payroll accruals
|
9,734
|
1,457
| ||||||
Warranty obligations
|
27,298
|
20,198
| ||||||
Deferred revenues and customers advances
|
4,524
|
(31,834
|
)
| |||||
Other liabilities
|
19,660
|
5,768
| ||||||
Net cash provided by operating activities
|
62,768
|
167,055
| ||||||
Cash flows from investing activities: | ||||||||
Investment in available-for-sale marketable
securities
|
(422,470
|
)
|
(36,815
|
)
| ||||
Proceeds from sales and maturities of available-for-
sale marketable securities
|
103,763
|
89,739
| ||||||
Purchase of property, plant and equipment
|
(65,267
|
)
|
(53,706
|
)
| ||||
Withdrawal from bank deposits, net
|
46,534
|
25,634
| ||||||
Other investing activities
|
1,442
|
2,024
| ||||||
Net cash provided by (used in) investing activities
|
$
|
(335,998
|
)
|
$
|
26,876
| |||
Cash flows from financing activities: | ||||||||
Repayment of bank loans
|
$
|
(16,385
|
)
|
$
|
(15,119
|
)
| ||
Proceeds from bank loans
|
-
|
15,113
| ||||||
Proceeds from exercise of stock-based awards and payment of withholding taxes
|
(4,196
|
)
|
9,114
| |||||
Other financing activities
|
(625
|
)
|
(112
|
)
| ||||
Net cash provided by (used in) financing activities
|
(21,206
|
)
|
8,996
| |||||
Increase (decrease) in cash and cash equivalents
|
(294,436
|
)
|
202,927
| |||||
Cash and cash equivalents at the beginning of the period
|
827,146
|
223,901
| ||||||
Effect of exchange rate differences on cash and cash equivalents
|
(8,598
|
)
|
1,544
| |||||
Cash and cash equivalents at the end of the period
|
$
|
524,112
|
$
|
428,372
|
Reconciliation of GAAP to Non-GAAP Gross Profit
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Gross profit (GAAP)
|
156,192
|
140,074
|
102,963
|
296,266
|
242,971
| |||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
| ||||||||||||
Stock-based compensation
|
4,291
|
5,790
|
2,359
|
10,081
|
4,632
| |||||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
| |||||||||||||||
Amortization and depreciation of acquired assets
|
2,401
|
2,312
|
2,325
|
4,713
|
4,681
| |||||||||||||||
Gross profit (Non-GAAP)
|
162,785
|
148,090
|
107,647
|
310,875
|
252,597
|
Reconciliation of GAAP to Non-GAAP Gross Margin
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Gross margin (GAAP)
|
32.5
|
%
|
34.5
|
%
|
31.0
|
%
|
33.5
|
%
|
31.8
|
%
| ||||||||||
Revenues from finance component
|
0.0
|
%
|
0.0
|
%
|
----
|
0.0
|
%
|
----
| ||||||||||||
Stock-based compensation
|
0.9
|
%
|
1.4
|
%
|
0.7
|
%
|
1.1
|
%
|
0.6
|
%
| ||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.0
|
%
| ||||||||||||||
Amortization and depreciation of acquired assets
|
0.5
|
%
|
0.6
|
%
|
0.7
|
%
|
0.5
|
%
|
0.6
|
%
| ||||||||||
Gross margin (Non-GAAP)
|
33.9
|
%
|
36.5
|
%
|
32.4
|
%
|
35.1
|
%
|
33.1
|
%
|
Reconciliation of GAAP to Non-GAAP Operating expenses
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Operating expenses (GAAP)
|
100,633
|
95,946
|
72,998
|
196,579
|
145,231
| |||||||||||||||
Stock-based compensation - R&D
|
(9,805
|
)
|
(8,798
|
)
|
(5,847
|
)
|
(18,603
|
)
|
(11,225
|
)
| ||||||||||
Stock-based compensation - S&M
|
(5,780
|
)
|
(5,435
|
)
|
(3,445
|
)
|
(11,215
|
)
|
(6,637
|
)
| ||||||||||
Stock-based compensation - G&A
|
(4,176
|
)
|
(3,130
|
)
|
(2,310
|
)
|
(7,306
|
)
|
(4,240
|
)
| ||||||||||
Amortization and depreciation of acquired assets - R&D
|
(9
|
)
|
(12
|
)
|
(25
|
)
|
(21
|
)
|
(51
|
)
| ||||||||||
Amortization and depreciation of acquired assets - S&M
|
(236
|
)
|
(237
|
)
|
(292
|
)
|
(473
|
)
|
(588
|
)
| ||||||||||
Amortization and depreciation of acquired assets - G&A
|
(7
|
)
|
(8
|
)
|
(9
|
)
|
(15
|
)
|
(17
|
)
| ||||||||||
Assets sale (disposal)
|
----
|
62
|
----
|
62
|
----
| |||||||||||||||
Other operating income (expenses)
|
859
|
(2,209
|
)
|
----
|
(1,350
|
)
|
4,900
| |||||||||||||
Operating expenses (Non-GAAP)
|
81,479
|
76,179
|
61,070
|
157,658
|
127,373
|
Reconciliation of GAAP to Non-GAAP Operating income
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Operating income (GAAP)
|
55,559
|
44,128
|
29,965
|
99,687
|
97,740
| |||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
| ||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
| |||||||||||||||
Stock-based compensation
|
24,052
|
23,153
|
13,961
|
47,205
|
26,734
| |||||||||||||||
Amortization and depreciation of acquired assets
|
2,653
|
2,569
|
2,651
|
5,222
|
5,337
| |||||||||||||||
Assets (sale) disposal
|
----
|
(62
|
)
|
----
|
(62
|
)
|
----
| |||||||||||||
Other operating (income) expenses
|
(859
|
)
|
2,209
|
----
|
1,350
|
(4,900
|
)
| |||||||||||||
Operating income (Non-GAAP)
|
81,306
|
71,911
|
46,577
|
153,217
|
125,224
|
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Financial expenses (income), net (GAAP)
|
1,743
|
6,097
|
(11,565
|
)
|
7,840
|
5,040
| ||||||||||||||
Notes due 2025
|
(726
|
)
|
(724
|
)
|
----
|
(1,450
|
)
|
----
| ||||||||||||
Non cash interest
|
(1,439
|
)
|
(1,336
|
)
|
(1,200
|
)
|
(2,775
|
)
|
(2,328
|
)
| ||||||||||
Currency fluctuation related to lease standard
|
(1,300
|
)
|
2,289
|
(892
|
)
|
989
|
141
| |||||||||||||
Amortization and depreciation of acquired assets
|
----
|
----
|
----
|
----
|
(982
|
)
| ||||||||||||||
Financial expenses (income), net (Non-GAAP)
|
(1,722
|
)
|
6,326
|
(13,657
|
)
|
4,604
|
1,871
|
Reconciliation of GAAP to Non-GAAP Tax on income
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Tax on income (GAAP)
|
8,724
|
7,955
|
4,862
|
16,679
|
13,784
| |||||||||||||||
Deferred taxes
|
1,789
|
2,141
|
3,236
|
3,930
|
6,772
| |||||||||||||||
Tax on income (Non-GAAP)
|
10,513
|
10,096
|
8,098
|
20,609
|
20,556
|
Reconciliation of GAAP to Non-GAAP Net income
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Net income (GAAP)
|
45,092
|
30,076
|
36,668
|
75,168
|
78,916
| |||||||||||||||
Revenues from finance component
|
(99
|
)
|
(86
|
)
|
----
|
(185
|
)
|
----
| ||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
313
| |||||||||||||||
Stock-based compensation
|
24,052
|
23,153
|
13,961
|
47,205
|
26,734
| |||||||||||||||
Amortization and depreciation of acquired assets
|
2,653
|
2,569
|
2,651
|
5,222
|
6,319
| |||||||||||||||
Assets (sale) disposal
|
----
|
(62
|
)
|
----
|
(62
|
)
|
----
| |||||||||||||
Other operating (income) expenses
|
(859
|
)
|
2,209
|
----
|
1,350
|
(4,900
|
)
| |||||||||||||
Notes due 2025
|
726
|
724
|
----
|
1,450
|
----
| |||||||||||||||
Non cash interest
|
1,439
|
1,336
|
1,200
|
2,775
|
2,328
| |||||||||||||||
Currency fluctuation related to lease standard
|
1,300
|
(2,289
|
)
|
892
|
(989
|
)
|
(141
|
)
| ||||||||||||
Deferred taxes
|
(1,789
|
)
|
(2,141
|
)
|
(3,236
|
)
|
(3,930
|
)
|
(6,772
|
)
| ||||||||||
Net income (Non GAAP)
|
72,515
|
55,489
|
52,136
|
128,004
|
102,797
|
Reconciliation of GAAP to Non-GAAP Net basic EPS
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Net basic earnings per share (GAAP)
|
0.87
|
0.58
|
0.74
|
1.45
|
1.59
| |||||||||||||||
Revenues from finance component
|
(0.01
|
)
|
0.00
|
----
|
(0.01
|
)
|
----
| |||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.01
| |||||||||||||||
Stock-based compensation
|
0.47
|
0.45
|
0.28
|
0.91
|
0.54
| |||||||||||||||
Amortization and depreciation of acquired assets
|
0.05
|
0.05
|
0.05
|
0.10
|
0.13
| |||||||||||||||
Assets (sale) disposal
|
----
|
0.00
|
----
|
----
|
----
| |||||||||||||||
Other operating (income) expenses
|
(0.02
|
)
|
0.04
|
----
|
0.03
|
(0.10
|
)
| |||||||||||||
Notes due 2025
|
0.01
|
0.01
|
----
|
0.03
|
----
| |||||||||||||||
Non cash interest
|
0.03
|
0.03
|
0.02
|
0.05
|
0.05
| |||||||||||||||
Currency fluctuation related to lease standard
|
0.03
|
(0.05
|
)
|
0.02
|
(0.02
|
)
|
0.00
| |||||||||||||
Deferred taxes
|
(0.04
|
)
|
(0.04
|
)
|
(0.06
|
)
|
(0.07
|
)
|
(0.14
|
)
| ||||||||||
Net basic earnings per share (Non-GAAP)
|
1.39
|
1.07
|
1.05
|
2.47
|
2.08
|
Reconciliation of GAAP to Non-GAAP Net diluted EPS
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Net diluted earnings per share (GAAP)
|
0.82
|
0.55
|
0.70
|
1.36
|
1.51
| |||||||||||||||
Revenues from finance component
|
(0.01
|
)
|
0.00
|
----
|
0.00
|
----
| ||||||||||||||
Cost of product adjustment
|
----
|
----
|
----
|
----
|
0.00
| |||||||||||||||
Stock-based compensation
|
0.42
|
0.40
|
0.24
|
0.81
|
0.47
| |||||||||||||||
Amortization and depreciation of acquired assets
|
0.04
|
0.04
|
0.05
|
0.09
|
0.11
| |||||||||||||||
Assets (sale) disposal
|
----
|
0.00
|
----
|
----
|
----
| |||||||||||||||
Other operating (income) expenses
|
(0.01
|
)
|
0.04
|
----
|
0.03
|
(0.09
|
)
| |||||||||||||
Notes due 2025
|
0.00
|
0.00
|
----
|
0.00
|
----
| |||||||||||||||
Non cash interest
|
0.03
|
0.03
|
0.02
|
0.05
|
0.05
| |||||||||||||||
Currency fluctuation related to lease standard
|
0.02
|
(0.04
|
)
|
0.02
|
(0.01
|
)
|
0.00
| |||||||||||||
Deferred taxes
|
(0.03
|
)
|
(0.04
|
)
|
(0.06
|
)
|
(0.07
|
)
|
(0.13
|
)
| ||||||||||
Net diluted earnings per share (Non-GAAP)
|
1.28
|
0.98
|
0.97
|
2.26
|
1.92
|
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS
| ||||||||||||||||||||
Three months ended
|
Six months ended
| |||||||||||||||||||
June 30, 2021
|
March 31, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
| ||||||||||||||||
Number of shares used in computing net diluted earnings per share (GAAP)
|
52,076,208
|
55,997,136
|
52,536,437
|
51,903,123
|
52,357,838
| |||||||||||||||
Stock-based compensation
|
2,357,845
|
766,187
|
1,154,279
|
2,558,676
|
1,277,006
| |||||||||||||||
Notes due 2025
|
2,276,818
|
----
|
----
|
2,276,818
|
----
| |||||||||||||||
Number of shares used in computing net diluted earnings per share (Non-GAAP)
|
56,710,871
|
56,763,323
|
53,690,716
|
56,738,617
|
53,634,844
|
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SolarEdge Technologies Inc. published this content on 02 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 09:57:38 UTC.