8-K
SOLAREDGE TECHNOLOGIES, INC. (SEDG)
UNITED STATES
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
Date of report (Date of earliest event reported): May 6, 2020
SOLAREDGE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
| Delaware | 001-36894 | 20-5338862 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
| 1 Hamada Street,<br> Herziliya Pituach, Israel | 4673335 | |
| --- | --- | |
| (Address of Principal executive offices) | (Zip Code) |
Registrant’s Telephone number, including area code: 972 (9) 957-6620
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.0001 per share | SEDG | Nasdaq Global Select Market |
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):
| ☐ | 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)) |
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 May 6, 2020, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2020. 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
| Exhibit No. | Description |
|---|---|
| Exhibit<br> 99.1 | Press<br> release May 6, 2020<br><br> <br>exhibit_99-1.htm |
| Exhibit 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
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.
| SOLAREDGE TECHNOLOGIES, INC. | ||
|---|---|---|
| Date: May 6, 2020 | By: | /s/ Ronen Faier |
| Name: Ronen Faier | ||
| Title: Chief Financial Officer |
Exhibit 99.1
SolarEdge Announces First Quarter 2020 Financial Results
FREMONT, Calif. — May 6, 2020. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy, today announced its financial results for the first quarter ended March 31, 2020.
First Quarter 2020 Highlights
| • | Record revenues of $431.2 million |
|---|---|
| • | Record revenues from solar products of $407.6 million |
| --- | --- |
| • | GAAP gross margin of 32.5% |
| --- | --- |
| • | GAAP gross margin from sale of solar products of 34.6% |
| --- | --- |
| • | Non-GAAP gross margin from sale of solar products of 35.0% |
| --- | --- |
| • | GAAP net income of $42.2 million |
| --- | --- |
| • | Non-GAAP net income of $50.7 million |
| --- | --- |
| • | GAAP net diluted earnings per share (“EPS”) of $0.81 |
| --- | --- |
| • | Non-GAAP net diluted EPS of $0.95 |
| --- | --- |
| • | Record 1.85 Gigawatts (AC) of inverters shipped |
| --- | --- |
“The first quarter of 2020 was an exceptional one with record revenues of more than $430 million,” said Zvi Lando, CEO of SolarEdge. “Despite the challenges triggered by COVID-19 during the quarter, we were able to get products to our customers and satisfy demand. At present, despite many government enforced shut downs, our employees continue to work and operate our business, without any significant interruptions. We are proud of and thankful to our employees who are working relentlessly in this period and to our customers for their continued loyalty. We are confident that our financial strength, technological leadership and global presence will enable us to come out of this uniquely challenging period even stronger.”
First Quarter 2020 Summary
The Company reported record revenues of $431.2 million, up 3% from $418.2 million in the prior quarter and up 59% from $271.9 million in the same quarter last year.
Record revenues related to the solar business were $407.6 million, up 5% from $389.0 million in the prior quarter and up 61% from $253.1 million in the same quarter last year.
GAAP gross margin was 32.5%, down from 34.3% in the prior quarter and up from 31.7% year over year.
Non-GAAP gross margin was 33.6%, down from 35.5% in the prior quarter and up from 32.8% year over year.
GAAP gross margin for the solar business was 34.6%, down from 37.3% in the prior quarter and up from 33.8% year over year.
Non-GAAP gross margin for the solar business was 35.0%, down from 37.8% in the prior quarter and up from 34.3% year over year.
GAAP operating expenses were $72.2 million, down 22% from $92.7 million in the prior quarter and up 24% from $58.1 million in the same quarter last year.
Non-GAAP operating expenses were $66.3 million, up 5% from $63.1 million in the prior quarter and up 38% from $48.0 million in the same quarter last year.
GAAP operating income was $67.8 million, up 34% from $50.5 million in the prior quarter and up 142% from $28.0 million in the same quarter last year.
Non-GAAP operating income was $78.6 million, down 8% from $85.3 million in the prior quarter and up 91% from $41.2 million in the same quarter last year.
GAAP net income was $42.2 million, down 20% from $52.8 million in the prior quarter and up 122% from $19.0 million in the same quarter last year.
Non-GAAP net income was $50.7 million, down 42% from $87.4 million in the prior quarter and up 54% from $32.9 million in the same quarter last year.
GAAP net diluted earnings per share (“EPS”) was $0.81, down from $1.03 in the prior quarter and up from $0.39 in the same quarter last year.
Non-GAAP net diluted EPS was $0.95, down from $1.65 in the prior quarter and up from $0.64 in the same quarter last year.
Cash flow from operating activities was $107.7 million, up from $83.1 million in the prior quarter and up from $56.5 million in the same quarter last year.
As of March 31, 2020, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $558.7 million, compared to $467.5 million on December 31, 2019.
Outlook for the Second Quarter 2020
The evolving impact of, and responses to, the COVID-19 pandemic on economies around the world, including all of the Company’s markets, is unprecedented and makes it difficult to predict with confidence its impact on the Company’s business for the next quarter and the rest of this year. Please note that the below guidance for next quarter includes the anticipated impact of the COVID-19 pandemic and related public health measures on the Company’s business, at the time of publication.
The Company also provides guidance for the second quarter ending June 30, 2020 as follows:
| • | Revenues to be within the range of $305 million to $335 million |
|---|---|
| • | Gross margin expected to be within the range of 30% to 32% |
| --- | --- |
| • | Revenues from solar products to be within the range of $285 million to $315 million |
| --- | --- |
| • | Gross margin from sale of solar products expected to be within the range of 32% to 34% |
| --- | --- |
Conference Call
The Company will host a conference call to discuss these results at 4:30 P.M. ET on Wednesday, May 6, 2020. The call will be available, live, to interested parties by dialing 800-479-1004. For international callers, please dial +1 323-794-2598. The Conference ID number is 4132956. 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; the expected impact of the COVID-19 pandemic and related public health measures on our business, results of operations, financial condition and liquidity; 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, our quarterly reports on Form 10-Q and other reports filed with the SEC, noting that many of the risks, uncertainties and other factors identified therein are, and will be, amplified by the COVID-19 pandemic. All information set forth in this release is as of May 6, 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.
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 INCOME (Unaudited)
(In thousands, except per share data)
| Three months ended<br><br> <br>March 31, | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| Revenues | $ | 431,218 | $ | 271,871 | |
| Cost of revenues | 291,210 | 185,761 | |||
| Gross profit | 140,008 | 86,110 | |||
| Operating expenses: | |||||
| Research and development | 36,695 | 26,199 | |||
| Sales and marketing | 24,253 | 20,172 | |||
| General and administrative | 16,185 | 11,691 | |||
| Other operating income | (4,900 | ) | - | ||
| Total operating expenses | 72,233 | 58,062 | |||
| Operating income | 67,775 | 28,048 | |||
| Financial expenses, net | 16,605 | 6,151 | |||
| Income before income taxes | 51,170 | 21,897 | |||
| Income taxes | 8,922 | 3,922 | |||
| Net income | $ | 42,248 | $ | 17,975 | |
| Net loss attributable to Non-controlling interests | - | 1,041 | |||
| Net income attributable to SolarEdge Technologies, Inc. | $ | 42,248 | $ | 19,016 |
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
| December 31, | |||||
|---|---|---|---|---|---|
| 2019 | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | 324,072 | $ | 223,901 | ||
| Short-term bank deposits | 8,085 | 5,010 | |||
| Restricted bank deposits | 27,515 | 27,558 | |||
| Marketable securities | 95,143 | 91,845 | |||
| Trade receivables, net of allowances of 4,509 and 2,473, respectively | 235,673 | 298,383 | |||
| Prepaid expenses and other current assets | 66,874 | 115,268 | |||
| Inventories, net | 198,557 | 170,798 | |||
| Total<br> current assets | 955,919 | 932,763 | |||
| LONG-TERM ASSETS: | |||||
| Marketable securities | 103,863 | 119,176 | |||
| Operating lease right-of-use assets, net | 37,896 | 35,858 | |||
| Property, plant and equipment, net | 195,982 | 176,963 | |||
| Deferred tax assets, net | 17,095 | 16,298 | |||
| Intangible assets, net | 69,111 | 74,008 | |||
| Goodwill | 125,520 | 129,654 | |||
| Other long-term assets | 8,454 | 9,904 | |||
| Total<br> long-term assets | 557,921 | 561,861 | |||
| Total<br> assets | 1,513,840 | $ | 1,494,624 | ||
| CURRENT LIABILITIES: | |||||
| Trade payables, net | 139,138 | $ | 157,148 | ||
| Employees and payroll accruals | 58,894 | 47,390 | |||
| Current maturities of bank loans and accrued interest | 15,048 | 15,673 | |||
| Warranty obligations | 70,158 | 65,112 | |||
| Deferred revenues and customers advances | 30,706 | 70,815 | |||
| Accrued expenses and other current liabilities | 75,737 | 80,576 | |||
| Total<br> current liabilities | 389,681 | 436,714 | |||
| LONG-TERM LIABILITIES: | |||||
| Bank loans | - | 173 | |||
| Warranty obligations | 116,099 | 107,451 | |||
| Deferred revenues | 98,134 | 89,982 | |||
| Operating lease liabilities | 30,336 | 30,213 | |||
| Deferred tax liabilities, net | 2,202 | 4,461 | |||
| Other long-term liabilities | 10,970 | 13,960 | |||
| Total<br> long-term liabilities | 257,741 | 246,240 | |||
| STOCKHOLDERS’ EQUITY: | |||||
| Common stock | 5 | 5 | |||
| Additional paid-in capital | 491,873 | 475,792 | |||
| Accumulated other comprehensive loss | (5,390 | ) | (1,809 | ) | |
| Retained earnings | 379,930 | 337,682 | |||
| Total stockholders’ equity | 866,418 | 811,670 | |||
| Total liabilities and stockholders’ equity | 1,513,840 | $ | 1,494,624 |
All values are in US Dollars.
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Three months ended<br><br> <br>March 31, | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Cash flows provided by operating activities: | ||||||
| Net income | $ | 42,248 | $ | 17,975 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation of property, plant and equipment | 5,004 | 3,870 | ||||
| Amortization of intangible assets | 2,321 | 1,971 | ||||
| Amortization of premium and accretion of discount on available-for-sale marketable<br> securities, net | 120 | (59 | ) | |||
| Stock-based compensation expenses | 12,773 | 9,704 | ||||
| Deferred income tax benefit, net | (2,859 | ) | (973 | ) | ||
| Other expenses, net | 235 | 186 | ||||
| Changes in assets and liabilities: | ||||||
| Inventories, net | (29,004 | ) | 964 | |||
| Prepaid expenses and other assets | 49,888 | 10,885 | ||||
| Trade receivables, net | 59,420 | (7,379 | ) | |||
| Operating lease right-of-use assets and liabilities, net and effect of exchange rate<br> differences | (1,247 | ) | 828 | |||
| Trade payables, net | (17,589 | ) | (21,720 | ) | ||
| Employees and payroll accruals | 11,821 | 3,250 | ||||
| Warranty obligations | 13,809 | 14,947 | ||||
| Deferred revenues and customers advances | (31,729 | ) | 1,730 | |||
| Other liabilities | (7,466 | ) | 20,271 | |||
| Net cash provided by operating activities | 107,745 | 56,450 | ||||
| Cash flows from investing activities: | ||||||
| Proceeds from sales and maturities of available-for-sale marketable securities | 42,333 | 44,575 | ||||
| Purchase of property, plant and equipment | (27,053 | ) | (10,620 | ) | ||
| Investment in available-for-sale marketable securities | (31,924 | ) | (15,316 | ) | ||
| Withdrawal from (investment in) bank deposits | (3,316 | ) | 3,813 | |||
| Withdrawal from (investment in) restricted bank deposits | 36 | (182 | ) | |||
| Business combination, net of cash acquired | - | (39,315 | ) | |||
| Net cash used in investing activities | $ | (19,924 | ) | $ | (17,045 | ) |
| Cash flows from financing activities: | ||||||
| Repayment of bank loans | $ | (15,232 | ) | $ | (1,003 | ) |
| Proceeds from bank loans | 15,295 | 51 | ||||
| Proceeds from issuance of shares under stock purchase plan and upon exercise of<br> stock-based awards | 3,308 | 309 | ||||
| Change in Non-controlling interests | - | (1,987 | ) | |||
| Other financing activities | (56 | ) | - | |||
| Net cash provided by (used in) financing activities | $ | 3,315 | $ | (2,630 | ) | |
| Increase in cash, cash equivalents and restricted cash | 91,136 | 36,775 | ||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 223,901 | 187,764 | ||||
| Effect of exchange rate differences on cash, cash equivalents and restricted cash | 9,035 | 1,939 | ||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 324,072 | $ | 226,478 |
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 | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Gross profit (GAAP) | 140,008 | 143,249 | 86,110 | ||||||
| Stock-based compensation | 2,273 | 2,268 | 1,354 | ||||||
| Cost of product adjustment | 313 | 448 | 682 | ||||||
| Amortization and depreciation of acquired assets | 2,356 | 2,489 | 1,077 | ||||||
| Gross profit (Non-GAAP) | 144,950 | 148,454 | 89,223 | ||||||
| Reconciliation of GAAP to Non-GAAP Gross Margin | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Gross margin (GAAP) | 32.5 | % | 34.3 | % | 31.7 | % | |||
| Stock-based compensation | 0.5 | % | 0.5 | % | 0.5 | % | |||
| Cost of product adjustment | 0.1 | % | 0.1 | % | 0.2 | % | |||
| Amortization and depreciation of acquired assets | 0.5 | % | 0.6 | % | 0.4 | % | |||
| Gross margin (Non-GAAP) | 33.6 | % | 35.5 | % | 32.8 | % | |||
| Reconciliation of GAAP to Non-GAAP Operating expenses | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Operating expenses (GAAP) | 72,233 | 92,721 | 58,062 | ||||||
| Stock-based compensation - R&D | (5,378 | ) | (4,937 | ) | (3,490 | ) | |||
| Stock-based compensation - S&M | (3,192 | ) | (3,157 | ) | (2,404 | ) | |||
| Stock-based compensation - G&A | (1,930 | ) | 916 | (2,456 | ) | ||||
| Amortization and depreciation of acquired assets - R&D | (26 | ) | (30 | ) | (36 | ) | |||
| Amortization and depreciation of acquired assets - S&M | (295 | ) | 33 | (858 | ) | ||||
| Amortization and depreciation of acquired assets - G&A | (8 | ) | 45 | ---- | |||||
| Acquisition related expenses | ---- | ---- | (798 | ) | |||||
| Assets disposal | ---- | (56 | ) | ---- | |||||
| Other operating income (expenses) | 4,900 | (22,391 | ) | ---- | |||||
| Operating expenses (Non-GAAP) | 66,303 | 63,144 | 48,020 |
| Reconciliation of GAAP to Non-GAAP Operating income | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Operating income (GAAP) | 67,775 | 50,528 | 28,048 | ||||||
| Cost of product adjustment | 313 | 448 | 682 | ||||||
| Stock-based compensation | 12,773 | 9,446 | 9,704 | ||||||
| Amortization and depreciation of acquired assets | 2,686 | 2,441 | 1,971 | ||||||
| Acquisition related expenses | ---- | ---- | 798 | ||||||
| Assets disposal | ---- | 56 | ---- | ||||||
| Other operating ( income) expenses | (4,900 | ) | 22,391 | ---- | |||||
| Operating income (Non-GAAP) | 78,647 | 85,310 | 41,203 | ||||||
| Reconciliation of GAAP to Non-GAAP Financial expenses (income), net | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Financial expenses (income), net (GAAP) | 16,605 | (11,058 | ) | 6,151 | |||||
| Non cash interest | (1,128 | ) | (1,055 | ) | (785 | ) | |||
| Currency fluctuation related to lease standard | 1,033 | (266 | ) | (948 | ) | ||||
| Amortization and depreciation of acquired assets | (982 | ) | 348 | ---- | |||||
| Financial expenses (income), net (Non-GAAP) | 15,528 | (12,031 | ) | 4,418 | |||||
| Reconciliation of GAAP to Non-GAAP Tax on income (tax benefit) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Tax on income (GAAP) | 8,922 | 9,241 | 3,922 | ||||||
| Deferred tax realized (asset) | 3,536 | 1,114 | 973 | ||||||
| Tax on income (Non-GAAP) | 12,458 | 10,355 | 4,895 |
| Reconciliation of GAAP to Non-GAAP Net income attributable to Solaredge Technologies Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Net income attributable to Solaredge Technologies Inc. (GAAP) | 42,248 | 52,778 | 19,016 | ||||||
| Cost of product adjustment | 313 | 448 | 682 | ||||||
| Stock-based compensation | 12,773 | 9,446 | 9,704 | ||||||
| Amortization and depreciation of acquired assets | 3,668 | 2,093 | 1,971 | ||||||
| Acquisition related expenses | ---- | ---- | 798 | ||||||
| Assets disposal | ---- | 56 | ---- | ||||||
| Other operating ( income) expenses | (4,900 | ) | 22,391 | ---- | |||||
| Non cash interest | 1,128 | 1,055 | 785 | ||||||
| Currency fluctuation related to lease standard | (1,033 | ) | 266 | 948 | |||||
| Deferred tax realized (asset) | (3,536 | ) | (1,114 | ) | (973 | ) | |||
| Net income attributable to Solaredge Technologies Inc. (Non-GAAP) | 50,661 | 87,419 | 32,931 | ||||||
| Reconciliation of GAAP to Non-GAAP Net basic earnings per share | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Net basic earnings per share (GAAP) | 0.86 | 1.08 | 0.40 | ||||||
| Cost of product adjustment | 0.01 | 0.01 | 0.02 | ||||||
| Stock-based compensation | 0.25 | 0.20 | 0.21 | ||||||
| Amortization and depreciation of acquired assets | 0.08 | 0.04 | 0.04 | ||||||
| Acquisition related expenses | ---- | ---- | 0.01 | ||||||
| Other operating ( income) expenses | (0.10 | ) | 0.46 | ---- | |||||
| Non cash interest | 0.02 | 0.02 | 0.02 | ||||||
| Currency fluctuation related to lease standard | (0.02 | ) | ---- | 0.02 | |||||
| Deferred tax realized (asset) | (0.07 | ) | (0.02 | ) | (0.02 | ) | |||
| Net basic earnings per share (Non-GAAP) | 1.03 | 1.79 | 0.70 |
| Reconciliation of GAAP to Non-GAAP Net diluted earnings per share | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Net diluted earnings per share (GAAP) | 0.81 | 1.03 | 0.39 | ||||||
| Cost of product adjustment | 0.01 | 0.01 | 0.01 | ||||||
| Nonvested PSUs | ---- | (0.01 | ) | ---- | |||||
| Stock-based compensation | 0.21 | 0.15 | 0.17 | ||||||
| Amortization and depreciation of acquired assets | 0.07 | 0.04 | 0.04 | ||||||
| Acquisition related expenses | ---- | ---- | 0.01 | ||||||
| Other operating ( income) expenses | (0.09 | ) | 0.43 | ---- | |||||
| Non cash interest | 0.02 | 0.02 | 0.02 | ||||||
| Currency fluctuation related to lease standard | (0.02 | ) | ---- | 0.02 | |||||
| Deferred tax realized (asset) | (0.06 | ) | (0.02 | ) | (0.02 | ) | |||
| Net diluted earnings per share (Non-GAAP) | 0.95 | 1.65 | 0.64 | ||||||
| Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted earnings per share | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Three months ended | |||||||||
| March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
| Number of shares used in computing net diluted earnings per share (GAAP) | 52,172,720 | 50,966,778 | 47,020,218 | ||||||
| Stock-based compensation | 1,399,732 | 1,774,490 | 4,766,230 | ||||||
| Number of shares used in computing net diluted earnings per share (Non-GAAP) | 53,572,452 | 52,741,268 | 51,786,448 |