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): February 15, 2022
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 | The 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 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
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 February 15, 2022, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full year ended December 31, 2021. 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 99.1 | Press release February<br> 15, 2022 |
| 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: February 15, 2022 | By: | /s/ Ronen Faier |
| Name:<br><br> <br>Title: | Ronen Faier<br><br> <br>Chief Financial Officer |
Exhibit 99.1
SolarEdge Announces Fourth Quarter and Full Year 2021 Financial Results
MILPITAS, Calif. — February 15, 2022. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the fourth quarter and full year ended December 31, 2021.
Fourth Quarter 2021 Highlights
| • | Record revenues of $551.9 million |
|---|---|
| • | Record revenues from solar segment of $502.7 million |
| --- | --- |
| • | GAAP gross margin of 29.1% |
| --- | --- |
| • | Non-GAAP gross margin of 30.3% |
| --- | --- |
| • | Gross margin from solar segment of 32.8% |
| --- | --- |
| • | GAAP net income of $41.0 million |
| --- | --- |
| • | Non-GAAP net income of $62.8 million |
| --- | --- |
| • | GAAP net diluted earnings per share (“EPS”) of $0.74 |
| --- | --- |
| • | Non-GAAP net diluted EPS of $1.10 |
| --- | --- |
| • | 1.92 Gigawatts (AC) of inverters shipped |
| --- | --- |
Full Year 2021 Highlights
| • | Record revenues of $1.96 billion, up 34.6% year over year from 2020 |
|---|---|
| • | Record revenues from solar segment of $1.79 billion |
| --- | --- |
| • | GAAP gross margin of 32.0% |
| --- | --- |
| • | Non-GAAP gross margin of 33.5% |
| --- | --- |
| • | Gross margin from solar segment of 36.4% |
| --- | --- |
| • | Record GAAP net income of $169.2 million |
| --- | --- |
| • | Record Non-GAAP net income of $272.9 million |
| --- | --- |
| • | Record GAAP net diluted earnings per share (“EPS”) of $3.06 |
| --- | --- |
| • | Record Non-GAAP net diluted EPS of $4.81 |
| --- | --- |
| • | 7.2 Gigawatts (AC) of inverters shipped |
| --- | --- |
“We are ending 2021 with record revenues for the quarter and for the year,” said Zvi Lando, Chief Executive Officer of SolarEdge. “The global demand for solar energy across all segments and geographies is extremely strong and generating unprecedented demand for our products. In particular, we are excited about the strong momentum of the commercial market and the increasing rate of adoption of our innovative technology within this segment. Our focus is to ensure customers have the products they need to execute their projects and we are enabling this by ramping production in multiple sites and navigating supply chain and logistic challenges.”
Fourth Quarter 2021 Summary
The Company reported revenues of $551.9 million, up 5% from $526.4 million in the prior quarter and up 54% from $358.1 million in the same quarter last year.
Revenues from the solar segment were $502.7 million, up 5% from $476.8 million in the prior quarter and up 54% from $327.1 million in the same quarter last year.
GAAP gross margin was 29.1%, down from 32.8% in the prior quarter and down from 30.8% in the same quarter last year.
Non-GAAP gross margin was 30.3%, down from 34.0% in the prior quarter and down from 32.5% in the same quarter last year.
Gross margin from the solar segment was 32.8%, down from 36.6% in the prior quarter and down from 36.2% in the same quarter last year.
GAAP operating expenses were $119.5 million, up 13% from $106.1 million in the prior quarter and up 25% from $95.9 million in the same quarter last year.
Non-GAAP operating expenses were $94.1 million, up 12% from $83.8 million in the prior quarter and up 29% from $72.9 million in the same quarter last year.
GAAP operating income was $41.0 million, down 38% from $66.4 million in the prior quarter and up 184% from $14.4 million in the same quarter last year.
Non-GAAP operating income was $72.9 million, down 23% from $95.2 million in the prior quarter and up 68% from $43.5 million in the same quarter last year.
GAAP net income was $41.0 million, down 23% from $53.0 million in the prior quarter and up 132% from $17.7 million in the same quarter last year.
Non-GAAP net income was $62.8 million, down 24% from $82.1 million in the prior quarter and up 13% from $55.7 million in the same quarter last year.
GAAP net diluted EPS was $0.74, down from $0.96 in the prior quarter and up from $0.33 in the same quarter last year.
Non-GAAP net diluted EPS was $1.10, down from $1.45 in the prior quarter and up from $0.98 in the same quarter last year.
Cash flow from operating activities was $89.6 million, up from $61.8 million in the prior quarter and up from $27.2 million in the same quarter last year.
As of December 31, 2021, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $548.0 million, net of debt, compared to $524.1 million on September 30, 2021.
Full Year 2021 Summary
Total revenues of $1.96 billion, up 34.6% from $1.46 billion in the prior year.
GAAP gross margin was 32.0%, up from 31.6% in the prior year.
Non-GAAP gross margin was 33.5%, up from 33.0% in the prior year.
GAAP operating income was $207.1 million, up 45% from $142.6 million in the prior year.
Non-GAAP operating income was $321.4 million, up 47% from $218.8 million in the prior year.
GAAP net income was $169.2 million, up 21% from $140.3 million in the prior year.
Non-GAAP net income was $272.9 million, up 22% from $224.4 million in the prior year.
GAAP net diluted EPS was $3.06, up from $2.66 in the prior year.
Non-GAAP net diluted EPS was $4.81, up from $4.11 in the prior year.
Cash flow from operating activities of $214.1 million, down from $222.7 million in the prior year.
Outlook for the First Quarter 2022
The Company also provides guidance for the first quarter ending March 31, 2022 as follows:
| • | Revenues to be within the range of $615 million to $645 million |
|---|---|
| • | Non-GAAP gross margin expected to be within the range of 28% to 30% |
| --- | --- |
| • | Revenues from solar segment to be within the range of $575 million to $595 million |
| --- | --- |
| • | Gross margin from solar segment expected to be within the range of 30% to 32% |
| --- | --- |
Conference Call
The Company will host a conference call to discuss these results at 4:30 p.m. ET on Tuesday, February 15, 2022. The call will be available, live, to interested parties by dialing 888-300-0211. For international callers, please dial +1 773-377-9384. The Conference ID number is 5805953. 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 www.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/A for the year ended December 31, 2020, filed on February 19, 2021 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of February 15, 2022. 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
(in thousands, except per share data)
| Three months ended<br><br> <br>December 31, | Year ended<br><br> <br>December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Unaudited | ||||||||||||
| Revenues | $ | 551,915 | $ | 358,107 | $ | 1,963,865 | $ | 1,459,271 | ||||
| Cost of revenues | 391,424 | 247,782 | 1,334,547 | 997,912 | ||||||||
| Gross profit | 160,491 | 110,325 | 629,318 | 461,359 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 64,326 | 47,513 | 219,633 | 163,123 | ||||||||
| Sales and marketing | 33,248 | 28,872 | 119,000 | 95,985 | ||||||||
| General and administrative | 21,879 | 18,042 | 82,196 | 63,119 | ||||||||
| Other operating expense (income), net | ---- | 1,471 | 1,350 | (3,429 | ) | |||||||
| Total operating expenses | 119,453 | 95,898 | 422,179 | 318,798 | ||||||||
| Operating income | 41,038 | 14,427 | 207,139 | 142,561 | ||||||||
| Financial income (expense), net | (6,324 | ) | 10,380 | (19,915 | ) | 21,105 | ||||||
| Income before income taxes | 34,714 | 24,807 | 187,224 | 163,666 | ||||||||
| Income tax benefit (expense) | 6,240 | (7,152 | ) | (18,054 | ) | (23,344 | ) | |||||
| Net income | $ | 40,954 | $ | 17,655 | $ | 169,170 | $ | 140,322 |
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| 2020 | ||||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | 530,089 | $ | 827,146 | |
| Marketable securities | 167,728 | 143,687 | ||
| Trade receivables, net of allowances of 2,626 and 2,886, respectively | 456,339 | 218,706 | ||
| Inventories, net | 380,143 | 331,696 | ||
| Prepaid expenses and other current assets | 176,992 | 198,106 | ||
| Total<br> current assets | 1,711,291 | 1,719,341 | ||
| LONG-TERM ASSETS: | ||||
| Marketable securities | 482,228 | 147,434 | ||
| Deferred tax assets, net | 27,572 | 11,676 | ||
| Property, plant and equipment, net | 410,379 | 303,408 | ||
| Operating lease right-of-use assets, net | 47,137 | 41,600 | ||
| Intangible assets, net | 58,861 | 67,818 | ||
| Goodwill | 129,629 | 140,479 | ||
| Other long-term assets | 24,963 | 5,353 | ||
| Total<br> long-term assets | 1,180,769 | 717,768 | ||
| Total assets | 2,892,060 | $ | 2,437,109 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Trade payables, net | 252,068 | $ | 162,051 | |
| Employees and payroll accruals | 74,465 | 63,738 | ||
| Warranty obligations | 71,480 | 62,614 | ||
| Deferred revenues and customers advances | 17,789 | 24,648 | ||
| Accrued expenses and other current liabilities | 109,379 | 123,048 | ||
| Total<br> current liabilities | 525,181 | 436,099 | ||
| LONG-TERM LIABILITIES: | ||||
| Convertible senior notes, net | 621,535 | 573,350 | ||
| Warranty obligations | 193,680 | 142,380 | ||
| Deferred revenues | 151,556 | 115,372 | ||
| Finance lease liabilities | 40,508 | 26,173 | ||
| Operating lease liabilities | 38,912 | 35,194 | ||
| Other long-term liabilities | 10,649 | 22,784 | ||
| Total<br> long-term liabilities | 1,056,840 | 915,253 | ||
| COMMITMENTS AND CONTINGENT LIABILITIES | ||||
| STOCKHOLDERS’ EQUITY: | ||||
| Common stock of 0.0001 par value - Authorized: 125,000,000 shares as of December 31,<br> 2021 and December 31, 2020; issued and outstanding: 52,815,395 and 51,560,936 shares as of December 31, 2021 and December 31, 2020, respectively | 5 | 5 | ||
| Additional paid-in capital | 687,295 | 603,891 | ||
| Accumulated other comprehensive income (loss) | (27,319 | ) | 3,857 | |
| Retained earnings | 650,058 | 478,004 | ||
| Total stockholders’ equity | 1,310,039 | 1,085,757 | ||
| Total liabilities and stockholders’<br> equity | 2,892,060 | $ | 2,437,109 |
All values are in US Dollars.
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)
| Year ended<br><br> <br>December 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Cash flows provided by operating activities: | ||||||
| Net income | $ | 169,170 | $ | 140,322 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation of property, plant and equipment | 29,359 | 22,355 | ||||
| Amortization of intangible assets | 10,176 | 9,479 | ||||
| Amortization of debt discount and debt issuance costs | 2,903 | 3,185 | ||||
| Amortization of premium and accretion of discount on available-for-sale marketable<br> securities, net | 9,462 | 1,168 | ||||
| Stock-based compensation expenses | 102,593 | 67,309 | ||||
| Deferred income taxes, net | (12,045 | ) | (2,738 | ) | ||
| Exchange rate fluctuations and other items, net | 20,697 | 3,860 | ||||
| Changes in assets and liabilities: | ||||||
| Inventories, net | (43,051 | ) | (149,661 | ) | ||
| Prepaid expenses and other assets | (39,444 | ) | (3,276 | ) | ||
| Trade receivables, net | (247,723 | ) | 86,538 | |||
| Trade payables, net | 91,709 | 3,333 | ||||
| Employees and payroll accruals | 26,519 | 18,315 | ||||
| Warranty obligations | 60,524 | 32,274 | ||||
| Deferred revenues and customers advances | 29,936 | (21,438 | ) | |||
| Other liabilities, net | 3,344 | 11,630 | ||||
| Net cash provided by operating activities | 214,129 | 222,655 | ||||
| Cash flows from investing activities: | ||||||
| Investment in available-for-sale marketable securities | (579,377 | ) | (223,705 | ) | ||
| Proceeds from sales and maturities of available-for-sale marketable securities | 202,188 | 141,839 | ||||
| Investment in privately-held company | (16,643 | ) | ---- | |||
| Purchase of property, plant and equipment | (149,251 | ) | (126,790 | ) | ||
| Withdrawal from (investment in) bank deposits, net | 60,096 | (54,752 | ) | |||
| Withdrawal from restricted bank deposits | 798 | 25,267 | ||||
| Other investing activities | (2,022 | ) | 1,504 | |||
| Net cash used in investing activities | $ | (484,211 | ) | $ | (236,637 | ) |
| Cash flows from financing activities: | ||||||
| Repayment of bank loans | $ | (16,073 | ) | $ | (15,595 | ) |
| Proceeds from exercise of stock-based awards and payment of withholding taxes | 2,203 | 21,500 | ||||
| Proceeds from issuance of convertible senior notes, net | ---- | 617,869 | ||||
| Proceeds from bank loans | ---- | 16,944 | ||||
| Other financing activities | (1,308 | ) | (234 | ) | ||
| Net cash provided by (used in) financing activities | (15,178 | ) | 640,484 | |||
| Increase (decrease) in cash and cash equivalents | (285,260 | ) | 626,502 | |||
| Cash and cash equivalents at the beginning of the period | 827,146 | 223,901 | ||||
| Effect of exchange rate differences on cash and cash equivalents | (11,797 | ) | (23,257 | ) | ||
| Cash and cash equivalents at the end of the period | $ | 530,089 | $ | 827,146 |
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
| Reconciliation of GAAP to Non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | Year ended | ||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||
| Gross profit (GAAP) | 160,491 | 172,561 | 110,325 | 629,318 | 461,359 | ||||||||||
| Revenues from finance component | (122 | ) | (111 | ) | ---- | (418 | ) | ---- | |||||||
| Stock-based compensation | 4,373 | 4,289 | 3,720 | 18,743 | 11,082 | ||||||||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | 313 | ||||||||||
| Amortization and depreciation of acquired assets | 2,272 | 2,341 | 2,374 | 9,326 | 9,484 | ||||||||||
| Gross profit (non-GAAP) | 167,014 | 179,080 | 116,419 | 656,969 | 482,238 | ||||||||||
| Gross margin (GAAP) | 29.1 | % | 32.8 | % | 30.8 | % | 32.0 | % | 31.6 | % | |||||
| Revenues from finance component | 0.0 | % | 0.0 | % | ---- | 0.0 | % | ---- | |||||||
| Stock-based compensation | 0.8 | % | 0.8 | % | 1.0 | % | 1.0 | % | 0.8 | % | |||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | 0.0 | % | |||||||||
| Amortization and depreciation of acquired assets | 0.4 | % | 0.4 | % | 0.7 | % | 0.5 | % | 0.6 | % | |||||
| Gross margin (non-GAAP) | 30.3 | % | 34.0 | % | 32.5 | % | 33.5 | % | 33.0 | % | |||||
| Operating expenses (GAAP) | 119,453 | 106,147 | 95,898 | 422,179 | 318,798 | ||||||||||
| Stock-based compensation - R&D | (14,872 | ) | (11,949 | ) | (8,919 | ) | (45,424 | ) | (27,048 | ) | |||||
| Stock-based compensation - S&M | (5,882 | ) | (5,737 | ) | (8,710 | ) | (22,834 | ) | (19,413 | ) | |||||
| Stock-based compensation - G&A | (4,076 | ) | (4,210 | ) | (2,967 | ) | (15,592 | ) | (9,766 | ) | |||||
| Amortization and depreciation of acquired assets - R&D | (302 | ) | (207 | ) | (14 | ) | (530 | ) | (91 | ) | |||||
| Amortization and depreciation of acquired assets - S&M | (225 | ) | (229 | ) | (230 | ) | (927 | ) | (1,187 | ) | |||||
| Amortization and depreciation of acquired assets - G&A | (6 | ) | (8 | ) | (8 | ) | (29 | ) | (33 | ) | |||||
| Gain (loss) from assets sale and disposal | 18 | 37 | (649 | ) | 117 | (1,207 | ) | ||||||||
| Other operating income (expense) | ---- | ---- | (1,471 | ) | (1,350 | ) | 3,429 | ||||||||
| Operating expenses (non-GAAP) | 94,108 | 83,844 | 72,930 | 335,610 | 263,482 | ||||||||||
| Operating income (GAAP) | 41,038 | 66,414 | 14,427 | 207,139 | 142,561 | ||||||||||
| Revenues from finance component | (122 | ) | (111 | ) | ---- | (418 | ) | ---- | |||||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | 313 | ||||||||||
| Stock-based compensation | 29,203 | 26,185 | 24,316 | 102,593 | 67,309 | ||||||||||
| Amortization and depreciation of acquired assets | 2,805 | 2,785 | 2,626 | 10,812 | 10,795 | ||||||||||
| Loss (gain) from assets sale and disposal | (18 | ) | (37 | ) | 649 | (117 | ) | 1,207 | |||||||
| Other operating expense (income) | ---- | ---- | 1,471 | 1,350 | (3,429 | ) | |||||||||
| Operating income (non-GAAP) | 72,906 | 95,236 | 43,489 | 321,359 | 218,756 |
| Reconciliation of GAAP to non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | Year ended | ||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||
| Financial income (expense), net (GAAP) | (6,324 | ) | (5,751 | ) | 10,380 | (19,915 | ) | 21,105 | |||||||
| Notes due 2025 | 727 | 726 | 3,017 | 2,903 | 3,185 | ||||||||||
| Non-cash interest | 1,527 | 1,469 | 1,305 | 5,771 | 4,887 | ||||||||||
| Unrealized gains/losses | (541 | ) | ---- | ---- | (541 | ) | ---- | ||||||||
| Currency fluctuation related to lease standard | 2,422 | 574 | 2,172 | 2,007 | 2,274 | ||||||||||
| Amortization and depreciation of acquired assets | ---- | ---- | ---- | ---- | 982 | ||||||||||
| Financial income (expense), net (non-GAAP) | (2,189 | ) | (2,982 | ) | 16,874 | (9,775 | ) | 32,433 | |||||||
| Income tax benefit (expense)<br> (GAAP) | 6,240 | (7,615 | ) | (7,152 | ) | (18,054 | ) | (23,344 | ) | ||||||
| Uncertain tax positions | (9,007 | ) | ---- | ---- | (9,007 | ) | ---- | ||||||||
| Deferred taxes | (5,181 | ) | (2,528 | ) | 2,522 | (11,639 | ) | (3,434 | ) | ||||||
| Income tax expense (non-GAAP) | (7,948 | ) | (10,143 | ) | (4,630 | ) | (38,700 | ) | (26,778 | ) | |||||
| Net income (GAAP) | 40,954 | 53,048 | 17,655 | 169,170 | 140,322 | ||||||||||
| Revenues from finance component | (122 | ) | (111 | ) | ---- | (418 | ) | ---- | |||||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | 313 | ||||||||||
| Stock-based compensation | 29,203 | 26,185 | 24,316 | 102,593 | 67,309 | ||||||||||
| Amortization and depreciation of acquired assets | 2,805 | 2,785 | 2,626 | 10,812 | 11,777 | ||||||||||
| Loss (gain) from assets sale and disposal | (18 | ) | (37 | ) | 649 | (117 | ) | 1,207 | |||||||
| Other operating expense (income) | ---- | ---- | 1,471 | 1,350 | (3,429 | ) | |||||||||
| Notes due 2025 | 727 | 726 | 3,017 | 2,903 | 3,185 | ||||||||||
| Non-cash interest | 1,527 | 1,469 | 1,305 | 5,771 | 4,887 | ||||||||||
| Unrealized gains (losses) | (541 | ) | ---- | ---- | (541 | ) | ---- | ||||||||
| Currency fluctuation related to lease standard | 2,422 | 574 | 2,172 | 2,007 | 2,274 | ||||||||||
| Uncertain tax positions | (9,007 | ) | ---- | ---- | (9,007 | ) | ---- | ||||||||
| Deferred taxes | (5,181 | ) | (2,528 | ) | 2,522 | (11,639 | ) | (3,434 | ) | ||||||
| Net income (non-GAAP) | 62,769 | 82,111 | 55,733 | 272,884 | 224,411 |
| Reconciliation of GAAP to non-GAAP | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | Year ended | |||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||
| Net basic earnings per share (GAAP) | 0.78 | 1.01 | 0.34 | 3.24 | 2.79 | |||||||||
| Revenues from finance component | 0.00 | 0.00 | ---- | (0.01 | ) | ---- | ||||||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | 0.01 | |||||||||
| Stock-based compensation | 0.55 | 0.50 | 0.48 | 1.97 | 1.34 | |||||||||
| Amortization and depreciation of acquired assets | 0.05 | 0.05 | 0.05 | 0.21 | 0.24 | |||||||||
| Loss (gain) from assets sale and disposal | 0.00 | 0.00 | 0.01 | (0.01 | ) | 0.02 | ||||||||
| Other operating expense (income) | ---- | ---- | 0.03 | 0.03 | (0.07 | ) | ||||||||
| Notes due 2025 | 0.02 | 0.02 | 0.06 | 0.05 | 0.06 | |||||||||
| Non-cash interest | 0.03 | 0.03 | 0.02 | 0.11 | 0.10 | |||||||||
| Unrealized gains (losses) | (0.01 | ) | ---- | ---- | (0.01 | ) | ---- | |||||||
| Currency fluctuation related to lease standard | 0.04 | 0.01 | 0.05 | 0.04 | 0.05 | |||||||||
| Uncertain tax positions | (0.17 | ) | ---- | ---- | (0.17 | ) | ---- | |||||||
| Deferred taxes | (0.10 | ) | (0.05 | ) | 0.05 | (0.22 | ) | (0.07 | ) | |||||
| Net basic earnings per share (non-GAAP) | 1.19 | 1.57 | 1.09 | 5.23 | 4.47 | |||||||||
| Net diluted earnings per share (GAAP) | 0.74 | 0.96 | 0.33 | 3.06 | 2.66 | |||||||||
| Revenues from finance component | 0.00 | 0.00 | ---- | (0.01 | ) | ---- | ||||||||
| Cost of product adjustment | ---- | ---- | ---- | ---- | ---- | |||||||||
| Stock-based compensation | 0.50 | 0.45 | 0.44 | 1.77 | 1.20 | |||||||||
| Amortization and depreciation of acquired assets | 0.05 | 0.05 | 0.05 | 0.19 | 0.21 | |||||||||
| Loss (gain) from assets sale and disposal | 0.00 | 0.00 | 0.01 | 0.00 | 0.03 | |||||||||
| Other operating expense (income) | ---- | ---- | 0.03 | 0.02 | (0.07 | ) | ||||||||
| Notes due 2025 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | |||||||||
| Non-cash interest | 0.03 | 0.03 | 0.02 | 0.10 | 0.08 | |||||||||
| Unrealized gains (losses) | (0.01 | ) | ---- | ---- | (0.01 | ) | ---- | |||||||
| Currency fluctuation related to lease standard | 0.04 | 0.01 | 0.04 | 0.03 | 0.05 | |||||||||
| Uncertain tax positions | (0.16 | ) | ---- | ---- | (0.16 | ) | ---- | |||||||
| Deferred taxes | (0.09 | ) | (0.05 | ) | 0.04 | (0.20 | ) | (0.07 | ) | |||||
| Net diluted earnings per share (non-GAAP) | 1.10 | 1.45 | 0.98 | 4.81 | 4.11 | |||||||||
| Number of shares used in computing net diluted earnings per share (GAAP) | 56,011,040 | 55,929,000 | 53,496,384 | 55,971,030 | 52,795,475 | |||||||||
| Stock-based compensation | 894,079 | 653,967 | 865,179 | 773,636 | 1,138,517 | |||||||||
| Notes due 2025 | ---- | ---- | 2,276,818 | ---- | 618,701 | |||||||||
| Number of shares used in computing net diluted earnings per share (non-GAAP) | 56,905,119 | 56,582,967 | 56,638,381 | 56,744,666 | 54,552,693 |