Form 8-K SolarEdge Technologies For: Nov 04
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): August 12, 2015
SOLAREDGE TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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001-36894
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20-5338862
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||
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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1 HaMada Street, Herziliya Pituach, Israel
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4673335
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(Address of Principal executive offices)
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(Zip Code)
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Registrant’s Telephone number, including area code: 972 (9) 957-6620
Not Applicable
(Former name or former address, if changed since last report.)
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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On November 4, 2015, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2015. The Company previously announced that the Company would hold a conference call and live webcast at 5:00 p.m., Eastern time, on November 5, 2015, to discuss these results. A copy of the press release announcing the Company’s financial results for the quarter ended September 30, 2015 is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.
On August 12, 2015, the Company issued a press release announcing its financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2015. A copy of the press release is attached hereto as Exhibit 99.2 and is incorporated herein by reference. Copies of the earnings summary and supplemental information provided during the Company’s August 12, 2015 conference call related to earnings for the fiscal fourth quarter are furnished hereto as Exhibits 99.3 and 99.4, respectively, and are incorporated herein by reference.
This information, including the exhibits hereto, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) List of Exhibits
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Exhibit No.
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Description
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Exhibit 99.1
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Press release dated November 4, 2015
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Exhibit 99.2
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Press release dated August 12, 2015
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Exhibit 99.3
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Fourth Fiscal Quarter 2015 Earnings Summary, dated August 12, 2015
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Exhibit 99.4
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Fourth Fiscal Quarter 2015 Supplemental Information, dated August 12, 2015
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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.
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SOLAREDGE TECHNOLOGIES, INC.
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|||
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Date: November 4, 2015
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By:
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/s/ Ronen Faier | |
| Name: Ronen Faier | |||
| Title: Chief Financial Officer | |||
Exhibit Index
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Exhibit No.
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Description
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Exhibit 99.1
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Press release dated November 4, 2015
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Exhibit 99.2
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Press release dated August 12, 2015
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Exhibit 99.3
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Fourth Fiscal Quarter 2015 Earnings Summary, dated August 12, 2015
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Exhibit 99.4
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Fourth Fiscal Quarter 2015 Supplemental Information, dated August 12, 2015
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Exhibit 99.1
SolarEdge Announces Fiscal First Quarter Financial Results
Fremont, CA — November 4, 2015. SolarEdge Technologies, Inc. (NASDAQ: SEDG) today announced its financial results for the fiscal first quarter ended September 30, 2015.
Fiscal First Quarter 2016 Highlights
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·
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Record revenue of $115.1 million, up 16.9% from last quarter and 71.8% year-over-year
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·
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GAAP gross margin of 29.1%
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·
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GAAP net income of $14.4 million
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Non-GAAP net income of $16.3 million
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·
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356 Megawatts (AC) of inverters shipped
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“We are very satisfied with another strong quarter of record revenues and improved gross margins,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our very positive financial results, this quarter we introduced our new HD Wave inverter topology, demonstrating our technological leadership in the market. We are confident that our global presence and expanded product offering position us well for continued growth.”
Revenues
The Company reported revenues of $115.1 million, an increase of $16.6 million, or 16.9% from the prior quarter and an increase of $48.1 million or 71.8% from the first quarter of fiscal 2015.
Gross margins
GAAP gross margin was 29.1%, up from 28.7% in the prior quarter and up from 20.9% in the fiscal first quarter of 2015. Non-GAAP gross margin was 29.3%, up from 28.9% in the prior quarter and 21.0% in the fiscal first quarter of 2015. This growth was driven primarily by the execution of planned cost reduction measures, increased supply chain efficiencies and economies of scale related to the increased production volumes.
Operating expenses
GAAP operating expenses were $18.7 million, or 16.2% of revenue, a nominal increase from $16.4 million, which represented 16.7% of revenue in the prior quarter and an increase from $11.7 million, or 17.4% of revenue when compared to the same fiscal quarter of 2015.
Operating income
GAAP operating income was $14.9 million, up from $11.9 million in the prior quarter and up from operating income of $2.4 million in the fiscal first quarter of 2015.
Financial Expenses
Financial expenses were $0.1 million compared to $1.7 million in the previous quarter and income of $0.5 million in the same quarter last year.
Net Income
GAAP net income was $14.4 million, up from $9.3 million in the prior quarter and up from $2.5 million in the fiscal first quarter of 2015. Non-GAAP net income was $16.3 million, an increase from $13.8 million in the prior quarter and an increase from $2.8 million in the fiscal first quarter of 2015.
EPS
GAAP net diluted earnings per share (“EPS”) was $0.32, up from $0.21 in the prior quarter and up from $0.00 in the fiscal first quarter of 2015. Non-GAAP net diluted EPS was $0.36, an increase from $0.31 in the prior quarter and an increase from $0.09 in the fiscal first quarter of 2015.
Cash
At September 30, 2015, cash, cash equivalents and restricted cash, totaled $150.3 million compared to $148.4 million on June 30, 2015. During the fiscal first quarter, the Company generated $5.9 million from operating activities.
Outlook for the Fiscal Second Quarter 2016
The Company provides guidance for the fiscal second quarter of 2016 as follows:
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·
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Revenues to be within the range of $118.0 million to $121.0 million;
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·
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Gross margins to be within the range of 28.0% to 30.0%.
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Conference Call
The Company will host a conference call to discuss these results at 5:00 P.M. Eastern Time on Wednesday, November 4, 2015. The call will be available, live, to interested parties by dialing +1 877-795-3610. For international callers, please dial +1 719-325-4769. The Conference ID number is 306165. A live webcast will also be available in the Investors Relations section of SolarEdge 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 remain available for approximately 30 calendar days.
About SolarEdge
SolarEdge provides an intelligent inverter solution that has changed the way power is harvested and managed in solar photovoltaic systems. The SolarEdge DC optimized inverter system maximizes power generation at the individual PV module-level while lowering the cost of energy produced by the solar PV system. The SolarEdge system consists of power optimizers, inverters and a cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations.
Use of Non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in this release. 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 press 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. SolarEdge 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.
For a reconciliation of non-GAAP measures to their most comparable GAAP measures, please see “Reconciliation on Non-GAAP Measures” below.
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 revenues, gross margins, other financial 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 Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015 and, Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, when it becomes available, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 4, 2015. SolarEdge 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
Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
+1 617-542-6180
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
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Three months ended
September 30,
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2015
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2014
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unaudited
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Revenues
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$ | 115,054 | $ | 66,969 | ||||
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Cost of revenues
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81,527 | 52,939 | ||||||
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Gross profit
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33,527 | 14,030 | ||||||
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Operating expenses:
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Research and development, net
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6,991 | 5,059 | ||||||
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Sales and marketing
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8,244 | 5,461 | ||||||
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General and administrative
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3,418 | 1,159 | ||||||
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Total operating expenses
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18,653 | 11,679 | ||||||
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Operating income
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14,874 | 2,351 | ||||||
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Financial income (expenses), net
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(72 | ) | 516 | |||||
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Income before taxes on income
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14,802 | 2,867 | ||||||
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Taxes on income
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370 | 347 | ||||||
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Net income
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$ | 14,432 | $ | 2,520 | ||||
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Net basic earnings per share of common stock
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$ | 0.37 | $ | 0.00 | ||||
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Net diluted earnings per share of common stock
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$ | 0.32 | $ | 0.00 | ||||
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Weighted average number of shares used in computing net basic earnings per share of common stock
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39,301,620 | 2,812,684 | ||||||
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Weighted average number of shares used in computing net diluted earnings per share of common stock
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44,455,964 | 2,812,684 | ||||||
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(1)
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GAAP net basic and diluted earnings per share are materially different between fiscal first quarter 2016 and fiscal first quarter 2015 since under GAAP, preferred shares do not participate in the earnings per share calculation and for the fiscal first quarter 2015, prior to the Company’s initial public offering, preferred shares were entitled to a dividend distribution which, if distributed, would have exceeded the net income for the relevant period.
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SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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September 30,
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June 30,
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|||||||
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2015
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2015
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unaudited
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ASSETS
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Current assets
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Cash and cash equivalents
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$ | 146,729 | $ | 144,750 | ||||
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Restricted cash
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3,588 | 3,639 | ||||||
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Trade receivables, net
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47,366 | 35,428 | ||||||
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Prepaid expenses and other accounts receivable
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20,733 | 32,645 | ||||||
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Inventories
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79,907 | 73,950 | ||||||
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Total current assets
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298,323 | 290,412 | ||||||
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Property and equipment, net
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17,272 | 14,717 | ||||||
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Long-term lease deposit and prepaid expenses
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601 | 529 | ||||||
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Long-term deferred charges
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779 | - | ||||||
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Total assets
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$ | 316,975 | $ | 305,658 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
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Trade payables
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$ | 67,180 | $ | 80,684 | ||||
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Employees and payroll accruals
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7,898 | 6,814 | ||||||
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Warranty obligations
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10,587 | 9,431 | ||||||
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Deferred revenues
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2,175 | 1,676 | ||||||
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Accrued expenses and other accounts payable
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8,459 | 6,987 | ||||||
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Total current liabilities
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96,299 | 105,592 | ||||||
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Long-term liabilities:
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Warranty obligations
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25,317 | 22,448 | ||||||
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Deferred revenues
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9,760 | 8,289 | ||||||
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Lease incentive obligation
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2,374 | 2,385 | ||||||
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Total long-term liabilities
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37,451 | 33,122 | ||||||
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Commitments and Contingent liabilities
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STOCKHOLDERS’ EQUITY:
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Share capital
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4 | 4 | ||||||
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Additional paid-in capital
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289,004 | 287,152 | ||||||
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Accumulated other comprehensive loss
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(225 | ) | (222 | ) | ||||
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Accumulated deficit
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(105,558 | ) | (119,990 | ) | ||||
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Total stockholders’ equity
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183,225 | 166,944 | ||||||
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Total liabilities and stockholders’ equity
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$ | 316,975 | $ | 305,658 | ||||
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
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Three months ended
September 30,
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2015
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2014
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Unaudited
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Cash flows provided by (used in) operating activities:
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Net income
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$ | 14,432 | $ | 2,520 | ||||
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Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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Depreciation
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738 | 542 | ||||||
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Amortization of intangible assets
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21 | - | ||||||
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Stock-based compensation related to employee and non-employee consultants stock options
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1,832 | 320 | ||||||
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Realized losses on Cash Flow Hedges
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1 | - | ||||||
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Interest expenses related to Bank Loan
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- | 24 | ||||||
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Financial income, net related to term loan
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- | (491 | ) | |||||
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Remeasurement of warrants to purchase preferred and common stock
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- | (15 | ) | |||||
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Changes in assets and liabilities:
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Inventories
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(5,956 | ) | (4,311 | ) | ||||
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Prepaid expenses and other accounts receivable
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11,811 | (5,527 | ) | |||||
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Trade receivables, net
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(11,928 | ) | (7,565 | ) | ||||
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Trade payables
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(13,500 | ) | 9,871 | |||||
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Employees and payroll accruals
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1,044 | 390 | ||||||
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Warranty obligations
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4,025 | 3,101 | ||||||
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Deferred revenues
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1,970 | 864 | ||||||
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Accrued expenses and other accounts payable
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1,467 | 19 | ||||||
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Lease incentive obligation
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(11 | ) | - | |||||
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Net cash provided by (used in) operating activities
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5,946 | (258 | ) | |||||
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Cash flows used in investing activities:
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Purchase of property and equipment
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(3,292 | ) | (1,002 | ) | ||||
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Purchase of intangible assets
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(800 | ) | - | |||||
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Decrease in restricted cash
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51 | 13 | ||||||
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Decrease in short and long-term deposits
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73 | 29 | ||||||
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Net cash used in investing activities
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(3,968 | ) | (960 | ) | ||||
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Cash flows from financing activities:
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Proceeds from short-term bank loans
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- | 6,000 | ||||||
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Proceeds from issuance of Series E Convertible Preferred stock
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- | 20,998 | ||||||
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Payments of term loan
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- | (798 | ) | |||||
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Proceeds from exercise of employee stock options
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17 | 8 | ||||||
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Net cash provided by financing activities
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17 | 26,208 | ||||||
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Increase in cash and cash equivalents
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1,995 | 24,990 | ||||||
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Cash and cash equivalents at the beginning of the period
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144,750 | 9,754 | ||||||
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Erosion due to exchange rate differences
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(16 | ) | (2 | ) | ||||
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Cash and cash equivalents at the end of the period
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146,729 | 34,742 | ||||||
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(unaudited)
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Three months ended
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September 30,
2015
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June 30,
2015
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September 30,
2014
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Gross profit (GAAP)
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33,527 | 28,271 | 14,030 | |||||||||
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Stock-based compensation
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180 | 188 | 37 | |||||||||
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Gross profit (Non-GAAP)
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33,707 | 28,459 | 14,067 | |||||||||
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Gross margin (GAAP)
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29.1 | % | 28.7 | % | 20.9 | % | ||||||
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Stock-based compensation
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0.2 | % | 0.2 | % | 0.1 | % | ||||||
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Gross margin (Non-GAAP)
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29.3 | % | 28.9 | % | 21.0 | % | ||||||
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Operating expenses (GAAP)
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18,653 | 16,398 | 11,679 | |||||||||
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Stock-based compensation R&D
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395 | 184 | 111 | |||||||||
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Stock-based compensation S&M
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616 | 263 | 101 | |||||||||
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Stock-based compensation G&A
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641 | 569 | 71 | |||||||||
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Operating expenses (Non-GAAP)
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17,001 | 15,382 | 11,396 | |||||||||
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Operating income (GAAP)
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14,874 | 11,873 | 2,351 | |||||||||
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Stock-based compensation
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1,832 | 1,204 | 320 | |||||||||
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Operating income (Non-GAAP)
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16,706 | 13,077 | 2,671 | |||||||||
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Finance expenses (Income) (GAAP)
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72 | 1,699 | (516 | ) | ||||||||
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Warrants remeasurement
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---- | 3,285 | (15 | ) | ||||||||
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Finance expenses (Non-GAAP)
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72 | (1,586 | ) | (501 | ) | |||||||
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Net income (loss) (GAAP)
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14,432 | 9,261 | 2,520 | |||||||||
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Stock-based compensation
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1,832 | 1,204 | 320 | |||||||||
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Warrants remeasurement
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---- | 3,285 | (15 | ) | ||||||||
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Net income (loss) (Non-GAAP)
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16,264 | 13,750 | 2,825 | |||||||||
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Net basic earnings (loss) per share (GAAP)
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0.37 | 0.24 | ---- | |||||||||
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Stock-based compensation
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0.04 | 0.03 | 0.01 | |||||||||
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Warrants remeasurement
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---- | 0.08 | ---- | |||||||||
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Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1)
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---- | ---- | 0.09 | |||||||||
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Net basic earnings (loss) per share (Non-GAAP)
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0.41 | 0.35 | 0.10 | |||||||||
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Three months ended
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September 30,
2015
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June 30,
2015
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September 30,
2014
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Number of shares used in computing net basic earnings (loss) per share (GAAP)
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39,301,620 | 39,160,372 | 2,812,684 | |||||||||
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Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1)
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---- | ---- | 25,575,898.76 | |||||||||
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Number of shares used in computing net basic earnings (loss) per share (Non-GAAP)
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39,301,620 | 39,160,372 | 28,388,583 | |||||||||
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Net diluted earnings (loss) per share (GAAP)
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0.32 | 0.21 | ---- | |||||||||
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Stock-based compensation
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0.04 | 0.02 | ---- | |||||||||
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Warrants remeasurement
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---- | 0.08 | ---- | |||||||||
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Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1)
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---- | ---- | 0.09 | |||||||||
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Net diluted earnings (loss) per share (Non-GAAP)
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0.36 | 0.31 | 0.09 | |||||||||
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Number of shares used in computing net diluted earnings (loss) per share (GAAP)
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44,455,964 | 44,473,080 | 2,812,684 | |||||||||
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Stock-based compensation
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686,470 | 319,840 | 1,552,809 | |||||||||
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Warrants remeasurement
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0 | 126,634 | 0 | |||||||||
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Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1)
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---- | ---- | 25,575,898.76 | |||||||||
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Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)
|
45,142,434 | 44,919,554 | 29,941,392 | |||||||||
(1) Assumes shares of common stock outstanding after accounting for the automatic conversion of the shares of preferred stock then outstanding into common stock at the beginning of fiscal year 2015.
Exhibit 99.2
SolarEdge Announces Fiscal Fourth Quarter and Year End 2015
Financial Results
Fremont, CA — August 12, 2015. SolarEdge Technologies, Inc. (NASDAQ: SEDG) today announced its financial results for the fiscal fourth quarter and year ended June 30, 2015.
Fourth Quarter and Full Fiscal Year 2015 Highlights
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·
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Record revenue for fiscal Q4 2015 of $98.4 million, up 13.9% from the prior quarter and 120.8% from fiscal Q4 2014. Record revenue for fiscal year 2015 of $325.1 million, representing a 144.0% year-over-year growth
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·
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GAAP gross margin of 28.7% for fiscal Q4 2015 and 25.2% for fiscal year 2015
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·
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GAAP net income for fiscal Q4 2015 of $9.3 million, and net income for fiscal year 2015 of $21.1 million
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·
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Non-GAAP net income for fiscal Q4 2015 of $13.8 million and net income for fiscal year 2015 of $29.4 million
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·
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284 Megawatts (AC) of inverters shipped for fiscal Q4 2015 and 920 Megawatts (AC) for fiscal year 2015
|
“We completed fiscal 2015 with strong execution on all fronts. We successfully grew our business with our existing and new customers and generated record revenue for the fourth fiscal quarter and the entire fiscal year. Our increased manufacturing capacity coupled with continued cost reduction, brought gross margins to a quarterly and annual record. These revenue and cost reduction initiatives generated strong bottom line results; consecutive profits in each quarter of fiscal 2015 and strong cash flow from operations,” said Guy Sella, Founder, Chairman and CEO of SolarEdge.
Fourth Quarter 2015 Summary
The Company reported revenues of $98.4 million for fiscal Q4 2015, an increase of 13.9% from the prior quarter and 120.8% from fiscal Q4 2014.
GAAP gross margin reached 28.7% for fiscal Q4 2015, up from 27.4% in the prior quarter and up from 19.6% in fiscal Q4 2014.
Non-GAAP gross margin was 28.9%for fiscal Q4 2015, up from 27.6% in the prior quarter and 19.6% in fiscal Q4 2014. This growth was mainly driven by cost reduction measures that were realized this quarter and reduced use of air shipments to a minimum.
GAAP operating expenses were $16.4 million for fiscal Q4 2015, or 16.7% of revenue, an increase from $13.9 million, or 16.1% of revenue from the prior quarter and an increase from $11.2 million, or 25.0% of revenue when compared to fiscal Q4 2014.
GAAP operating income was $11.9 million for fiscal Q4 2015, up from $9.8 million in the prior quarter and up from an operating loss of $2.4 million in fiscal Q4 2014.
GAAP net income was $9.3 million for fiscal Q4 2015, up from $6.0 million in the prior quarter and up from a net loss of $3.0 million in fiscal Q4 2014.
Non-GAAP net income was $13.8 million for fiscal Q4 2015, an increase from $8.7 million in the prior quarter and an increase from a net loss of $2.8 million in fiscal Q4 2014.
GAAP net diluted earnings per share (“EPS”) was $0.21 for fiscal Q4 2015, up from $0.01 in the prior quarter and up from a net diluted loss per share of $1.08 in fiscal Q4 2014.
Non-GAAP net diluted EPS was $0.31 for fiscal Q4 2015, an increase from $0.20 in the prior quarter and an increase from a net diluted loss per share of $0.10 in fiscal Q4 2014.
As of June 30, 2015, cash, cash equivalents and restricted cash, totaled $148.4 million, compared to $138.8 million on March 31, 2015. As of June 30, 2015, the Company did not have any debt.
Full Fiscal Year 2015 Summary
For the full fiscal year 2015, the Company reported:
|
|
·
|
Revenue of $325.1 million, representing a 144.0% increase from fiscal year 2014
|
|
|
·
|
Gross margin of 25.2%, compared to 16.5% in fiscal year 2014
|
|
|
·
|
Operating expenses of $53.5 million, up 32.7% from fiscal year 2014
|
|
|
·
|
Operating income of $28.3 million, compared to an operating loss of $18.4 million in fiscal year 2014
|
|
|
·
|
GAAP net income of $21.1 million, compared to a net loss of $21.4 million in fiscal year 2014
|
|
|
·
|
Non-GAAP net income of $29.4 million, compared to a non-GAAP net loss of $20.4 in fiscal year 2014
|
|
|
·
|
GAAP net diluted EPS of $0.27, compared to a net diluted loss per share of $7.64 in fiscal year 2014
|
|
|
·
|
Non-GAAP net diluted EPS of $0.77, compared to a net diluted loss per share of $0.76 in fiscal year 2014
|
Outlook for the First Fiscal Quarter 2016
The Company also provides guidance for the first fiscal quarter of 2016 as follows:
|
|
·
|
Revenues to be within the range of $108 million to $112 million;
|
|
|
·
|
Gross margins to be within the range of 27% to 29%.
|
Conference Call
The Company will host a conference call to discuss these results at 5:00 P.M. Eastern Time on Wednesday, August 12, 2015. The call will be available, live, to interested parties by dialing +1 877-675-4750. For international callers, please dial +1 719-325-4850. The Conference ID number is 7859651. 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 provides an intelligent inverter solution that has changed the way power is harvested and managed in solar photovoltaic systems. The SolarEdge DC optimized inverter system maximizes power generation at the individual PV module-level while lowering the cost of energy produced by the solar PV system. The SolarEdge system consists of power optimizers, inverters and a cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations.
Use of Non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in this release. 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 Registration Statement on Form S-1 (including the related prospectus), Annual Report on Form 10-K for the fiscal year ended June 30, 2015, when it becomes available, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of August 12, 2015. 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
Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
+1 415-471-2700
SOLAREDGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
Three months ended
June 30,
|
Fiscal year ended
June 30,
|
|||||||||||||||
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
(audited)
|
||||||||||||||
|
Revenues
|
$ | 98,420 | $ | 44,573 | $ | 325,078 | $ | 133,217 | ||||||||
|
Cost of revenues
|
70,149 | 35,849 | 243,295 | 111,246 | ||||||||||||
|
Gross profit
|
28,271 | 8,724 | 81,783 | 21,971 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
6,701 | 4,570 | 22,018 | 18,256 | ||||||||||||
|
Sales and marketing
|
7,432 | 5,420 | 24,973 | 17,792 | ||||||||||||
|
General and administrative
|
2,265 | 1,174 | 6,535 | 4,294 | ||||||||||||
|
Total operating expenses
|
16,398 | 11,164 | 53,526 | 40,342 | ||||||||||||
|
Operating income (loss)
|
11,873 | (2,440 | ) | 28,257 | (18,371 | ) | ||||||||||
|
Other expenses
|
104 | 104 | ||||||||||||||
|
Financial expenses, net
|
1,699 | 470 | 5,077 | 2,787 | ||||||||||||
|
Income (loss) before taxes on income
|
10,070 | (2,910 | ) | 23,076 | (21,158 | ) | ||||||||||
|
Taxes on income
|
809 | 132 | 1,955 | 220 | ||||||||||||
|
Net income (loss)
|
$ | 9,261 | $ | (3,042 | ) | $ | 21,121 | $ | (21,378 | ) | ||||||
|
Net basic earnings (loss) per share of common stock (1)
|
$ | 0.24 | $ | (1.08 | ) | $ | 0.30 | $ | (7.64 | ) | ||||||
|
Net diluted earnings (loss) per share of common stock
|
$ | 0.21 | $ | (1.08 | ) | $ | 0.27 | $ | (7.64 | ) | ||||||
|
Number of shares used in computing net basic earnings (loss) per share of common stock
|
39,160,372 | 2,809,950 | 11,902,911 | 2,798,894 | ||||||||||||
|
Number of shares used in computing net diluted earnings (loss) per share of common stock
|
44,473,080 | 2,809,950 | 15,269,448 | 2,798,894 | ||||||||||||
|
|
(1)
|
GAAP net basic and diluted earnings (loss) per share are materially different between fiscal 2015 and fiscal 2014 since under GAAP, preferred shares do not participate in losses and therefore the number of shares used in computing net diluted earnings (loss) per share is materially different between the fiscal years. In addition, under GAAP the conversion of preferred to common stock as of the IPO date reduces the net earnings available for distribution to common shareholders and reduces the number of shares used in computing net basic earnings (loss) per share of common stock.
|
SOLAREDGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
June 30,
|
June 30,
|
|||||||
|
2015
|
2014
|
|||||||
|
unaudited
|
audited
|
|||||||
|
ASSETS
|
||||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$ | 144,750 | $ | 9,754 | ||||
|
Restricted cash
|
3,639 | 1,602 | ||||||
|
Trade receivables, net
|
35,428 | 19,267 | ||||||
|
Prepaid expenses and other accounts receivable
|
32,645 | 13,151 | ||||||
|
Inventories
|
73,950 | 25,499 | ||||||
|
Total current assets
|
290,412 | 69,273 | ||||||
|
Property and equipment, net
|
14,717 | 5,351 | ||||||
|
Long-term lease deposit and prepaid expenses
|
529 | 367 | ||||||
|
Long-term deferred charges
|
- | 7 | ||||||
|
Total assets
|
$ | 305,658 | $ | 74,998 | ||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFECIENCY)
|
||||||||
|
Current liabilities:
|
||||||||
|
Short term bank loan
|
$ | - | $ | 13,326 | ||||
|
Current maturities of term loan
|
- | 3,474 | ||||||
|
Trade payables
|
80,684 | 39,438 | ||||||
|
Employees and payroll accruals
|
6,814 | 5,210 | ||||||
|
Warranty obligations
|
9,431 | 5,496 | ||||||
|
Deferred revenues
|
1,676 | 1,729 | ||||||
|
Accrued expenses and other accounts payable
|
6,987 | 4,270 | ||||||
|
Total current liabilities
|
105,592 | 72,943 | ||||||
|
Long-term liabilities:
|
||||||||
|
Warranty obligations
|
22,448 | 12,685 | ||||||
|
Deferred revenues
|
8,289 | 4,252 | ||||||
|
Warrants to purchase common stock
|
- | 765 | ||||||
|
Term loan
|
- | 3,444 | ||||||
|
Lease incentive obligation
|
2,385 | - | ||||||
|
Total long-term liabilities
|
33,122 | 21,146 | ||||||
|
Commitments and Contingent liabilities
|
||||||||
|
Convertible Preferred Series A, B, C, D, D-1, D-2 and D-3 stock
|
- | 116,203 | ||||||
|
Stockholders’ equity (deficiency):
|
||||||||
|
Share capital
|
||||||||
|
Common stock
|
4 | * - | ||||||
|
Additional paid-in capital
|
287,152 | 5,878 | ||||||
|
Accumulated other comprehensive loss
|
(222 | ) | (61 | ) | ||||
|
Accumulated deficit
|
(119,990 | ) | (141,111 | ) | ||||
|
Total stockholders’ equity (deficiency)
|
166,944 | (135,294 | ) | |||||
|
Total liabilities and stockholders’ equity (deficiency)
|
$ | 305,658 | $ | 74,998 | ||||
SOLAREDGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Year ended June 30,
|
||||||||
|
2015
|
2014
|
|||||||
|
unaudited
|
audited
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income (loss)
|
$ | 21,121 | $ | (21,378 | ) | |||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||
|
Depreciation
|
2,253 | 1,978 | ||||||
|
Capital loss from disposal of property
|
104 | - | ||||||
|
Interest expenses related to short term bank loan
|
- | 44 | ||||||
|
Stock-based compensation related to employees and non-employee stock options
|
2,956 | 1,082 | ||||||
|
Financial expenses (income), net related to term loan
|
(992 | ) | 431 | |||||
|
Remeasurement of warrants to purchase convertible preferred stock
|
5,350 | (53 | ) | |||||
|
Changes in assets and liabilities:
|
||||||||
|
Inventories
|
(48,507 | ) | (10,681 | ) | ||||
|
Prepaid expenses and other accounts receivable
|
(19,563 | ) | (7,409 | ) | ||||
|
Trade receivables, net
|
(16,333 | ) | (9,911 | ) | ||||
|
Trade payables
|
41,111 | 19,441 | ||||||
|
Employees and payroll accruals
|
1,668 | 1,726 | ||||||
|
Warranty obligations
|
13,698 | 7,803 | ||||||
|
Deferred revenues
|
3,989 | (500 | ) | |||||
|
Accrued expenses and other accounts payable
|
2,530 | (418 | ) | |||||
|
Lease incentive obligation
|
2,669 | - | ||||||
|
Net cash provided by (used in) operating activities
|
12,054 | (17,845 | ) | |||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property and equipment
|
(11,765 | ) | (2,990 | ) | ||||
|
Increase in restricted cash
|
(2,038 | ) | (156 | ) | ||||
|
Increase in long-term lease deposit
|
(134 | ) | (1 | ) | ||||
|
Net cash used in investing activities
|
(13,937 | ) | (3,147 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from short term bank loan
|
23,000 | 21,813 | ||||||
|
Repayment of short term bank loan
|
(36,326 | ) | (12,447 | ) | ||||
|
Repayments of term loan
|
(5,919 | ) | (2,401 | ) | ||||
|
Proceeds from issuance of Series D-2 Convertible Preferred stock, net
|
- | 669 | ||||||
|
Proceeds from issuance of Series D-3 Convertible Preferred stock, net
|
- | 9,991 | ||||||
|
Proceeds from issuance of Series E Convertible Preferred stock, net
|
24,712 | - | ||||||
|
Proceeds from initial public offering, net
|
131,402 | - | ||||||
|
Proceeds from exercise of employees and non-employee consultants stock options
|
84 | 51 | ||||||
|
Net cash provided by financing activities
|
136,953 | 17,676 | ||||||
|
Increase (decrease) in cash and cash equivalents
|
135,070 | (3,316 | ) | |||||
|
Cash and cash equivalents at the beginning of the period
|
9,754 | 13,142 | ||||||
|
Effect of exchange rate differences on cash and cash equivalents
|
(74 | ) | (72 | ) | ||||
|
Cash and cash equivalents at the end of the period
|
$ | 144,750 | $ | 9,754 | ||||
SOLAREDGE TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
|
Three months ended June 30,
|
Fiscal Year ended
|
|||||||||||||||
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||
|
Gross profit (GAAP)
|
$ | 28,271 | $ | 8,724 | $ | 81,783 | $ | 21,971 | ||||||||
|
Stock-based compensation
|
188 | 28 | 442 | 108 | ||||||||||||
|
Gross profit (Non-GAAP)
|
$ | 28,459 | $ | 8,752 | $ | 82,225 | $ | 22,079 | ||||||||
|
Gross margin (GAAP)
|
28.7 | % | 19.6 | % | 25.2 | % | 16.5 | % | ||||||||
|
Stock-based compensation
|
0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
|
Gross margin (Non-GAAP)
|
28.9 | % | 19.6 | % | 25.3 | % | 16.6 | % | ||||||||
|
Operating expenses (GAAP)
|
$ | 16,398 | $ | 11,164 | $ | 53,526 | $ | 40,342 | ||||||||
|
Stock-based compensation R&D
|
184 | 110 | 634 | 397 | ||||||||||||
|
Stock-based compensation S&M
|
263 | 82 | 809 | 297 | ||||||||||||
|
Stock-based compensation G&A
|
569 | 71 | 1,071 | 280 | ||||||||||||
|
Operating expenses (Non-GAAP)
|
$ | 15,382 | $ | 10,901 | $ | 51,012 | $ | 39,945 | ||||||||
|
Operating income (loss) (GAAP)
|
$ | 11,873 | $ | (2,440 | ) | $ | 28,257 | $ | (18,371 | ) | ||||||
|
Stock-based compensation
|
1,204 | 291 | 2,956 | 1,082 | ||||||||||||
|
Operating income (loss) (Non-GAAP)
|
$ | 13,077 | $ | (2,149 | ) | $ | 31,213 | $ | (17,289 | ) | ||||||
|
Finance expenses (GAAP)
|
$ | 1,699 | $ | 470 | $ | 5,077 | $ | 2,787 | ||||||||
|
Warrants remeasurement
|
3,285 | (8 | ) | 5,350 | (53 | ) | ||||||||||
|
Finance expenses (Non-GAAP)
|
$ | (1,586 | ) | $ | 478 | $ | (273 | ) | $ | 2,840 | ||||||
|
Net income (loss) (GAAP)
|
$ | 9,261 | $ | (3,042 | ) | $ | 21,128 | $ | (21,378 | ) | ||||||
|
Stock-based compensation
|
1,204 | 291 | 2,956 | 1,082 | ||||||||||||
|
Warrants remeasurement
|
3,285 | (8 | ) | 5,350 | (53 | ) | ||||||||||
|
Net income (loss) (Non-GAAP)
|
$ | 13,750 | $ | (2,759 | ) | $ | 29,434 | $ | (20,349 | ) | ||||||
|
Net basic earnings (loss) per share (GAAP)
|
$ | 0.24 | $ | (1.08 | ) | $ | 0.30 | $ | (7.64 | ) | ||||||
|
Stock-based compensation
|
0.03 | 0.01 | 0.09 | 0.04 | ||||||||||||
|
Warrants remeasurement
|
0.08 | ---- | 0.15 | ---- | ||||||||||||
|
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods (1)
|
---- | 0.97 | 0.31 | 6.84 | ||||||||||||
|
Net basic earnings (loss) per share (Non-GAAP)
|
$ | 0.35 | $ | (0.10 | ) | $ | 0.85 | $ | (0.76 | ) | ||||||
|
Number of shares used in computing net basic earnings (loss) per share (GAAP)
|
39,160,372 | 2,809,950 | 11,902,911 | 2,798,894 | ||||||||||||
|
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods(1)
|
---- | 24,442,902 | 22,518,959 | 23,853,132 | ||||||||||||
|
Number of shares used in computing net basic earnings (loss) per share (Non-GAAP)
|
39,160,372 | 27,252,852 | 34,421,870 | 26,652,026 | ||||||||||||
|
Net diluted earnings (loss) per share (GAAP)
|
$ | 0.21 | $ | (1.08 | ) | $ | 0.27 | $ | (7.64 | ) | ||||||
|
Stock-based compensation
|
0.02 | 0.01 | 0.07 | 0.04 | ||||||||||||
|
Warrants remeasurement
|
0.08 | ---- | 0.14 | ---- | ||||||||||||
|
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods(1)
|
---- | 0.97 | 0.29 | 6.84 | ||||||||||||
|
Net diluted earnings (loss) per share (Non-GAAP)
|
$ | 0.31 | $ | (0.10 | ) | $ | 0.77 | $ | (0.76 | ) | ||||||
|
Number of shares used in computing net diluted earnings (loss) per share (GAAP)
|
44,473,080 | 2,809,950 | 15,269,448 | 2,798,894 | ||||||||||||
|
Stock-based compensation
|
319,840 | ---- | 582,962 | ---- | ||||||||||||
|
Warrants remeasurement
|
126,634 | ---- | 59,288 | ---- | ||||||||||||
|
Additional shares giving effect to IPO and conversion of preferred stock at the beginning of the periods(1)
|
---- | 24,442,902 | 22,518,959 | 23,853,132 | ||||||||||||
|
Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)
|
44,919,554 | 27,252,852 | 38,430,657 | 26,652,026 | ||||||||||||
(1) Assumes shares of common stock outstanding after accounting for (i) the automatic conversion of the shares of preferred stock then outstanding into common stock at the beginning of fiscal year 2014; and (ii) the issuance of 8,050,000 shares of common stock (associated with our initial public offering) at the beginning of the third fiscal quarter instead of the IPO closing date, March 31, 2015.
Exhibit 99.3
| 1|
Fourth Fiscal Quarter 2015
Earnings summary
August 12, 2015
| 2|
SAFE HARBOR
Use of Forward-Looking Statements
This presentation contains forward-looking statements within the meaning 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.
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.
Forward-looking statements are only predictions based on our current expectations and are inherently subject to risks and uncertainties. They should not
be considered guarantees of future results, which could differ materially from the results set forth in, contemplated by, or underlying this presentation.
be considered guarantees of future results, which could differ materially from the results set forth in, contemplated by, or underlying this presentation.
Factors that could cause actual results to differ materially from our expectations are described in the reports filed by SolarEdge with the Securities and
Exchange Commission and we encourage you to review our filings carefully, especially the sections entitled “Risk Factors” in our Registration Statement on
Form S-1 (including the related prospectus).
Exchange Commission and we encourage you to review our filings carefully, especially the sections entitled “Risk Factors” in our Registration Statement on
Form S-1 (including the related prospectus).
SolarEdge undertakes no duty or obligation to update any forward-looking statements contained in this presentation as a result of new information, future
events or changes in its expectations.
events or changes in its expectations.
This presentation describes non-GAAP net income and non-GAAP net diluted earnings per share, which are not measures prepared in accordance with U.S.
GAAP (i.e. "Non-GAAP" measures). The Non-GAAP measures are presented in this presentation as we believe that they provide investors with a means of
evaluating and understanding how SolarEdge’s management evaluates the company’s operating performance. These Non-GAAP measures should not be
considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP.
GAAP (i.e. "Non-GAAP" measures). The Non-GAAP measures are presented in this presentation as we believe that they provide investors with a means of
evaluating and understanding how SolarEdge’s management evaluates the company’s operating performance. These Non-GAAP measures should not be
considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP.
| 3|
KEY OPERATING METRICS
$$$
1,138K optimizers
shipped
shipped
44K inverters
shipped
shipped
284 Megawatts
shipped
shipped
$98.4M revenues
| 4|
FISCAL FOURTH QUARTER HIGHLIGHTS
Financial highlights for quarter
Record revenue of $98.4 million, up 13.9% QoQ; 120.8% YoY
GAAP gross margin of 28.7%
GAAP net income of $9.3 million
Non-GAAP net income of $13.8 million
Cash generated from operations $15.7 million
Business highlights for quarter
ASP slightly above plan, despite price pressure
Continued to increase manufacturing capacity
284 Megawatts AC inverters shipped
1,138K optimizers and 44K inverters shipped
| 5|
YEAR OVER YEAR HIGHLIGHTS
Financial highlights for FY 2015
Annual revenues of $325.1 million, YoY growth of 144.0%
GAAP gross margin of 25.2%
GAAP net income of $21.1 million
Non-GAAP net income of $29.4 million
Business highlights for FY 2015
920 Megawatts AC inverters shipped
3,534K optimizers and 150K inverters shipped
Significant increase in U.S. and European market share
Successful IPO
| 6|
NOTEWORTHY
Continue growth in commercial markets in the U.S. and rest of world
Launch of three phase 25-33kW inverters enables broader entry into large
commercial markets
commercial markets
SolarEdge-Tesla collaboration progresses; Tesla-ready products expected to arrive in
market by fourth calendar quarter 2015
market by fourth calendar quarter 2015
First automated assembly center installed in Hungary
| 7|
FINANCIAL RESULTS
|
|
USD in millions*
|
FYQ4 '15
|
FYQ3 '15
|
FYQ4 '14
|
|
|
Revenues
|
98.4
|
86.4
|
44.6
|
|
|
Gross margin
|
28.7%
|
27.4%
|
19.6%
|
|
|
Operating expenses
|
16.4
|
13.9
|
11.2
|
|
|
Operating income (loss)
|
11.9
|
9.8
|
-2.4
|
|
|
Net income (loss)
|
9.3
|
6.0
|
-3.0
|
|
|
Net diluted earnings per share
|
0.21
|
0.01
|
-1.08
|
*with the exception of gross margin and per share data
| 8|
NON-GAAP FINANCIAL RESULTS
*with the exception of gross margin and per share data
|
|
USD in millions*
|
FYQ4 '15
|
FYQ3 '15
|
FYQ4 '14
|
|
|
Revenues
|
98.4
|
86.4
|
44.6
|
|
|
Gross margin
|
28.9%
|
27.6%
|
19.6%
|
|
|
Operating expenses
|
15.4
|
13.1
|
10.9
|
|
|
Operating income (loss)
|
13.1
|
10.8
|
-2.1
|
|
|
Net income (loss)
|
13.8
|
8.7
|
-2.8
|
|
|
Net diluted Earnings Per Share
|
0.31
|
0.20
|
-0.10
|
| 9|
REVENUE GROWTH
120.8%
USD millions
| 10|
UNITS SHIPPED
Optimizers shipped
Inverter shipped
K units
Units
| 11 |
GROSS MARGINS
| 12|
OPERATING EXPENSES
25.0%
17.4%
15.8%
16.1%*
* 15.4% excluding IPO related expenses
16.7%
| 13|
USD thousands
USD thousands
| 14|
BALANCE SHEET & CASH FLOW
*FYQ4 ‘15 and FYQ3 ‘15 includes $0.7M and $3.5M related to leasehold
improvements, respectively
improvements, respectively
|
|
USD in millions
|
FYQ4 '15
|
FYQ3 '15
|
FYQ4 '14
|
|
|
Cash and investments
|
148.4
|
138.8
|
11.4
|
|
|
Inventory
|
74.0
|
64.5
|
25.5
|
|
|
Capital Expenditures*
|
3.5
|
5.1
|
0.7
|
|
|
Total Debt
|
-
|
-
|
20.2
|
|
|
Cash Flow From Operations
|
15.7
|
-13.0
|
-5.0
|
| 15|
FISCAL FIRST QUARTER OUTLOOK
Revenues to be within the range of $108-112 million
Gross margin to be within the range of 27-29%
| 16|
Appendix
| 17|
RECONCILIATION OF GAAP TO NON-GAAP
| 18
RECONCILIATION OF GAAP TO NON-GAAP
| 19|
| 20 |
RECONCILIATION OF GAAP TO NON-GAAP
| 21|
NASDAQ | SEDG
Exhibit 99.4
| Operational Metrics |
|
KPI's $,000
|
FYQ1 '14
|
FYQ2 '14
|
FYQ3 '14
|
FYQ4 '14
|
FYQ1 '15
|
FYQ2 '15
|
FYQ3 '15
|
FYQ4 '15
|
FY 2013
|
FY 2014
|
FY 2015
|
|||||||||||||||||||||||||||||||||
|
Revenues
|
30,515 | 27,569 | 30,560 | 44,573 | 66,969 | 73,290 | 86,399 | 98,420 | 79,035 | 133,217 | 325,078 | |||||||||||||||||||||||||||||||||
| % Y/Y | 65 | % | 22 | % | 104 | % | 94 | % | 119 | % | 166 | % | 183 | % | 121 | % | 5 | % | 69 | % | 144 | % | ||||||||||||||||||||||
| % Q/Q | 33 | % | (10 | )% | 11 | % | 46 | % | 50 | % | 9 | % | 18 | % | 14 | % | ||||||||||||||||||||||||||||
|
Gross profit $
|
4,058 | 2,960 | 6,229 | 8,724 | 14,030 | 15,781 | 23,701 | 28,271 | 4,409 | 21,971 | 81,783 | |||||||||||||||||||||||||||||||||
| % Y/Y |
N\A
|
(142 | )% | 308 | % | 208 | % | 246 | % | 433 | % | 280 | % | 224 | % |
N\A
|
398 | % | 272 | % | ||||||||||||||||||||||||
| % Q/Q | 43 | % | (27 | )% | 110 | % | 40 | % | 61 | % | 12 | % | 50 | % | 19 | % | ||||||||||||||||||||||||||||
|
Gross Margin
|
13.3 | % | 10.7 | % | 20.4 | % | 19.6 | % | 20.9 | % | 21.5 | % | 27.4 | % | 28.7 | % | 5.6 | % | 16.5 | % | 25.2 | % | ||||||||||||||||||||||
| % Y/Y | N/A | 98 | % | 100 | % | 58 | % | 58 | % | 101 | % | 35 | % | 47 | % |
N\A
|
196 | % | 53 | % | ||||||||||||||||||||||||
| % Q/Q | 8 | % | (19 | )% | 90 | % | (4 | )% | 7 | % | 3 | % | 27 | % | 5 | % | ||||||||||||||||||||||||||||
|
Operating profit (loss)
|
(4,527 | ) | (6,859 | ) | (4,545 | ) | (2,440 | ) | 2,351 | 4,234 | 9,799 | 11,873 | (27,460 | ) | (18,371 | ) | 28,257 | |||||||||||||||||||||||||||
| % Y/Y | (50 | )% | 6 | % | (30 | )% | (54 | )% |
N\A
|
N\A
|
N\A
|
N\A
|
0 | % | (33 | )% |
N\A
|
|||||||||||||||||||||||||||
| % Q/Q | (15 | )% | 52 | % | (34 | )% | (46 | )% |
N\A
|
80 | % | 131 | % | 21 | % | |||||||||||||||||||||||||||||
|
Net profit (loss)
|
(5,311 | ) | (7,787 | ) | (5,238 | ) | (3,042 | ) | 2,520 | 3,375 | 5,965 | 9,261 | (28,180 | ) | (21,378 | ) | 21,121 | |||||||||||||||||||||||||||
| % Y/Y | (40 | )% | 21 | % | (22 | )% | (50 | )% |
N\A
|
N\A
|
N\A
|
N\A
|
1 | % | (24 | )% |
N\A
|
|||||||||||||||||||||||||||
| % Q/Q | (14 | )% | 47 | % | (33 | )% | (42 | )% |
N\A
|
34 | % | 77 | % | 55 | % | |||||||||||||||||||||||||||||
|
Optimizer shipped (units)
|
306,901 | 262,943 | 328,822 | 458,585 | 663,850 | 785,730 | 945,586 | 1,138,362 | 890,445 | 1,357,251 | 3,533,528 | |||||||||||||||||||||||||||||||||
|
Inverter shipped (units)
|
13,005 | 12,135 | 14,936 | 21,923 | 31,880 | 35,696 | 38,630 | 44,222 | 36,088 | 61,999 | 150,428 | |||||||||||||||||||||||||||||||||
|
MW shipped
|
77.0 | 75.6 | 83.6 | 128.6 | 176.1 | 213.1 | 247.6 | 283.7 | 239 | 365 | 920 | |||||||||||||||||||||||||||||||||
|
Balance Sheet
|
| $,000 |
June 30, 2015
|
March 31, 2015
|
||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
144,750 | 135,204 | ||||||
|
Restricted cash
|
3,639 | 3,575 | ||||||
|
Trade receivables, net
|
35,428 | 45,093 | ||||||
|
Prepaid expenses and other accounts receivable
|
32,645 | 25,312 | ||||||
|
Inventories
|
73,950 | 64,522 | ||||||
|
Total Current Assets
|
290,412 | 273,706 | ||||||
|
Fixed Assets, net
|
14,717 | 11,903 | ||||||
|
Long term cash investment
|
529 | 380 | ||||||
|
Total Assets
|
305,658 | 285,989 | ||||||
|
Current Liabilities
|
||||||||
|
Accounts payables
|
80,684 | 36,233 | ||||||
|
Employees & related payroll exp.
|
6,814 | 6,017 | ||||||
|
Other accounts payable
|
6,987 | 52,428 | ||||||
|
Short Term Warranty Liabilities
|
9,431 | 7,661 | ||||||
|
Deferred Revenues short terms
|
1,676 | 1,098 | ||||||
|
Total Current Liabilities
|
105,592 | 103,437 | ||||||
|
Long Term Liabilities
|
||||||||
|
Long Term Warranty Liabilities
|
22,448 | 20,238 | ||||||
|
Deferred Revenues Long terms
|
8,289 | 6,995 | ||||||
|
Other Long Term Liabilities
|
2,385 | 1,959 | ||||||
|
Long Term Warrants Liability
|
---- | 2,830 | ||||||
|
Total Long Term Liabilities
|
33,122 | 32,022 | ||||||
|
Stockholders’ Equity (Deficiency):
|
||||||||
|
Common stock
|
4 | 4 | ||||||
|
Additional paid-in capital
|
287,152 | 280,040 | ||||||
|
Accumulated other comprehensive loss
|
(222 | ) | (263 | ) | ||||
|
Accumulated deficit
|
(119,990 | ) | (129,251 | ) | ||||
|
Total Long Term Liabilities
|
166,944 | 150,530 | ||||||
|
Total Liabilities and Equity
|
305,658 | 285,989 | ||||||
|
Cash Flow
|
|
3 months ended
|
||||||||
| $,000 |
Jun-15
|
Jun-14
|
||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income (loss)
|
9,261 | (3,042 | ) | |||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||
|
Depreciation
|
606 | 527 | ||||||
|
Capital Gain (loss) from disposal of property
|
104 | ---- | ||||||
|
Interest expenses related to short term bank loan
|
---- | 8 | ||||||
|
Stock-based compensation related to employees and non-employee stock options
|
1,206 | 291 | ||||||
|
Financial expenses, net related to term loan
|
---- | (75 | ) | |||||
|
Remeasurement of warrants to purchase convertible preferred stock
|
3,285 | (8 | ) | |||||
|
Changes in assets and liabilities:
|
||||||||
|
Inventories
|
(9,436 | ) | (275 | ) | ||||
|
Prepaid expenses and other accounts receivable
|
(7,365 | ) | (3,499 | ) | ||||
|
Trade receivables, net
|
9,660 | (5,809 | ) | |||||
|
Trade payables
|
1,508 | 4,177 | ||||||
|
Employees and payroll accruals
|
785 | 667 | ||||||
|
Warranty obligations
|
3,980 | 1,060 | ||||||
|
Deferred revenues
|
1,873 | 215 | ||||||
|
Accrued expenses and other accounts payable
|
(204 | ) | 805 | |||||
|
Lease incentive obligation
|
426 | ---- | ||||||
|
Net cash provided by (used in) operating activities
|
15,689 | (4,958 | ) | |||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property and equipment
|
(3,511 | ) | (727 | ) | ||||
|
Decrease (increase) in restricted cash
|
(65 | ) | (138 | ) | ||||
|
Increase (decrease) in long-term lease deposit
|
(110 | ) | (27 | ) | ||||
|
Net cash used in investing activities
|
(3,686 | ) | (892 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from short term bank loan
|
---- | 5,452 | ||||||
|
Repayment of short term bank loan
|
---- | (3,428 | ) | |||||
|
Proceeds from term loan (net of $100 transaction fee)
|
---- | ---- | ||||||
|
Repayments of term loan
|
---- | (785 | ) | |||||
|
Deferred charges related to term loan
|
---- | ---- | ||||||
|
Proceeds from issuance of stock, net
|
---- | 9,991 | ||||||
|
Issuance costs
|
(2,542 | ) | ---- | |||||
|
Receipts on account of Convertible Preferred stock
|
---- | (7,115 | ) | |||||
|
Proceeds from exercise of employee stock options
|
38 | ---- | ||||||
|
Net cash provided by (used in) financing activities
|
(2,504 | ) | 4,115 | |||||
|
Increase (decrease) in cash and cash equivalents
|
9,499 | (1,735 | ) | |||||
|
Cash and cash equivalents at the beginning of the period
|
135,204 | 11,472 | ||||||
|
Effect of exchange rate differences on cash and cash equivalents
|
47 | 17 | ||||||
|
Cash and cash equivalents at the end of the period
|
144,750 | 9,754 | ||||||
| P&L GAAP |
|
FYQ1 '14
|
FYQ2 '14
|
FYQ3 '14
|
FYQ4 '14
|
FYQ1 '15
|
FYQ2 '15
|
FYQ3 '15
|
FYQ4 '15
|
FY 2013
|
FY 2014
|
FY 2015
|
||||||||||||||||||||||||||||||||||
|
Revenues
|
30,515 | 27,569 | 30,560 | 44,573 | 66,969 | 73,290 | 86,399 | 98,420 | 79,035 | 133,217 | 325,078 | |||||||||||||||||||||||||||||||||
|
Cost of revenues
|
26,457 | 24,609 | 24,331 | 35,849 | 52,939 | 57,509 | 62,698 | 70,149 | 74,626 | 111,246 | 243,295 | |||||||||||||||||||||||||||||||||
|
Gross profit
|
4,058 | 2,960 | 6,229 | 8,724 | 14,030 | 15,781 | 23,701 | 28,271 | 4,409 | 21,971 | 81,783 | |||||||||||||||||||||||||||||||||
|
Gross Margin %
|
13.3 | % | 10.7 | % | 20.4 | % | 19.6 | % | 20.9 | % | 21.5 | % | 27.4 | % | 28.7 | % | 5.6 | % | 16.5 | % | 25.2 | % | ||||||||||||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Research and development, net
|
4,136 | 4,686 | 4,864 | 4,570 | 5,059 | 4,768 | 5,490 | 6,701 | 15,823 | 18,256 | 22,018 | |||||||||||||||||||||||||||||||||
|
Sales and marketing
|
3,657 | 4,123 | 4,592 | 5,420 | 5,461 | 5,658 | 6,422 | 7,432 | 12,784 | 17,792 | 24,973 | |||||||||||||||||||||||||||||||||
|
General and administrative
|
792 | 1,010 | 1,318 | 1,174 | 1,159 | 1,121 | 1,990 | 2,265 | 3,262 | 4,294 | 6,535 | |||||||||||||||||||||||||||||||||
|
Total operating expenses
|
8,585 | 9,819 | 10,774 | 11,164 | 11,679 | 11,547 | 13,902 | 16,398 | 31,869 | 40,342 | 53,526 | |||||||||||||||||||||||||||||||||
|
Operating income (loss)
|
(4,527 | ) | (6,859 | ) | (4,545 | ) | (2,440 | ) | 2,351 | 4,234 | 9,799 | 11,873 | (27,460 | ) | (18,371 | ) | 28,257 | |||||||||||||||||||||||||||
|
Financial expenses (Income)
|
777 | 914 | 626 | 470 | (516 | ) | 458 | 3,436 | 1,699 | 612 | 2,787 | 5,077 | ||||||||||||||||||||||||||||||||
|
Other expenses
|
---- | ---- | ---- | ---- | ---- | ---- | ---- | 104 | ---- | ---- | 104 | |||||||||||||||||||||||||||||||||
|
Profit (Loss) before taxes on income
|
(5,304 | ) | (7,773 | ) | (5,171 | ) | (2,910 | ) | 2,867 | 3,776 | 6,363 | 10,070 | (28,072 | ) | (21,158 | ) | 23,076 | |||||||||||||||||||||||||||
|
Taxes on income
|
7 | 14 | 67 | 132 | 347 | 401 | 398 | 809 | 108 | 220 | 1,955 | |||||||||||||||||||||||||||||||||
|
Net (Profit) loss
|
(5,311 | ) | (7,787 | ) | (5,238 | ) | (3,042 | ) | 2,520 | 3,375 | 5,965 | 9,261 | (28,180 | ) | (21,378 | ) | 21,121 | |||||||||||||||||||||||||||