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August 3 (Renewables Now) - Israel-based inverter supplier SolarEdge Technologies Inc (NASDAQ:SEDG) saw its second-quarter GAAP net profit shrink by 67% in annual terms even as it posted record-high revenues, boosted by strong demand in the solar photovoltaic (PV) segment.
The company registered a bottom line of USD 15.1 million (EUR 14.8m), which declined both sequentially and in annual terms due to a rise in costs, its financial report showed on Tuesday. Thanks to growing sales in Europe and the US, SolarEdge enjoyed a 59% year-on-year jump in revenues at its solar segment, which was responsible for the bulk of its total revenues in the reporting period, totalling USD 727.8 million.
Chief executive officer Zvi Lando pointed out that the company is still struggling with supply chain challenges.
More details about SolarEdge’s financial performance are given in the table.
|Amounts in USD||Q2 2022||Q2 2021|
|-- from solar segment||687.6m||431.5m|
|GAAP gross margin (%)||25.1||32.5|
|Non-GAAP gross margin (%)||26.7||33.9|
|GAAP operating income||36||55.6|
|Non-GAAP operating income||84.7||81.3|
|GAAP net income||15.1||45.1|
|Non-GAAP net income||56.7||72.5|
Solar inverter shipments in April-June amounted to 2.5 GW.
As of June, SolarEdge had USD 973.3 million in cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities, net of debt, as compared to USD 979 million at the end of March.
Looking ahead, the Israeli firm expects to book revenues of between USD 810 million and USD 840 million in the third quarter of 2022, with revenues from the solar segment seen at USD 765 million-795 million. The gross margin from the solar segment is forecast to be within the 27%-30% range.
(USD 1.0 = EUR 0.977)