Higher sales help SolarEdge boost Q2 net profit 30% Y/Y

Solar panels. Author: Frédéric BISSON. License: Creative Commons, Attribution 2.0 Generic.

Israel-based photovoltaic (PV) inverter maker SolarEdge Technologies Inc (NASDAQ:SEDG) booked a 30% year-on-year rise in GAAP net profit for the second quarter of 2017 to USD 22.5 million (EUR 19m), fuelled by an increase in sales.

Net profit improved by 59% quarter-on-quarter, the company said on Wednesday.

SolarEdge shipped 563 MW of PV inverters in the first quarter, generating revenues of USD 136.1 million, up from USD 124.8 million a year earlier.

“Our sales in markets outside of the United States continued to grow this quarter further strengthening our diversified revenue base,” said SolarEdge founder, chairman and CEO Guy Sella. He noted that in the three months the company focused on the implementation of a cost reduction plan and the introduction of new products to the photovoltaic (PV) market.

The table below shows key financial figures for the April-June quarter.

in USD	Q2 2017	Q1 2017	Q2 2016
Revenue	136.1 million	115.1 million	124.8 million
Gross margin	34.6%	33.6%	31.4%
GAAP net profit	22.5 million	14.2 million	17.3 million
GAAP earnings per share	0.50	0.32	0.39
Non-GAAP net profit	25.8 million	16.5 million	19.9 million
Non-GAAP earnings per share	0.55	0.36	0.44
Operating profit	19.1 million	12 million	17.9 million
Operating expenses	28 million	26.7 million	21.2 million

Looking ahead, SolarEdge guided for third-quarter revenues of between USD 155 million and USD 165 million and gross margins of 33% to 35%.

SolarEdge closed the first half of 2017 with a net profit of USD 36.7 million, down from USD 38.1 million a year back, on revenues of USD 251.2 million, rising from USD 250 million a year before. At the end of June, the company had USD 274.7 million of cash, cash equivalents, restricted cash and marketable securities.

(USD 1.0 = EUR 0.844)

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