Increased European sales aid SolarEdge in Q1

Solar array. Author: U.S. Department of Agriculture .

May 10 (Renewables Now) - Israel-based photovoltaic (PV) inverter maker SolarEdge Technologies Inc (NASDAQ:SEDG) on Tuesday posted a net profit of USD 14.2 million (EUR 13m) for the first quarter of 2017, down from USD 20.8 million a year earlier.

Net profit, however, rose from USD 9.8 million in the preceding quarter. Revenue also improved sequentially, increasing by 3% to USD 115.1 million.

"In a quarter where the PV market is exhibiting decline in the United States, we have increased our revenues, profitability and cash flow generation quarter over quarter," said SolarEdge founder, chairman and chief executive Guy Sella. "Much of this is attributed to increased sales in Europe and our growing worldwide geographic spread," Sella added and expressed confidence the company is well placed to continue to increase revenues in existing and new markets.

The table below shows key financial figures for Q1.

in USD Q1 2017 Q4 2016 Q1 2016
Revenues 115.1m 111.5m 125.2m
Gross margin 33.6% 35% 32.5%
Operating expenses 26.7m 23.9m 21m
Operating profit 12m 15.1m 19.7m
Net profit 14.2m 9.8m 20.8m
Diluted earnings per share 0.32 0.22 0.47
Non-GAAP net profit 16.5m 14.7m 23.3m
Non-GAAP diluted earnings per share 0.36 0.32 0.51

SolarEdge, which on January 1, 2017 moved to a standard fiscal year, ending on December 31, shipped 455 MW of inverters in the reporting period. This compares to 413 MW in the preceding quarter and 416 MW a year earlier.

The company forecast second-quarter revenues of between USD 120 million and USD 130 million, and gross margins in the range of 32% to 34%.

(USD 1 = EUR 0.918)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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