May 7 (Renewables Now) - Photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) on Wednesday said its first-quarter GAAP net profit more than doubled after revenues reached a record-high level thanks to the solar business.
The Israel-based company closed the January-March quarter with a GAAP net profit of USD 42.2 million (EUR 39.1m), increasing from USD 18 million a year before. The growth came on the back of the all-time high in revenues, which jumped to USD 431.2 million from USD 271.9 million. The improved sales of solar products were the major driver, increasing by 5% in annual terms and contributing USD 407.6 million.
On a non-GAAP basis, SolarEdge’s net profit amounted to USD 50.7 million. Its GAAP and non-GAAP gross margin from the sale of solar products stood at 34.6% and 35%, respectively.
More details about the company's financial performance are shown in the following table.
|Amounts in USD million||Q1 2020||Q1 2019|
|-- from solar business||407.6||253.1|
|GAAP gross margin (%)||32.5||31.7|
|Non-GAAP gross margin (%)||33.6||32.8|
|GAAP operating profit||67.8||28|
|Non-GAAP operating profit||78.6||41.2|
|GAAP net profit||42.2||19|
|Non-GAAP net profit||50.7||32.9|
|Cash flow from operating activities||107.7||56.5|
PV inverter shipments in the three months amounted to 1.85 GW.
“Despite the challenges triggered by COVID-19 during the quarter, we were able to get products to our customers and satisfy demand. At present, despite many government enforced shut downs, our employees continue to work and operate our business, without any significant interruptions,” said CEO Zvi Lando.
In spite of the difficulty to provide a thorough forecast for the second quarter and full 2020 year due to the unstable market environment in the wake of the COVID-19 crisis, SolarEdge said it anticipates its revenues in the April-June quarter to range between USD 305 million and USD 335 million, with USD 285 million-315 million seen to be brought by the solar business. Gross margin is expected to be within the 30%-32% range, while the margin from the sale of solar products is forecast to be 32%-34%.
The Israeli firm pointed out that the outlook takes into account the anticipated impact of the coronavirus situation at the time of publication.
(USD 1.0 = EUR 0.927)