SolarEdge books record profit, revenues in Q3

SolarEdge headquarters. Source: SolarEdge Technologies

November 11 (Renewables Now) - Photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) last week reported record revenues and non-GAAP net profit for the third quarter of 2019, meeting the upper range of its guidance.

The Israel-based company’s non-GAAP net profit came at USD 63.6 million (EUR 57.7m), rising from USD 49.3 million in the second quarter and from USD 42.7 million from a year back. On a GAAP basis the result stood at USD 41.6 million, down 9% year-on-year.

Revenues in the three months reached a record-high-level of USD 410.6 million, growing by 26% sequentially and 74% in yearly terms. The company’s solar business accounted for USD 387.8 million of this total, which in turn jumped by 66% from the third quarter of 2018.

Zvi Lando, the acting CEO and vice president global sales of SolarEdge noted that while SolarEdge’s financial and operational performance is pleasing, the quarter was marked by the untimely death of the company’s founder, chairman and CEO, Guy Sella. He added that the company, which expanded into the e-mobility and energy storage markets, is “well-positioned for continued growth” in the new segments and its core business on the PV inverter market.

More details on SolarEdge’s performance in Q3 are presented in the following table.

Amounts in USD million Q3 2019 Q2 2019 Q3 2018
Revenue 410.6 325 236.6
- solar revenue 387.8 306.7 233.8
GAAP gross margin (%) 33.9 34.1 33.0
Non-GAAP gross margin (%) 35.1 35.7 33.6
GAAP Operating profit 66 45.4 34
Non-GAAP Operating profit 89.2 61 42.5
Net profit 41.6 33.1 45.6
Non-GAAP net profit 63.6 49.3 42.7
Cash flow from operating activities 68.7 50.8 34.3

The GAAP gross margin of 33.9% in July-September climbed from 33% a year before but was still impacted by higher air shipments and the increase in US tariffs on China-made products.

PV inverter shipments in the three months amounted to 1.5 GW.

For the last quarter of 2019, revenues are expected to range at between USD 410 million and USD 420 million, including USD 388 million-398 million from the solar business. Gross margin is seen at 32%-34%, with gross margin from the sale of solar products of 33%-35%, SolarEdge forecasts.

(USD 1.0 = EUR 0.907)

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