May 10 (Renewables Now) - Photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) on Wednesday posted record first-quarter (Q1) revenues and profitability, and also announced an acquisition in the field of Uninterruptible Power Supply (UPS).
SolarEdge has agreed to buy substantially all assets of Israeli UPS electrical devices maker Gamatronic Electronic Industries Ltd (TLV:GAMT) in a drive to expand and diversify its business. The target sells its various UPS offerings and control solutions for power systems in the US, China, Europe, South Africa and Latin America.
“This acquisition is our first step in expanding our business to new fields outside the solar arena,” said Guy Sella, founder, CEO and chairman of SolarEdge.
The transaction includes Gamatronic’s intellectual property, brand and tangible assets, and envisages the transfer of about 100 employees upon completion this quarter.
Q1 FINANCIAL RESULTS
In January-March 2018, SolarEdge registered 152% year-on-year and 83% quarter-on-quarter jumps in GAAP net profit to USD 35.7 million (EUR 30m). On a non-GAAP basis, net profit surged by 159% year-on-year and went up 3% quarter-on-quarter to USD 42.6 million.
The company’s Q1 revenues rose by 82% on the year and 11% from the prior quarter to USD 209.9 million. Gross margin improved to 37.9% from 33.6% in Q1 2017 and 37.5% in Q4 2017. During the three-month period, the firm shipped 800 MW of inverters.
“We are pleased to announce strong first quarter results with record revenues and record profitability, despite the traditional seasonal slowdown and continued industry wide components shortages,” Sella stated.
For the second quarter of the year, the company guided for revenues of USD 220 million-230 million and gross margins of 36-38%.
(USD 1.0 = EUR 0.843)