August 7 (Renewables Now) - Photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) on Tuesday reported record revenue and non-GAAP net profit for the second quarter (Q2) of 2019.
Net profit inched down to USD 33.1 million (EUR 29.6m) from USD 34.6 million a year ago, while its non-GAAP net profit rose to USD 49.3 million.
Revenues jumped by 43% year-on-year and 20% quarter-on-quarter to USD 325 million. SolarEdge expects its top line result to further increase in the third quarter of 2019 to between USD 395 million and USD 410 million, including USD 375 million to USD 390 million from the solar business.
The company’s solar business accounted for USD 306.7 million of Q2 revenues. The company has expanded into the e-mobility and energy storage markets through the acquisition of stakes in powertrain technology provider SMRE and Kokam Co Ltd in 2018 and the first quarter of 2019. The integration of the businesses is proceeding on schedule.
“We see strong customer demand for our products worldwide and we are building the needed capacity both in China and outside of China to meet the needs of our customers,” said chairman and chief executive officer Guy Sella.
The table contains details on SolarEdge’s performance in Q2 2019.
|All in USD million||Q2 2019||Q1 2019||Q2 2018|
|- solar revenue||306.7||253.1||227.1|
|GAAP gross margin (in %)||34.1||31.7||36.1|
|Non-GAAP gross margin (in %)||35.7||32.8||36.5|
|Non-GAAP net profit||49.3||32.9||40.6|
|Cash flow from operating activities||50.8||56.5||43.9|
The gross margin of 34.1% in the second quarter was lower than in 2018 because of the increase in US tariffs on China-made products. SolarEdge guided for a third-quarter gross margin of between 32% and 34%. The gross margin for the solar segment is expected to be in the range of 33% to 35%, down from 36.4% in the second quarter.
(USD 1 = EUR 0.89)