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SolarEdge's net profit falls 59% y/y in Oct-Dec 2016

Solar power system. Author: Mountain/ \Ash. License: Creative Commons, Attribution 2.0 Generic.

Feb 15 (Renewables Now) - SolarEdge Technologies Inc (NASDAQ:SEDG) on Tuesday posted a 59.3% year-on-year drop in GAAP net profit for the quarter ended December 31, 2016, but it also reported a better-than-expected gross margin.

“We continued our cost reduction measures yielding solid operating income and record gross margin despite lower revenues than in previous quarters,” said Guy Sella, founder, chairman and CEO of SolarEdge.

The Israel-based photovoltaic (PV) inverters maker shipped 413 MW in October-December 2016 compared to 416 MW a year back. On January 1, 2017 the company moved to a standard fiscal year, ending on December 31. Previously, its financial years ended on June 30.

Sella also said the firm is confident that it will boost revenues and profitability this year. For the quarter ending March 31, 2017, the company forecasts revenues in the range of USD 110 million (EUR 104m) to USD 120 million, and gross margins of between 31% and 33%.

The table below shows key financial figures for October-December 2016.

 (in USD million, unless specified) Oct-Dec 2016 Jul-Sep 2016 Oct-Dec 2015
Revenues 111.5 128.5 124.8
GAAP gross margin (in %) 35 32.6 30.9
GAAP operating profit 15.1 18.2 19.3
GAAP net profit 9.8 15.6 24.1
Non-GAAP net profit 14.7 20.9 19.8
GAAP net diluted earnings per share (in USD) 0.22 0.35 0.55
Non-GAAP net diluted earnings per share (in USD) 0.32 0.46 0.44

SolarEdge's revenue met its guidance from November 2016. The gross margin surpassed the forecast 30%-32% range.

(USD 1.0 = EUR 0.948)

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