SolarEdge's profits, revenues rise in FY 2015/16

Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.

Israel-based inverter maker SolarEdge Technologies Inc (NASDAQ:SEDG) roughly trebled its profits in the year to June 30 after revenues reached USD 489.8 million (EUR 445.2m).

Inverter shipments stood at 1,615 MW.

The company reported on Tuesday a net profit of USD 76.6 million for fiscal 2015/16, up from USD 21.1 million a year ago. Non-GAAP net profit rose to USD 79.3 million from USD 29.4 million. GAAP and non-GAAP diluted earnings per share jumped to USD 1.73 and USD 1.74, respectively.

SolarEdge’s gross margin for the year went up to 31% from 25.2% in fiscal 2014/15.

In its fourth fiscal quarter (Q4), the company shipped 427 MW of inverters. It said there was a general slowdown in the residential US market, but higher sales in other geographic regions compensated for the decline. Details on Q4 performance are available in the table below.

Results in USD million	April-June 2016	Jan-March 2016	April-June 2015
Revenue	124.8	125.2	98.4
GAAP gross margin	31.4%	32.5%	28.7%
Non-GAAP gross margin	31.6%	32.7%	28.9%
GAAP operating	17.9	19.7	11.9
GAAP net	17.3	20.8	9.3
Non-GAAP net	19.9	23.3	13.8

SolarEdge also guided for revenues of USD 130 million-139 million in July-September 2016 and gross margins of 30% to 32%.

The Israeli company’s stock price has been hurt in recent weeks by the news that Tesla Motors Inc (NASDAQ:TSLA) would buy SolarCity (NASDAQ:SCTY). SolarEdge is providing inverters for Tesla's Powerwall, but Elon Musk said in August the electric carmaker has plans to make its own inverters.

As of June 30 cash, cash equivalents, restricted cash and marketable securities amounted to USD 186.6 million. SolarEdge did not have any debt at the end of its fiscal year.

(USD 1 = EUR 0.909)

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