SolarEdge Announces Fourth Quarter and Full Year 2019 Financial Results

FREMONT, Calif.–(BUSINESS WIRE)–SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy, today announced its financial results for the fourth quarter and year ended December 31, 2019.

Fourth Quarter 2019 Highlights

  • Record revenues of $418.2 million
  • Record revenues from solar products of $389.0 million
  • GAAP gross margin of 34.3%
  • GAAP gross margin from sale of solar products of 37.3%
  • Non-GAAP gross margin from sale of solar products of 37.8%
  • Record GAAP net income of $52.8 million
  • Record Non-GAAP net income of $87.4 million
  • Record GAAP net diluted earnings per share (“EPS”) of $1.03
  • Record Non-GAAP net diluted EPS of $1.65
  • 1.6 Gigawatts (AC) of inverters shipped

Full Year 2019 Highlights

  • Revenues of $1.43 billion
  • Revenues from solar products of $1.34 billion
  • GAAP gross margin of 33.6%
  • GAAP gross margin from sale of solar products of 35.8%
  • Non-GAAP gross margin from sale of solar products of 36.2%
  • GAAP net income of $146.5 million
  • Non-GAAP net income of $233.2 million
  • GAAP net diluted earnings per share (“EPS”) of $2.90
  • Non-GAAP net diluted EPS of $4.44
  • 5.6 Gigawatts (AC) of inverters shipped

“We are pleased to conclude another very successful year with revenues growth of over 50% in 2019 most of which was generated by our solar business. We also announce a non-GAAP net profit growth of over 48%,” said Zvi Lando, CEO of SolarEdge. “This year, we continued to expand our solar business and also made significant investments in our acquired businesses that open new opportunities for us to expand our product offerings into adjacent segments and leverage our highly talented technological teams to become leaders in those markets.”

Fourth Quarter 2019 Summary

The Company reported record revenues of $418.2 million, up 2% from $410.6 million in the prior quarter and up 59% from $263.7 million in the same quarter last year.

Revenues related to the solar business were $389.0 million, modestly up from $387.8 million in the prior quarter and up 60% from $243.4 million in the same quarter last year.

GAAP gross margin was 34.3%, up from 33.9% in the prior quarter and up from 30.2% year over year.

Non-GAAP gross margin was 35.5%, up from 35.1% in the prior quarter and up from 30.9% year over year.

GAAP gross margin for the solar business was 37.3%, up from 35.0% in the prior quarter and up from 32.3% year over year.

Non-GAAP gross margin for the solar business was 37.8%, up from 35.4% in the prior quarter and up from 32.8% year over year.

GAAP operating expenses were $92.7 million, up 27% from $73.3 million in the prior quarter and up 66% from $55.8 million in the same quarter last year. Operating expenses this quarter include $22.4 million related to the SMRE acquisition and settlement of a pre-acquisition claim against Kokam.

Non-GAAP operating expenses were $63.1 million, up 15% from $54.8 million in the prior quarter and up 40% from $45.1 million in the same quarter last year.

GAAP operating income was $50.5 million, down 23% from $66.0 million in the prior quarter and up 111% from $24.0 million in the same quarter last year.

Non-GAAP operating income was $85.3 million, down 4% from $89.2 million in the prior quarter and up 135% from $36.4 million in the same quarter last year.

GAAP net income was $52.8 million, up 27% from $41.6 million in the prior quarter and up 308% from $12.9 million in the same quarter last year.

Non-GAAP net income was $87.4 million, up 37% from $63.6 million in the prior quarter and up 178% from $31.5 million in the same quarter last year.

GAAP net diluted earnings per share (“EPS”) was $1.03, up from $0.81 in the prior quarter and up from $0.27 in the same quarter last year.

Non-GAAP net diluted EPS was $1.65, up from $1.21 in the prior quarter and up from $0.63 in the same quarter last year.

Cash flow from operating activities was $83.1 million, up from $68.7 million in the prior quarter and up from $46.9 million in the same quarter last year.

As of December 31, 2019, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $467.5 million, compared to $432.9 million on September 30, 2019.

Full Year 2019 Summary

Total revenues of $1.43 billion, up 52% from $937 million in the prior year.

GAAP gross margin was 33.6%, down from 34.1% in the prior year.

Non-GAAP gross margin was 34.9%, up from 34.6% in the prior year.

GAAP operating income was $189.9 million, up 36% from $139.4 million in the prior year.

Non-GAAP operating income was $276.8 million, up 59% from $174.3 million in the prior year.

GAAP net income was $146.5 million, up 14% from $128.8 million in the prior year.

Non-GAAP net income was $233.2 million, up 48% from $157.3 million in the prior year.

GAAP net diluted EPS was $2.90, up from $2.69 in the prior year.

Non-GAAP net diluted EPS was $4.44, up from $3.17 in the prior year.

Cash flow from operating activities of $259 million, up from $189.1 million in the prior year.

Outlook for the First Quarter 2020

The Company also provides guidance for the first quarter ending March 31, 2020 as follows:

  • Revenues to be within the range of $425 million to $440 million
  • Gross margin expected to be within the range of 32% to 34%
  • Revenues from solar products to be within the range of $405 million to $415 million
  • Gross margin from sale of solar products expected to be within the range of 33% to 35%

Conference Call

The Company will host a conference call to discuss these results at 4:30 P.M. ET on Wednesday, February 19, 2020. The call will be available, live, to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The Conference ID number is 7869140. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About SolarEdge

SolarEdge is a global leader in smart energy. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by PV systems. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, UPS, electric vehicle powertrains, and grid services solutions. SolarEdge is online at solaredge.com

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, the matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2018, filed on February 28, 2019, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of February 19, 2020. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

 

 

Three months ended

December 31,

 

Year ended

December 31,

 

 

2019

 

2018

 

2019

 

2018

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ 418,223

 

$ 263,670

 

$ 1,425,660

 

$ 937,237

Cost of revenues

 

274,974

 

183,959

 

946,322

 

618,001

 

 

 

 

 

 

 

 

 

Gross profit

 

143,249

 

79,711

 

479,338

 

319,236

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development, net

 

34,900

 

24,710

 

121,351

 

82,245

Sales and marketing

 

23,659

 

19,210

 

87,984

 

68,307

General and administrative

 

11,771

 

11,837

 

49,361

 

29,264

Other operating expenses

 

22,391

 

—-

 

30,696

 

—-

 

 

 

 

 

 

 

 

 

Total operating expenses

 

92,721

 

55,757

 

289,392

 

179,816

 

 

 

 

 

 

 

 

 

Operating income

 

50,528

 

23,954

 

189,946

 

139,420

 

 

 

 

 

 

 

 

 

Financial expenses (income), net

 

(11,058)

 

(288)

 

11,343

 

2,297

 

 

 

 

 

 

 

 

 

Income before income taxes

 

61,586

 

24,242

 

178,603

 

137,123

 

 

 

 

 

 

 

 

 

Income taxes

 

9,241

 

12,093

 

33,646

 

9,077

 

 

 

 

 

 

 

 

 

Net income

 

$ 52,345

 

$ 12,149

 

$ 144,957

 

$ 128,046

Net loss attributable to Non-controlling interests

 

433

 

787

 

 

1,592

 

 

787

Net income attributable to SolarEdge Technologies, Inc.

 

$ 52,778

 

$ 12,936

 

$ 146,549

 

 

 

$ 128,833

 

 

 

 

 

 

 

 

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

December 31,

 

 

2019

 

2018

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$ 223,901

 

$ 187,764

Short-term bank deposits

 

5,010

 

9,870

Restricted bank deposits

 

27,558

 

824

Marketable securities

 

91,845

 

118,680

Trade receivables, net

 

298,383

 

173,579

Prepaid expenses and other current assets

 

115,268

 

45,073

Inventories, net

 

170,798

 

141,519

Total current assets

 

932,763

 

677,309

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

Marketable securities

 

119,176

 

74,256

Operating lease right-of-use assets, net

 

35,858

 

 

—-

Property, plant and equipment, net

 

176,963

 

119,329

Deferred tax assets, net

 

16,298

 

14,699

Intangible assets, net

 

74,008

 

38,504

Goodwill

 

129,654

 

34,874

Other long term assets

 

9,904

 

5,501

Total long term assets

 

561,861

 

287,163

 

 

 

 

 

Total assets

 

$ 1,494,624

 

$ 964,472

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Trade payables, net

 

$ 157,148

 

$ 107,079

Employees and payroll accruals

 

47,390

 

29,053

Current maturities of bank loans and accrued interest

 

15,673

 

16,639

Warranty obligations

 

65,112

 

28,868

Deferred revenues

 

70,815

 

14,351

Accrued expenses and other current liabilities

 

80,576

 

29,728

Total current liabilities

 

436,714

 

225,718

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

Bank loans

 

173

 

3,510

Warranty obligations

 

107,451

 

92,958

Deferred revenues

 

89,982

 

60,670

Operating lease liabilities

 

30,213

 

—-

Deferred tax liabilities, net

 

4,461

 

1,499

Other long term liabilities

 

13,960

 

9,391

Total long-term liabilities

 

246,240

 

168,028

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Common stock

 

5

 

5

Additional paid-in capital

 

475,792

 

371,794

Accumulated other comprehensive loss

 

(1,809)

 

(524)

Retained earnings

 

337,682

 

191,133

Total SolarEdge Technologies, Inc. stockholders’ equity

 

811,670

 

562,408

Non-controlling interests

 

 

8,318

Total stockholders’ equity

 

811,670

 

570,726

 

 

 

 

Total liabilities and stockholders’ equity

 

$ 1,494,624

 

$ 964,472

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 

Year ended December 31,

 

 

2019

 

2018

 

 

 

 

 

Cash flows provided by operating activities:

 

 

 

 

Net income

 

$ 144,957

 

$ 128,046

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation of property, plant and equipment

 

17,261

 

11,426

Amortization of intangible assets

 

9,634

 

1,193

Amortization of premium and accretion of discount on available-for-sale marketable securities, net

 

92

 

1,242

Stock-based compensation expenses

 

60,353

 

30,618

Deferred income tax benefit, net

 

(6,037)

 

(7,093)

Loss from sale of business

 

5,269

 

—-

Other expenses, net

 

713

 

561

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

(22,544)

 

(20,178)

Prepaid expenses and other assets

 

(67,323)

 

(2,711)

Trade receivables, net

 

(124,071)

 

(60,514)

Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences

 

2,192

 

—-

Trade payables, net

 

47,837

 

31,482

Employees and payroll accruals

 

18,592

 

4,583

Warranty obligations

 

50,780

 

41,878

Deferred revenues

 

83,137

 

37,041

Other liabilities

 

38,158

 

(8,485)

Net cash provided by operating activities

 

259,000

 

189,079

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Business combinations, net of cash acquired

 

(38,435)

 

(94,737)

Purchase of property, plant and equipment

 

(72,562)

 

(38,608)

Withdrawal from (investment in) bank deposits

 

4,860

 

(9,870)

Investment in restricted bank deposits

 

(26,145)

 

(112)

Investment in available-for-sale marketable securities

 

(160,054)

 

(142,627)

Proceed from sales and maturities of available-for-sale marketable securities

 

142,744

 

129,345

Other investing activities

 

(3,261)

 

—-

Net cash used in investing activities

 

$ (152,853)

 

$ (156,609)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Repayment of bank loans, net

 

$ (9,265)

 

$ (3,786)

Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards

 

9,066

 

10,021

Change in non-controlling interests

 

(71,468)

 

(14,190)

Other financing activities

 

(1,354)

 

—-

Net cash used in financing activities

 

$ (73,021)

 

$ (7,955)

 

 

 

 

 

Increase in cash and cash equivalents

 

33,126

 

24,515

Cash and cash equivalents at the beginning of the period

 

187,764

 

163,163

Effect of exchange rate differences on cash and cash equivalents

 

3,011

 

86

Cash and cash equivalents at the end of the period

 

$ 223,901

 

$ 187,764

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands, except gross profit and per share data)

(Unaudited)

 
Reconciliation of GAAP to Non-GAAP Gross Profit
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
 
Gross profit (GAAP)

143,249

 

139,309

 

79,711

 

479,338

 

319,236

Stock-based compensation

2,268

 

1,691

 

1,323

 

6,964

 

4,342

Cost of product adjustment

448

 

107

 

398

 

1,556

 

606

Amortization and depreciation of acquired assets

2,489

 

2,898

 

—-

 

9,771

 

193

Gross profit (Non-GAAP)

148,454

 

144,005

 

81,432

 

497,629

 

324,377

 
Reconciliation of GAAP to Non-GAAP Gross Margin
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Gross margin (GAAP)

34.3%

 

33.9%

 

30.2%

 

33.6%

 

34.1%

Stock-based compensation

0.5%

 

0.4%

 

0.5%

 

0.5%

 

0.4%

Cost of product adjustment

0.1%

 

—-

 

0.2%

 

0.1%

 

0.1%

Amortization and depreciation of acquired assets

0.6%

 

0.8%

 

—-

 

0.7%

 

—-

Gross margin (Non-GAAP)

35.5%

 

35.1%

 

30.9%

 

34.9%

 

34.6%

 
Reconciliation of GAAP to Non-GAAP Operating expenses
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Operating expenses (GAAP)

92,721

 

73,292

 

55,757

 

289,392

 

179,816

Stock-based compensation – R&D

(4,937)

 

(4,269)

 

(3,230)

 

(16,872)

 

(11,205)

Stock-based compensation – S&M

(3,157)

 

(2,779)

 

(2,564)

 

(11,062)

 

(9,112)

Stock-based compensation – G&A

916

 

(2,628)

 

(1,574)

 

(6,991)

 

(5,959)

Amortization and depreciation of acquired assets – R&D

(30)

 

(17)

 

(652)

 

(92)

 

(762)

Amortization and depreciation of acquired assets – S&M

33

 

(440)

 

(101)

 

(1,214)

 

(130)

Amortization and depreciation of acquired assets – G&A

45

 

(54)

 

—-

 

(35)

 

—-

Acquisition related expenses

—-

 

—-

 

(2,140)

 

(949)

 

(2,140)

Assets disposal

(56)

 

(14)

 

(435)

 

(622)

 

(435)

Non recurring operating expenses

(22,391)

 

(8,305)

 

—-

 

(30,696)

 

—-

Operating expenses (Non-GAAP)

63,144

 

54,786

 

45,061

 

220,859

 

150,073

 
Reconciliation of GAAP to Non-GAAP Operating income
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Operating income (GAAP)

50,528

 

66,017

 

23,954

 

189,946

 

139,420

Cost of product adjustment

448

 

107

 

398

 

1,556

 

606

Stock-based compensation

9,446

 

11,367

 

8,691

 

41,889

 

30,618

Amortization and depreciation of acquired assets

2,441

 

3,409

 

753

 

11,112

 

1,085

Acquisition related expenses

—-

 

—-

 

2,140

 

949

 

2,140

Assets disposal

56

 

14

 

435

 

622

 

435

Non recurring operating expenses

22,391

 

8,305

 

—-

 

30,696

 

—-

Operating income (Non-GAAP)

85,310

 

89,219

 

36,371

 

276,770

 

174,304

 
Reconciliation of GAAP to Non-GAAP Financial expenses (income), net
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Financial expenses (income), net (GAAP)

(11,058)

 

17,023

 

(288)

 

11,343

 

2,297

Non cash interest

(1,055)

 

(955)

 

(769)

 

(3,645)

 

(2,489)

Currency fluctuation due to new lease standard adoption

(266)

 

(800)

 

—-

 

(2,591)

 

—-

Intangible assets amortization

348

 

—-

 

528

 

348

 

528

Financial expenses (income), net (Non-GAAP)

(12,031)

 

15,268

 

(529)

 

5,455

 

336

 
Reconciliation of GAAP to Non-GAAP Tax on income (tax benefit)
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Tax on income (GAAP)

9,241

 

7,270

 

12,093

 

33,646

 

9,077

Deferred tax realized (asset)

1,114

 

2,963

 

2,304

 

6,037

 

7,093

Transition tax of foreign earnings

—-

 

—-

 

(8,189)

 

—-

 

1,296

Tax on income (Non-GAAP)

10,355

 

10,233

 

6,208

 

39,683

 

17,466

 
Reconciliation of GAAP to Non-GAAP Net income attributable to SolarEdge Technologies Inc.
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Net income attributable to SolarEdge Technologies Inc. (GAAP)

52,778

41,627

 

12,936

146,549

128,833

Cost of product adjustment

448

107

 

398

1,556

606

Stock-based compensation

9,446

11,367

 

8,691

41,889

30,618

Amortization and depreciation of acquired assets

2,093

3,409

 

225

10,764

557

Acquisition related expenses

—-

—-

 

2,140

949

2,140

Assets disposal

56

14

 

435

622

435

Non recurring operating expenses

22,391

8,305

 

—-

30,696

—-

Non cash interest

1,055

955

 

769

3,645

2,489

Currency fluctuation due to new lease standard adoption

266

800

 

—-

2,591

—-

Deferred tax realized (asset)

(1,114)

(2,963)

 

(2,304)

(6,037)

(7,093)

Transition tax of foreign earnings

—-

—-

 

8,189

—-

(1,296)

Net income attributable to Solaredge Technologies Inc. (Non-GAAP)

87,419

63,621

 

31,479

233,224.00

157,289

 
Reconciliation of GAAP to Non-GAAP Net basic earnings per share
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Net basic earnings per share (GAAP)

1.08

 

0.86

 

0.28

 

3.06

 

2.85

Cost of product adjustment

0.01

 

0.01

 

0.01

 

0.03

 

0.01

Stock-based compensation

0.20

 

0.23

 

0.19

 

0.87

 

0.68

Amortization and depreciation of acquired assets

0.04

 

0.07

 

0.01

 

0.23

 

0.01

Acquisition related expenses

—-

 

—-

 

0.04

 

0.02

 

0.05

Assets disposal

—-

 

—-

 

0.01

 

0.01

 

0.01

Non recurring operating expenses

0.46

 

0.17

 

—-

 

0.64

 

—-

Non cash interest

0.02

 

0.02

 

0.02

 

0.08

 

0.05

Currency fluctuation due to new lease standard adoption

—-

 

0.02

 

—-

 

0.06

 

—-

Deferred tax realized (asset)

(0.02)

 

(0.06)

 

(0.05)

 

(0.13)

 

(0.15)

Transition tax of foreign earnings

—-

 

—-

 

0.18

 

—-

 

(0.03)

Net basic earnings per share (Non-GAAP)

1.79

 

1.32

 

0.69

 

4.87

 

3.48

 
Reconciliation of GAAP to Non-GAAP Net diluted earnings per share
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Net diluted earnings per share (GAAP)

1.03

 

0.81

 

0.27

 

2.90

 

2.69

Cost of product adjustment

0.01

 

—-

 

0.01

 

0.02

 

0.01

Nonvested PSUs

(0.01)

 

—-

 

—-

 

—-

 

—-

Stock-based compensation

0.15

 

0.19

 

0.16

 

0.68

 

0.53

Amortization and depreciation of acquired assets

0.04

 

0.07

 

0.01

 

0.22

 

0.01

Acquisition related expenses

—-

 

—-

 

0.04

 

0.02

 

0.04

Assets disposal

—-

 

—-

 

0.01

 

0.01

 

0.01

Non recurring operating expenses

0.43

 

0.16

 

—-

 

0.59

 

—-

Non cash interest

0.02

 

0.02

 

0.01

 

0.07

 

0.05

Currency fluctuation due to new lease standard adoption

—-

 

0.02

 

—-

 

0.05

 

—-

Deferred tax realized (asset)

(0.02)

 

(0.06)

 

(0.04)

 

(0.12)

 

(0.14)

Transition tax of foreign earnings

—-

 

—-

 

0.16

 

—-

 

(0.03)

Net diluted earnings per share (Non-GAAP)

1.65

 

1.21

 

0.63

 

4.44

 

3.17

 
Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted earnings per share
Three months ended Year ended
December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018
Number of shares used in computing net diluted earnings per share (GAAP)

50,966,778

 

51,081,594

 

47,637,478

 

50,195,661

 

47,980,002

Stock-based compensation

1,774,490

 

1,375,391

 

2,204,179

 

2,011,807

 

1,636,127

Number of shares used in computing net diluted earnings per share (Non-GAAP)

52,741,268

 

52,456,985

 

49,841,657

 

52,207,468

 

49,616,129

 

 

Contacts

Investor Contacts
SolarEdge Technologies, Inc.

Ronen Faier, Chief Financial Officer

+1 510-498-3263

investors@solaredge.com

Sapphire Investor Relations, LLC

Erica Mannion or Michael Funari

+1 617-542-6180

investors@solaredge.com

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