SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the first quarter ended March 31, 2021.
Fourth Quarter 2021 Highlights
- Revenues of $405.5 million
- Revenues from solar products of $376.4 million
- GAAP gross margin of 34.5%
- Non-GAAP gross margin of 36.5%
- GAAP gross margin from sale of solar products of 38.3%
- Record non-GAAP gross margin from sale of solar products of 39.7%
- GAAP net income of $30.1 million
- Non-GAAP net income of $55.5 million
- GAAP net diluted earnings per share (“EPS”) of $0.55
- Non-GAAP net diluted EPS of $0.98
- 1.69 Gigawatts (AC) of inverters shipped
“We are happy to report our first quarter results, representing continued growth in our solar business across geographies and segments,” said Zvi Lando, CEO of SolarEdge. “We are particularly pleased with our operational performance this quarter, which will enable us to meet the continued increase in demand for our residential and commercial products worldwide. This quarter, we also began delivering full powertrain kits for the e-Mobility sector in Europe in line with our growth strategy beyond solar.”
First Quarter 2021 Summary
The Company reported revenues of $405.5 million, up 13% from $358.1 million in the prior quarter and down 6% from $431.2 million in the same quarter last year.
Revenues related to the sale of solar products were $376.4 million, up 15% from $327.1 million in the prior quarter and down 8% from $407.6 million in the same quarter last year.
GAAP gross margin was 34.5%, up from 30.8% in the prior quarter and up from 32.5% year over year.
Non-GAAP gross margin was 36.5%, up from 32.5% in the prior quarter and up from 33.6% year over year.
GAAP gross margin from the sale of solar products was 38.3%, up from 35.3% in the prior quarter and up from 34.6% year over year.
Non-GAAP gross margin from the sale of solar products was 39.7%, up from 36.2% in the prior quarter and up from 35.0% year over year.
GAAP operating expenses were $95.9 million, flat with $95.9 million in the prior quarter and up 33% from $72.2 million in the same quarter last year.
Non-GAAP operating expenses were $76.2 million, up 4% from $72.9 million in the prior quarter and up 15% from $66.3 million in the same quarter last year.
GAAP operating income was $44.1 million, up 206% from $14.4 million in the prior quarter and down 35% from $67.8 million in the same quarter last year.
Non-GAAP operating income was $71.9 million, up 65% from $43.5 million in the prior quarter and down 9% from $78.6 million in the same quarter last year.
GAAP net income was $30.1 million, up 70% from $17.7 million in the prior quarter and down 29% from $42.2 million in the same quarter last year.
Non-GAAP net income was $55.5 million, compared to $55.7 million in the prior quarter and up 10% from $50.7 million in the same quarter last year.
GAAP EPS was $0.55, up from $0.33 in the prior quarter and down from $0.81 in the same quarter last year.
Non-GAAP net diluted EPS was $0.98, flat with $0.98 in the prior quarter and up from $0.95 in the same quarter last year.
Cash flow from operating activities was $24.1 million, down from $27.2 million in the prior quarter and down from $107.7 million in the same quarter last year.
As of March 31, 2021, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $515.2 million, net of debt, compared to $530.2 million on December 31, 2020.
Outlook for the Second Quarter 2021
The Company also provides guidance for the second quarter ending June 30, 2021 as follows:
- Revenues to be within the range of $445 million to $465 million
- Non-GAAP 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 $420 million
- Non-GAAP gross margin from sale of solar products expected to be within the range of 36% to 38%
Conference Call
The Company will host a conference call to discuss these results at 4:30 P.M. ET on Monday, May 3, 2021. 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 5167186. 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.
