SolarEdge Earns $431.5 M Revenues from Solar in Q2 FY21

SolarEdge, an Israel-headquartered photovoltaics company, has announced its financial results for the second quarter ended June 30, 2021. The company reported $431.5 million of revenues from the solar segment, up 39% from $310.1 million in the year-ago period.

“We are happy to finish the second quarter of 2021 with record revenues in both our solar and non-solar businesses and with continued strong demand for our products in the various geographies and across the different segments,” said Zvi Lando, Chief Executive Officer of SolarEdge.

The second quarter 2021 highlights are as follows:

• Revenues of $480.1 million
• Revenues from solar segment of $431.5 million
• GAAP gross margin of 32.5%
• Non-GAAP gross margin of 33.9%
• Gross margin from solar segment of 37.4%
• GAAP net income of $45.1 million
• Non-GAAP net income of $72.5 million
• GAAP net diluted earnings per share (“EPS”) of $0.82
• Non-GAAP net diluted EPS of $1.28
• 1.64 Gigawatts (AC) of inverters shipped

“We are successfully navigating through the challenging supply chain environment while continuing to support our customers’ growth and expansion with new and existing products,” Lando added.

GAAP gross margin was down from 34.5% in the prior quarter and up from 31.0% in the same quarter last year. Non-GAAP gross margin was down from 36.5% in the prior quarter and up from 32.4% in the same quarter last year.

GAAP operating expenses were $100.6 million, up 5% from $95.9 million in the prior quarter and up 38% from $73.0 million in the same quarter last year. Non-GAAP operating expenses were $81.5 million, up 7% from $76.2 million in the prior quarter and up 33% from $61.1 million in the same quarter last year.

GAAP operating income was $55.6 million, up 26% from $44.1 million in the prior quarter and up 85% from $30.0 million in the same quarter last year. Non-GAAP operating income was $81.3 million, up 13% from $71.9 million in the prior quarter and up 75% from $46.6 million in the same quarter last year.

Cash flow from operating activities was $38.7 million, up from $24.1 million in the prior quarter and down from $59.3 million in the same quarter last year. As of June 30, 2021, cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities totaled $509.3 million, net of debt, compared to $515.2 million on March 31, 2021.

SolarEdge also provides guidance for the third quarter ending September 30, 2021 as follows:

• Revenues to be within the range of $520 million to $540 million
• Non-GAAP gross margin expected to be within the range of 32% to 34%
• Revenues from solar segment to be within the range of $460 million to $480 million
• Gross margin from solar segment expected to be within the range of 35% to 37%

The company hosted a conference call to discuss these results at 4:30 p.m. ET on Monday, August 2, 2021. A replay of the live webcast is available in the Investors Relations section of the company’s website at: http://investors.solaredge.com.