SolarEdge Technologies, Inc. today announced its financial results for the first quarter ended March 31, 2019.
First Quarter 2019 Highlights
- Record revenues of $271.9 million
- Record revenues from solar products of $253.1 million
- GAAP gross margin of 31.7%
- Non-GAAP gross margin from sale of solar products of 34.3%
- GAAP net diluted EPS of $0.39
- Non-GAAP net diluted EPS of $0.64
- 1.1GW (AC) of inverters shipped
"We opened 2019 with a strong quarter and record revenues driven by substantial growth, particularly in Europe, which demonstrates our leading position in the global solar inverter market," said Guy Sella, Founder, Chairman and CEO of SolarEdge. "This quarter we concluded the acquisition of SMRE which provides us with an entry into the e-mobility market and we continued the integration of Kokam and the building of our UPS business. We are very happy to be able to continue to grow our solar business while leveraging profits for further investment in our new areas of technology development, which include UPS products, lithium ion batteries and integrated powertrain electronics for electric vehicles."
First Quarter 2019 Summary
The Company reported record revenues of $271.9 million, up 3% from $263.7 million in the prior quarter and up 30% from $209.9 million in the same quarter last year.
Revenues related to the solar business were $253.1 million, up 4% from $243.4 million in the prior quarter and up 21% from $209.9 million in the same quarter last year.
GAAP gross margin was 31.7%, up from 30.2% in the prior quarter and down from 37.9% year over year.
Non-GAAP gross margin was 32.8%, up from 30.9% in the prior quarter and down from 38.4% year over year.
GAAP gross margin for the solar business was 33.8%, up from 32.3% in the prior quarter.
Non-GAAP gross margin for the solar business was 34.3%, up from 32.8% in the prior quarter.
GAAP operating expenses were $58.1 million, up 5% from $55.3 million in the prior quarter and up 50% from $38.8 million year over year.
Non-GAAP operating expenses were $48.0 million, up 7% from $45.1 million in the prior quarter and up 46% from $32.9 million year over year.
GAAP operating income was $28.0 million, up 15% from $24.4 million in the prior quarter and down 31% from $40.8 million year over year.
Non-GAAP operating income was $41.2 million, up 13% from $36.4 million in the prior quarter and down 14% from $47.6 million year over year
GAAP net income was $19.0 million, up 47% from $12.9 million in the prior quarter and down 47% from $35.7 million year over year.
Non-GAAP net income was $32.9 million, up 5% from $31.5 million in the prior quarter and down 23% from $42.5 million year over year.
GAAP net diluted earnings per share ("EPS") was $0.39, up from $0.27 in the prior quarter and down from $0.75 year over year.
Non-GAAP net diluted EPS was $0.64, up from $0.63 in the prior quarter and down from $0.87 year over year.
Cash flow from operating activities was $56.5 million, up from $46.9 million in the prior quarter and down from $64.0 million year over year.
As of March 31, 2019, cash, cash equivalents, restricted cash, bank deposits and marketable securities totaled $398.7 million, compared to $392.2 million on December 31, 2018 following a payment of $43.0 million for the acquisition of S.M.R.E. and additional Kokam shares, net of cash obtained in the acquisition.
Outlook for the Second Quarter 2019
The Company also provides guidance for the second quarter ending June 30, 2019 as follows:
- Revenues to be within the range of $310 million to $320 million
- Gross margin expected to be within the range of 32% to 34%
- Revenues from solar products to be within the range of $290 million to $300 million
- Gross margin from sale of solar products expected to be within the range of 33% to 35%
