From pv magazine USA.
Israeli inverter and energy storage business SolarEdge was able to keep its streak of profitable quarters going in the second three months of the year despite a squeeze in revenue and earnings during a tough, Covid-hit period for solar.
The company posted higher-than-expected second-quarter revenues of $331.9 million with 94% of it coming from solar, all at a compressed gross margin of 31%. The company shipped 3.5 million of its solar power optimizers in the period, down from 5 million in the January-to-March window.
“This quarter, despite the challenges caused by Covid-19, we maintained healthy profitability while generating cash from operating activity,” said CEO Zivi Lando. “Our global strength, and in particular our loyal customer base in the Netherlands, Germany, Italy and Australia, softened the decline in U.S. demand this past quarter.”
Highlights
- Revenues of $332 million (down 23% quarter-on-quarter but up 2% from Q2 last year)
- Revenues from solar products of $310 million
- Gross margin of 31%
- Net income of $36.7 million, down 13% from the prior quarter
- Net diluted earnings per share of $0.70, down from $0.81 in the prior quarter
- 1.44 GWac of inverters shipped
Summary
Operating expenses came in at $73 million, up 1% from $72.2 million in the prior quarter and 12% from $65.3 million in the same quarter of last year.
Operating income was $30 million, down 56% from $67.8 million in the prior quarter and 34% from $45.4 million in Q2 2019.
As of June 30, cash and equivalents totaled $593 million, compared to $468 million on December 31.
Third-quarter guidance
SolarEdge provided the following guidance for the current quarter:
- Revenues of $325-350 million
- Non-GAAP (generally accepted accounting principles) gross margin of 32-34%
- Revenues from solar products to be $305-325 million
European rebound
According to the the company’s presentation, “sales and installations in Europe have returned, and in some countries [are] exceeding pre-Covid-19 [rates].” The company said it sees “signs of recovery in the U.S.”
SolarEdge added, it saw “tracking indicators such as weekly new orders, installation rates and distributor sell-outs all trending positively.”
The company stock was up 12% after hours and 82% this year.
With SolarEdge co-founder Guy Sella having died last year, fellow founder and vice president for product design Lior Handelsman recently announced his departure from the company and has been followed by public and media relations director Jessica Fishman.
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