Israel-based solar inverter provider SolarEdge Technologies (SolarEdge) announced its financial results for the third quarter ended September 30, 2020. The company earned a $338.1 million revenue – a marginal increase of 2% from $331.9 million in the prior quarter – but down 18% from $410.6 million in the same quarter last year.

Meanwhile, solar business revenues stood at $312.5 million – only a 1% rise from $310.1 million in the prior quarter – but down by 19% from $387.8 million in the same quarter last year.

The Generally Accepted Accounting Principles (GAAP) gross margin was 32% – up from 31% in the prior quarter – and down from 33.9% in the same quarter last year.  Meanwhile, Non-GAAP gross margin was 33.5% – up from 32.4% in the prior quarter – and down from 35.1% YoY.

Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows.

Under solar business, the GAAP gross margin was 34.1% – up from 33.1% in the prior quarter – and down from 35.0% YoY. While, non-GAAP gross margin for solar business was 34.8%, up from 33.8% in the preceding quarter and down from 35.4% YoY.

Cash flow from operating activities was $28.4 million – down from $59.3 million in the prior quarter – and down from $68.7 million in the same quarter last year.

Zivi Lando, CEO of SolarEdge, said, “Our third-quarter results reflect significant growth in Europe, despite the current economic slowdown caused by the global pandemic. Our solar business outside the U.S. reached an all-time high, and the U.S. market is showing signs of a return to pre-pandemic installation levels.”

He further added that in addition to generating significant cash from operations the Q3, the company had raised $618 million, net of expenses, in convertible debt for providing additional support for their continued organic and non-organic growth.

Solar Edge predicts revenues to be within the range of $345 million to $365 million in the next quarter, while it expects non-GAAP gross margin to be within the range of 32% to 34%.

Meanwhile, expected revenues from solar products could be within the range of $320 million to $335 million in the next quarter, while non-GAAP gross margin from the sale of solar products is expected to be within the range of 34% to 36%.

SolarEdge registered $431.2 million in the quarter ending March 31, 2020, a 59% increase in revenue from $271.9 million in the same period last year.  The revenues were up 3% from $418.2 million.

Previously, the company also announced the pricing of $550 million aggregate principal amount of 0.00% convertible senior notes due 2025 in a private offering to qualified institutional buyers.

Back in 2018, SolarEdge announced that it has entered into definitive agreements to acquire a major stake in Kokam Co., Ltd. Headquartered in South Korea, Kokam is a provider of lithium-ion battery cells, batteries and energy storage solutions.

 

Image credit: SolarEdge