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
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.