SolarEdge, an Israel-based solar inverter manufacturer, recorded a net loss of $108.6 million in the first quarter (Q1) of 2024, an improvement of 37.7% on a year-over-year (YoY) basis as compared to a net loss of $174.5 million.

Revenue for the quarter stood at $204.4 million, marking a decline of 78% YoY from $943.9 million. Within the solar segment, revenues amounted to $190.1 million, a 79% YoY decrease from $908.5 million.

SolarEdge said the revenue trend aligns with the seasonal pattern observed in the industry, where higher revenues typically occur towards the latter part of the year.

Operating expenses totaled $109.2 million from $123.6 million in the same quarter of the prior year.

The company implemented price reductions in specific regions and for certain products to assist distribution channel partners in achieving optimal inventory levels. These adjustments are expected to be reflected in the company’s financials starting next quarter.

Cash utilized in operating activities amounted to $217 million, contrasting with $139.9 million in the preceding quarter and $7.9 million generated from operating activities in the corresponding quarter last year.

Zvi Lando, SolarEdge’s Chief Executive Officer, said, “Our first quarter results were aligned with our expectations of inventory clearing and typical seasonality.”

He elaborated that with the arrival of spring, a season historically associated with increased installations, the company anticipates a continued reduction in channel inventory and a boost in revenues.

The company is in the process of developing its next-generation residential battery. This battery will be founded on a unified platform that merges single-phase and three-phase platforms into one cohesive system.

Approximately 100 MW have been installed or are currently undergoing installation for the company’s tracker product, with confirmed orders for 60 MW slated for installation this year.

The company recorded a net loss of $162.4 million in the fourth quarter of 2023, an 880% year-over-year drop from the net profit of $20.8 million, primarily due to the higher interest rates and lower power prices causing an inventory buildup slowing down the shipments.

SolarEdge announced a restructuring initiative in January to trim operating expenses and adapt its cost structure to market conditions.