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Israel-based manufacturer of solar inverters, power optimizers, and monitoring systems, SolarEdge posted revenue of $727.8 million in the second quarter (Q2), a quarter-over-quarter (QoQ) increase of 11% from $655.1 million in the first quarter. The revenue was up 52% year-over-year (YoY) from $480.1 million in Q2 2021.
SolarEdge’s cumulative revenue from the solar segment totaled $687.6 million, up 13% QoQ from $608 million and 59% from $431.5 million in the same quarter a year ago.
The company’s gross margin for Q2 was 26.7%, down from 28.4% in the previous quarter and 33.9% in Q2 2021.
The operating expenses of SolarEdge amounted to $109.6 million, a QoQ surge of 11% from $98.9 million in Q1, and a YoY spike of 35% from $81.5 million.
The company’s operating income totaled $84.7 million, down QoQ by 3% from $87.2 million in Q1 and up 4% YoY from $81.3 million.
SolarEdge’s cumulative net income totaled $56.7 million, down QoQ by 18% from $68.8 million in the past quarter and down YoY by 22% from $72.5 million in the same quarter last year.
The company’s cash equivalents, cash, bank deposits, restricted bank deposits, and marketable securities until Q2 totaled $973.3 million, compared to $979 million on March 31, 2022.
According to the company, Covid-19 related lockdowns in Shanghai hampered the manufacturing continuity, resulting in a below-planned output level and the need to expedite shipments in the second and third quarters.
SolarEdge shipped 251 MWh of batteries in Q2, which more than doubled quarter-over-quarter. It was a record quarter for the manufacturer in terms of revenue generation in the U.S., Europe, Italy, and Germany. The company shipped new three-phase versions of batteries designed specifically for the German and European markets.
The company shipped a record 2.52 GW(AC) of inverters during the quarter.
The solar inverter maker has over 2.75 million monitored systems operational globally. Since beginning commercial shipments in 2010, SolarEdge has shipped over 31.6 GW of its DC-optimized inverter systems, and its products have been installed in solar photovoltaic systems in 133 countries.
The number of powertrain kit deliveries dropped in Q2 owing to reduced demand from SolarEdge’s customers, which aligns with the overall instability in the automotive industry.
Earlier this year, SolarEdge completed underwritten public offering of 2,300,000 shares of common stock at $295 per share and raised $678.5 million.