Israel-headquartered SolarEdge, which specializes in power optimizers, inverters and storage solutions, has posted record revenues in the fiscal second quarter for 2016 ended December 31, 2015, achieving $124.8 million for the quarter.
This figure represents a massive 70.3% increase on revenue for the same period in 2015, and is up 8.5% from the previous quarter.
GAAP gross margin was 30.9%, which is an increase from 21.5% in fiscal Q2 2015 and exceeded guidance figures of 28-30% that were expected. According to Deutsche Bank analyst Vishal Shah, cost reductions achieved by SolarEdges Hungarian automated fab helped boost the margins. With just one automated line up and running but five more expected to be utilized over the course of the year, SolarEdge could reduce its production costs by a further 7.5-10%.
Operating expenses nevertheless increased, hitting $19.3 million for the quarter, but at 15.5% of revenue they represented a smaller proportion of SolarEdges overall turnover than in fiscal Q1. GAAP net income for fiscal Q2 reached $24.1 million, which also represented an encouraging increase on the same stage in 2015, when GAAP net income was just $3.4 million.
SolarEdges own outlook for Q3 is positive, with revenues expected within the range of $121 to $125 million, and gross margin forecast to reach somewhere in the range of 29-31%.
The companys success in the U.S. residential and commercial markets over the past few months has certainly moulded these results in a positive fashion. Its partnership with Tesla is expected to deliver a further boon for the company later this year, while Shah at Deutsche Bank expects the strengthening U.S. market to continue to drive SolarEdges revenues, supported by growing demand for SolarEdges StorEdge product in Germany and Australia.
In fiscal Q2, the launch of SolarEdges 27/33 kW inverters accelerated commercial shipments across the U.S. market, with North America accounting for 74% of revenues and 275 MW of inverters. By Q3, the "vast majority" of SolarEdges single-phase inverters will be on HD Wave technology, Shah added.
SolarEdge CEO, founder and chairman Guy Sella said that the company had successfully executed its business plan and strategy in fiscal Q2. "In addition to our revenue growth and increased profitability, this quarter we installed our first HD Wave inverter units and we commenced shipment of our StorEdge solution. We remain committed to introducing innovative technologies to continue to drive down the cost of, and broaden the application of, renewable energy technologies."
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