SolarEdge reports record revenues in second-quarter results

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SolarEdge Technologies has touted record revenues in its financial results for the second quarter of 2018.

The figure hit a record high of $227.1 million, an 8% increase on the previous quarter and a 67% jump from $136 million during the same period last year. Gross margin in the latest three-month period was 36.1% – a decrease from 37.9% in the previous reporting period but a year-on-year increase from 34.6%.

Operating expenses have risen from $28 million in Q2 2017 to $38.8 million at the start of this year, and $41.3 million in the latest update, marking a 48% year-on-year increase and a 6% quarterly rise.

SolarEdge’s net diluted earnings per share was $0.72, a slight fall from the last quarter, which saw EPS of $0.75 but a substantial year on year increase from $0.50. Net income, which had risen from $22.5 million in the same period last year to $35.7 million in the first quarter fell slightly, to $34.6 million.

Cashflow from operating activities increased significantly on the last 12 months, from $31.6 million in Q2 last year to $43.9 million in the latest figures, although that marked a notable fall from the $64 million seen in this year’s opening quarter. Operating income remained unchanged compared to the last quarter, at $40.7 million, with the company highlighting that figure as a 113% year on year rise on the $19.1 million seen in Q2 2017.

A happy CEO

“We ended the second quarter of 2018 with record revenues, stable operating income and continued strong cash generation, while expanding our activities on all fronts,” said Guy Sella, founder, Chairman, and CEO of SolarEdge. “This continued growth in the solar market, coupled with the announced acquisition of Gamatronic – that paves our way into the UPS market – allows us to continue and expand our mid and long-term profitability, leveraging on our innovative technology and financial strength.”

The market for uninterrupted power systems is estimated to have approximately the same size as the global PV inverter market. As a result, an increasing number of inverter and storage system manufacturers have adapted their offering to include UPS’.

SolarEdge shipped 985 MW (AC) of inverters and predicted revenues will climb further, to $230-240 million by the next update. It expects gross margins to be largely unchanged.

SolarEdge is one of the largest suppliers of inverters to the U.S. residential and commercial market. The Trump administration’s latest call for tariffs – on Chinese-made inverters – could further bolster the company’s position in the American market, although company bosses will be wary of investing too much faith in the notoriously capricious U.S. President’s social media outbursts.

The administration called for 25% tariffs on Chinese inverters and other solar PV relevant equipment. Chinese manufacturers are looking to open fabs overseas as a result, whilst not explicitly linking the strategy to an escalating trade war between the superpowers.