SolarEdge Technologies announced its financial results for the fiscal second quarter ended December 31, 2015.
Fiscal Second Quarter 2016 Highlights
• Record revenue of $124.8 million, up 8.5 percent from last quarter and 70.3 percent year-over-year
• GAAP gross margin of 30.9 percent
• GAAP net income of $24.1 million
• Non-GAAP net income of $19.8 million
• 416 Megawatts (AC) of inverters shipped
“Execution of our strategy and related business plan has resulted in another successful quarter,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our revenue growth and increased profitability, this quarter we installed our first HD-wave inverter units and we commenced shipments 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.”
The company reported revenues of $124.8 million, an increase of $9.8 million, or 8.5 percent from the prior quarter and an increase of $51.5 million or 70.3 percent from the second quarter of fiscal 2015.
GAAP gross margin was 30.9 percent, up from 29.1 percent in the prior quarter and up from 21.5 percent in the second quarter of fiscal 2015. Non-GAAP gross margin was 31.1 percent, up from 29.3 percent in the prior quarter and 21.6% in the second quarter of fiscal 2015. See “Reconciliation on Non-GAAP Measures” below.
Operating expenses were $19.3 million, or 15.5% of revenue, increasing from $18.7 million, or 16.2% of revenue, in the prior quarter and an increase from $11.5 million, or 15.8% of revenue, when compared to the second quarter of fiscal 2015.
Operating income was $19.3 million, up from $14.9 million in the prior quarter and up from operating income of $4.2 million in the second quarter of fiscal 2015.
Financial expenses were $1.0 million compared to $0.1 million in the previous quarter and $0.5 million in the second quarter of fiscal 2015.
Tax benefit for the quarter was $5.8 million. Because the Company is profitable, and expects to continue to be profitable, the Company has recorded for the first time a $6.6 million tax asset, representing expected future utilization of its carry forward net operating losses and the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes as well as the amounts used for income tax purposes.
GAAP net income was $24.1 million, up from $14.4 million in the prior quarter and up from $3.4 million in the second quarter of fiscal 2015. Non-GAAP net income was $19.8 million, an increase from $16.3 million in the prior quarter and an increase from $4.1 million in the second quarter of fiscal 2015.
GAAP net diluted earnings per share (“EPS”) was $0.55, up from $0.32 in the prior quarter and up from $0.00 in the second quarter of fiscal 2015. Non-GAAP net diluted EPS was $0.44, an increase from $0.36 in the prior quarter and an increase from $0.12 in the second quarter of fiscal 2015.
At December 31, 2015, cash, cash equivalents, restricted cash and investments totaled $162.0 million compared to $150.3 million on September 30, 2015. During the fiscal second quarter, the Company generated $13.1 million of cash from operating activities.
Outlook for the Third Quarter of Fiscal 2016
The Company provides guidance for the third quarter of fiscal 2016 as follows:
• Revenues expected to be within the range of $121 million to $125 million;
• Gross margins expected to be within the range of 29% to 31%.