Slide 1: Third Fiscal Quarter 2015 Earnings summary
Third Fiscal Quarter 2015 Earnings summary May 7, 2015 | 1 |
Slide 2: Safe Harbor
SAFE HARBOR Use of Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include information, among other things, concerning: our possible or assumed future results
Slide 3: Key Operating Metrics
KEY OPERATING METRICS $$ 946K optimizers 39K inverters 248 Megawatts $86M revenues shipped shipped shipped | 3 |
Slide 4: Fiscal Third Quarter Highlights
FISCAL THIRD QUARTER HIGHLIGHTS Financial highlights Record revenue of $86.4 million, up 18% from QoQ; 183% YoY GAAP gross margin of 27.4% GAAP net income of $6.0 million Non-GAAP net income of $8.7 million Business highlights Increased capacity with contract manufacturers 248 Megawatts AC inverters
Slide 5: Noteworthy
NOTEWORTHY Continued on-time development of next generation products to further improve usability, compliance and efficiency at reduced cost Inverter prices in the US face pressure, especially from European manufacturers benefitting from lower Euro/Dollar exchange rate Natural hedging is required to
Slide 6: Strategy and Technology
STRATEGY AND TECHNOLOGY After years of market decline in Germany, we see stabilization of this market In recent years, while the European market shrunk in size, SolarEdge successfully increased market share. We are now expecting further growth, primarily in Germany, the UK and the Netherlands as wel
Slide 7: Financial Results
FINANCIAL RESULTS USD in millions* FYQ3 '15 FYQ2 '15 FYQ3 '14 Revenues 86.4 73.3 30.6 Gross margin 27.4% 21.5% 20.4% Operating expenses 13.9 11.5 10.8 Operating income 9.8 4.2 -4.5 Net income 6.0 3.4 -5.2 Net diluted earnings per share 0.01 0.00 -1.87 *with the exception of gross margin and per shar
Slide 8: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS USD in millions* FYQ3 '15 FYQ2 '15 FYQ3 '14 Revenues 86.4 73.3 30.6 Gross margin 27.6% 21.6% 20.5% Operating expenses 13.1 11.2 10.5 Operating income 10.8 4.7 -4.3 Net income 8.7 4.1 -5.0 Net diluted Earnings Per Share 0.20 0.12 -0.19 *with the exception of gross margin an
Slide 9: Revenue Growth
REVENUE GROWTH USD millions 90.0 80.0 183% YoY 70.0 60.0 50.0 40.0 30.0 20.0 10.0 - FYQ'3 14 FYQ'4 14 FYQ'1 15 FYQ'2 15 FYQ'3 15 | 9 |
Slide 10: Units Shipped
UNITS SHIPPED Optimizers shipped Inverter shipped K units Units 1,000 40,000 900 35,000 800 30,000 700 600 25,000 500 20,000 400 15,000 300 10,000 200 100 5,000 - - FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 '13 '13 '14 '14 '14 '14 '15 '15 '15 '13 '13 '
Slide 11: Gross Margins
GROSS MARGINS 29.0% 27.4% 27.0% 25.0% 23.0% 21.5% 20.9% 20.4% 21.0% 19.6% 19.0% 17.0% 15.0% FYQ'3 14 FYQ'4 14 FYQ'1 15 FYQ'2 15 FYQ'3 15 | 11 |
Slide 12: Operating Expenses
OPERATING EXPENSES 40.0% 35.3% 35.0% 4.3% 30.0% 25.0% 25.0% 15.0% 2.6% G&A 17.4% 15.8% 20.0% 16.1%* S&M 12.2% 1.7% 1.5% 2.3% R&D 15.0% 8.2% 7.7% 7.4% 10.0% 15.9% 10.3% 5.0% 7.6% 6.5% 6.4% 0.0% FYQ'3 14 FYQ'4 14 FYQ'1 15 FYQ'2 15 FYQ'3 15 * 15.4% excluding IPO related expenses | 12 |
Slide 13: Net Income
NET INCOME GAAP Non-GAAP USD thousands USD thousands 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 - - -2,000 -2,000 -4,000 -4,000 -6,000 -6,000 FYQ'3 14 FYQ'4 14 FYQ'1 15 FYQ'2 15 FYQ'3 15 FYQ'3 14 FYQ'4 14 FYQ'1 15 FYQ'2 15 FYQ'3 15 | 13 |
Slide 14: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions FYQ3 '15 FYQ2 '15 FYQ3 '14 Cash and investments 138.8 27.2 12.9 Inventory 64.5 47.6 25.2 Capital Expenditures* 5.1 2.1 0.8 Total Debt - 4.7 19.1 Cash Flow From Operations -13.0 9.7 -4.9 *FYQ3 ‘15 includes $3.5M related to leasehold improvements | 14 |
Slide 15: Fiscal Fourth Quarter Outlook
FISCAL FOURTH QUARTER OUTLOOK Revenues to be within the range of $92-96 million Gross margin to be within the range of 26%-28% | 15 |
Slide 16: Appendix
solarze{e-" Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit FYQ3 '15 FYQ2 '15 FYQ3 '14 Gross profit (GAAP) 23,701 15,781 6,229 Stock-based compensation 140 77 33 Gross profit (Non-GAAP) 23,841 15,858 6,262 Reconciliation of GAAP to Non-GAAP Gross Margin FYQ3 '15 FYQ2 '15 FYQ3
Slide 18: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Operating income (loss) FYQ3 '15 FYQ2 '15 FYQ3 '14 Operating income (loss) (GAAP) 9,799 4,234 (4,545) Stock-based compensation 970 460 278 Operating income (loss) (Non-GAAP) 10,769 4,694 (4,267) Reconciliation of GAAP to Non-GAAP
Slide 19: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS FYQ3 '15 FYQ2 '15 FYQ3 '14 Net basic earnings (loss) per share (GAAP) 0.01 0.00 (1.87) Stock-based compensation 0.03 0.00 0.01 Warrants remeasurement 0.04 0.01 ---- Additional earnings per share giving effect to IPO
Slide 20: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS FYQ3 '15 FYQ2 '15 FYQ3 '14 Net diluted earnings (loss) per share (GAAP) 0.01 0.00 (1.87) Stock-based compensation 0.02 0.00 0.01 Warrants remeasurement 0.04 0.01 ---- Additional earnings per share giving effect to
Slide 21: NASDAQ | SEDG
solarze{e-" NASDAQ | SEDG