Slide 1: Calendar First Quarter 2017 Earnings Summary
Calendar First Quarter 2017 Earnings summary May 9th, 2017
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 $$ 1,470K optimizers 58K inverters 455 Megawatts $115.1M revenues shipped shipped shipped
Slide 4: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Financial highlights for quarter Revenue of $115.1 million, up 3.2% QoQ GAAP gross margin of 33.6% GAAP operating income of $12.0 million GAAP net income of $14.2 million Non-GAAP net income of $16.5 million $25.7M cash flow from operation Business highlights for quarter 455
Slide 5: Noteworthy
NOTEWORTHY U.S solar market remains weak and we expect tougher times before improvement Growth in U.S solar market share while managing customer risk and pricing Increased sales in Europe despite seasonality, indicating market comeback Increased sales in certain Asian and Pacific markets including A
Slide 6: Financial Results
FINANCIAL RESULTS *USD in millions CQ1'17 CQ4'16 CQ1'16 Revenues 115.1 111.5 125.2 Gross margin 33.6% 35.0% 32.5% Operating expenses 26.7 23.9 21.0 Operating income 12.0 15.1 19.7 Net income 14.2 9.8 20.8 Net diluted earnings per share 0.32 0.22 0.47 *with the exception of gross margin and per share
Slide 7: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions CQ1'17 CQ4'16 CQ1'16 Revenues 115.1 111.5 125.2 Gross margin 34.0% 35.4% 32.7% Operating expenses 23.6 20.9 18.6 Operating income 15.6 18.6 22.4 Net income 16.5 14.7 23.3 Net diluted earnings per share 0.36 0.32 0.51 *with the exception of gross margin and
Slide 8: Quarterly Revenues
QUARTERLY REVENUES USD millions $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $- cqi'ie cqQ2'16 CQ3'16 C€Q4'16 cqi'17 solar
Slide 9: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped
Slide 10: Gross Margin
GROSS MARGIN 35.0% 35.0% 33.6% 32.5% 32.6% 33.0% 31.4% 31.0% 29.0% 27.0% 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% CQ1'16 CQ2'16 CQ3'16 CQ4'16 CQ1'17 *CQ4’ 16 margin included one time benefit of approximately 2%
Slide 11: Operating Expenses
OPERATING EXPENSES 21.4% 18.4% 15.5% 16.8% *CQ1’ 17 margin includes accrual of doubtful debt representing 1% of revenues
Slide 12: GAAP Net Income
GAAP NET INCOME USD thousands 25,000 20,799 20,000 17,273 15,616 14,175 15,000 9,765 10,000 5,000 - CQ1'16 CQ2'16 CQ3'16 CQ4'16 CQ1'17
Slide 13: Non GAAP Net Income
NON GAAP NET INCOME USD thousands 23,330 25,000 20,895 19,921 20,000 16,455 14,738 15,000 10,000 5,000 - CQ1'16 CQ2'16 CQ3'16 CQ4'16 CQ1'17
Slide 14: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions CQ1'17 CQ4'16 CQ1'16 Cash and investments 247.6 224.3 172.2 Inventory 60.9 67.4 85.5 Capital Expenditures 2.1 7.2 5.9 Total Debt - - - Cash Flow From Operations 25.7 24.7 15.3
Slide 15: Calendar Second Quarter Outlook
CALENDAR SECOND QUARTER OUTLOOK Revenues expected to be within the range of $120 million to $130 million Gross margin expected to be within the range of 32% to 34%
Slide 16: Appendix
solarzehre solarze{e-" Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 18: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 19: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 20: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 21: NASDAQ | SEDG
solarzehre solarze{e-" NASDAQ | SEDG