Slide 1: Calendar Second Quarter 2018 Earnings Summary
Calendar Second Quarter 2018 Earnings summary August 02, 2018
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 $$ 2.7M optimizers 114K inverters 985 Megawatts $227.1M revenues shipped shipped shipped
Slide 4: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Financial highlights for quarter Record revenue of $227.1 million, up 8.2% QoQ GAAP gross margin of 36.1% GAAP operating income of $40.7 million GAAP net income of $34.6 million Non-GAAP net income of $40.6 million Cash flow from operation of $43.9 million Business highligh
Slide 5: Noteworthy
NOTEWORTHY Record revenues, stable operational profitability and continued cash generation Record high revenues in Europe, stable revenues in the US at lower ASP Commercial sales reach record high of 43.5% of MW shipped Lawsuit filed against Huawei in Germany to defend three patents Asset acquisitio
Slide 6: GAAP Financial Results
GAAP FINANCIAL RESULTS *USD in millions Q2 18 Q1 18 Q2 17 Revenues 227.1 209.9 136.1 Gross margin 36.1% 37.9% 34.6% Operating expenses 41.3 38.8 28.0 Operating income 40.7 40.8 19.1 Net income 34.6 35.7 22.5 Net diluted earnings per share 0.72 0.75 0.50 *With the exception of gross margin and per sh
Slide 7: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions Q2 18 Q1 18 Q2 17 Revenues 227.1 209.9 136.1 Gross margin 36.5% 38.4% 35.0% Operating expenses 35.1 32.8 24.4 Operating income 47.8 47.7 23.1 Net income 40.6 42.6 25.8 Net diluted earnings per share 0.82 0.87 0.55 *With the exception of gross margin and pe
Slide 8: Quarterly Revenues
QUARTERLY REVENUES USD millions 250 227.1 209.9 189.3 200 166.6 136.1 150 100 50 0 Q217 Q317 Q417 Q118 Q218 solani
Slide 9: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped K Units
Slide 10: Gross Margin
40% 35% 30% 25% 20% 15% 34.6% Q217 GROSS MARGIN 34.9% Q3 17 37.5% Q417 37.9% qQiis 36.1% Q218 solani
Slide 11: Operating Expenses
25% 20% 15% 10% 5% 0% OPERATING EXPENSES 20.5% 2.4% rr 19.6% Q3 17 Q417 m@R&D BS&M G&A Ql 18 solar
Slide 12: GAAP Operating Income
—— GAAP OPERATING INCOME ———— USD millions 50 40.8 40.7 a4 40 34.6 25.4 30 a, 19.1 20 0 Q217 Q317 Q417 Qii18 Q218 solar
Slide 13: Non-GAAP Operating Income
NON-GAAP OPERATING INCOME USD millions
Slide 14: GAAP Net Income
GAAP NET INCOME USD millions * * * Q1-18 and Q4-17 includes one time transition tax of $0.8 and $18.7M respectively
Slide 15: Non-GAAP Net Income
NON-GAAP NET INCOME USD millions
Slide 16: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions Q2 18 Q1 18 Q2 17 Cash and investments 437.6 400.8 274.7 Inventory 102.0 98.4 56.2 Capital Expenditures 10.1 11.3 5.7 Total Debt - - - Cash Flow From 43.9 64.0 31.6 Operations
Slide 17: Third Quarter Guidance
THIRD QUARTER GUIDANCE Revenues expected to be within the range of $230 million to $240 million Gross margin expected to remain flat within the range of 36% to 38%
Slide 18: Appendix
solarzehre solarzs{e-" Appendix
Slide 19: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Six months ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Gross profit (GAAP) 81,946 79,597 47,066 161,543 85,742 Stock-based compensation 968 924 517 1,892 1,010 Gross
Slide 20: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Six months ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Operating expenses (GAAP) 41,281 38,769 27,951 80,050 54,623 Stock-based compensation R&D 2,605 2,382 1,
Slide 21: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Financial income, net Three months ended Six months ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Financial income (expenses), net (GAAP) (2,480) 584 3,595 (1,896) 5,005 Non cash interest 568 512 ---
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Six months ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net income (GAAP) 34,568 35,686 22,524 70,254 36,699 Stock-based compensation 7,128 6,849 4,034 13,977 7,646 Non
Slide 23: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Six months ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net basic earnings per share (GAAP) 0.76 0.81 0.54 1.57 0.88 Stock-based compensation 0.16 0.15 0.10 0.31 0.1
Slide 24: NASDAQ | SEDG
solarzehre solarzs{e-" NASDAQ | SEDG