Slide 1: Quarter ended September 30, 2016 Earnings summary
Quarter ended September 30, 2016 Earnings summary November 9, 2016 | 1 |
Slide 2: Use of Forward-Looking Statements
Use of Forward-Looking Statements SAFE HARBOR 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 $$ 1,646K optimizers 63K inverters 466 Megawatts $128.5M revenues shipped shipped shipped | 3 |
Slide 4: Calendar Third Quarter Highlights
CALENDAR THIRD QUARTER HIGHLIGHTS Financial highlights for quarter Revenue of $128.5 million, up 11.7% YoY GAAP gross margin of 32.6% GAAP operating income of $18.2M GAAP net income of $15.6 million Non-GAAP net income of $20.9 million Cash flow from operations of $24.4 million Business highlights f
Slide 5: Noteworthy
NOTEWORTHY Slowdown in the U.S. residential market and shift from large TPOs to smaller installers continues to impact revenues in short term Gross margins and other financial and operational parameters continue to be strong HD-Wave inverters in mass production and rollout is as planned Commercial b
Slide 6: Financial Results
FINANCIAL RESULTS *USD in millions CQ3'16 CQ2'16 CQ3'15 Revenues 128.5 124.8 115.1 Gross margin 32.6% 31.4% 29.1% Operating expenses 23.6 21.2 18.7 Operating income 18.2 17.9 14.9 Net income 15.6 17.3 14.4 Net diluted earnings per share 0.35 0.39 0.32 *with the exception of gross margin and per shar
Slide 7: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions CQ3'16 CQ2'16 CQ3'15 Revenues 128.5 124.8 115.1 Gross margin 32.9% 31.6% 29.3% Operating expenses 20.9 19.1 17.0 Operating income 21.3 20.3 16.7 Net income 20.9 19.9 16.3 Net diluted earnings per share 0.46 0.44 0.36 *with the exception of gross margin and
Slide 8: Revenue Growth
REVENUE GROWTH $140.0 11.7% $120.0 $100.0 $80.0 $60.0 $40.0 cQ3'15 cQ4'15 cqQi'16 cQ2'16 CQ3'16 18 | solarnkr
Slide 9: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped | 9 |
Slide 10: Gross Margin
| 10 | 35.0% 33.0% 31.0% 29.0% 27.0% 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% GROSS MARGIN 29.1% ¢Q3'15 30.9% ca4'i5 32.5% cQ1'16 31.4% CQ2'16 32.6% CQ3'16 solani
Slide 11: Operating Expenses
OPERATING EXPENSES 20.0% 18.4% 17.0% 16.2% 16.8% 18.0% 15.5% 2.9% 16.0% 2.8% 2.5% 3.0% 1.8% 14.0% 12.0% 7.2% 7.8% G&A 7.1% 7.0% 10.0% 7.2% S&M 8.0% R&D 6.0% 4.0% 6.6% 7.0% 7.4% 7.7% 6.1% 2.0% 0.0% CQ3'15 CQ4'15 CQ1'16 CQ2'16 CQ3'16 | 11 |
Slide 12: GAAP Operating Income
GAAP OPERATING INCOME USD thousands 25,000 19,739 19,262 17,884 18,240 20,000 14,874 15,000 10,000 5,000 - CQ3'15 CQ4'15 CQ1'16 CQ2'16 CQ3'16 | 12 |
Slide 13: Non GAAP Operating Income
NON GAAP OPERATING INCOME USD thousands 25,000 22,370 21,488 21,340 20,285 20,000 16,706 15,000 10,000 5,000 - CQ3'15 CQ4'15 CQ1'16 CQ2'16 CQ3'16 | 13 |
Slide 14: GAAP Net Income
GAAP NET INCOME USD thousands 24,105 25,000 20,799 20,000 17,273 15,616 14,432 15,000 10,000 5,000 - CQ3'15 CQ4'15 CQ1'16 CQ2'16 CQ3'16 | 14 |
Slide 15: Non GAAP Net Income
NON GAAP NET INCOME USD thousands 23,330 25,000 19,921 20,895 19,804 20,000 16,264 15,000 10,000 5,000 - CQ3'15 CQ4'15 CQ1'16 CQ2'16 CQ3'16 | 15 |
Slide 16: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions CQ3'16 CQ2'16 CQ3'15 Cash and investments 206.7 186.6 150.3 Inventory 68.4 81.6 79.9 Capital Expenditures 3.8 3.1 3.3 Total Debt - - - Cash Flow From Operations 24.4 17.3 5.9 | 16 |
Slide 17: Calendar Fourth Quarter Outlook
CALENDAR FOURTH QUARTER OUTLOOK Revenues expected to be within the range of $110 million to $120 million Gross margin expected to be within the range of 30% to 32% | 17 |
Slide 18: Appendix
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 September 30, 2016 June 30, 2016 September 30, 2015 Gross profit (GAAP) 41,875 39,113 33,527 Stock-based compensation 385 310 180 Gross profit (Non-GAAP) 42,260 39,423 33,707 Reconciliation of GAAP
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 September 30, 2016 June 30, 2016 September 30, 2015 Operating expenses (GAAP) 23,635 21,229 18,653 Stock-based compensation R&D 927 747 395 Stock-based compensation S&M 849 730 616 Stock-based
Slide 21: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit) Three months ended September 30, 2016 June 30, 2016 September 30, 2015 Tax on income (Tax benefit) (GAAP) 3,014 84 370 Tax expenses due to utilization of deferred tax asset (2,179) (247) ---- Tax on inc
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended September 30, 2016 June 30, 2016 September 30, 2015 Net basic earnings per share (GAAP) 0.38 0.42 0.37 Stock-based compensation 0.08 0.06 0.04 Tax expenses due to utilization of deferred tax asset
Slide 23: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS Three months ended September 30, 2016 June 30, 2016 September 30, 2015 Number of shares used in computing net diluted earnings per share (GAAP) 43,995,227 44,463,087 44,455,964 Stock-based com
Slide 24: NASDAQ | SEDG
solarzs{e-" NASDAQ | SEDG