Israeli inverter manufacturer SolarEdge has released its third quarter results for 2018, posting robust growth and a revenue increase after UPS and storage company acquisitions this year.
“This quarter we continued to grow our revenues and market share,” said Guy Sella, founder, Chairman and CEO of SolarEdge. “We shipped 1.1 GW of systems and delivered [more than] three million power optimizers, with record high shipments of commercial products.”
Regarding revenues, SolarEdge touted a 4% quarter-on-quarter increase, with a year-on-year improvement of 42% to stand at US$236.6 million, having been $227.1 million in the previous quarter, and $166.6 million last year.
The inverter maker also reported a bump in operating expenses, which have now reached $43.9 million – up 6%, from $41.3 million, in the previous three months and 35% from $32.7 million, year-on-year. Net income was $45.6 million, up 32% from $34.6 million in the previous quarter and 63% from $28 million on an annual comparison.
Earnings per share also on the rise
GAAP net diluted earning per share was reported at $0.95, up from $0.72 in the previous quarter, and from $0.61 in Q3 last year. Cashflow from operating activities was $34.3 million, down from $43.9 million in the second quarter and $33.7 million, year on year.
As of September 30, cash, cash equivalents, restricted cash, bank deposit and marketable securities totaled $453.2 million, compared with $437.6 million on June 30.
The company also issued guidance for the quarter ending December 31. SolarEdge expects revenue to be within $245 million to $255 million. Highlighting a degree of uncertainty regarding the effects of the recent acquisitions, GAAP gross margins are expected to be at around 30-32%.
“While continuing to expand our existing business, we closed the asset acquisition of a new UPS division, Gamatronic,” said the company in a statement. “In the first weeks of October, we also signed and closed the Kokam acquisition, which will expand our smart energy offerings, adding proven battery storage options to our product portfolio. These acquisitions will take us a further step toward offering full solutions that are more comprehensive, smarter and beneficial.”
SolarEdge will spend $88 million for approximately 75% of Kokam’s shares, with the price including transaction expenses. Close on the acquisition, subject to customary conditions, is expected “within weeks”. SolarEdge says it will seek to acquire the outstanding Kokam shares, – listed on the South Korean exchange – through open-market purchases. The acquisition would result in Kokam becoming a wholly-owned subsidiary.
This year, SolarEdge acquired uninterrupted power supply provider Gamesa for a reported $11.5 million, to give the inverter maker “substantially all of Gamatronic’s assets”, including its intellectual property and brand. The subject of the acquisition said it would retain a two-year earn provision for 50% and 33% of the net income of Gamatronic in each year, respectively, following closing of the acquisition. Approximately 100 Gamatronic staff will work for Solaredge after the switch.