☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SOLAREDGE TECHNOLOGIES, INC. |
Delaware | 20-5338862 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
1 HaMada Street | |
Herziliya Pituach, 4673335, Israel | |
(Address of Principal Executive Offices, zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $0.0001 per share | SEDG | NASDAQ (Global Select Market) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ||||
Smaller Reporting Company | ☐ | |||
Emerging growth company | ☐ |
As of November 1, 2022,2023, there were 55,894,87556,811,229 shares of the registrant’s common stock, par value of $0.0001 per share, outstanding.
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F-7 | |
F-9 | |
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PART II. OTHER | |
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19 | |
September 30, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 678,329 | $ | 530,089 | ||||
Marketable securities | 202,598 | 167,728 | ||||||
Trade receivables, net of allowances of $4,283 and $2,626, respectively | 785,325 | 456,339 | ||||||
Inventories, net | 561,352 | 380,143 | ||||||
Prepaid expenses and other current assets | 224,169 | 176,992 | ||||||
Total current assets | 2,451,773 | 1,711,291 | ||||||
LONG-TERM ASSETS: | ||||||||
Marketable securities | 688,753 | 482,228 | ||||||
Deferred tax assets, net | 38,268 | 27,572 | ||||||
Property, plant and equipment, net | 491,433 | 410,379 | ||||||
Operating lease right-of-use assets, net | 62,535 | 47,137 | ||||||
Intangible assets, net | 46,286 | 58,861 | ||||||
Goodwill | 108,860 | 129,629 | ||||||
Other long-term assets | 15,638 | 33,856 | ||||||
Total long-term assets | 1,451,773 | 1,189,662 | ||||||
Total assets | $ | 3,903,546 | $ | 2,900,953 |
September 30, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 551,122 | $ | 783,112 | ||||
Marketable securities | 477,275 | 241,117 | ||||||
Trade receivables, net of allowances of $14,930 and $3,202, respectively | 939,545 | 905,146 | ||||||
Inventories, net | 1,177,805 | 729,201 | ||||||
Prepaid expenses and other current assets | 217,720 | 241,082 | ||||||
Total current assets | 3,363,467 | 2,899,658 | ||||||
LONG-TERM ASSETS: | ||||||||
Marketable securities | 436,139 | 645,491 | ||||||
Deferred tax assets, net | 60,147 | 44,153 | ||||||
Property, plant and equipment, net | 604,819 | 543,969 | ||||||
Operating lease right-of-use assets, net | 67,331 | 62,754 | ||||||
Intangible assets, net | 41,947 | 19,929 | ||||||
Goodwill | 41,201 | 31,189 | ||||||
Other long-term assets | 36,103 | 18,806 | ||||||
Total long-term assets | 1,287,687 | 1,366,291 | ||||||
Total assets | $ | 4,651,154 | $ | 4,265,949 |
F - 21
September 30, 2022 | December 31, 2021 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables, net | $ | 311,565 | $ | 252,068 | ||||
Employees and payroll accruals | 71,905 | 74,465 | ||||||
Warranty obligations | 97,222 | 71,480 | ||||||
Deferred revenues and customers advances | 31,896 | 17,789 | ||||||
Accrued expenses and other current liabilities | 181,892 | 109,379 | ||||||
Total current liabilities | 694,480 | 525,181 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Convertible senior notes, net | 623,721 | 621,535 | ||||||
Warranty obligations | 248,917 | 193,680 | ||||||
Deferred revenues | 176,824 | 151,556 | ||||||
Finance lease liabilities | 45,509 | 40,508 | ||||||
Operating lease liabilities | 46,398 | 38,912 | ||||||
Other long-term liabilities | 15,570 | 19,542 | ||||||
Total long-term liabilities | 1,156,939 | 1,065,733 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2022 and December 31, 2021; issued and outstanding: 55,894,106 and 52,815,395 shares as of September 30, 2022 and December 31, 2021, respectively | 6 | 5 | ||||||
Additional paid-in capital | 1,457,379 | 687,295 | ||||||
Accumulated other comprehensive loss | (128,266 | ) | (27,319 | ) | ||||
Retained earnings | 723,008 | 650,058 | ||||||
Total stockholders’ equity | 2,052,127 | 1,310,039 | ||||||
Total liabilities and stockholders’ equity | $ | 3,903,546 | $ | 2,900,953 |
September 30, 2023 | December 31, 2022 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables, net | $ | 399,274 | $ | 459,831 | ||||
Employees and payroll accruals | 77,740 | 85,158 | ||||||
Warranty obligations | 174,125 | 103,975 | ||||||
Deferred revenues and customers advances | 22,064 | 26,641 | ||||||
Accrued expenses and other current liabilities | 203,448 | 214,112 | ||||||
Total current liabilities | 876,651 | 889,717 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Convertible senior notes, net | 626,647 | 624,451 | ||||||
Warranty obligations | 341,687 | 281,082 | ||||||
Deferred revenues | 212,025 | 186,936 | ||||||
Finance lease liabilities | 40,323 | 45,385 | ||||||
Operating lease liabilities | 46,580 | 46,256 | ||||||
Other long-term liabilities | 16,835 | 15,756 | ||||||
Total long-term liabilities | 1,284,097 | 1,199,866 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2023 and December 31, 2022; issued and outstanding: 56,810,559 and 56,133,404 shares as of September 30, 2023 and December 31, 2022, respectively | 6 | 6 | ||||||
Additional paid-in capital | 1,633,800 | 1,505,632 | ||||||
Accumulated other comprehensive loss | (83,949 | ) | (73,109 | ) | ||||
Retained earnings | 940,549 | 743,837 | ||||||
Total stockholders’ equity | 2,490,406 | 2,176,366 | ||||||
Total liabilities and stockholders’ equity | $ | 4,651,154 | $ | 4,265,949 |
F - 32
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | $ | 836,723 | $ | 526,404 | $ | 2,219,577 | $ | 1,411,950 | ||||||||
Cost of revenues | 614,722 | 353,843 | 1,635,976 | 943,123 | ||||||||||||
Gross profit | 222,001 | 172,561 | 583,601 | 468,827 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 69,659 | 55,666 | 210,855 | 155,307 | ||||||||||||
Sales and marketing | 42,726 | 29,383 | 117,017 | 85,752 | ||||||||||||
General and administrative | 27,933 | 21,098 | 82,483 | 60,317 | ||||||||||||
Other operating expenses (income), net | (2,724 | ) | - | 1,963 | 1,350 | |||||||||||
Total operating expenses | 137,594 | 106,147 | 412,318 | 302,726 | ||||||||||||
Operating income | 84,407 | 66,414 | 171,283 | 166,101 | ||||||||||||
Financial expense, net | (33,025 | ) | (5,751 | ) | (52,785 | ) | (13,591 | ) | ||||||||
Other income | 7,533 | - | 7,533 | - | ||||||||||||
Income before income taxes | 58,915 | 60,663 | 126,031 | 152,510 | ||||||||||||
Income taxes | 34,172 | 7,615 | 53,081 | 24,294 | ||||||||||||
Net income | $ | 24,743 | $ | 53,048 | $ | 72,950 | $ | 128,216 | ||||||||
Net basic earnings per share of common stock | $ | 0.44 | $ | 1.01 | $ | 1.33 | $ | 2.46 | ||||||||
Net diluted earnings per share of common stock | $ | 0.43 | $ | 0.96 | $ | 1.29 | $ | 2.32 | ||||||||
Weighted average number of shares used in computing net basic earnings per share of common stock | 55,730,328 | 52,355,867 | 54,788,734 | 52,056,233 | ||||||||||||
Weighted average number of shares used in computing net diluted earnings per share of common stock | 58,747,538 | 55,929,000 | 57,886,041 | 55,955,441 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | $ | 725,305 | $ | 836,723 | $ | 2,660,484 | $ | 2,219,577 | ||||||||
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 | ||||||||||||
Gross profit | 142,817 | 222,001 | 760,248 | 583,601 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 80,082 | 69,659 | 246,481 | 210,855 | ||||||||||||
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 | ||||||||||||
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 | ||||||||||||
Other operating expense (income), net | - | (2,724 | ) | (1,434 | ) | 1,963 | ||||||||||
Total operating expenses | 159,543 | 137,594 | 482,462 | 412,318 | ||||||||||||
Operating income (loss) | (16,726 | ) | 84,407 | 277,786 | 171,283 | |||||||||||
Financial income (expense), net | (7,901 | ) | (33,146 | ) | 19,157 | (52,062 | ) | |||||||||
Other income (loss), net | (484 | ) | 7,654 | (609 | ) | 6,810 | ||||||||||
Income (loss) before income taxes | (25,111 | ) | 58,915 | 296,334 | 126,031 | |||||||||||
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 | ||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | 196,712 | $ | 72,950 | |||||||
Net basic earnings (loss) per share of common stock | $ | (1.08 | ) | $ | 0.44 | $ | 3.49 | $ | 1.33 | |||||||
Net diluted earnings (loss) per share of common stock | $ | (1.08 | ) | $ | 0.43 | $ | 3.34 | $ | 1.29 | |||||||
Weighted average number of shares used in computing net basic earnings (loss) per share of common stock | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 | ||||||||||||
Weighted average number of shares used in computing net diluted earnings (loss) per share of common stock | 56,671,504 | 58,747,538 | 59,297,423 | 57,886,041 |
The accompanying notes are an integral part of the condensed consolidated financial statements.
F - 43
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income | $ | 24,743 | $ | 53,048 | $ | 72,950 | $ | 128,216 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net change related to available-for-sale securities | (9,579 | ) | 29 | (23,647 | ) | (1,847 | ) | |||||||||
Net change related to cash flow hedges | (140 | ) | 308 | (4,656 | ) | 619 | ||||||||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (30,799 | ) | (12,272 | ) | (66,129 | ) | (14,168 | ) | ||||||||
Foreign currency translation adjustments, net | 1,872 | (3,664 | ) | (6,515 | ) | (7,596 | ) | |||||||||
Total other comprehensive loss | (38,646 | ) | (15,599 | ) | (100,947 | ) | (22,992 | ) | ||||||||
Comprehensive income (loss) | $ | (13,903 | ) | $ | 37,449 | $ | (27,997 | ) | $ | 105,224 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | 196,712 | $ | 72,950 | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Available-for-sale marketable securities | 2,562 | (9,579 | ) | 9,400 | (23,647 | ) | ||||||||||
Cash flow hedges | (923 | ) | (140 | ) | (938 | ) | (4,656 | ) | ||||||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (9,989 | ) | (30,799 | ) | (22,724 | ) | (66,129 | ) | ||||||||
Foreign currency translation adjustments | 1,833 | 1,872 | 3,422 | (6,515 | ) | |||||||||||
Total other comprehensive loss | (6,517 | ) | (38,646 | ) | (10,840 | ) | (100,947 | ) | ||||||||
Comprehensive income (loss) | $ | (67,693 | ) | $ | (13,903 | ) | $ | 185,872 | $ | (27,997 | ) |
The accompanying notes are an integral part of the condensed consolidated financial statements.
F - 54
Common stock | Additional | Accumulated other | Common stock | |||||||||||||||||||||||||||||||||||||||||||||
Number | Amount | paid in Capital | comprehensive loss | Retained earnings | Total | Number | Amount | Additional paid in Capital | Accumulated other comprehensive loss | Retained earnings | Total | |||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 52,815,395 | $ | 5 | $ | 687,295 | $ | (27,319 | ) | $ | 650,058 | $ | 1,310,039 | ||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | 56,133,404 | $ | 6 | $ | 1,505,632 | $ | (73,109 | ) | $ | 743,837 | $ | 2,176,366 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock-based awards | 270,751 | * - | 1,478 | - | - | 1,478 | 209,760 | *- | 75 | - | - | 75 | ||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 34,107 | - | - | 34,107 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs | 2,300,000 | 1 | 650,525 | - | - | 650,526 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (18,748 | ) | - | (18,748 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 33,123 | 33,123 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 55,386,146 | $ | 6 | $ | 1,373,405 | $ | (46,067 | ) | $ | 683,181 | $ | 2,010,525 | ||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of stock-based awards | 211,839 | * - | 164 | - | - | 164 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Common stock under employee stock purchase plan | 35,105 | * - | 8,141 | - | - | 8,141 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 37,171 | - | - | 37,171 | - | - | 40,070 | - | - | 40,070 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (43,553 | ) | - | (43,553 | ) | - | - | - | (4,095 | ) | - | (4,095 | ) | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 15,084 | 15,084 | - | - | - | - | 138,378 | 138,378 | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 55,633,090 | $ | 6 | $ | 1,418,881 | $ | (89,620 | ) | $ | 698,265 | $ | 2,027,532 | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 56,343,164 | $ | 6 | $ | 1,545,777 | $ | (77,204 | ) | $ | 882,215 | $ | 2,350,794 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock-based awards | 171,682 | *- | 89 | - | - | 89 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 41,494 | *- | 10,046 | - | - | 10,046 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 39,978 | - | - | 39,978 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (228 | ) | - | (228 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 119,510 | 119,510 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 56,556,340 | $ | 6 | $ | 1,595,890 | $ | (77,432 | ) | $ | 1,001,725 | $ | 2,520,189 | ||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of stock-based awards | 261,016 | *- | 1,866 | - | - | 1,866 | 254,219 | *- | 18 | - | - | 18 | ||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 36,632 | - | - | 36,632 | - | - | 37,892 | - | - | 37,892 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (38,646 | ) | - | (38,646 | ) | - | - | - | (6,517 | ) | - | (6,517 | ) | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 24,743 | 24,743 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | 55,894,106 | $ | 6 | $ | 1,457,379 | $ | (128,266 | ) | $ | 723,008 | $ | 2,052,127 | ||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | (61,176 | ) | (61,176 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | 56,810,559 | $ | 6 | $ | 1,633,800 | $ | (83,949 | ) | $ | 940,549 | $ | 2,490,406 |
F - 65
Common stock | Additional | Accumulated other | Common stock | |||||||||||||||||||||||||||||||||||||||||||||
Number | Amount | paid in Capital | comprehensive income (loss) | Retained earnings | Total | Number | Amount | Additional paid in Capital | Accumulated other comprehensive loss | Retained earnings | Total | |||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | 51,560,936 | $ | 5 | $ | 603,891 | $ | 3,857 | $ | 478,004 | $ | 1,085,757 | |||||||||||||||||||||||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | - | - | (36,336 | ) | - | 2,884 | (33,452 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 52,815,395 | $ | 5 | $ | 687,295 | $ | (27,319 | ) | $ | 650,058 | $ | 1,310,039 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock-based awards | 270,751 | *- | 1,478 | - | - | 1,478 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 34,107 | - | - | 34,107 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs | 2,300,000 | 1 | 650,525 | - | - | 650,526 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (18,748 | ) | - | (18,748 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 33,123 | 33,123 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 55,386,146 | $ | 6 | $ | 1,373,405 | $ | (46,067 | ) | $ | 683,181 | $ | 2,010,525 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock-based awards | 211,839 | *- | 164 | - | - | 164 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 35,105 | *- | 8,141 | - | - | 8,141 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 37,171 | - | - | 37,171 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (43,553 | ) | - | (43,553 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 15,084 | 15,084 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 55,633,090 | $ | 6 | $ | 1,418,881 | $ | (89,620 | ) | $ | 698,265 | $ | 2,027,532 | ||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of stock-based awards | 405,239 | * - | 5,008 | - | - | 5,008 | 261,016 | *- | 1,866 | - | - | 1,866 | ||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 23,153 | - | - | 23,153 | - | - | 36,632 | - | - | 36,632 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (10,618 | ) | - | (10,618 | ) | - | - | - | (38,646 | ) | - | (38,646 | ) | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 30,076 | 30,076 | - | - | - | - | 24,743 | 24,743 | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 51,966,175 | $ | 5 | $ | 595,716 | $ | (6,761 | ) | $ | 510,964 | $ | 1,099,924 | ||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of stock-based awards | 297,801 | * - | 5,500 | - | - | 5,500 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 24,052 | - | - | 24,052 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income adjustments | - | - | - | 3,225 | - | 3,225 | ||||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 45,092 | 45,092 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 52,263,976 | $ | 5 | $ | 625,268 | $ | (3,536 | ) | $ | 556,056 | $ | 1,177,793 | ||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of stock-based awards | 255,514 | *- | 656 | - | - | 656 | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | - | - | 26,185 | - | - | 26,185 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss adjustments | - | - | - | (15,599 | ) | - | (15,599 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | 53,048 | 53,048 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 52,519,490 | $ | 5 | $ | 652,109 | $ | (19,135 | ) | $ | 609,104 | $ | 1,242,083 | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | 55,894,106 | $ | 6 | $ | 1,457,379 | $ | (128,266 | ) | $ | 723,008 | $ | 2,052,127 |
F - 6
SOLAREDGE TECHNOLOGIES INC.
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 196,712 | $ | 72,950 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 42,019 | 37,312 | ||||||
Loss (gain) from exchange rate fluctuations | (8,170 | ) | 58,100 | |||||
Stock-based compensation expenses | 115,015 | 106,932 | ||||||
Impairment of goodwill and intangible assets | - | 4,008 | ||||||
Deferred income taxes, net | (18,199 | ) | (3,822 | ) | ||||
Other items | 6,915 | 8,594 | ||||||
Changes in assets and liabilities: | ||||||||
Inventories, net | (437,801 | ) | (188,579 | ) | ||||
Prepaid expenses and other assets | 19,822 | (55,478 | ) | |||||
Trade receivables, net | (40,011 | ) | (377,089 | ) | ||||
Trade payables, net | (53,996 | ) | 53,683 | |||||
Employees and payroll accruals | 12,099 | 12,119 | ||||||
Warranty obligations | 130,863 | 82,025 | ||||||
Deferred revenues and customers advances | 18,580 | 41,440 | ||||||
Accrued expenses and other liabilities, net | (24,051 | ) | 67,789 | |||||
Net cash used in operating activities | (40,203 | ) | (80,016 | ) | ||||
Cash flows from investing activities: | ||||||||
Investment in available-for-sale marketable securities | (214,516 | ) | (461,491 | ) | ||||
Proceeds from sales and maturities of available-for-sale marketable securities | 194,617 | 178,415 | ||||||
Purchase of property, plant and equipment | (130,024 | ) | (125,085 | ) | ||||
Business combinations, net of cash acquired | (16,653 | ) | - | |||||
Purchase of intangible assets | (10,600 | ) | - | |||||
Disbursements for loans receivables | (13,000 | ) | - | |||||
Investment in privately-held companies | (8,000 | ) | - | |||||
Proceeds from governmental grant | 6,796 | - | ||||||
Proceeds from sale of a privately-held company | - | 24,175 | ||||||
Other investing activities | 3,193 | 3,472 | ||||||
Net cash used in investing activities | $ | (188,187 | ) | $ | (380,514 | ) |
F - 7
SOLAREDGE TECHNOLOGIES INC.
(in thousands, except per share data)
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 72,950 | $ | 128,216 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation of property, plant and equipment | 29,571 | 21,492 | ||||||
Amortization of intangible assets | 7,741 | 7,487 | ||||||
Amortization of debt discount and debt issuance costs | 2,186 | 2,175 | ||||||
Amortization of premium and accretion of discount on available-for-sale marketable securities, net | 7,864 | 6,301 | ||||||
Impairment of goodwill and intangible assets | 4,008 | - | ||||||
Stock-based compensation expenses | 106,932 | 73,390 | ||||||
Gain from sale of privately held company | (7,533 | ) | - | |||||
Deferred income taxes, net | (3,822 | ) | (6,686 | ) | ||||
Loss (gain) from sale and disposal of assets | (485 | ) | 2,013 | |||||
Exchange rate fluctuations and other items, net | 64,662 | 13,086 | ||||||
Changes in assets and liabilities: | ||||||||
Inventories, net | (188,579 | ) | 30,678 | |||||
Prepaid expenses and other assets | (55,478 | ) | (14,977 | ) | ||||
Trade receivables, net | (377,089 | ) | (206,131 | ) | ||||
Trade payables, net | 53,683 | (22,959 | ) | |||||
Employees and payroll accruals | 12,119 | 14,321 | ||||||
Warranty obligations | 82,025 | 42,368 | ||||||
Deferred revenues and customers advances | 41,440 | 13,723 | ||||||
Other liabilities, net | 67,789 | 20,055 | ||||||
Net cash provided by (used in) operating activities | (80,016 | ) | 124,552 | |||||
Cash flows from investing activities: | ||||||||
Proceed from sales and maturities of available-for-sale marketable securities | 178,415 | 174,817 | ||||||
Purchase of property, plant and equipment | (125,085 | ) | (94,135 | ) | ||||
Investment in available-for-sale marketable securities | (461,491 | ) | (511,615 | ) | ||||
Investment in a privately-held company | - | (16,643 | ) | |||||
Proceeds from sale of a privately-held company | 24,175 | - | ||||||
Withdrawal from bank deposits, net | - | 50,020 | ||||||
Payment for asset acquisition, net of cash acquired | - | (2,996 | ) | |||||
Other investing activities | 3,472 | 2,593 | ||||||
Net cash used in investing activities | $ | (380,514 | ) | $ | (397,959 | ) |
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from financing activities: | ||||||||
Tax withholding in connection with stock-based awards, net | $ | (9,267 | ) | $ | (4,686 | ) | ||
Payments of finance lease liability | (2,123 | ) | (2,109 | ) | ||||
Proceeds from secondary public offering, net of issuance costs | - | 650,526 | ||||||
Other financing activities | 85 | 3,404 | ||||||
Net cash provided by (used in) financing activities | (11,305 | ) | 647,135 | |||||
Increase (decrease) in cash and cash equivalents | (239,695 | ) | 186,605 | |||||
Cash and cash equivalents at the beginning of the period | 783,112 | 530,089 | ||||||
Effect of exchange rate differences on cash and cash equivalents | 7,705 | (38,365 | ) | |||||
Cash and cash equivalents at the end of the period | $ | 551,122 | $ | 678,329 | ||||
Supplemental disclosure of non-cash activities: | ||||||||
Purchase of intangible assets and business combinations | $ | 11,307 | $ | - | ||||
Right-of-use asset recognized with a corresponding lease liability | $ | 17,658 | $ | 43,274 | ||||
Purchase of property, plant and equipment | $ | 19,574 | $ | 16,008 |
F - 8
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from financing activities: | ||||||||
Proceeds from secondary public offering, net of issuance costs | $ | 650,526 | $ | - | ||||
Repayment of bank loans | (104 | ) | (16,219 | ) | ||||
Proceeds from exercise of stock-based awards | 3,508 | 6,128 | ||||||
Tax withholding in connection with stock-based awards, net | (4,686 | ) | (8,402 | ) | ||||
Other financing activities | (2,109 | ) | (939 | ) | ||||
Net cash provided by (used in) financing activities | 647,135 | (19,432 | ) | |||||
Increase (decrease) in cash and cash equivalents | 186,605 | (292,839 | ) | |||||
Cash and cash equivalents at the beginning of the period | 530,089 | 827,146 | ||||||
Effect of exchange rate differences on cash and cash equivalents | (38,365 | ) | (7,719 | ) | ||||
Cash and cash equivalents at the end of the period | $ | 678,329 | $ | 526,588 | ||||
Supplemental disclosure of non-cash activities: | ||||||||
Right-of-use asset recognized with a corresponding lease liability | $ | 43,274 | $ | 2,253 |
F - 9
(in thousands, except per share data)
a. | SolarEdge Technologies Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current (DC) from the PV module to alternating current (AC) including the Company’s |
b. | The Company has expanded its activity to other areas of smart energy technology organically and through acquisitions. The Company now offers a variety of energy solutions, which include lithium-ion cells, batteries, and energy storage systems (“Energy Storage”), full powertrain kits for electric vehicles, or EVs (“e-Mobility”), as well as automated machines for industrial use (“Automation Machines”). |
c. | Basis of Presentation: |
d. | Use of estimates: |
F - 10
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
e. | Concentrations of supply risks: |
f. | New accounting |
F - 9
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Amount | Weighted Average Useful Life (In years) | |||||||
Cash | $ | 448 | ||||||
Net liabilities assumed | (1,837 | ) | ||||||
Identified intangible assets: | ||||||||
Current technology | 6,576 | 5 | ||||||
Customer relationships | 283 | 1 | ||||||
Trade name | 610 | 5 | ||||||
Goodwill | 12,266 | |||||||
Total | $ | 18,346 |
F - 1110
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||
Available-for-sale – matures within one year: | ||||||||||||||||
Corporate bonds | $ | 203,445 | $ | - | $ | (4,049 | ) | $ | 199,396 | |||||||
Governmental bonds | 3,254 | - | (52 | ) | 3,202 | |||||||||||
206,699 | - | (4,101 | ) | 202,598 | ||||||||||||
Available-for-sale – matures after one year: | ||||||||||||||||
Corporate bonds | 683,804 | - | (30,753 | ) | 653,051 | |||||||||||
Governmental bonds | 36,901 | - | (1,199 | ) | 35,702 | |||||||||||
720,705 | - | (31,952 | ) | 688,753 | ||||||||||||
Total | $ | 927,404 | $ | - | $ | (36,053 | ) | $ | 891,351 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||
Matures within one year: | ||||||||||||||||
Corporate bonds | $ | 449,162 | $ | 227 | $ | (8,838 | ) | $ | 440,551 | |||||||
U.S. Treasury securities | 27,951 | - | (200 | ) | 27,751 | |||||||||||
Non-U.S. Government securities | 9,123 | - | (150 | ) | 8,973 | |||||||||||
486,236 | 227 | (9,188 | ) | 477,275 | ||||||||||||
Matures after one year: | ||||||||||||||||
Corporate bonds | 400,408 | 49 | (10,950 | ) | 389,507 | |||||||||||
U.S. Treasury securities | 2,413 | - | (43 | ) | 2,370 | |||||||||||
U.S. Government agency securities | 42,477 | - | (493 | ) | 41,984 | |||||||||||
Non-U.S. Government securities | 2,401 | - | (123 | ) | 2,278 | |||||||||||
447,699 | 49 | (11,609 | ) | 436,139 | ||||||||||||
Total | $ | 933,935 | $ | 276 | $ | (20,797 | ) | $ | 913,414 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||
Available-for-sale – matures within one year: | ||||||||||||||||
Corporate bonds | $ | 160,462 | $ | 23 | $ | (320 | ) | $ | 160,165 | |||||||
Governmental bonds | 7,576 | - | (13 | ) | 7,563 | |||||||||||
168,038 | 23 | (333 | ) | 167,728 | ||||||||||||
Available-for-sale – matures after one year: | ||||||||||||||||
Corporate bonds | 474,412 | 9 | (5,580 | ) | 468,841 | |||||||||||
Governmental bonds | 13,506 | - | (119 | ) | 13,387 | |||||||||||
487,918 | 9 | (5,699 | ) | 482,228 | ||||||||||||
Total | $ | 655,956 | $ | 32 | $ | (6,032 | ) | $ | 649,956 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||
Matures within one year: | ||||||||||||||||
Corporate bonds | $ | 222,482 | $ | - | $ | (4,657 | ) | $ | 217,825 | |||||||
U.S. Treasury securities | 15,963 | - | (284 | ) | 15,679 | |||||||||||
Non-U.S. Government securities | 7,882 | - | (269 | ) | 7,613 | |||||||||||
246,327 | - | (5,210 | ) | 241,117 | ||||||||||||
Matures after one year: | ||||||||||||||||
Corporate bonds | 657,238 | 80 | (26,460 | ) | 630,858 | |||||||||||
U.S. Treasury securities | 9,939 | - | (261 | ) | 9,678 | |||||||||||
Non-U.S. Government securities | 5,311 | - | (356 | ) | 4,955 | |||||||||||
672,488 | 80 | (27,077 | ) | 645,491 | ||||||||||||
Total | $ | 918,815 | $ | 80 | $ | (32,287 | ) | $ | 886,608 |
F - 1211
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Raw materials | $ | 432,766 | $ | 247,386 | $ | 420,281 | $ | 503,257 | ||||||||
Work in process | 15,529 | 13,863 | 26,801 | 23,407 | ||||||||||||
Finished goods | 113,057 | 118,894 | 730,723 | 202,537 | ||||||||||||
$ | 561,352 | $ | 380,143 | |||||||||||||
Total inventories, net | $ | 1,177,805 | $ | 729,201 |
September 30, 2023 | December 31, 2022 | |||||||
Vendor non-trade receivables (1) | $ | 94,180 | $ | 147,597 | ||||
Government authorities | 70,951 | 55,670 | ||||||
Loan receivables (2) | 8,125 | - | ||||||
Interest from marketable securities | 7,162 | 6,235 | ||||||
Prepaid expenses and other | 37,302 | 31,580 | ||||||
Total prepaid expenses and other current assets | $ | 217,720 | $ | 241,082 |
F - 12
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 4:6:INTANGIBLE ASSETS, NET
September 30, 2023 | December 31, 2022 | |||||||
Intangible assets with finite lives: | ||||||||
Current Technology | $ | 33,974 | $ | 29,196 | ||||
Customer relationships | 3,058 | 2,958 | ||||||
Trade names | 3,671 | 3,287 | ||||||
Assembled workforce | 4,484 | 3,575 | ||||||
Patents and licenses* | 22,000 | 1,400 | ||||||
Gross intangible assets | 67,187 | 40,416 | ||||||
Less - accumulated amortization | (25,240 | ) | (20,487 | ) | ||||
Total intangible assets, net | $ | 41,947 | $ | 19,929 |
2023 | $ | 2,351 | ||
2024 | 8,735 | |||
2025 | 7,834 | |||
2026 | 7,281 | |||
2027 | 4,134 | |||
2028 and thereafter | 11,612 | |||
$ | 41,947 |
F - 13
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 5:7: GOODWILL
Solar | All other | Total | ||||||||||
Goodwill at December 31, 2022 | $ | 28,768 | $ | 2,421 | $ | 31,189 | ||||||
Changes during the year: | ||||||||||||
Acquisitions | - | 12,266 | 12,266 | |||||||||
Foreign currency adjustments | (1,882 | ) | (372 | ) | (2,254 | ) | ||||||
Goodwill at September 30, 2023 | $ | 26,886 | $ | 14,315 | $ | 41,201 |
F - 14
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
September 30, 2023 | December 31, 2022 | |||||||
Cloud computing arrangements | $ | 9,898 | $ | 3,457 | ||||
Severance pay fund | 8,275 | 8,799 | ||||||
Investments in privately held companies (1) (2) | 8,000 | 1,863 | ||||||
Loan receivables | 4,875 | - | ||||||
Prepayments | 3,799 | 2,961 | ||||||
Other | 1,256 | 1,726 | ||||||
Total other long term assets | $ | 36,103 | $ | 18,806 |
F - 15
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - SOLAREDGE TECHNOLOGIES INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Affected line item Foreign exchange contracts Non Designated Hedging Instruments $1,211 $3,350 $5,154 $7,706 Financial expenses, net Three Months Ended Nine Months Ended 2022 2021 2022 2021 Foreign exchange contracts: Designated Hedging Instruments $ (1,399 ) $ 1,006 $ (8,928 ) $ 1,71920222023, the Company entered into forward contracts and put and call options to sell U.S. dollars (“USD”) for NIS in the amount of approximately NIS 33438 million and NIS 10622 million, respectively.also enteredoccasionally enters into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the USD. These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income, under "Financial expense,income (expense), net".As of September 30, 2022, the Company entered into forward contracts to sell Australian dollars (“AUD”) for USD in the amount of AUD 4 million.As of September 30, 2022, the Company entered into forward contracts to sell Euro for USD in the amount of €9 million. Affected line item 2023 2022 2023 2022 1416Gains (losses) on derivative instruments recognized in our income statements are summarized below:See Note 13 for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive loss.Gains (losses) on derivative instruments recognized in the consolidated comprehensive income (loss) statements were as follows:
September 30,
September 30,
F - 15
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Fair value measurements as of | ||||||||||
Description | Fair Value Hierarchy | September 30, 2022 | December 31, 2021 | |||||||
Assets: | ||||||||||
Cash equivalents: | ||||||||||
Cash | Level 1 | $ | 552,800 | $ | 508,389 | |||||
Money market mutual funds | Level 1 | $ | 94,581 | $ | 21,680 | |||||
Deposits | Level 1 | $ | 30,948 | $ | 20 | |||||
Derivative instruments | Level 2 | $ | 1,813 | $ | 4,009 | |||||
Short-term marketable securities: | ||||||||||
Corporate bonds | Level 2 | $ | 199,396 | $ | 160,165 | |||||
Governmental bonds | Level 2 | $ | 3,202 | $ | 7,563 | |||||
Long-term marketable securities: | ||||||||||
Corporate bonds | Level 2 | $ | 653,051 | $ | 468,841 | |||||
Governmental bonds | Level 2 | $ | 35,702 | $ | 13,387 | |||||
Liabilities: | ||||||||||
Derivative instruments | Level 2 | $ | (4,269 | ) | $ | (169 | ) |
Fair value measurements as of | ||||||||||
Description | Fair Value Hierarchy | September 30, 2023 | December 31, 2022 | |||||||
Assets: | ||||||||||
Cash and cash equivalents: | ||||||||||
Cash | Level 1 | $ | 508,057 | $ | 695,004 | |||||
Money market mutual funds | Level 1 | $ | 37,885 | $ | 25,149 | |||||
Deposits | Level 1 | $ | 5,180 | $ | 62,959 | |||||
Derivative instruments | Level 2 | $ | 4,873 | $ | - | |||||
Short-term marketable securities: | ||||||||||
Corporate bonds | Level 2 | $ | 440,551 | $ | 217,825 | |||||
U.S. Treasury securities | Level 2 | $ | 27,751 | $ | 15,679 | |||||
Non - U.S. Government securities | Level 2 | $ | 8,973 | $ | 7,613 | |||||
Long-term marketable securities: | ||||||||||
Corporate bonds | Level 2 | $ | 389,507 | $ | 630,858 | |||||
U.S. Treasury securities | Level 2 | $ | 2,370 | $ | 9,678 | |||||
U.S. Government agency securities | Level 2 | 41,984 | - | |||||||
Non - U.S. Government securities | Level 2 | $ | 2,278 | $ | 4,955 | |||||
Liabilities: | ||||||||||
Derivative instruments | Level 2 | $ | (2,966 | ) | $ | (1,874 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Balance, at the beginning of the period | $ | 488,587 | $ | 324,176 | $ | 385,057 | $ | 265,160 | ||||||||
Additions and adjustments to cost of revenues | 85,171 | 56,815 | 266,372 | 163,783 | ||||||||||||
Usage and current warranty expenses | (57,946 | ) | (34,852 | ) | (135,617 | ) | (82,804 | ) | ||||||||
Balance, at end of the period | 515,812 | 346,139 | 515,812 | 346,139 | ||||||||||||
Less current portion | (174,125 | ) | (97,222 | ) | (174,125 | ) | (97,222 | ) | ||||||||
Long term portion | $ | 341,687 | $ | 248,917 | $ | 341,687 | $ | 248,917 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Balance, at the beginning of the period | $ | 324,176 | $ | 232,167 | $ | 265,160 | $ | 204,994 | ||||||||
Additions and adjustments to cost of revenues | 56,815 | 43,068 | 163,783 | 109,382 | ||||||||||||
Usage and current warranty expenses | (34,852 | ) | (28,172 | ) | (82,804 | ) | (67,313 | ) | ||||||||
Balance, at end of the period | 346,139 | 247,063 | 346,139 | 247,063 | ||||||||||||
Less current portion | (97,222 | ) | (67,096 | ) | (97,222 | ) | (67,096 | ) | ||||||||
Long term portion | $ | 248,917 | $ | 179,967 | $ | 248,917 | $ | 179,967 |
F - 1617
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Balance, at the beginning of the period | $ | 200,695 | $ | 144,253 | $ | 169,345 | $ | 140,020 | $ | 232,828 | $ | 200,695 | $ | 213,577 | $ | 169,345 | ||||||||||||||||
Revenue recognized | (12,731 | ) | (10,667 | ) | (37,855 | ) | (46,259 | ) | (19,869 | ) | (12,731 | ) | (25,819 | ) | (20,974 | ) | ||||||||||||||||
Increase in deferred revenues and customer advances | 20,756 | 19,622 | 77,230 | 59,447 | 21,130 | 20,756 | 46,331 | 60,349 | ||||||||||||||||||||||||
Balance, at the end of the period | 208,720 | 153,208 | 208,720 | 153,208 | 234,089 | 208,720 | 234,089 | 208,720 | ||||||||||||||||||||||||
Less current portion | (31,896 | ) | (16,939 | ) | (31,896 | ) | (16,939 | ) | (22,064 | ) | (31,896 | ) | (22,064 | ) | (31,896 | ) | ||||||||||||||||
Long term portion | $ | 176,824 | $ | 136,269 | $ | 176,824 | $ | 136,269 | $ | 212,025 | $ | 176,824 | $ | 212,025 | $ | 176,824 |
2022 | $ | 11,697 | ||
2023 | 23,044 | |||
2024 | 10,466 | |||
2025 | 9,648 | |||
2026 | 9,047 | |||
Thereafter | 144,818 | |||
Total deferred revenues | $ | 208,720 |
2023 | $ | 13,214 | ||
2024 | 11,665 | |||
2025 | 11,094 | |||
2026 | 10,898 | |||
2027 | 8,968 | |||
Thereafter | 178,250 | |||
Total deferred revenues | $ | 234,089 |
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Accrued expenses | $ | 112,388 | $ | 57,158 | $ | 123,935 | $ | 117,638 | ||||||||
Government authorities | 40,189 | 22,631 | 49,323 | 67,514 | ||||||||||||
Operating lease liabilities | 15,307 | 12,728 | 17,064 | 16,183 | ||||||||||||
Provision for legal claims | 39 | 11,622 | ||||||||||||||
Accrual for sales incentives | 5,558 | 3,048 | 6,306 | 6,790 | ||||||||||||
Finance lease | 3,034 | 3,263 | ||||||||||||||
Other | 8,411 | 2,192 | 3,786 | 2,724 | ||||||||||||
$ | 181,892 | $ | 109,379 | |||||||||||||
Total accrued expenses and other current liabilities | $ | 203,448 | $ | 214,112 |
F - 1718
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
The Convertible Senior Notes consisted of the following as of September 30, 20222023 and December 31, 2021:2022:
September 30, 2023 | December 31, 2022 | |||||||
Liability: | ||||||||
Principal | $ | 632,500 | $ | 632,500 | ||||
Unamortized issuance costs | (5,853 | ) | (8,049 | ) | ||||
Net carrying amount | $ | 626,647 | $ | 624,451 |
September 30, 2022 | December 31, 2021 | |||||||
Liability: | ||||||||
Principal | $ | 632,500 | $ | 632,500 | ||||
Unamortized issuance costs | (8,779 | ) | (10,965 | ) | ||||
Net carrying amount | $ | 623,721 | $ | 621,535 |
F - 1819
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
a. | Common stock rights: |
b. | Secondary public offering: |
c. | Equity Incentive Plans: |
F - 1920
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Number of options | Weighted average exercise price | Weighted average remaining contractual term in years | Aggregate intrinsic Value | |||||||||||||
Outstanding as of December 31, 2021 | 474,280 | $ | 44.68 | 5.22 | $ | 112,479 | ||||||||||
Exercised | (123,420 | ) | 28.42 | - | - | |||||||||||
Forfeited or expired | (243 | ) | 5.01 | - | - | |||||||||||
Outstanding as of September 30, 2022 | 350,617 | $ | 50.43 | 5.07 | $ | 65,030 | ||||||||||
Vested and expected to vest as of September 30, 2022 | 349,682 | $ | 50.22 | 5.10 | $ | 64,916 | ||||||||||
Exercisable as of September 30, 2022 | 298,440 | $ | 36.94 | 4.75 | $ | 58,637 |
Number of options | Weighted average exercise price | Weighted average remaining contractual term in years | Aggregate intrinsic Value | |||||||||||||
Outstanding as of December 31, 2022 | 339,029 | $ | 50.64 | 4.86 | $ | 79,414 | ||||||||||
Exercised | (11,804 | ) | 15.41 | - | 2,789 | |||||||||||
Outstanding as of September 30, 2023 | 327,225 | $ | 51.91 | 4.20 | $ | 28,935 | ||||||||||
Vested and expected to vest as of September 30, 2023 | 326,961 | $ | 51.79 | 4.20 | $ | 28,931 | ||||||||||
Exercisable as of September 30, 2023 | 312,711 | $ | 44.70 | 4.08 | $ | 28,736 |
Number of RSUs | Weighted average grant date fair value | Number of RSUs | Weighted average grant date fair value | |||||||||||||
Unvested as of December 31, 2021 | 1,759,972 | $ | 189.25 | |||||||||||||
Unvested as of December 31, 2022 | 1,488,515 | $ | 232.05 | |||||||||||||
Granted | 259,198 | 299.66 | 300,567 | 234.72 | ||||||||||||
Vested | (620,186 | ) | 128.46 | (516,692 | ) | 192.22 | ||||||||||
Forfeited | (115,327 | ) | 209.13 | (69,939 | ) | 262.12 | ||||||||||
Unvested as of September 30, 2022 | 1,283,657 | $ | 214.73 | |||||||||||||
Unvested as of September 30, 2023 | 1,202,451 | $ | 248.09 |
Number of PSUs | Weighted average grant date fair value | |||||||
Unvested as of December 31, 2021 | 108,595 | $ | 296.40 | |||||
Granted | 39,263 | 293.04 | ||||||
Unvested as of September 30, 2022 | 147,858 | $ | 295.51 |
Number of PSUs | Weighted average grant date fair value | |||||||
Unvested as of December 31, 2022 | 149,232 | $ | 295.88 | |||||
Granted | 32,348 | 314.22 | ||||||
Vested | (107,165 | ) | 296.76 | |||||
Unvested as of September 30, 2023 | 74,415 | $ | 302.58 |
d. | Employee Stock Purchase Plan ("ESPP"): |
The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 15% of their salaries to purchase common stock up to an aggregate limit of $15 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.
F - 20
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - 21
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
e. | Stock-based compensation expenses: |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Stock-based compensation expenses: | ||||||||||||||||||||||||||||||||
Cost of revenues | $ | 4,660 | $ | 4,289 | $ | 15,008 | $ | 14,370 | $ | 5,882 | $ | 4,660 | $ | 17,732 | $ | 15,008 | ||||||||||||||||
Research and development | 14,553 | 11,949 | 46,357 | 30,552 | 16,481 | 14,553 | 50,962 | 46,357 | ||||||||||||||||||||||||
Selling and marketing | 9,341 | 5,737 | 23,089 | 16,952 | 7,739 | 9,341 | 23,640 | 23,089 | ||||||||||||||||||||||||
General and administrative | 7,197 | 4,210 | 22,478 | 11,516 | 6,713 | 7,197 | 22,681 | 22,478 | ||||||||||||||||||||||||
Total stock-based compensation expenses | $ | 35,751 | $ | 26,185 | $ | 106,932 | $ | 73,390 | $ | 36,815 | $ | 35,751 | $ | 115,015 | $ | 106,932 | ||||||||||||||||
Stock-based compensation capitalized: | ||||||||||||||||||||||||||||||||
Inventory | $ | 655 | $ | 765 | $ | 1,666 | $ | 765 | ||||||||||||||||||||||||
Other long-term assets | 422 | 116 | 1,259 | 213 | ||||||||||||||||||||||||||||
Total stock-based compensation capitalized | $ | 1,077 | $ | 881 | $ | 2,925 | $ | 978 |
The Company capitalized stock-based compensation as part of inventories and prepaid expenses for the three and nine months ended September 30, 2022, in the amount of $881 and $977, respectively. In 2021 the Company did not capitalize any stock- based compensation expenses.
The total tax benefit associated with share-basedstock-based compensation for the three months ended September 30, 20222023 and 20212022 was $2,6463,124 and $3,7912,646, respectively. The tax benefit realized from share-basedstock-based compensation for the three months ended September 30, 20222023, and 20212022 was $3,0601,589 and $4,7203,060, respectively.
F - 2122
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
a. | Guarantees: |
b. | Contractual purchase obligations: |
c. | Legal claims: |
F - 22
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | ||||||||||||||||
Beginning balance | $ | (18,777 | ) | $ | (1,636 | ) | $ | (4,709 | ) | $ | 240 | |||||
Revaluation | (12,424 | ) | 6 | (31,064 | ) | (2,340 | ) | |||||||||
Tax on revaluation | 2,694 | 35 | 6,522 | 505 | ||||||||||||
Other comprehensive income (loss) before reclassifications | (9,730 | ) | 41 | (24,542 | ) | (1,835 | ) | |||||||||
Reclassification | 166 | (16 | ) | 1,010 | (16 | ) | ||||||||||
Tax on reclassification | (15 | ) | 4 | (115 | ) | 4 | ||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) | 151 | (12 | ) | 895 | (12 | ) | ||||||||||
Net current period other comprehensive income (loss) | (9,579 | ) | 29 | (23,647 | ) | (1,847 | ) | |||||||||
Ending balance | $ | (28,356 | ) | $ | (1,607 | ) | $ | (28,356 | ) | $ | (1,607 | ) | ||||
Unrealized gains (losses) on cash flow hedges | ||||||||||||||||
Beginning balance | $ | (3,642 | ) | $ | 311 | $ | 874 | $ | - | |||||||
Revaluation | (1,569 | ) | 1,146 | (10,094 | ) | 1,956 | ||||||||||
Tax on revaluation | 170 | (140 | ) | 1,166 | (237 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (1,399 | ) | 1,006 | (8,928 | ) | 1,719 | ||||||||||
Reclassification | 1,422 | (794 | ) | 4,833 | (1,251 | ) | ||||||||||
Tax on reclassification | (163 | ) | 96 | (561 | ) | 151 | ||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) | 1,259 | (698 | ) | 4,272 | (1,100 | ) | ||||||||||
Net current period other comprehensive income (loss) | (140 | ) | 308 | (4,656 | ) | 619 | ||||||||||
Ending balance | $ | (3,782 | ) | $ | 619 | $ | (3,782 | ) | $ | 619 | ||||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature | ||||||||||||||||
Beginning balance | $ | (52,750 | ) | $ | (1,896 | ) | $ | (17,420 | ) | $ | - | |||||
Revaluation | (30,799 | ) | (12,272 | ) | (66,129 | ) | (14,168 | ) | ||||||||
Ending balance | $ | (83,549 | ) | $ | (14,168 | ) | $ | (83,549 | ) | $ | (14,168 | ) | ||||
Unrealized gains (losses) on foreign currency translation | ||||||||||||||||
Beginning balance | $ | (14,451 | ) | $ | (315 | ) | $ | (6,064 | ) | $ | 3,617 | |||||
Revaluation | 1,872 | (3,664 | ) | (6,515 | ) | (7,596 | ) | |||||||||
Ending balance | $ | (12,579 | ) | $ | (3,979 | ) | $ | (12,579 | ) | $ | (3,979 | ) | ||||
Total | $ | (128,266 | ) | $ | (19,135 | ) | $ | (128,266 | ) | $ | (19,135 | ) |
F -23
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Details about Accumulated Other Comprehensive Loss Components | Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item in the Statement of Income | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | |||||||||||||||||
$ | (166) | $ | 12 | $ | (1010 | ) | $ | 16 | Financial expense, net | ||||||||
15 | - | 115 | (4 | ) | Income taxes | ||||||||||||
$ | (151) | $ | 12 | $ | (895 | ) | $ | 12 | Total, net of income taxes | ||||||||
Unrealized gains (losses) on cash flow hedges, net | |||||||||||||||||
(157 | ) | 97 | (542 | ) | 152 | Cost of revenues | |||||||||||
(808 | ) | 476 | (2,841 | ) | 751 | Research and development | |||||||||||
(242 | ) | 97 | (662 | ) | 153 | Sales and marketing | |||||||||||
(215 | ) | 124 | (788 | ) | 196 | General and administrative | |||||||||||
$ | (1,422 | ) | $ | 794 | $ | (4,833 | ) | $ | 1252 | Total, before income taxes | |||||||
163 | (96 | ) | 561 | (152 | ) | Income taxes | |||||||||||
(1,259 | ) | 698 | (4,272 | ) | 1,100 | Total, net of income taxes | |||||||||||
Total reclassifications for the period | $ | (1,410 | ) | $ | 710 | $ | (5,167 | ) | $ | 1,112 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | ||||||||||||||||
Beginning balance | $ | (18,611 | ) | $ | (18,777 | ) | $ | (25,449 | ) | $ | (4,709 | ) | ||||
Revaluation | 3,216 | (12,424 | ) | 11,579 | (31,064 | ) | ||||||||||
Tax on revaluation | (654 | ) | 2,694 | (2,257 | ) | 6,522 | ||||||||||
Other comprehensive income (loss) before reclassifications | 2,562 | (9,730 | ) | 9,322 | (24,542 | ) | ||||||||||
Reclassification | - | 166 | 107 | 1,010 | ||||||||||||
Tax on reclassification | - | (15 | ) | (29 | ) | (115 | ) | |||||||||
Losses reclassified from accumulated other comprehensive income (loss) | - | 151 | 78 | 895 | ||||||||||||
Net current period other comprehensive income (loss) | 2,562 | (9,579 | ) | 9,400 | (23,647 | ) | ||||||||||
Ending balance | $ | (16,049 | ) | $ | (28,356 | ) | $ | (16,049 | ) | $ | (28,356 | ) | ||||
Unrealized gains (losses) on cash flow hedges | ||||||||||||||||
Beginning balance | $ | (1,776 | ) | $ | (3,642 | ) | $ | (1,761 | ) | $ | 874 | |||||
Revaluation | (2,896 | ) | (1,569 | ) | (7,321 | ) | (10,094 | ) | ||||||||
Tax on revaluation | 183 | 170 | 460 | 1,166 | ||||||||||||
Other comprehensive income (loss) before reclassifications | (2,713 | ) | (1,399 | ) | (6,861 | ) | (8,928 | ) | ||||||||
Reclassification | 1,910 | 1,422 | 6,316 | 4,833 | ||||||||||||
Tax on reclassification | (120 | ) | (163 | ) | (393 | ) | (561 | ) | ||||||||
Losses reclassified from accumulated other comprehensive income (loss) | 1,790 | 1,259 | 5,923 | 4,272 | ||||||||||||
Net current period other comprehensive income (loss) | (923 | ) | (140 | ) | (938 | ) | (4,656 | ) | ||||||||
Ending balance | $ | (2,699 | ) | $ | (3,782 | ) | $ | (2,699 | ) | $ | (3,782 | ) | ||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature | ||||||||||||||||
Beginning balance | $ | (50,695 | ) | $ | (52,750 | ) | $ | (37,960 | ) | $ | (17,420 | ) | ||||
Revaluation | (9,989 | ) | (30,799 | ) | (22,724 | ) | (66,129 | ) | ||||||||
Ending balance | $ | (60,684 | ) | $ | (83,549 | ) | $ | (60,684 | ) | $ | (83,549 | ) | ||||
Unrealized gains (losses) on foreign currency translation | ||||||||||||||||
Beginning balance | $ | (6,350 | ) | $ | (14,451 | ) | $ | (7,939 | ) | $ | (6,064 | ) | ||||
Revaluation | 1,833 | 1,872 | 3,422 | (6,515 | ) | |||||||||||
Ending balance | $ | (4,517 | ) | $ | (12,579 | ) | $ | (4,517 | ) | $ | (12,579 | ) | ||||
Total | $ | (83,949 | ) | $ | (128,266 | ) | $ | (83,949 | ) | $ | (128,266 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Impairment of goodwill and intangible assets (1) | $ | - | $ | - | $ | 4,008 | $ | - | ||||||||
Write-off of property, plant and equipment | (19 | ) | - | 660 | 2,209 | |||||||||||
Sale of property, plant and equipment | (1,146 | ) | - | (1,146 | ) | - | ||||||||||
Sale of Critical Power assets | (1,559 | ) | - | (1,559 | ) | - | ||||||||||
Kokam purchase escrow (2) | - | - | - | (859 | ) | |||||||||||
Total other operating expenses (income) | $ | (2,724 | ) | $ | - | $ | 1,963 | $ | 1,350 |
F - 24
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Details about Accumulated Other Comprehensive Loss Components | Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item in the Statement of Income | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | |||||||||||||||||
$ | - | $ | (166 | ) | $ | (107 | ) | $ | (1,010 | ) | Financial income (expense), net | ||||||
- | 15 | 29 | 115 | Income taxes | |||||||||||||
$ | - | $ | (151 | ) | $ | (78 | ) | $ | (895 | ) | Total, net of income taxes | ||||||
Unrealized gains (losses) on cash flow hedges, net | |||||||||||||||||
(219 | ) | (157 | ) | (734 | ) | (542 | ) | Cost of revenues | |||||||||
(1,138 | ) | (808 | ) | (3,789 | ) | (2,841 | ) | Research and development | |||||||||
(256 | ) | (242 | ) | (791 | ) | (662 | ) | Sales and marketing | |||||||||
(297 | ) | (215 | ) | (1,002 | ) | (788 | ) | General and administrative | |||||||||
$ | (1,910 | ) | $ | (1,422 | ) | $ | (6,316 | ) | $ | (4,833 | ) | Total, before income taxes | |||||
120 | 163 | 393 | 561 | Income taxes | |||||||||||||
(1,790 | ) | (1,259 | ) | (5,923 | ) | (4,272 | ) | Total, net of income taxes | |||||||||
Total reclassifications for the period | $ | (1,790 | ) | $ | (1,410 | ) | $ | (6,001 | ) | $ | (5,167 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Impairment of goodwill and intangible assets | $ | - | $ | - | $ | - | $ | 4,008 | ||||||||
Sale of assets | - | (2,705 | ) | (1,434 | ) | (2,705 | ) | |||||||||
Impairment of property, plant and equipment | - | (19 | ) | - | 660 | |||||||||||
Total other operating expense (income), net | $ | - | $ | (2,724 | ) | $ | (1,434 | ) | $ | 1,963 |
F - 25
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - 26
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
15:20: EARNINGS (LOSS) PER SHAREINCOME TAXESeffective tax rate forfollowing table presents the three months ended September 30, 2022,computation of basic and 2021 was 58.0% and 12.6%, respectively, and for the nine months ended September 30, 2022, and 2021 the effective tax rate was 42.1% and 15.9%, respectively.diluted earnings (loss) per share (“EPS”):The increase in the effective tax rate in the current year, is primarily due to the change to Section 174 of the U.S Internal Revenue Code, which came into effect on January 1, 2022. The change requires taxpayers to amortize research and development expenditures over five years (if expensed by a U.S. entity) or fifteen years (if expensed by non-U.S. entities). This change resulted in an increase in the Company’s taxable income and Global Intangible Low Taxed Income (“GILTI”) tax. In addition, the change in the Company's tax rate resulted from a different allocation of income among the Company’s U.S., Israeli, and foreign subsidiaries, and lower tax benefits relating to stock-based compensation.As of September 30, 2022, and December 31, 2021, unrecognized tax benefits were $2,561 and $2,192, respectively. If recognized, such benefits would favorably affect the Company’s effective tax rate.The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were immaterial as of September 30, 2022, and December 31, 2021.In August 2022, the U.S. government signed into law the Inflation Reduction Act of 2022 (the “IRA”), which, among other things, revised U.S. tax law by, including a new corporate alternative minimum tax (the “CAMT”) of 15% on certain large corporations, imposing a 1% excise tax on stock buybacks, and providing incentives to address climate change, including the introduction of advanced manufacturing production tax credits, that may be relevant to the company's products, if they will be manufactured in the US. The provisions of the IRA are generally effective for tax years beginning after 2022. Given the complexities of the IRA, which is pending technical guidance and regulations from the Internal Revenue Service and U.S. Treasury Department, the Company is in the process of evaluating provisions included under the IRA and its impact to the Company’s consolidated financial statements.
F - 2527
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Basic EPS: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 24,743 | $ | 53,048 | $ | 72,950 | $ | 128,216 | ||||||||
Denominator: | ||||||||||||||||
Shares used in computing net EPS of common stock, basic | 55,730,328 | 52,355,867 | 54,788,734 | 52,056,233 | ||||||||||||
Diluted EPS: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to common stock, basic | $ | 24,743 | $ | 53,048 | $ | 72,950 | $ | 128,216 | ||||||||
Notes due 2025 | 551 | 525 | 1,651 | 1,575 | ||||||||||||
Net income attributable to common stock, diluted | $ | 25,294 | $ | 53,573 | $ | 74,601 | $ | 129,791 | ||||||||
Denominator: | ||||||||||||||||
Shares used in computing net EPS of common stock, basic | 55,730,328 | 52,355,867 | 54,788,734 | 52,056,233 | ||||||||||||
Notes due 2025 | 2,276,818 | 2,276,818 | 2,276,818 | 2,276,818 | ||||||||||||
Effect of stock-based awards | 740,392 | 1,296,315 | 820,489 | 1,622,390 | ||||||||||||
Shares used in computing net EPS of common stock, diluted | 58,747,538 | 55,929,000 | 57,886,041 | 55,955,441 | ||||||||||||
Shares excluded from the calculation of diluted net EPS due to their anti-dilutive effect | 138,916 | 243,689 | 181,802 | 169,597 |
F - 26
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Critical Power in thousands, except per share data)June 2022,
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||
Solar | All other | Solar | All other | |||||||||||||
Revenues | $ | 676,410 | $ | 48,680 | $ | 2,532,275 | $ | 127,605 | ||||||||
Cost of revenues | 514,289 | 59,780 | 1,723,337 | 153,927 | ||||||||||||
Gross profit (loss) | 162,121 | (11,100 | ) | 808,938 | (26,322 | ) | ||||||||||
Research and development | 56,293 | 6,979 | 174,218 | 20,370 | ||||||||||||
Sales and marketing | 30,514 | 1,777 | 95,795 | 5,367 | ||||||||||||
General and administrative | 29,637 | 2,756 | 79,525 | 9,522 | ||||||||||||
Segments profit (loss) | $ | 45,677 | $ | (22,612 | ) | $ | 459,400 | $ | (61,581 | ) |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||
Solar | All other | Solar | All other | |||||||||||||
Revenues | $ | 788,610 | $ | 47,954 | $ | 2,084,206 | $ | 134,931 | ||||||||
Cost of revenues | 565,403 | 42,594 | 1,484,303 | 125,883 | ||||||||||||
Gross profit | 223,207 | 5,360 | 599,903 | 9,048 | ||||||||||||
Research and development | 47,943 | 6,861 | 140,215 | 23,378 | ||||||||||||
Sales and marketing | 30,996 | 2,202 | 85,220 | 8,059 | ||||||||||||
General and administrative | 17,534 | 2,795 | 49,779 | 10,209 | ||||||||||||
Segments profit (loss) | $ | 126,734 | $ | (6,498 | ) | $ | 324,689 | $ | (32,598 | ) |
F - 2728
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 21: SEGMENT INFORMATION (Cont.)
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||
Solar | All other | Solar | All other | |||||||||||||
Revenues | $ | 788,610 | $ | 47,954 | $ | 2,084,206 | $ | 134,931 | ||||||||
Cost of revenues | 565,403 | 42,594 | 1,484,303 | 125,883 | ||||||||||||
Gross profit | 223,207 | 5,360 | 599,903 | 9,048 | ||||||||||||
Research and development | 47,943 | 6,861 | 140,215 | 23,378 | ||||||||||||
Sales and marketing | 30,996 | 2,202 | 85,220 | 8,059 | ||||||||||||
General and administrative | 17,534 | 2,795 | 49,779 | 10,209 | ||||||||||||
Segments profit (loss) | $ | 126,734 | $ | (6,498 | ) | $ | 324,689 | $ | (32,598 | ) |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||
Solar | All other | Solar | All other | |||||||||||||
Revenues | $ | 476,838 | $ | 49,455 | $ | 1,284,574 | $ | 127,080 | ||||||||
Cost of revenues | 302,081 | 45,132 | 799,163 | 122,536 | ||||||||||||
Gross profit | 174,757 | 4,323 | 485,411 | 4,544 | ||||||||||||
Research and development | 34,657 | 8,853 |
| 102,151 |
| 22,376 | ||||||||||
Sales and marketing | 21,127 | 2,290 | 60,758 | 7,340 | ||||||||||||
General and administrative | 14,054 | 2,863 | 39,094 | 9,783 | ||||||||||||
Segments profit (loss) | $ | 104,919 | $ | (9,683 | ) | $ | 283,408 | $ | (34,955 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Solar revenues | $ | 788,610 | $ | 476,838 | $ | 2,084,206 | $ | 1,284,574 | $ | 676,410 | $ | 788,610 | $ | 2,532,275 | $ | 2,084,206 | ||||||||||||||||
All other revenues | 47,954 | 49,455 | 134,931 | 127,080 | 48,680 | 47,954 | 127,605 | 134,931 | ||||||||||||||||||||||||
Revenues from finance component | 159 | 111 | 440 | 296 | 215 | 159 | 604 | 440 | ||||||||||||||||||||||||
Consolidated revenues | $ | 836,723 | $ | 526,404 | $ | 2,219,577 | $ | 1,411,950 | $ | 725,305 | $ | 836,723 | $ | 2,660,484 | $ | 2,219,577 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Solar segment profit | $ | 45,677 | $ | 126,734 | $ | 459,400 | $ | 324,689 | ||||||||
All other segment loss | (22,612 | ) | (6,498 | ) | (61,581 | ) | (32,598 | ) | ||||||||
Segments operating profit | 23,065 | 120,236 | 397,819 | 292,091 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Stock based compensation expenses | (36,815 | ) | (35,751 | ) | (115,015 | ) | (106,932 | ) | ||||||||
Amortization related to business combinations | (2,750 | ) | (2,559 | ) | (6,164 | ) | (8,039 | ) | ||||||||
Impairment of goodwill and intangible assets | - | - | - | (4,008 | ) | |||||||||||
Disposal of assets related to Critical Power | - | - | - | (4,314 | ) | |||||||||||
Sale of Critical Power assets | - | 1,559 | - | 1,559 | ||||||||||||
Other unallocated expenses (income), net | (226 | ) | 922 | 1,146 | 926 | |||||||||||
Consolidated operating income (expense) | $ | (16,726 | ) | $ | 84,407 | $ | 277,786 | $ | 171,283 |
1. | On November 1, 2023, the Company announced the approval by the Board of Directors of a share repurchase program which authorizes the repurchase of up to $300 million of the Company’s common stock. Under the share repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, privately negotiated transactions, accelerated share repurchase programs and/or a non-discretionary trading plan or other means, including through 10b5-1 trading plans, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the share repurchase program are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The program does not obligate the Company to acquire any amount of common stock, it may be suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and will expire on December 31, 2024. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Solar segment profit | $ | 126,734 | $ | 104,919 | $ | 324,689 | $ | 283,408 | ||||||||
All other segment loss | (6,498 | ) | (9,683 | ) | (32,598 | ) | (34,955 | ) | ||||||||
Segments operating profit | 120,236 | 95,236 | 292,091 | 248,453 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Stock based compensation expenses | (35,751 | ) | (26,185 | ) | (106,932 | ) | (73,390 | ) | ||||||||
Amortization related to business combinations | (2,559 | ) | (2,785 | ) | (8,039 | ) | (8,007 | ) | ||||||||
Impairment of goodwill and intangible assets | - | - | (4,008 | ) | - | |||||||||||
Disposal of assets related to Critical Power | - | - | (4,314 | ) | - | |||||||||||
Sale of Critical Power assets | 1,559 | - | 1,559 | - | ||||||||||||
Other unallocated income (expenses), net | 922 | 148 | 926 | (955 | ) | |||||||||||
Consolidated operating income | $ | 84,407 | $ | 66,414 | $ | 171,283 | $ | 166,101 |
2. | In October 2023, the Company decided to discontinue its light commercial e-Mobility ("LCV") activity related to the supply of products to its sole customer. |
3. | On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and putatively on behalf of all others similarly situated, in the U.S District Court of the Southern District of New York against the Company, the Company’s CEO and the Company’s CFO. The complaint alleges that the Company violated various securities laws and seeks class certification, damages, interest, attorneys’ fees, and other relief. Due to the early stage of this proceeding, we cannot reasonably estimate the potential range of loss, if any. The Company disputes the allegations of wrongdoing and intends to vigorously defend against them. |
F - 29
NOTE 18: SUBSEQUENT EVENTS
On November 3, 2022, the Company received notice that a class action lawsuit was filed in the U.S District Court of the Southern District of New York against the Company, SolarEdge Technologies Ltd., the Company’s CEO and the Company’s CFO, by a purported stockholder of the Company, alleging violations of the Federal Securities Act in connection with complaints filed against the Company by Ampt LLC, the details for which can be found under “Note 12- Commitments and Contingent Liabilities”. The Company believes the allegations contained in this new action are without merit and intends to vigorously defend against them.
F - 28
• | future demand for renewable energy including solar energy solutions; |
• | changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; |
• | changes in the U.S. trade environment, including the imposition of import tariffs; |
• | federal, |
• | changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; |
• | the retail price of electricity derived from the utility grid or alternative energy sources; |
• | interest rates and supply of capital in the global financial markets in general and in the solar market specifically; |
• | competition, including introductions of power optimizer, inverter and solar photovoltaic (“PV”) system monitoring products by our competitors; |
• | developments in alternative technologies or improvements in distributed solar energy generation; |
• | historic cyclicality of the solar industry and periodic downturns; |
• | product quality or performance problems in our products; |
• | our ability to forecast demand for our products accurately and to match production |
• | our dependence on ocean transportation to timely deliver our products in a cost-effective manner; |
• | our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; |
• | capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; |
• | delays, disruptions, and quality control problems in manufacturing; |
• | shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; |
• | existing and future responses to and effects of |
• | business practices and regulatory compliance of our raw material suppliers; |
• | performance of distributors and large installers in selling our products; |
• | disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and |
• | disruption to our business operations due to the evolving state of war in Israel; |
• | our customers’ financial stability, creditworthiness, and debt leverage ratio; |
• | our ability to retain key personnel and attract additional qualified personnel; |
• | our ability to effectively design, launch, market, and sell new generations of our products and services; |
• | our ability to maintain our brand and to protect and defend our intellectual property; |
• | our ability to retain, and events affecting, our major customers; |
• | our ability to manage effectively the growth of our organization and expansion into new markets; |
• | our ability to integrate acquired businesses; |
• | fluctuations in global currency exchange rates; |
• | unrest, terrorism, or armed conflict in Israel; |
• | macroeconomic conditions in our domestic and international markets, as well as inflation concerns, financial institutions instability, rising interest rates, recessionary concerns, the prospect of a shutdown of the U.S. federal government and |
• | consolidation in the solar industry among our customers and distributors; |
• | our ability to service our debt; |
• | any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; |
• | the impact of evolving legal and regulatory requirements, including emerging environmental, social and governance requirements; and |
• | the other factors set forth under “Item 1A. Risk Factors” in our |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Inverters shipped | 264,515 | 230,849 | 704,018 | 592,300 | 273,883 | 264,515 | 938,171 | 704,018 | ||||||||||||||||||||||||
Power optimizers shipped | 6,123,479 | 4,699,443 | 17,062,684 | 13,445,523 | 3,266,487 | 6,123,479 | 15,238,543 | 17,062,684 | ||||||||||||||||||||||||
Megawatts shipped1 | 2,703 | 1,903 | 7,349 | 5,237 | ||||||||||||||||||||||||||||
Megawatts shipped - residential batteries | 321 | 11 | 671 | 11 | ||||||||||||||||||||||||||||
Megawatts shipped1 | 3,796 | 2,703 | 11,728 | 7,349 | ||||||||||||||||||||||||||||
Megawatts hour shipped - residential batteries | 121 | 321 | 612 | 671 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Revenues | $ | 836,723 | $ | 526,404 | $ | 2,219,577 | $ | 1,411,950 | $ | 725,305 | $ | 836,723 | $ | 2,660,484 | $ | 2,219,577 | ||||||||||||||||
Cost of revenues | 614,722 | 353,843 | 1,635,976 | 943,123 | 582,488 | 614,722 | 1,900,236 | 1,635,976 | ||||||||||||||||||||||||
Gross profit | 222,001 | 172,561 | 583,601 | 468,827 | 142,817 | 222,001 | 760,248 | 583,601 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Research and development | 69,659 | 55,666 | 210,855 | 155,307 | 80,082 | 69,659 | 246,481 | 210,855 | ||||||||||||||||||||||||
Sales and marketing | 42,726 | 29,383 | 117,017 | 85,752 | 40,351 | 42,726 | 125,539 | 117,017 | ||||||||||||||||||||||||
General and administrative | 27,933 | 21,098 | 82,483 | 60,317 | 39,110 | 27,933 | 111,876 | 82,483 | ||||||||||||||||||||||||
Other operating expenses (income), net | (2,724 | ) | — | 1,963 | 1,350 | |||||||||||||||||||||||||||
Other operating expense (income), net | — | (2,724 | ) | (1,434 | ) | 1,963 | ||||||||||||||||||||||||||
Total operating expenses | 137,594 | 106,147 | 412,318 | 302,726 | 159,543 | 137,594 | 482,462 | 412,318 | ||||||||||||||||||||||||
Operating income | 84,407 | 66,414 | 171,283 | 166,101 | ||||||||||||||||||||||||||||
Financial expense, net | (33,025 | ) | (5,751 | ) | (52,785 | ) | (13,591 | ) | ||||||||||||||||||||||||
Other income | 7,533 | — | 7,533 | — | ||||||||||||||||||||||||||||
Income before income taxes | 58,915 | 60,663 | 126,031 | 152,510 | ||||||||||||||||||||||||||||
Operating income (loss) | (16,726 | ) | 84,407 | 277,786 | 171,283 | |||||||||||||||||||||||||||
Financial income (expense), net | (7,901 | ) | (33,146 | ) | 19,157 | (52,062 | ) | |||||||||||||||||||||||||
Other income (loss), net | (484 | ) | 7,654 | (609 | ) | 6,810 | ||||||||||||||||||||||||||
Income (loss) before income taxes | (25,111 | ) | 58,915 | 296,334 | 126,031 | |||||||||||||||||||||||||||
Income taxes | 34,172 | 7,615 | 53,081 | 24,294 | 36,065 | 34,172 | 99,622 | 53,081 | ||||||||||||||||||||||||
Net income | 24,743 | 53,048 | 72,950 | 128,216 | ||||||||||||||||||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | 196,712 | $ | 72,950 |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Revenues | 836,723 | 526,404 | 310,319 | 59.0 | % | 2,219,577 | 1,411,950 | 807,627 | 57.2 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Revenues | $ | 725,305 | $ | 836,723 | $ | (111,418 | ) | (13.3 | )% | $ | 2,660,484 | $ | 2,219,577 | $ | 440,907 | 19.9 | % |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues | 614,722 | 353,843 | 260,879 | 73.7 | % | 1,635,976 | 943,123 | 692,853 | 73.5 | % | $ | 582,488 | $ | 614,722 | $ | (32,234 | ) | (5.2 | )% | $ | 1,900,236 | $ | 1,635,976 | $ | 264,260 | 16.2 | % | |||||||||||||||||||||||||||||||||||||
Gross profit | 222,001 | 172,561 | 49,440 | 28.7 | % | 583,601 | 468,827 | 114,774 | 24.5 | % | $ | 142,817 | $ | 222,001 | $ | (79,184 | ) | (35.7 | )% | $ | 760,248 | $ | 583,601 | $ | 176,647 | 30.3 | % |
• | a decrease in direct cost of revenues sold of $83.5 million associated mainly with a decrease in the volume of products sold; |
• |
• | a |
• | an increase |
• | an increase of $14.0 million in inventory accrual which is mainly attributed to a higher inventory write-down; |
• | an increase in |
• | an increase in personnel-related costs of |
• |
• |
• | an increase in inventory accrual for impairment of excess inventory; |
• | an increased portion of sales of commercial products out of our total product mix, which are characterized with lower gross margin; and |
• | our non-solar businesses, referred to in our financial results as "all other segments", are generally characterized by a lower gross profit which effect was amplified this quarter. |
• | favorable exchange rates on our sales outside of the U.S.; |
• | gradual price increases across our product offerings; and |
• | continued cost reduction efforts. |
• | an increase in direct cost of revenues sold of $112.4 million associated primarily with an increase in the volume of products sold; |
• | an increase in warranty expenses and warranty accruals of |
• | an increase of $20.4 million in |
• | an increase in personnel-related costs of |
• | an increase in other production costs of $6.5 million, which is mainly attributed to charges from our contract manufacturers related to the downsizing of our manufacturing sites in China and discontinuance of our manufacturing site in Mexico, as well as ramp up costs associated with Sella 2, our Li-Ion battery cell manufacturing facility located in South Korea. |
• | a decrease in customs duties of $4.2 million attributed to the decrease in volumes of products manufactured in China for the U.S. market; and |
• | a decrease in shipment and logistic costs in an aggregate amount of $2.7 million due to a decrease in shipment rates and a decrease in expedited shipments costs. |
• | gradual price increases across our product offerings; |
• | favorable exchange rates on our sales outside of the U.S.; |
• | a decrease in shipment rates as well as a reduced portion of expedited shipments out of our total shipments; and |
• | continued cost reduction efforts. These were partially offset by: |
• | an increased portion of sales of commercial products out of our total product mix, which are characterized with lower gross margins; |
• | an increase in warranty expenses and warranty accruals associated primarily with the change in the composition of our install base, as well as an increase in costs related to the different components of our warranty expenses, as reflected in our actual support costs; |
• | higher revenues from our non-solar businesses, which are generally characterized by a lower gross profit, which effect was amplified this quarter; and |
• | an increase in inventory accrual for impairment of excess inventory. |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Research and development | 69,659 | 55,666 | 13,993 | 25.1 | % | 210,855 | 155,307 | 55,548 | 35.8 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Research and development | $ | 80,082 | $ | 69,659 | $ | 10,423 | 15.0 | % | $ | 246,481 | $ | 210,855 | $ | 35,626 | 16.9 | % |
• | an increase in personnel-related costs of |
• | an increase in expenses related to consultants and sub-contractors in an amount of $2.4 million. |
• | an increase in personnel-related costs of $21.6 million resulting from an increase in our research and development headcount as well as salary expenses associated with annual merit increases, which were partially offset by the depreciation of the NIS against the U.S. dollar and employee equity-based compensation. The increase in headcount reflects our continued investment in enhancements of existing products as well as research and development expenses associated with bringing new products to the market; |
• | an increase in expenses related to |
an increase in depreciation expenses of property and equipment in an amount of $2.7 million; and |
• | an increase in |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and marketing | $ | 40,351 | $ | 42,726 | $ | (2,375 | ) | (5.6 | )% | $ | 125,539 | $ | 117,017 | $ | 8,522 | 7.3 | % |
• | an increase in personnel-related costs of |
• |
• | an increase of $1.4 million in training-related expenses as a result of resuming training activities that had been previously cancelled or postponed due to Covid-19 restrictions in 2022; and |
• | an increase in expenses related to other overhead costs |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and marketing | 42,726 | 29,383 | 13,343 | 45.4 | % | 117,017 | 85,752 | 31,265 | 36.5 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
General and administrative | $ | 39,110 | $ | 27,933 | $ | 11,177 | 40.0 | % | $ | 111,876 | $ | 82,483 | $ | 29,393 | 35.6 | % |
• | an increase in |
• | an increase in expenses related to |
• | an increase |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
General and administrative | 27,933 | 21,098 | 6,835 | 32.4 | % | 82,483 | 60,317 | 22,166 | 36.7 | % |
• | an increase in expenses related to consultants and sub-contractors |
• | an increase in expenses related to doubtful debt |
• | an increase in personnel-related costs of |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other operating expenses (income), net | (2,724 | ) | — | (2,724 | ) | (100.0 | )% | 1,963 | 1,350 | 613 | 45.4 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other operating expense (income), net | $ | — | $ | (2,724 | ) | $ | 2,724 | (100.0 | )% | $ | (1,434 | ) | $ | 1,963 | $ | (3,397 | ) | (173.1 | )% |
• | a decrease of $1.6 million in |
• |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Financial expense, net | (33,025 | ) | (5,751 | ) | (27,274 | ) | 474.2 | % | (52,785 | ) | (13,591 | ) | (39,194 | ) | 288.4 | % |
• |
• | a decrease of $0.7 million in expenses related to write-offs of property, plant and equipment. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Financial income (expense), net | $ | (7,901 | ) | $ | (33,146 | ) | $ | 25,245 | (76.2 | )% | $ | 19,157 | $ | (52,062 | ) | $ | 71,219 | (136.8 | )% |
• | a decrease of $19.0 million in expenses due to fluctuations in foreign exchange |
• | an increase of |
• | an |
• | an increase of |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other income | 7,533 | — | 7,533 | 100.0 | % | 7,533 | — | 7,533 | 100.0 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other income (loss), net | $ | (484 | ) | $ | 7,654 | $ | (8,138 | ) | (106.3 | )% | $ | (609 | ) | $ | 6,810 | $ | (7,419 | ) | (108.9 | )% |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Income taxes | 34,172 | 7,615 | 26,557 | 348.7 | % | 53,081 | 24,294 | 28,787 | 118.5 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Income taxes | $ | 36,065 | $ | 34,172 | $ | 1,893 | 5.5 | % | $ | 99,622 | $ | 53,081 | $ | 46,541 | 87.7 | % |
Three months ended September 30, 2022 to 2021 | Nine months ended September 30, 2022 to 2021 | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income | 24,743 | 53,048 | (28,305 | ) | (53.4 | )% | 72,950 | 128,216 | (55,266 | ) | (43.1 | )% |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | (85,919 | ) | (347.2 | )% | $ | 196,712 | $ | 72,950 | $ | 123,762 | 169.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 5,558 | 61,784 | (80,016 | ) | 124,552 | $ | 40,585 | $ | 5,558 | $ | (40,203 | ) | $ | (80,016 | ) | |||||||||||||||||
Net cash used in investing activities | (54,581 | ) | (61,961 | ) | (380,514 | ) | (397,959 | ) | ||||||||||||||||||||||||
Net cash used in investing | (43,733 | ) | (54,581 | ) | (188,187 | ) | (380,514 | ) | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (1,271 | ) | 1,774 | 647,135 | (19,432 | ) | (1,164 | ) | (1,271 | ) | (11,305 | ) | 647,135 | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (50,294 | ) | 1,597 | 186,605 | (292,839 | ) | $ | (4,312 | ) | $ | (50,294 | ) | $ | (239,695 | ) | $ | 186,605 |
Exhibit No. | Description | Incorporation by Reference | ||
Incorporated by reference to Exhibit 10.1 to Form 8-K filed with the SEC on July 7, 2023 | ||||
Filed with this report. | ||||
Filed with this report. | ||||
Filed with this report. | ||||
Filed with this report. | ||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, | Filed with this report. | ||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, | Included in Exhibit 101 |
/s/Zvi Lando | |
Zvi Lando | |
Chief Executive Officer (Principal Executive Officer) |
/s/ Ronen Faier | |
Ronen Faier | |
Chief Financial Officer | |
(Principal Financial Officer) |