Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SolarEdge Technologies Inc | |
Entity Central Index Key | 0001419612 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 47,547,688 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 226,478 | $ 191,633 |
Short-term bank deposits | 6,057 | 6,001 |
Restricted cash | 1,811 | 1,628 |
Marketable securities | 107,064 | 118,680 |
Trade receivables, net | 187,496 | 173,579 |
Prepaid expenses and other current assets | 37,828 | 45,073 |
Inventories | 150,798 | 141,519 |
Total current assets | 717,532 | 678,113 |
LONG-TERM ASSETS: | ||
Marketable securities | 57,252 | 74,256 |
Operating lease right-of-use assets | 30,839 | |
Property, plant and equipment, net | 132,988 | 119,329 |
Deferred tax assets, net | 14,589 | 14,699 |
Intangible assets, net and Goodwill | 211,420 | 73,378 |
Other non-current assets | 12,303 | 4,697 |
Total long term assets | 459,391 | 286,359 |
Total assets | 1,176,923 | 964,472 |
CURRENT LIABILITIES: | ||
Trade payables, net | 90,190 | 107,079 |
Employees and payroll accruals | 31,524 | 29,053 |
Current maturities of bank loans and accrued interest | 17,233 | 16,639 |
Warranty obligations | 35,229 | 28,868 |
Deferred revenues | 13,527 | 14,351 |
Accrued expenses and other current liabilities | 60,369 | 29,728 |
Total current liabilities | 248,072 | 225,718 |
LONG-TERM LIABILITIES: | ||
Bank loans | 7,029 | 3,510 |
Warranty obligations | 101,517 | 92,958 |
Deferred revenues | 66,037 | 60,670 |
Operating lease liabilities | 24,790 | |
Deferred tax liabilities, net | 8,544 | 1,499 |
Other non-current liabilities | 23,417 | 9,391 |
Total long-term liabilities | 231,334 | 168,028 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of March 31, 2019 (unaudited) and December 31, 2018; issued and outstanding: 47,501,363 and 46,052,802 shares as of March 31, 2019 (unaudited) and December 31, 2018, respectively | 5 | 5 |
Additional paid-in capital | 417,385 | 371,794 |
Accumulated other comprehensive loss | (1,220) | (524) |
Retained earnings | 210,149 | 191,133 |
Total SolarEdge Technologies, Inc. stockholders' equity | 626,319 | 562,408 |
Non-controlling interests | 71,198 | 8,318 |
Total stockholders' equity | 697,517 | 570,726 |
Total liabilities and stockholders' equity | $ 1,176,923 | $ 964,472 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 47,501,363 | 46,052,802 |
Common stock, outstanding shares | 47,501,363 | 46,052,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 271,871 | $ 209,871 |
Cost of revenues | 185,761 | 130,274 |
Gross profit | 86,110 | 79,597 |
Operating expenses: | ||
Research and development | 26,199 | 17,875 |
Sales and marketing | 20,172 | 16,205 |
General and administrative | 11,691 | 4,753 |
Total operating expenses | 58,062 | 38,833 |
Operating income | 28,048 | 40,764 |
Financial expenses (income), net | 6,151 | (584) |
Income before taxes on income | 21,897 | 41,348 |
Taxes on income | 3,922 | 5,662 |
Net income | 17,975 | 35,686 |
Net loss attributable to Non-controlling interests | 1,041 | |
Net income attributable to SolarEdge Technologies, Inc. | $ 19,016 | $ 35,686 |
Net basic earnings per share of common stock attributable to SolarEdge Technologies, Inc. | $ 0.40 | $ 0.81 |
Net diluted earnings per share of common stock attributable to SolarEdge Technologies, Inc. | $ 0.39 | $ 0.75 |
Weighted average number of shares used in computing net basic earnings per share of common stock | 47,020,218 | 44,231,679 |
Weighted average number of shares used in computing net diluted earnings per share of common stock | 49,026,327 | 47,673,522 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,975 | $ 35,686 |
Available-for-sale securities: | ||
Changes in unrealized gains (losses) net of tax | 485 | (510) |
Reclassification adjustments for losses included in net income | 120 | |
Net change | 605 | (510) |
Foreign currency translation adjustments, net | (1,301) | (14) |
Total other comprehensive loss | (696) | (524) |
Comprehensive income | 17,279 | 35,162 |
Comprehensive loss attributable to Non-controlling interests | 849 | |
Comprehensive income attributable to SolarEdge Technologies, Inc. | $ 18,128 | $ 35,162 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional paid in capital [Member] | Accumulated other comprehensive Income (loss) [Member] | Retained earnings [Member] | Total | Non-controlling interests [Member] | Stockholders Equity | |
Balance at Dec. 31, 2017 | $ 4 | $ 331,902 | $ (611) | $ 66,172 | $ 397,467 | $ 397,467 | ||
Balance (in shares) at Dec. 31, 2017 | 43,812,601 | |||||||
Cumulative effect of adopting new accounting standard | (3,872) | (3,872) | (3,872) | |||||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards | [1] | 4,605 | 4,605 | 4,605 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 1,084,507 | |||||||
Equity based compensation expenses to employees and non-employee consultants | 6,849 | 6,849 | 6,849 | |||||
Change to Non-controlling interests | ||||||||
Other comprehensive income loss adjustments | (524) | (524) | (524) | |||||
Net income | 35,686 | 35,686 | 35,686 | |||||
Balance at Mar. 31, 2018 | $ 4 | 343,356 | (1,135) | 97,986 | 440,211 | 440,211 | ||
Balance (in shares) at Mar. 31, 2018 | 44,897,108 | |||||||
Balance at Dec. 31, 2018 | $ 5 | 371,794 | (524) | 191,133 | 562,408 | 8,318 | 570,726 | |
Balance (in shares) at Dec. 31, 2018 | 46,052,802 | |||||||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards | [1] | 309 | 309 | 309 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 254,515 | |||||||
Equity based compensation expenses to employees and non-employee consultants | 9,704 | 9,704 | 9,704 | |||||
Consideration in common stock related to business combination | [1] | 34,601 | 34,601 | 34,601 | ||||
Consideration in common stock related to business combination, shares | 1,194,046 | |||||||
Non-controlling interests related to business combination | 67,734 | 67,734 | ||||||
Change to Non-controlling interests | 977 | 977 | (2,964) | (1,987) | ||||
Other comprehensive income loss adjustments | (696) | (696) | (849) | (1,545) | ||||
Net income | 19,016 | 19,016 | (1,041) | 17,975 | ||||
Balance at Mar. 31, 2019 | $ 5 | $ 417,385 | $ (1,220) | $ 210,149 | $ 626,319 | $ 71,198 | $ 697,517 | |
Balance (in shares) at Mar. 31, 2019 | 47,501,363 | |||||||
[1] | Represents an amount less than $1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows provided by operating activities: | ||
Net income | $ 17,975 | $ 35,686 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 3,870 | 2,394 |
Amortization of intangible assets | 1,971 | 36 |
Amortization of premium and accretion of discount on available-for-sale marketable securities | (59) | 778 |
Stock-based compensation | 9,704 | 6,849 |
Capital loss from disposal of equipment | 66 | 64 |
Realized loss from sale of available-for-sale marketable securities | 120 | |
Changes in assets and liabilities: | ||
Inventories | 964 | (15,348) |
Prepaid expenses and other assets | 10,885 | 9,210 |
Trade receivables, net | (7,379) | (17,935) |
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences | 828 | (74) |
Deferred tax assets and liabilities, net | (973) | (1,321) |
Trade payables, net | (21,720) | 13,595 |
Employees and payroll accruals | 3,250 | 7,153 |
Warranty obligations | 14,947 | 9,384 |
Deferred revenues | 1,730 | 6,981 |
Other liabilities | 20,271 | 6,527 |
Net cash provided by operating activities | 56,450 | 63,979 |
Cash flows from investing activities: | ||
Business combination, net of cash acquired | (39,315) | |
Purchase of property, plant and equipment | (10,620) | (11,325) |
Investment in short term bank deposits | (56) | |
Investment in available-for-sale marketable securities | (15,316) | (25,436) |
Proceeds from sales and maturities of available-for-sale marketable securities | 44,575 | 34,500 |
Net cash used in investing activities | (20,732) | (2,261) |
Cash flows from financing activities: | ||
Proceeds from bank loans borrowing | 51 | |
Payments of bank loans | (1,003) | |
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards | 309 | 4,605 |
Change in Non-controlling interests | (977) | |
Net cash provided by (used in) financing activities | (2,630) | 4,605 |
Increase in cash, cash equivalents and restricted cash | 33,088 | 66,323 |
Cash, cash equivalents and restricted cash at the beginning of the period | 193,261 | 164,679 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 1,940 | (17) |
Cash, cash equivalents and restricted cash at the end of the period | 228,289 | 230,985 |
Supplemental disclosure of non-cash activities: | ||
Operating lease, right of use asset | $ 32,531 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL 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), (iii) a related cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters of a solar PV system to enable customers and system owners as applicable, to monitor and manage the solar PV systems and (iv) a storage solution that is used to increase energy independence and maximize self-consumption for homeowners by utilizing a battery that is sold separately by third party manufacturers, to store and supply power as needed (the “StorEdge solution”). The StorEdge solution is designed to provide smart energy functions such as maximizing self-consumption, Time-of-Use programming for desired hours of the day, and home energy backup solutions. The Company and its subsidiaries sell their products worldwide through large distributors and electrical equipment wholesalers to smaller solar installers as, well as directly to large solar installers and engineering, procurement and construction firms (“EPCs”). Since 2018, the Company completed certain strategic acquisitions in order to further expand its business. In July and October 2018, the Company completed the acquisition ("Gamatronic Acquisition") of substantially all of the assets and activities of Gamatronic Electronic Industries Ltd ("Gamatronic IL") and all of the outstanding shares of its wholly owned subsidiary Gamatronic (UK) Limited (“Gamatronic UK”), respectively. Both companies ("UPS Division") are providers and manufacturers of Uninterruptible Power Supplies ("UPS") devices. On October 17, 2018, the Company completed the acquisition of 74.5% of the outstanding common shares and voting rights of Kokam Co., Ltd. (“Kokam”), a Korean company whose shares are traded on the Korean OTC market, a provider of Lithium-ion cells, batteries and energy storage solutions. From October 17, 2018 and through March 31, 2019, the Company increased its shareholdings of Kokam to 94.2%. On January 24, 2019, the Company completed the acquisition of 56.8% of the outstanding common shares and voting rights of S.M.R.E S.p.A (“SMRE”), an Italian company whose shares were traded on the Italian AIM, a provider of innovative integrated powertrain technology and electronics for electric vehicles (see note 2). b. New accounting pronouncements not yet effective: In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 was issued to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in ASU 2017-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2022. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated balance sheets, statements of operations and cash flows. c. Recently issued and adopted pronouncement: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases". Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases". Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company has elected to apply the standard retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company has also elected certain relief options offered in ASU 2016-02 including certain available transitional practical expedients. The Company adopted Topic 842 effective January 1, 2019. The Condensed Consolidated Financial Statements for the three months ended March 31, 2019 are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy (See note 7). d. Basis of Presentation: The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and disclosures in footnotes that it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its condensed consolidated financial position, results of operations, and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2018, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2019, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for the adoption of ASU No. 2016-02, “Leases (Topic 842) e. The Company depends on three contract manufacturers and several limited or single source component suppliers. The Company is in the process of discontinuing its activity with one of those contract manufacturers. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs. These three vendors collectively accounted for 48.7% and 58.8% of the Company’s total trade payables as of March 31, 2019 (unaudited) and December 31, 2018, respectively. The Company has the right to offset its payables to one of its contract manufacturers against vendor non-trade receivables. As of March 31, 2019 (unaudited), a total of $1,784 of these receivables met the criteria for net recognition and were offset against the corresponding accounts payable balances for this contract manufacturer in the accompanying condensed consolidated balance sheets. f. Business Combination: The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. g. Accounting for share-based compensation: Some of the RSUs granted are subject to certain performance criteria (“PSUs”): accordingly, compensation expense for PSUs is recognized when it becomes probable that the related performance condition has been satisfied. h. Certain prior period amounts have been reclassified to conform to the current period presentation. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 2:- BUSINESS COMBINATION S.M.R.E On January 24, 2019, the Company completed the acquisition of 56.8% of the outstanding common shares and voting rights of SMRE, a provider of innovative integrated powertrain technology and electronics for electric vehicles for approximately $73.9 million, net of cash acquired, out of which $42,240 was paid in cash and $34,601 was paid in shares of SolarEdge common stock (the “SMRE Acquisition”). As part of SMRE Acquisition, the Company issued 334,096 PSUs that are subject to certain performance goals and a vesting period, at the amount of $13,444, which will be expensed in the condensed consolidated statements of operation in general and administrative expenses line item. As of January 24, 2019, the fair value of the 43.2% non-controlling interests in SMRE is estimated to be $67.7 million. The fair value of the non-controlling interests was valued based on and at the transaction price. The primary reason for the SMRE Acquisition was to acquire technology and customer relationships and to expand and diversify the Company’s business by entering into the electric vehicles market. The Company determined that the SMRE Acquisition will be accounted for as a business combination in accordance with ASC 805 "Business Combinations". During the period from the SMRE Acquisition through March 31, 2019, the Company purchased additional common shares of SMRE in the open market, for a further investment of $1.2 million. The amounts of revenue and net loss of SMRE included in the Company’s condensed consolidated statements of operations for the period from January 24, 2019 through March 31, 2019 are $2,902 and $1,879, respectively. The following table summarizes the preliminary estimated purchase price allocation of the business combination completed during the three months ended March 31, 2019: Components of Purchase Price: Cash $ 42,240 Less cash acquired (2,925 ) Common stock 34,601 Total purchase price $ 73,916 Allocation of Purchase Price: Total net identifiable assets $ 9,916 Total identifiable intangible assets, net and Goodwill (1) 131,734 Noncontrolling interest (67,734 ) Total purchase price allocation (2) $ 73,916 (1) The intangible assets comprised primarily of technology, in process research and development and customer relationships. (2) The Company is expecting to complete the preliminary estimated purchase price allocation during the measurement period of one year from . Fair values that are still under review include among others, values assigned to identifiable intangible assets, goodwill, deferred income taxes and contingent liabilities. During the three months ended March 31, 2019, the Company recognized $453 of aggregate acquisition-related costs that were expensed in the condensed consolidated statement of operations in general and administrative expenses line item. The purchase price allocations for the business combinations completed during the year ended December 31, 2018 are still preliminary as of March 31, 2019. The following table represents the pro-forma (unaudited) condensed consolidated statements of operations as if all acquisitions completed during the year ended December 31, 2018 and the three months ended March 31, 2019, had been included in the condensed consolidated statements of operations of the Company for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited): Three months ended March 31, 2019 2018 Unaudited Revenue $ 272,943 $ 231,784 Net income $ 16,610 $ 28,654 The pro-forma results have been calculated after applying the Company’s accounting policies and adjusting the results of all acquisitions to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied since the acquisitions date, together with the consequential tax effects. The pro-forma results are based on estimates and assumptions, which the Company believes are reasonable. The pro-forma results are not the results that would have been realized had the acquisitions actually occurred on January 1, 2018 and 2019, and are not necessarily indicative of the Company’s condensed consolidated statements of operations in future periods. The pro-forma results include adjustments related to business combinations accounting, primarily depreciation of property plant and equipment, amortization of intangible assets and together with the consequential tax effects. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 3:- INTANGIBLE ASSETS AND GOODWILL Acquired intangible assets and goodwill consisted of the following: As of March 31, 2019 As of December 31, 2018 Intangible assets with finite lived: Current technology $ 30,214 $ 30,821 Customer relationships 3,793 3,857 Trade names 3,642 3,721 Patents 1,400 1,400 Backlog 193 193 Gross intangible assets 39,242 39,992 Less - accumulated amortization (2,619 ) (1,488 ) Total intangible assets, net 36,623 38,504 Goodwill: Goodwill from business combinations 34,874 34,445 Foreign currency translation (678 ) 429 Goodwill 34,196 34,874 Intangible assets with finite lived, net and goodwill resulting from SMRE Acquisition 140,601 - Total Intangible assets with finite lived, net and goodwill $ 211,420 $ 73,378 Amortization expenses for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited) were $1,971 and $36, respectively. The reported amount of net acquisition-related intangible assets and goodwill can fluctuate due to the impact of changes in foreign currency exchange rates on intangible assets and goodwill not denominated in U.S. dollars. Acquired finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The Company will amortize its finite- lived intangible assets over a period of 7-10 years. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4:- INVENTORIES March 31, 2019 December 31, 2018 (unaudited) Raw materials $ 55,133 $ 39,380 Work in process 21,332 18,115 Finished goods 74,333 84,024 $ 150,798 $ 141,519 |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | NOTE 5:- WARRANTY OBLIGATIONS Changes in the Company’s product warranty obligations for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited) were as follows: Three months ended March 31, 2019 2018 (unaudited) Balance, at beginning of period $ 121,826 $ 78,811 Additions and adjustments to cost of revenues 22,105 13,159 Usage and current warranty expenses (7,185 ) (3,775 ) Balance, at end of period 136,746 88,195 Less current portion (35,229 ) (16,605 ) Long term portion $ 101,517 $ 71,590 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6:- FAIR VALUE MEASUREMENTS In accordance with ASC 820, the Company measures its cash equivalents, foreign currency derivative contracts, and marketable securities, at fair value using the market approach valuation technique. Earn-out provision is classified within the Level 3 value hierarchy, as the valuation is based on unobservable inputs which are supported by little or no market activity. The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy: Fair value measurements as of Fair Value March 31, December 31, Description Hierarchy 2019 2018 (unaudited) Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ 3,050 $ 1,767 Short-term marketable securities: Corporate bonds Level 2 101,734 110,385 Governmental bonds Level 2 5,330 8,295 Long-term marketable securities: Corporate bonds Level 2 57,252 74,256 Governmental bonds Level 2 - - Liabilities Long-term Earn-out provision Level 3 (1,045 ) (332 ) |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 7:- LEASES The Company adopted ASU No. 2016-02, “Leases (Topic 842),” effective on January 1, 2019, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of the beginning of the fiscal year, January 1, 2019. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. The Company leases offices, plants and vehicles under operating and finance leases. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments according to their term. Several of the Company’s leases include renewal options and some have termination options that are factored into the Company’s determination of the lease payments when appropriate. The Company estimates the incremental borrowing rate in order to discount the lease payments based on the information available at the lease commencement date. The following table summarizes the Company’s lease-related assets and liabilities recorded on the condensed consolidated balance sheet: Classification on the condensed consolidated Balance Sheet As of March 31, 2019 Assets Operating lease assets, net of lease incentive obligation Operating lease right-of-use assets $ 30,839 Finance lease assets Property, plant and equipment, net 2,905 Total lease assets $ 33,744 Liabilities Operating and finance leases short term Accrued expenses and other current liabilities $ 8,808 Operating leases long term Operating lease liabilities 24,790 Finance leases long term Other non-current liabilities 2,045 Total lease liabilities $ 35,643 Weighted average remaining lease term in years Operating leases 5.08 Finance leases 8.67 Weighted average annual discount rate Operating leases 1.56 % Finance leases 2.87 % The following table presents certain information related to the lease costs for operating and finance leases for the three months ended March 31, 2019: Three months ended March 31, 2019 Finance lease cost Amortization of leased assets $ 27 Interest on lease liabilities 16 Operating lease cost 2,231 Total lease cost $ 2,274 The following table presents supplemental cash flow information related to the lease costs for operating and finance leases for the three months ended March 31, 2019: Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 2,231 The following table Operating Lease Finance Leases 2019 $ 6,632 $ 156 2020 7,444 208 2021 6,443 208 2022 5,470 194 2023 4,732 194 Thereafter 4,435 1,620 Total lease payments 35,156 2,580 Less: amount of lease payments representing interest (1,737 ) (356 ) Present value of future lease payments 33,419 2,224 Less: current obligations under leases (8,629 ) (179 ) Long-term lease obligations $ 24,790 $ 2,045 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of March 31, 2019 (unaudited), contingent liabilities exist regarding guarantees in the amount of $13,353, $1,938, $55 and $176 in respect of bank loans, office rent lease agreements, customs transactions and credit card limits, respectively. b. Contractual purchase obligations: The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs. As of March 31, 2019 (unaudited), the Company had non-cancellable purchase obligations totaling approximately $242,551 out of which the Company already recorded a provision for loss in the amount of $2,061. As of March 31, 2019 (unaudited), the Company had contractual obligations for capital expenditures totaling approximately $30,183. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing. c. Legal claims: From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. In June 2018, the Company was served with a complaint from a trustee of a former customer that filed for bankruptcy in the US. The lawsuit seeks to recover approximately $2,481 based on theories of preferential and fraudulent transfers. During the three months ended March 31, 2019 (unaudited), the Company entered into mediation process which has not yet settled. As of March 31, 2019 (unaudited), the Company has recorded an adequate provision in expectation of a settlement. |
STOCK CAPITAL
STOCK CAPITAL | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK CAPITAL | NOTE 9:- STOCK CAPITAL a. Common Stock: Number of shares Authorized Issued and outstanding March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (unaudited) (unaudited) Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 47,501,363 46,052,802 b. Stock Incentive plans: The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. On March 31, 2015, once the Company completed its Initial Public Offering (“IPO”), the 2007 Plan was terminated and no further awards will be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers, and consultants of the Company and its Subsidiaries. As of March 31, 2019 (unaudited), a total of 10,383,357 shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”). The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan commencing on January 1st of the year following the year in which the 2015 Plan becomes effective in an amount equal to five percent (5%) of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that our board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than five percent (5%) of the shares of capital stock outstanding on the preceding December 31st. The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is ten million (10,000,000). As of March 31, 2019 (unaudited), an aggregate of 8,686,589 shares of common stock are still available for future grant under the 2015 Plan. c. Options granted to employees A summary of the activity in the share options granted to employees and members of the board of directors for the three months ended March 31, 2019 (unaudited) and related information follows: Weighted average Weighted remaining Number average contractual Aggregate of exercise term intrinsic Options price in years Value Outstanding as of December 31, 2018 2,401,893 11.04 6.19 58,323 Granted 267,852 36.15 Exercised (25,512 ) 11.33 Forfeited or expired (10,625 ) 14.51 Outstanding as of March 31, 2019 2,633,608 13.58 6.33 63,544 Vested and expected to vest as of March 31, 2019 2,592,033 13.44 6.30 62,901 Exercisable as of March 31, 2019 1,896,037 8.32 5.46 55,675 The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period. The total intrinsic value of options exercised during the three months ended March 31, 2019 (unaudited) was $788. The weighted average grant date fair values of options granted to employees and executive directors during the three months ended March 31, 2019 (unaudited) was $19.83. d. Number of RSUs Weighted average fair value Unvested as of December 31, 2018 2,807,232 34.40 Granted 306,562 38.55 Vested (223,210 ) 31.14 Forfeited (96,018 ) 33.91 Unvested as of 2,794,566 35.13 As part of SMRE acquisition, the Company granted 334,096 PSUs that are subject to certain performance goals and a vesting period. The PSUs grant date fair value is $40.24. During the three months ended March 31, 2019, the Company recognized expenses at the amount of $841 related to PSU’S vesting that were expensed in the condensed consolidated statement of operations in general and administrative expenses line item. e. Options and RSUs issued to non-employee consultants: The Company has granted options and RSUs to purchase common shares to non-employee consultants as of March 31, 2019 (unaudited) as follows: Outstanding Exercisable as of as of Issuance March 31, Exercise March 31, Options exercisable Date 2019 price 2019 through 2014 6,023 $3.51 - $5.01 5,245 October 29, 2024 2015 2,127 $0.00 - 2016 5,001 $0.00 - $15.34 - September 21, 2026 2017 13,126 $0.00 - $13.70 - March 15, 2027 2018 19,496 $0.00 - 2019 9,499 $0.00 - 55,272 5,245 The Company had accounted for its options and RSUs granted to non-employee consultants under the fair value method of ASC 505-50 (“Equity-Based Payments to Non-Employees”). In connection with the grant of stock options and RSUs to non‑employee consultants, the Company recorded stock compensation expenses in the three months ended March 31, 2019 (unaudited) and 2018 (unaudited) in the amount of $173 and $ 529, respectively. f. Employee Stock Purchase Plan (“ESPP”): The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of March 31, 2019 (unaudited), a total of 2,199,808 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero. The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 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. As of March 31, 2019 (unaudited), 385,646 common stock shares had been purchased under the ESPP. As of March 31, 2019 (unaudited), 1,814,162 common stock shares were available for future issuance under the ESPP. In accordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost. g. Stock-based compensation expense for employees and non-employee consultants: The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employee consultants and ESPP in the condensed consolidated statement of income for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited), as follows: Three months ended March 31, 2019 2018 Cost of revenues $ 1,354 $ 924 Research and development 3,490 2,382 Selling and marketing 2,404 2,204 General and administrative 2,456 1,339 Total stock-based compensation expense $ 9,704 $ 6,849 As of March 31, 2019 (unaudited), there was a total unrecognized compensation expense of $104,122 related to non‑vested equity‑based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from April 1, 2019 through May 31, 2023. |
BASIC AND DILUTED NET EARNINGS
BASIC AND DILUTED NET EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET EARNINGS PER SHARE | NOTE 10:- BASIC AND DILUTED NET EARNINGS PER SHARE Basic net earnings per share is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period. Diluted net earnings per share is computed by giving effect to all potential shares of common stock, including stock options, to the extent dilutive, all in accordance with ASC No. 260, "Earnings Per Share." No shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited). The following table presents the computation of basic and diluted net earnings per share attributable to SolarEdge Technologies, Inc. for the periods presented (in thousands, except share and per share data): Three months ended March 31, 2019 2018 Unaudited Numerator: Net income $ 17,975 $ 35,686 Net loss attributable to Non-controlling interests 1,041 - Net income attributable to SolarEdge Technologies, Inc. $ 19,016 $ 35,686 Denominator: Shares used in computing net earnings per share of common stock, basic 47,020,218 44,231,679 Effect of stock-based awards 2,006,109 3,441,843 Shares used in computing net earnings per share of common stock, diluted 49,026,327 47,673,522 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
INCOME TAXES | NOTE 11:- INCOME TAXES a. Taxes on income (tax benefit) are comprised as follows: Three months ended March 31, 2019 2018 Unaudited Current period taxes $ 4,895 $ 7,001 Deferred tax income, net and others (973 ) (1,339 ) Taxes on income $ 3,922 $ 5,662 b. Deferred income taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows: As of March 31, 2019 As of December 31, 2018 (Unaudited) Deferred tax assets, net: Research and Development carryforward expenses $ 8,751 $ 9,482 Carryforward tax losses 5,384 4,155 Stock based compensation expenses 3,571 3,160 Inventory Impairment 1,299 1,471 Allowance and other reserves 6,675 4,340 Total deferred tax assets $ 25,680 $ 22,608 Deferred tax liabilities, net: Purchase price allocation adjustments (19,635 ) (9,408 ) Total deferred tax liabilities $ (19,635 ) $ (9,408 ) Recorded as: Deferred tax assets, net $ 14,589 $ 14,699 Deferred tax liabilities, net (8,544 ) (1,499 ) Net deferred tax assets $ 6,045 $ 13,200 c. Uncertain tax positions: March 31, 2019 December 31, 2018 (Unaudited) Balance at January 1, $ 8,499 $ 579 Increases related to current year tax positions 1,033 8,499 Decreases related to prior year tax positions - (579 ) $ 9,532 $ 8,499 |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 12:- CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS a. For the three months period ended March 31, 2019 (unaudited) and 2018 (unaudited), the Company had one major customer that accounted for 14.2% and 20.4% of its condensed consolidated revenues, respectively. b. As of March 31, 2019 (unaudited) and as of December 31, 2018, one and two customers accounted for approximately 13.1% and 41.3%, respectively, of the Company’s net accounts receivables. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 13:- SEGMENT INFORMATION The Company's chief operating decision maker (“CODM”) is our Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. Accordingly, the Company has determined that it has a single reportable segment - the solar segment. Total segment assets include corporate assets, such as cash and cash equivalents, marketable securities and tax assets. Total segment assets reconciled to consolidated amounts are as follows: As of March 31, As of December 31, 2019 2018 Solar $ 1,038,612 $ 866,868 Non-Solar 138,311 97,604 Total assets $ 1,176,923 $ 964,472 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14:- SUBSEQUENT EVENTS a. During the period from March 31, 2019 through May 10, 2019, the Company purchased additional common shares of SMRE in the market and through a tender offer in a total amount of $64.5 million. As of May 10, 2019, the Company holds 99.6% of the outstanding common shares and voting rights of SMRE and such company’s shares have been delisted from the Italian AIM. b. On May 8, 2019, the Company received notice that Huawei has filed two lawsuits in the Guangzhou intellectual property court against the Company's two Chinese subsidiaries and its equipment manufacturer in China. The lawsuit alleges infringement of two patents and asks for an injunction of manufacture, use, sale and offer for sale, and damage awards of approximately $3.1 million. The Company has not yet been served, believes that it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Estimated Components and Allocations of Combined Purchase Prices | The following table summarizes the preliminary estimated purchase price allocation of the business combination completed during the three months ended March 31, 2019: Components of Purchase Price: Cash $ 42,240 Less cash acquired (2,925 ) Common stock 34,601 Total purchase price $ 73,916 Allocation of Purchase Price: Total net identifiable assets $ 9,916 Total identifiable intangible assets, net and Goodwill (1) 131,734 Noncontrolling interest (67,734 ) Total purchase price allocation (2) $ 73,916 (1) The intangible assets comprised primarily of technology, in process research and development and customer relationships. (2) The Company is expecting to complete the preliminary estimated purchase price allocation during the measurement period of one year from . Fair values that are still under review include among others, values assigned to identifiable intangible assets, goodwill, deferred income taxes and contingent liabilities. |
Schedule of Pro-forma Condensed Consolidated Statements of Operations | The following table represents the pro-forma (unaudited) condensed consolidated statements of operations as if all acquisitions completed during the year ended December 31, 2018 and the three months ended March 31, 2019, had been included in the condensed consolidated statements of operations of the Company for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited): Three months ended March 31, 2019 2018 Unaudited Revenue $ 272,943 $ 231,784 Net income $ 16,610 $ 28,654 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets and Goodwill | Acquired intangible assets and goodwill consisted of the following: As of March 31, 2019 As of December 31, 2018 Intangible assets with finite lived: Current technology $ 30,214 $ 30,821 Customer relationships 3,793 3,857 Trade names 3,642 3,721 Patents 1,400 1,400 Backlog 193 193 Gross intangible assets 39,242 39,992 Less - accumulated amortization (2,619 ) (1,488 ) Total intangible assets, net 36,623 38,504 Goodwill: Goodwill from business combinations 34,874 34,445 Foreign currency translation (678 ) 429 Goodwill 34,196 34,874 Intangible assets with finite lived, net and goodwill resulting from SMRE Acquisition 140,601 - Total Intangible assets with finite lived, net and goodwill $ 211,420 $ 73,378 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | INVENTORIES March 31, 2019 December 31, 2018 (unaudited) Raw materials $ 55,133 $ 39,380 Work in process 21,332 18,115 Finished goods 74,333 84,024 $ 150,798 $ 141,519 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Warranty Obligations | Changes in the Company’s product warranty obligations for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited) were as follows: Three months ended March 31, 2019 2018 (unaudited) Balance, at beginning of period $ 121,826 $ 78,811 Additions and adjustments to cost of revenues 22,105 13,159 Usage and current warranty expenses (7,185 ) (3,775 ) Balance, at end of period 136,746 88,195 Less current portion (35,229 ) (16,605 ) Long term portion $ 101,517 $ 71,590 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy: Fair value measurements as of Fair Value March 31, December 31, Description Hierarchy 2019 2018 (unaudited) Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ 3,050 $ 1,767 Short-term marketable securities: Corporate bonds Level 2 101,734 110,385 Governmental bonds Level 2 5,330 8,295 Long-term marketable securities: Corporate bonds Level 2 57,252 74,256 Governmental bonds Level 2 - - Liabilities Long-term Earn-out provision Level 3 (1,045 ) (332 ) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Schedule of Lease-related Assets and Liabilities | The following table summarizes the Company’s lease-related assets and liabilities recorded on the condensed consolidated balance sheet: Classification on the condensed consolidated Balance Sheet As of March 31, 2019 Assets Operating lease assets, net of lease incentive obligation Operating lease right-of-use assets $ 30,839 Finance lease assets Property, plant and equipment, net 2,905 Total lease assets $ 33,744 Liabilities Operating and finance leases short term Accrued expenses and other current liabilities $ 8,808 Operating leases long term Operating lease liabilities 24,790 Finance leases long term Other non-current liabilities 2,045 Total lease liabilities $ 35,643 Weighted average remaining lease term in years Operating leases 5.08 Finance leases 8.67 Weighted average annual discount rate Operating leases 1.56 % Finance leases 2.87 % |
Schedule of Information Related to Lease Costs for Finance and Operating Leases | The following table presents certain information related to the lease costs for operating and finance leases for the three months ended March 31, 2019: Three months ended March 31, 2019 Finance lease cost Amortization of leased assets $ 27 Interest on lease liabilities 16 Operating lease cost 2,231 Total lease cost $ 2,274 |
Schedule of Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to the lease costs for operating and finance leases for the three months ended March 31, 2019: Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 2,231 |
Schedule of Operating and Finance lease liabilities | The following table Operating Lease Finance Leases 2019 $ 6,632 $ 156 2020 7,444 208 2021 6,443 208 2022 5,470 194 2023 4,732 194 Thereafter 4,435 1,620 Total lease payments 35,156 2,580 Less: amount of lease payments representing interest (1,737 ) (356 ) Present value of future lease payments 33,419 2,224 Less: current obligations under leases (8,629 ) (179 ) Long-term lease obligations $ 24,790 $ 2,045 |
STOCK CAPITAL (Tables)
STOCK CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Composition of Common Stock Capital | Common Stock: Number of shares Authorized Issued and outstanding March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (unaudited) (unaudited) Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 47,501,363 46,052,802 |
Schedule of Stock Option Activity | A summary of the activity in the share options granted to employees and members of the board of directors for the three months ended March 31, 2019 (unaudited) and related information follows: Weighted average Weighted remaining Number average contractual Aggregate of exercise term intrinsic Options price in years Value Outstanding as of December 31, 2018 2,401,893 11.04 6.19 58,323 Granted 267,852 36.15 Exercised (25,512 ) 11.33 Forfeited or expired (10,625 ) 14.51 Outstanding as of March 31, 2019 2,633,608 13.58 6.33 63,544 Vested and expected to vest as of March 31, 2019 2,592,033 13.44 6.30 62,901 Exercisable as of March 31, 2019 1,896,037 8.32 5.46 55,675 |
Schedule of RSU Activity | A summary of the activity in the RSUs (excluding PSUs) granted to employees and members of the board of directors for the three months ended March 31, 2019 (unaudited) is as follows: Number of RSUs Weighted average fair value Unvested as of December 31, 2018 2,807,232 34.40 Granted 306,562 38.55 Vested (223,210 ) 31.14 Forfeited (96,018 ) 33.91 Unvested as of 2,794,566 35.13 |
Schedule of Options and RSUs Granted to Non-Employee Consultants | The Company has granted options and RSUs to purchase common shares to non-employee consultants as of March 31, 2019 (unaudited) as follows: Outstanding Exercisable as of as of Issuance March 31, Exercise March 31, Options exercisable Date 2019 price 2019 through 2014 6,023 $3.51 - $5.01 5,245 October 29, 2024 2015 2,127 $0.00 - 2016 5,001 $0.00 - $15.34 - September 21, 2026 2017 13,126 $0.00 - $13.70 - March 15, 2027 2018 19,496 $0.00 - 2019 9,499 $0.00 - 55,272 5,245 |
Schedule of Recognized Stock-Based Compensation Expense | The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employee consultants and ESPP in the condensed consolidated statement of income for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited), as follows: Three months ended March 31, 2019 2018 Cost of revenues $ 1,354 $ 924 Research and development 3,490 2,382 Selling and marketing 2,404 2,204 General and administrative 2,456 1,339 Total stock-based compensation expense $ 9,704 $ 6,849 |
BASIC AND DILUTED NET EARNING_2
BASIC AND DILUTED NET EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share | The following table presents the computation of basic and diluted net earnings per share attributable to SolarEdge Technologies, Inc. for the periods presented (in thousands, except share and per share data): Three months ended March 31, 2019 2018 Unaudited Numerator: Net income $ 17,975 $ 35,686 Net loss attributable to Non-controlling interests 1,041 - Net income attributable to SolarEdge Technologies, Inc. $ 19,016 $ 35,686 Denominator: Shares used in computing net earnings per share of common stock, basic 47,020,218 44,231,679 Effect of stock-based awards 2,006,109 3,441,843 Shares used in computing net earnings per share of common stock, diluted 49,026,327 47,673,522 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes Tables | |
Schedule of Taxes on Income | Taxes on income (tax benefit) are comprised as follows: Three months ended March 31, 2019 2018 Unaudited Current period taxes $ 4,895 $ 7,001 Deferred tax income, net and others (973 ) (1,339 ) Taxes on income $ 3,922 $ 5,662 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax liabilities and assets are as follows: As of March 31, 2019 As of December 31, 2018 (Unaudited) Deferred tax assets, net: Research and Development carryforward expenses $ 8,751 $ 9,482 Carryforward tax losses 5,384 4,155 Stock based compensation expenses 3,571 3,160 Inventory Impairment 1,299 1,471 Allowance and other reserves 6,675 4,340 Total deferred tax assets $ 25,680 $ 22,608 Deferred tax liabilities, net: Purchase price allocation adjustments (19,635 ) (9,408 ) Total deferred tax liabilities $ (19,635 ) $ (9,408 ) Recorded as: Deferred tax assets, net $ 14,589 $ 14,699 Deferred tax liabilities, net (8,544 ) (1,499 ) Net deferred tax assets $ 6,045 $ 13,200 |
Schedule of Uncertain Tax Positions | Uncertain tax positions: March 31, 2019 December 31, 2018 (Unaudited) Balance at January 1, $ 8,499 $ 579 Increases related to current year tax positions 1,033 8,499 Decreases related to prior year tax positions - (579 ) $ 9,532 $ 8,499 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Assets | Total segment assets include corporate assets, such as cash and cash equivalents, marketable securities and tax assets. Total segment assets reconciled to consolidated amounts are as follows: As of March 31, As of December 31, 2019 2018 Solar $ 1,038,612 $ 866,868 Non-Solar 138,311 97,604 Total assets $ 1,176,923 $ 964,472 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Jan. 24, 2019 | Oct. 17, 2018 | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Accounts receivable pledged to offset accounts payable | $ 1,784 | |||
Accounts Payable [Member] | ||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Concentration risk (as a percent) | 48.70% | 58.80% | ||
SMRE [Member] | ||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Percentage of acquisition | 56.80% | |||
Kokam [Member] | ||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Percentage of acquisition | 94.20% | 74.50% |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||
Jan. 24, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Acquisition related costs | $ 453 | ||||
General and administrative expenses | 11,691 | $ 4,753 | |||
Non-controlling interests | $ 71,198 | 71,198 | $ 8,318 | ||
Additional common shares purchased | 39,315 | ||||
Net income | 17,975 | $ 35,686 | |||
SMRE [Member] | |||||
Percentage of acquisition | 56.80% | ||||
Amount of investment | $ 73,900 | ||||
Cash paid | 42,240 | ||||
Common shares, Value | $ 34,601 | ||||
Percentage of noncontrolling interest | 43.20% | ||||
Non-controlling interests | $ 67,700 | ||||
Additional common shares purchased | $ 1,200 | ||||
SMRE [Member] | Options [Member] | |||||
Number of shares granted | 334,096 | ||||
General and administrative expenses | $ 13,444 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
Revenues | 2,902 | ||||
Net income | $ 1,879 |
BUSINESS COMBINATION (Schedule
BUSINESS COMBINATION (Schedule of Preliminary Estimated Components and Allocations of Combined Purchase Prices) (Details) - SMRE [Member] $ in Thousands | Mar. 31, 2019USD ($) | |
Components of Purchase Price: | ||
Cash | $ 42,240 | |
Less cash acquired | (2,925) | |
Common stock | 34,601 | |
Total purchase price | 73,916 | |
Allocation of Purchase Price: | ||
Total net identifiable assets | 9,916 | |
Total identifiable intangible assets, net and Goodwill | 131,734 | [1] |
Non-controlling interests | (67,734) | |
Total purchase price allocation | $ 73,916 | [2] |
[1] | The intangible assets comprised primarily of technology, in process research and development and customer relationships. | |
[2] | The Company is expecting to complete the preliminary estimated purchase price allocation during the measurement period of one year from January 24, 2019. Fair values that are still under review include among others, values assigned to identifiable intangible assets, goodwill, deferred income taxes and contingent liabilities. |
BUSINESS COMBINATION (Schedul_2
BUSINESS COMBINATION (Schedule of Pro-forma Condensed Consolidated Statements of Operations) (Details) - SMRE [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 272,943 | $ 231,784 |
Net income | $ 16,610 | $ 28,654 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization expenses | $ 1,971 | $ 36 |
Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets estimated useful lives of assets | 7 years | |
Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets estimated useful lives of assets | 10 years |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Intangible assets with finite lived: | ||
Gross intangible assets | $ 39,242 | $ 39,992 |
Less - accumulated amortization | (2,619) | (1,488) |
Total intangible assets, net | 36,623 | 38,504 |
Goodwill: | ||
Goodwill from business combinations | 34,874 | 34,445 |
Foreign currency translation | (678) | 429 |
Goodwill | 34,196 | 34,874 |
Intangible assets with finite lived, net and goodwill resulting from SMRE Acquisition | 140,601 | |
Total Intangible assets with finite lived, net and goodwill | 211,420 | 73,378 |
Current technology [Member] | ||
Intangible assets with finite lived: | ||
Gross intangible assets | 30,214 | 30,821 |
Customer Relationships [Member] | ||
Intangible assets with finite lived: | ||
Gross intangible assets | 3,793 | 3,857 |
Trade names [Member] | ||
Intangible assets with finite lived: | ||
Gross intangible assets | 3,642 | 3,721 |
Patent [Member] | ||
Intangible assets with finite lived: | ||
Gross intangible assets | 1,400 | 1,400 |
Backlog [Member] | ||
Intangible assets with finite lived: | ||
Gross intangible assets | $ 193 | $ 193 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 55,133 | $ 39,380 |
Work in process | 21,332 | 18,115 |
Finished goods | 74,333 | 84,024 |
Inventories | $ 150,798 | $ 141,519 |
WARRANTY OBLIGATIONS (Details)
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in the Company's product warranty liability | ||
Balance, at beginning of period | $ 121,826 | $ 78,811 |
Additions and adjustments to cost of revenues | 22,105 | 13,159 |
Usage and current warranty expenses | (7,185) | (3,775) |
Balance, at end of period | 136,746 | 88,195 |
Less current portion | (35,229) | (16,605) |
Long term portion | $ 101,517 | $ 71,590 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair value of assets | $ 3,050 | $ 1,767 |
Level 2 [Member] | Short-term corporate bonds [Member] | ||
Fair value of assets | 101,734 | 110,385 |
Level 2 [Member] | Short-term governmental bonds [Member] | ||
Fair value of assets | 5,330 | 8,295 |
Level 2 [Member] | Long-term corporate bonds [Member] | ||
Fair value of assets | 57,252 | 74,256 |
Level 2 [Member] | Long-term governmental bonds [Member] | ||
Fair value of assets | ||
Level 3 [Member] | Long-term Earn-out provision [Member] | ||
Fair value of liabilities | $ (1,045) | $ (332) |
LEASES (Schedule of Lease-relat
LEASES (Schedule of Lease-related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease assets, net of lease incentive obligation | $ 30,839 | |
Finance lease assets | 2,905 | |
Total lease assets | 33,744 | |
Liabilities | ||
Operating and finance leases short term | 8,808 | |
Operating leases long term | 24,790 | |
Finance leases long term | 2,045 | |
Total lease liabilities | $ 35,643 | |
Operating leases | 5 years 29 days | |
Finance leases | 8 years 8 months 2 days | |
Operating leases | 1.56% | |
Finance leases | 2.87% |
LEASES (Schedule of Information
LEASES (Schedule of Information Related to Lease Costs for Finance and Operating Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost | |
Amortization of leased assets | $ 27 |
Interest on lease liabilities | 16 |
Operating lease cost | 2,231 |
Total lease cost | $ 2,274 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 2,231 |
LEASES (Schedule of Operating a
LEASES (Schedule of Operating and Finance lease liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating leases | |
2019 | $ 6,632 |
2020 | 7,444 |
2021 | 6,443 |
2022 | 5,470 |
2023 | 4,732 |
Thereafter | 4,435 |
Total lease payments | 35,156 |
Less: amount of lease payments representing interest | (1,737) |
Present value of future lease payments | 33,419 |
Less: current obligations under leases | (8,629) |
Long-term lease obligations | 24,790 |
Finance lease | |
2019 | 156 |
2020 | 208 |
2021 | 208 |
2022 | 194 |
2023 | 194 |
Thereafter | 1,620 |
Total lease payments | 2,580 |
Less: amount of lease payments representing interest | (356) |
Present value of future lease payments | 2,224 |
Less: current obligations under leases | (179) |
Long-term lease obligations | $ 2,045 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Non-cancelable purchase obligations | $ 242,551 |
Provision for contractual inventory purchase obligations | 2,061 |
Contractual obligations for capital expenditures | 30,183 |
Lawsuit claims | 2,481 |
Bank loans [Member] | |
Guarantees amount | 13,353 |
Office Rent Lease Agreements [Member] | |
Guarantees amount | 1,938 |
Customs Transactions [Member] | |
Guarantees amount | 55 |
Credit Card Limits [Member] | |
Guarantees amount | $ 176 |
STOCK CAPITAL (Narrative) (Deta
STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 9,704 | $ 6,849 |
Unrecognized compensation expense | 104,122 | |
General and administrative expenses | 11,691 | 4,753 |
Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options exercised | $ 788 | |
Weighted average grant date fair value of options granted | $ 19.83 | |
Stock-based compensation | $ 173 | $ 529 |
Options [Member] | SMRE [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of options granted | $ 40.24 | |
Number of shares granted | 334,096 | |
General and administrative expenses | $ 841 | |
Maximum [Member] | Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options available for future grant under the plan | 10,000,000 | |
2007 Plan, Transferred to 2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options available for future grant under the plan | 379,358 | |
2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options reserved for issuance under the plan | 10,383,357 | |
Number of options available for future grant under the plan | 8,686,589 | |
2015 Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual increase percentage | 5.00% | |
ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options reserved for issuance under the plan | 2,199,808 | |
Number of options available for future grant under the plan | 1,814,162 | |
Maximum number of excess shares authorized | 487,643 | |
Number of Common stock purchased | 385,646 | |
Maximum percentage of salary | 10.00% | |
Maximum amount authorized per person | $ 10 | |
Maximum percentage of common stock | 85.00% | |
ESPP [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual increase percentage | 1.00% |
STOCK CAPITAL (Schedule of Comp
STOCK CAPITAL (Schedule of Composition of Common Stock Capital) (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock capital | ||
Par value | $ 0.0001 | $ 0.0001 |
Authorized | 125,000,000 | 125,000,000 |
Common stock, issued shares | 47,501,363 | 46,052,802 |
Common stock, outstanding shares | 47,501,363 | 46,052,802 |
STOCK CAPITAL (Schedule of Stoc
STOCK CAPITAL (Schedule of Stock Option Activity) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Options | |
Outstanding as of December 31, 2018 | shares | 2,401,893 |
Granted | shares | 267,852 |
Exercised | shares | (25,512) |
Forfeited or expired | shares | (10,625) |
Outstanding as of March 31, 2019 | shares | 2,633,608 |
Vested and expected to vest as of March 31, 2019 | shares | 2,592,033 |
Exercisable as of March 31, 2019 | shares | 1,896,037 |
Weighted average exercise price | |
Outstanding as of December 31, 2018 | $ / shares | $ 11.04 |
Granted | $ / shares | 36.15 |
Exercised | $ / shares | 11.33 |
Forfeited or expired | $ / shares | 14.51 |
Outstanding as of March 31, 2019 | $ / shares | 13.58 |
Vested and expected to vest as of March 31, 2019 | $ / shares | 13.44 |
Exercisable as of March 31, 2019 | $ / shares | $ 8.32 |
Weighted average remaining contractual term in years | |
Outstanding as of December 31, 2018 | 6 years 2 months 8 days |
Ountstanding as of March 31, 2019 | 6 years 3 months 29 days |
Vested and expected to vest as of March 31, 2019 | 6 years 3 months 19 days |
Exercisable as of March 31, 2019 | 5 years 5 months 16 days |
Aggregate intrinsic Value | |
Outstanding as of December 31, 2018 | $ | $ 58,323 |
Outstanding as of March 31, 2019 | $ | 63,544 |
Vested and expected to vest as of March 31, 2019 | $ | 62,901 |
Exercisable as of March 31, 2019 | $ | $ 55,675 |
STOCK CAPITAL (Schedule of RSU
STOCK CAPITAL (Schedule of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] - Employees and Members of Board of Directors [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of RSUs | |
Unvested as of December 31, 2018 | shares | 2,807,232 |
Granted | shares | 306,562 |
Vested | shares | (223,210) |
Forfeited | shares | (96,018) |
Unvested as of March 31, 2019 | shares | 2,794,566 |
Weighted average grant date fair value | |
Unvested as of December 31, 2018 | $ / shares | $ 34.40 |
Granted | $ / shares | 38.55 |
Vested | $ / shares | 31.14 |
Forfeited | $ / shares | 33.91 |
Unvested as of March 31, 2019 | $ / shares | $ 35.13 |
STOCK CAPITAL (Schedule of Opti
STOCK CAPITAL (Schedule of Options and RSUs Granted to Non-Employee Consultants) (Details) - Options And RSUs [Member] - Nonemployee Consultants [Member] | Mar. 31, 2019$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 55,272 |
Exercisable at the end of the period | 5,245 |
2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 6,023 |
Exercisable at the end of the period | 5,245 |
2014 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 3.51 |
2014 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 5.01 |
2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 2,127 |
Exercise price | $ / shares | $ 0 |
Exercisable at the end of the period | |
2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 5,001 |
Exercisable at the end of the period | |
2016 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 0 |
2016 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 15.34 |
2017 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 13,126 |
Exercisable at the end of the period | |
2017 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 0 |
2017 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 13.70 |
2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 19,496 |
Exercise price | $ / shares | $ 0 |
Exercisable at the end of the period | |
2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period | 9,499 |
Exercise price | $ / shares | $ 0 |
Exercisable at the end of the period |
STOCK CAPITAL (Schedule of Reco
STOCK CAPITAL (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 9,704 | $ 6,849 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 1,354 | 924 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 3,490 | 2,382 |
Selling and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 2,404 | 2,204 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 2,456 | $ 1,339 |
BASIC AND DILUTED NET EARNING_3
BASIC AND DILUTED NET EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income | $ 17,975 | $ 35,686 |
Net loss attributable to Non-controlling interests | 1,041 | |
Net income attributable to SolarEdge Technologies, Inc. | $ 19,016 | $ 35,686 |
Denominator: | ||
Shares used in computing net earnings per share of common stock, basic | 47,020,218 | 44,231,679 |
Effect of stock-based awards | 2,006,109 | 3,441,843 |
Shares used in computing net earnings per share of common stock, diluted | 49,026,327 | 47,673,522 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Additional income tax expense | $ 19,200 | ||
Deferred tax expense | 10,300 | ||
Decrease in deferred tax assets | 3,900 | ||
Unrecognized tax benefits | $ 579 | $ 9,532 | $ 8,499 |
INCOME TAXES (Schedule of Taxes
INCOME TAXES (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes Schedule Of Taxes On Income Details | ||
Current period taxes | $ 4,895 | $ 7,001 |
Deferred tax income net, and others | (973) | (1,339) |
Taxes on income | $ 3,922 | $ 5,662 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Liabilities And Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets, net: | ||
Research and Development carryforward expenses | $ 8,751 | $ 9,482 |
Carryforward tax losses | 5,384 | 4,155 |
Stock based compensation | 3,571 | 3,160 |
Inventory Impairment | 1,299 | 1,471 |
Allowance and other reserves | 6,675 | 4,340 |
Total deferred tax assets | 25,680 | 22,608 |
Deferred tax liabilities, net: | ||
Purchase price allocation adjustments | (19,635) | (9,408) |
Total deferred tax liabilities | (19,635) | (9,408) |
Recorded as: | ||
Deferred tax assets, net | 14,589 | 14,699 |
Deferred tax liabilities, net | (8,544) | (1,499) |
Net deferred tax assets | $ 6,045 | $ 13,200 |
INCOME TAXES (Schedule of Uncer
INCOME TAXES (Schedule of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance at January 1, | $ 8,499 | $ 579 |
Increases related to current year tax positions | 1,033 | 8,499 |
Decreases related to prior year tax positions | (579) | |
Closing balance | $ 9,532 | $ 8,499 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenues [Member] | One Major Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.20% | 20.40% | |
Accounts Receivable [Member] | One Major Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.10% | 41.30% | |
Accounts Receivable [Member] | Two Major Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.10% | 41.30% |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total assets | $ 1,176,923 | $ 964,472 |
Solar [Member] | ||
Total assets | 1,038,612 | 866,868 |
Non-solar [Member] | ||
Total assets | $ 138,311 | $ 97,604 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | May 10, 2019 | Mar. 31, 2019 |
Subsequent Event [Line Items] | ||
Additional Shares Acquired | $ 34,601 | |
Possible damage awards | $ 2,481 | |
Subsequent Event [Member] | SMRE [Member] | ||
Subsequent Event [Line Items] | ||
Additional Shares Acquired | $ 64,500 | |
Percentage of voting rights | 99.60% | |
Possible damage awards | $ 3,100 |