SolarEdge Technologies announced its financial results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 Highlights
Revenues of $358.1 million
Revenues from solar products of $327.1 million
Gross margin of 30.8 percent
Gross margin from sale of solar products of 35.3 percent
Net income of $17.7 million
1.36 Gigawatts (AC) of inverters shipped
Full Year 2020 Highlights
Record revenues of $1.46 billion
Record revenues from solar products of $1.36 billion
Gross margin of 31.6 percent
GAAP gross margin from sale of solar products of 34.3 percent
Net income of $140.3 million
6.1 Gigawatts (AC) of inverters shipped
“Our fourth quarter results are reflective of strength in the U.S. residential market and record revenues from outside of Europe and the U.S., led by Australia,” said Zvi Lando, CEO of SolarEdge. “The return to growth in installations in the U.S. residential market drove our sequential growth and return to the anticipated solar margins.”
Fourth Quarter 2020 Summary
The company reported revenues of $358.1 million, up 6 percent from $338.1 million in the prior quarter and down 14 percent from $418.2 million in the same quarter last year.
Revenues related to the solar business were $327.1 million, up 5 percent from $312.5 million in the prior quarter and down 16 percent from $389.0 million in the same quarter last year.
Gross margin was 30.8 percent, down from 32.0 percent in the prior quarter and down from 34.3 percent year over year.
Gross margin for the solar business was 35.3 percent, up from 34.1 percent in the prior quarter and down from 37.3 percent year over year.
Operating expenses were $95.9 million, up 23 percent from $77.7 million in the prior quarter and up 3 percent from $92.7 million in the same quarter last year.
Operating income was $14.4 million, down 53 percent from $30.4 million in the prior quarter and down 71 percent from $50.5 million in the same quarter last year.
Net income was $17.7 million, down 60 percent from $43.8 million in the prior quarter and down 67 percent from $52.8 million in the same quarter last year.
Full Year 2020 Summary
Total revenues of $1.46 billion, up 2 percent from $1.43 billion in the prior year.
Gross margin was 31.6 percent, down from 33.6 percent in the prior year.
Operating income was $142.6 million, down 25 percent from $189.9 million in the prior year.
Net income was $140.3 million, down 4 percent from $146.5 million in the prior year.
Outlook for the First Quarter 2021
Revenues to be within the range of $385 million to $405 million
Gross margin expected to be within the range of 34 percent to 36 percent
Revenues from solar products to be within the range of $360 million to $375 million