Aug. 3 (Renewables Now) — Israel-based inverter supplier SolarEdge Technologies Inc (NASDAQ:SEDG) saw its second-quarter GAAP net income decline 67% on an annual basis, even as it posted record revenue, driven by strong demand in the solar photovoltaic (PV) segment.
The company posted a net profit of $15.1 million (€14.8 million), which declined both sequentially and in annual terms due to higher costs, its financial report revealed on Tuesday. . Driven by sales growth in Europe and the United States, SolarEdge saw a 59% increase in revenue from its solar segment, which was responsible for the bulk of its total revenue during the reporting period, for a total of $727.8 million.
General Manager Zvi Lando pointed out that the company is still struggling with supply chain issues.
More details on the financial performance of SolarEdge are given in the table.
|Amounts in USD||Q2 2022||Q2 2021|
|— of the solar segment||687.6m||431.5m|
|GAAP gross margin (%)||25.1||32.5|
|Non-GAAP Gross Margin (%)||26.7||33.9|
|GAAP operating profit||36||55.6|
|Non-GAAP operating income||84.7||81.3|
|GAAP net income||15.1||45.1|
|Non-GAAP net income||56.7||72.5|
Solar inverter shipments in April-June amounted to 2.5 GW.
In June, SolarEdge had $973.3 million in cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities, net of debt, compared to $979 million at the end of March.
Looking ahead, the Israeli company expects to achieve revenues of between $810 million and $840 million in the third quarter of 2022, with solar segment revenues estimated at $765 million to $795 million. The gross margin of the solar segment should be between 27% and 30%.
($1.0 = EUR 0.977)
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