Israel-based solar PV inverter manufacturer SolarEdge has reported strong quarterly results, citing record revenues and 51% annual growth, despite a general slowdown in the US residential market hampering already strong figures.
SolarEdge published its fourth quarter 2016 and full-year (year ended June 30) 2016 financial results last week, to a generally approving market. The company boasted of “record revenues” of $124.8 million for the fourth quarter, and $489.8 million for the fiscal year 2016 — though its fourth quarter revenue was on the lower end of its own guidance.
The company reported GAAP gross margin for Q4’16 of 31.4%, and 31.0% for the full fiscal year 2016, while GAAP net income was $17.3 million and $76.6 million respectively.
“Our fiscal 2016 results demonstrate consistent and strong execution with record revenues and 51% annual growth. We maintain our profitability and continue to generate cash flow from our operations, quarter over quarter,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “While this quarter is characterized by a general slowdown in the residential US market, we were able to compensate with increased sales in other geographic regions in which we sell. We remain on target with our plans to grow our business and increase market share without sacrificing gross margins and profitability.”
The slowdown in the US residential market is being seen across the spectrum of solar PV growth of late. The surprise extension of the federal Investment Tax Credit (ITC) for the solar industry in December put a halt to the mad developer-rush to complete projects immediately, which has resulted in the United States’ utility-scale solar pipeline stretching out to an impressive 10 GW — though that is 10 GW that will not necessarily need to be completed this year, with most experts believing some of this will slip into 2017.
Looking forward to SolarEdge’s first quarter (July through September), the company expects revenues to be in the range of $130 million to $139 million, with gross margins in the range of 30% to 32%.