Short answer
Solaredge Technologies Inc (SEDG) filed its fiscal 2018 10-K annual report with the SEC on Feb 28, 2019. It reported revenue of $937M (+54.4% year over year) and net income of $129M.
- Top risk flagged: Section 301 Trade Act tariffs: 10% U.S. tariff on Chinese inverters and power optimizers, effective September 24, 2018
FY2018 key financial metrics · XBRL
- Revenue
- $937M
- +54.4% YoY
- Net income
- $129M
- +53.1% YoY
- Operating margin
- 14.9%
- −0.1 pp YoY
- Gross margin
- 34.1%
- −1.3 pp YoY
- EPS (diluted)
- $2.69
- +45.4% YoY
- ROE
- 22.9%
- +1.7 pp YoY
- Operating cash flow
- $189M
- +38.4% YoY
Source: XBRL data from the Solaredge Technologies Inc (SEDG) FY2018 10-K on SEC EDGAR. USD.
Solaredge Technologies Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: DC-optimized solar inverter systems sold through distributors, wholesalers, installers and EPCs
- New 2018 offerings: integrated EV-charging inverter, Gamatronic UPS systems and Kokam lithium-ion batteries
- Strategic shift: expansion beyond solar inverters into adjacent UPS, energy-storage, EV and grid-services markets
- Scale: 1,737 employees, including 598 in R&D, with products installed across 133 countries
- Notable acquisitions: $82.5 million Kokam purchase and $12.1 million Gamatronic asset acquisition in 2018
Management Discussion & Analysis
- Revenue $937.2M, up 54.4% YoY from $607.0M, driven by higher system volumes and $23.0M from UPS and battery sales
- Gross margin 34.1% vs 35.4%, pressured by warranty, logistics, pricing, and lower-margin UPS and battery products
- Operating income $139.4M, up 53.1%, with operating margin 14.9% vs 15.0%
- Operating cash flow $189.1M, investing outflow $152.6M, including $94.7M acquisitions and $38.6M capital investments
- Outlook: continued sales, R&D and automation investment, with component shortages and U.S. solar tariffs as key risks to demand and margins
Risk Factors
- Section 301 Trade Act tariffs: 10% U.S. tariff on Chinese inverters and power optimizers, effective September 24, 2018
- Israel exposure: headquarters and R&D center vulnerable to rocket fire, military conflict, and employee reserve-duty call-ups
- Manufacturing concentration: mainly reliant on one contract manufacturer, with facilities in China, Romania, and Hungary
- Competitive disruption: low-cost Asian inverter and MLPE manufacturers entering Australia and European markets
- Customer concentration: CED represented 19.4% of 2018 revenue, while three major customers represented 33.4%
Generated from the filing text; verify against the original. How to read a 10-K
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