Solaredge Technologies Inc (NASDAQ:SEDG) an international leader in power optimizers, PV inverters and module-level monitoring services, posted its financial report for the fourth quarter closed December 31, 2017. Revenue came at $189.3 million, a jump of 70% year over year, and 14% increase from the prior quarter. GAAP gross margin stood at 37.5%, a jump of 34.9% in the previous quarter and an increase of 35% year over year. Also, GAAP operating expenses jumped 52% YoY to come at $36.4 million in the fourth quarter closed December 31, 2017.
Guy Sella, the CEO, Founder and Chairman of Solaredge, expressed that they closed the fourth quarter of 2017 with remarkable results in their key operational and financial metrics. They grew their revenues in different geographies in which they operate and faced a challenging year in respect of industry-wide component availability as well as growing their manufacturing capacity to boost the growing demand for their products.
The company expanded their gross margin by keeping their ASP stable, continuing their cost reduction measures and increased cash flow generation and profitability while maintaining and even growing their investments in customer support and R&D and expanding their geographic footprint.
Solaredge reported that cash flow came at $45.8 million from operating activities. It showed an increase of $33.6 million over the preceding quarter. As of the close of December 2017, cash/cash equivalents, marketable securities and restricted cash came at $345.1 million versus $304.7 million at the close of September 2017.
Solaredge also issued projection for the first quarter closing March 31, 2018. Revenue is expected to come in the range of $200 million – $210 million. Gross margins are projected to remain flat and come between 36% and 38%.
In the last trading session, the stock price of Solaredge jumped more than 3% to close the day at $47.45.