SolarEdge Files for IPO

By Chris Lange Published Feb 19, 11:45AM EST

SolarEdge Technologies Inc. has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in this initial filing, but the offering is valued at $125 million. The company will list on the Nasdaq Global Market under the symbol SEDG.

The underwriters for the offering are Goldman Sachs, Deutsche Bank, Needham, Canaccord Genuity and Roth Capital Partners.

SolarEdge was founded in 2006 and began commercial shipments of solar photovoltaic (PV) systems components in 2010. At the end of December 2014, it had shipped roughly 4.5 million power optimizers and 201,000 inverters. There were also approximately 95,000 installations, many of which may include multiple inverters, that are currently connected to and monitored through a cloud-based monitoring platform.

The company invented an intelligent inverter solution that has changed the way power is harvested and managed in a solar PV system. Its direct current (DC) optimized inverter system maximizes power generation at the individual PV module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features.

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The system allows for superior power harvesting and module management by deploying power optimizers at each PV module, while maintaining a competitive system cost by keeping the alternating current (AC) inversion and grid interaction centralized using a simplified DC-AC inverter. The entire system is monitored through a cloud-based monitoring platform that enables reduced system operation and maintenance costs. This technology and system architecture are protected by 39 awarded patents and 136 patent applications filed worldwide.

Revenue grew to $133.2 million in fiscal 2014 from $79.0 million in fiscal 2013. Gross margin increased to 16.5% in fiscal 2014 from 5.6% in fiscal 2013. Net income and cash flow from operating activity were positive for the six months ended in December 2014, but SolarEdge has a history of losses and negative cash flow from operating activity, including an accumulated deficit of $135.2 million. The company incurred net losses of $21.4 million in fiscal 2014 and $28.2 million in fiscal 2013.

The proceeds from this offering are intended to be used for general corporate purposes, ultimately to increase SolarEdge’s capitalization and financial flexibility.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.