L R AS Published on Sunday 5 November 2023 - n° 464 - Categories:company results
SolarEdge makes a net loss in Q3
SolarEdge reported third-quarter sales of $725 million, down 27% on the second quarter and 13% on the previous year.
The GAAP gross margin fell from 32% to 19.7%; the operating loss was $16.7 million; and the net loss fell to $31 million from $157 million in the second quarter. This decline in profitability was due to large unexpected cancellations and the elimination of the existing order book of European distributors during the second half of the third quarter of 2023.
The company attributes these poor results to a sluggish market, which led to high inventory levels in distribution channels. Distributors began to experience financial difficulties. As a result, the company has received a large number of requests to cancel or postpone orders.
Results for the fourth quarter are expected to be even weaker. Sales are expected to be between $300 and $350 million, with a gross margin expected to fall back to around 5% to 8%.
https://www.pv-tech.org/solaredge-q3-results-drop-off-due-to-slow-market-environment-in-europe/
PV Tech of 2 November 2023
