EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

NOTE 11:-EARNINGS PER SHARE

Basic net Earnings Per Share (“EPS”) is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period.

Diluted net EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, and the Notes due 2025, all in accordance with ASC No. 260, "Earnings Per Share."

No shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the three and nine months ended September 30, 2020.

334,096 and 304,725 shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three and nine months ended September 30, 2019, respectively.

F - 27

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 11:-EARNINGS PER SHARE (Cont.)

The following table presents the computation of basic and diluted net EPS attributable to SolarEdge Technologies, Inc. for the periods presented:

	Three months ended September 30,					Nine months ended September 30,
	2020		2019			2020		2019

Basic EPS:
Numerator:
Net income	$	43,751	$	41,724		$	122,667	$	92,612
Net (income) loss attributable to Non-controlling interests		-		(97	)		-		1,159
Net income attributable to SolarEdge Technologies, Inc.	$	43,751	$	41,627		$	122,667	$	93,771

Denominator:
Shares used in computing net earnings per share of common stock, basic		50,529,691		48,195,020			49,842,399		47,637,023

Diluted EPS:
Numerator:
Net income	$	43,751	$	41,724		$	122,667	$	92,612
Notes due 2025 (1)		137		-			137		-
Net (income) loss attributable to Non-controlling interests		-		(97	)		-		1,159
Undistributed earnings reallocated to non-vested stockholders		-		(270	)		-		(569	)
Net income attributable to SolarEdge Technologies, Inc.	$	43,888	$	41,357		$	122,804	$	93,202

Denominator:
Shares used in computing net earnings per share of common stock, basic		50,529,691		48,195,020			49,842,399		47,637,023
Weighted average effect of dilutive securities:
Non-vested PSUs		-		(334,096	)		-		(304,725	)
Notes due 2025 (1)		197,984		3,220,670			65,995		2,603,340
Effect of stock-based awards		2,416,513		-			2,715,281		-
Shares used in computing net earnings per share of common stock, diluted		53,144,188		51,081,594			52,623,675		49,935,638

(1) See Note 8 for additional details.