QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer
Identification No.)
|
|
|
|
|
(Address of Principal Executive Offices, zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
☒
|
Accelerated filer
|
☐ | |
Non-accelerated filer
|
☐
|
Smaller Reporting Company
|
||
Emerging growth company
|
|
PART I. FINANCIAL INFORMATION | |
F-1 | |
F-1 | |
F-3 | |
F-4 | |
F-5 | |
F-7 | |
F-9 | |
3 | |
17 | |
18 | |
PART II. OTHER INFORMATION | |
18 | |
18 | |
18 | |
18 | |
18 | |
18 | |
19 | |
19 |
September 30,
2023
|
December 31,
2022
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Marketable securities
|
|
|
||||||
Trade receivables, net of allowances of $
|
|
|
||||||
Inventories, net
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
|
|
||||||
Deferred tax assets, net
|
|
|
||||||
Property, plant and equipment, net
|
|
|
||||||
Operating lease right-of-use assets, net
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Other long-term assets
|
|
|
||||||
Total long-term assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
F - 1
September 30,
2023
|
December 31,
2022
|
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables, net
|
$
|
|
$
|
|
||||
Employees and payroll accruals
|
|
|
||||||
Warranty obligations
|
|
|
||||||
Deferred revenues and customers advances
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Convertible senior notes, net
|
|
|
||||||
Warranty obligations
|
|
|
||||||
Deferred revenues
|
|
|
||||||
Finance lease liabilities
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Other long-term liabilities
|
|
|
||||||
Total long-term liabilities
|
|
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock of $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Retained earnings
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
F - 2
Three Months Ended
September 30, |
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of revenues
|
|
|
|
|
||||||||||||
Gross profit
|
|
|
|
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
|
|
|
|
||||||||||||
Sales and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Other operating expense (income), net
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Total operating expenses
|
|
|
|
|
||||||||||||
Operating income (loss)
|
(
|
)
|
|
|
|
|||||||||||
Financial income (expense), net
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Other income (loss), net
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Income (loss) before income taxes
|
(
|
)
|
|
|
|
|||||||||||
Income taxes
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Net basic earnings (loss) per share of common stock
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Net diluted earnings (loss) per share of common stock
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Weighted average number of shares used in computing net basic earnings (loss) per share of common stock
|
|
|
|
|
||||||||||||
Weighted average number of shares used in computing net diluted earnings (loss) per share of common stock
|
|
|
|
|
F - 3
Three Months Ended
September 30, |
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net income (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Available-for-sale marketable securities
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Cash flow hedges
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Foreign currency translation adjustments
|
|
|
|
(
|
)
|
|||||||||||
Total other comprehensive loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Comprehensive income (loss)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
F - 4
Common stock
|
||||||||||||||||||||||||
Number
|
Amount
|
Additional
paid in
Capital
|
Accumulated
other comprehensive loss
|
Retained
earnings |
Total
|
|||||||||||||||||||
Balance as of January 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of common stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance as of March 31, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of common stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Issuance of common stock under employee stock purchase plan
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance as of June 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of Common Stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net loss
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Balance as of September 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
F - 5
Common stock
|
||||||||||||||||||||||||
Number
|
Amount
|
Additional
paid in Capital
|
Accumulated
other
comprehensive loss |
Retained
earnings |
Total
|
|||||||||||||||||||
Balance as of January 1, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of common stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance as of March 31, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of common stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Issuance of common stock under employee stock purchase plan
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance as of June 30, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance of Common Stock upon exercise of stock-based awards
|
|
*
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss adjustments
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance as of September 30, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
F - 6
SOLAREDGE TECHNOLOGIES INC.
Nine Months Ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Loss (gain) from exchange rate fluctuations
|
(
|
)
|
|
|||||
Stock-based compensation expenses
|
|
|
||||||
Impairment of goodwill and intangible assets
|
|
|
||||||
Deferred income taxes, net
|
(
|
)
|
(
|
)
|
||||
Other items
|
|
|
||||||
Changes in assets and liabilities:
|
||||||||
Inventories, net
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses and other assets
|
|
(
|
)
|
|||||
Trade receivables, net
|
(
|
)
|
(
|
)
|
||||
Trade payables, net
|
(
|
)
|
|
|||||
Employees and payroll accruals
|
|
|
||||||
Warranty obligations
|
|
|
||||||
Deferred revenues and customers advances
|
|
|
||||||
Accrued expenses and other liabilities, net
|
(
|
)
|
|
|||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Investment in available-for-sale marketable securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales and maturities of available-for-sale marketable securities
|
|
|
||||||
Purchase of property, plant and equipment
|
(
|
)
|
(
|
)
|
||||
Business combinations, net of cash acquired
|
(
|
)
|
|
|||||
Purchase of intangible assets
|
(
|
)
|
|
|||||
Disbursements for loans receivables
|
(
|
)
|
|
|||||
Investment in privately-held companies
|
(
|
)
|
|
|||||
Proceeds from governmental grant
|
|
|
||||||
Proceeds from sale of a privately-held company
|
|
|
||||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
F - 7
Nine Months Ended
September 30, |
||||||||
2023
|
2022
|
|||||||
Cash flows from financing activities:
|
||||||||
Tax withholding in connection with stock-based awards, net
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Payments of finance lease liability
|
(
|
)
|
(
|
)
|
||||
Proceeds from secondary public offering, net of issuance costs
|
|
|
||||||
Other financing activities
|
|
|
||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
|||||
Increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at the beginning of the period
|
|
|
||||||
Effect of exchange rate differences on cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at the end of the period
|
$
|
|
$
|
|
||||
Supplemental disclosure of non-cash activities:
|
||||||||
Purchase of intangible assets and business combinations
|
$
|
|
$
|
|
||||
Right-of-use asset recognized with a corresponding lease liability
|
$
|
|
$
|
|
||||
Purchase of property, plant and equipment
|
$
|
|
$
|
|
F - 8
(in thousands, except per share data)
a. |
SolarEdge Technologies Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current (DC) from the PV module to alternating current (AC) including the Company’s Energy Hub inverter which supports, among other things, connection to a DC-coupled battery for full or partial home backup, and optional connection to the Company's smart EV charger, (iii) a remote cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters to enable customers and system owners, to monitor and manage the solar PV system (iv) a residential storage and backup solution which includes a company designed and manufactured lithium-ion DC-coupled battery that is used to increase energy independence and maximize self-consumption for homeowners including a battery, and (v) additional smart energy management solutions.
|
b. |
The Company has expanded its activity to other areas of smart energy technology organically and through acquisitions. The Company now offers a variety of energy solutions, which include lithium-ion cells, batteries, and energy storage systems (“Energy Storage”), full powertrain kits for electric vehicles, or EVs (“e-Mobility”), as well as automated machines for industrial use (“Automation Machines”).
|
c. |
Basis of Presentation:
|
d. |
Use of estimates:
|
e. |
Concentrations of supply risks:
|
f. |
New accounting standards updates:
|
F - 9
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Amount
|
Weighted Average Useful Life (In years)
|
|||||||
Cash
|
$
|
|
||||||
Net liabilities assumed
|
(
|
)
|
||||||
Identified intangible assets:
|
||||||||
Current technology
|
|
|
||||||
Customer relationships
|
|
|
||||||
Trade name
|
|
|
||||||
Goodwill
|
|
|||||||
Total
|
$
|
|
F - 10
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Amortized
cost
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
|||||||||||||
Matures within one year:
|
||||||||||||||||
Corporate bonds
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
U.S. Treasury securities
|
|
|
(
|
)
|
|
|||||||||||
Non-U.S. Government securities
|
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Matures after one year:
|
||||||||||||||||
Corporate bonds
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasury securities
|
|
|
(
|
)
|
|
|||||||||||
U.S. Government agency securities
|
|
|
(
|
)
|
|
|||||||||||
Non-U.S. Government securities
|
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
cost
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
|||||||||||||
Matures within one year:
|
||||||||||||||||
Corporate bonds
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
U.S. Treasury securities
|
|
|
(
|
)
|
|
|||||||||||
Non-U.S. Government securities
|
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Matures after one year:
|
||||||||||||||||
Corporate bonds
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasury securities
|
|
|
(
|
)
|
|
|||||||||||
Non-U.S. Government securities
|
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
F - 11
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
September 30, 2023
|
December 31, 2022
|
|||||||
Raw materials
|
$
|
|
$
|
|
||||
Work in process
|
|
|
||||||
Finished goods
|
|
|
||||||
Total inventories, net
|
$
|
|
$
|
|
September 30, 2023
|
December 31, 2022
|
|||||||
Vendor non-trade receivables (1)
|
$
|
|
$
|
|
||||
Government authorities
|
|
|
||||||
Loan receivables (2)
|
|
|
||||||
Interest from marketable securities
|
|
|
||||||
Prepaid expenses and other
|
|
|
||||||
Total prepaid expenses and other current assets
|
$
|
|
$
|
|
F - 12
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 6: INTANGIBLE ASSETS, NET
September 30, 2023
|
December 31, 2022
|
|||||||
Intangible assets with finite lives:
|
||||||||
Current Technology
|
$
|
|
$
|
|
||||
Customer relationships
|
|
|
||||||
Trade names
|
|
|
||||||
Assembled workforce
|
|
|
||||||
Patents and licenses*
|
|
|
||||||
Gross intangible assets
|
|
|
||||||
Less - accumulated amortization
|
(
|
)
|
(
|
)
|
||||
Total intangible assets, net
|
$
|
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028 and thereafter
|
|
|||
$
|
|
F - 13
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 7: GOODWILL
Solar
|
All other
|
Total
|
||||||||||
Goodwill at December 31, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Changes during the year:
|
||||||||||||
Acquisitions
|
|
|
|
|||||||||
Foreign currency adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Goodwill at September 30, 2023
|
$
|
|
$
|
|
$
|
|
F - 14
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
September 30, 2023
|
December 31, 2022
|
|||||||
Cloud computing arrangements
|
$
|
|
$
|
|
||||
Severance pay fund
|
|
|
||||||
Investments in privately held companies (1) (2)
|
|
|
||||||
Loan receivables
|
|
|
||||||
Prepayments
|
|
|
||||||
Other
|
|
|
||||||
Total other long term assets
|
$
|
|
$
|
|
F - 15
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Balance sheet location
|
September 30,
2023
|
December 31,
2022
|
|||||||
Derivative assets of options and forward contracts:
|
|||||||||
Designated cash flow hedges
|
|
$
|
|
$
|
|
||||
Non-designated hedges
|
|
|
|
||||||
Total derivative assets
|
$
|
|
$
|
|
|||||
Derivative liabilities of options and forward contracts:
|
|||||||||
Designated cash flow hedges
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||
Affected line item | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Foreign exchange contracts
|
|||||||||||||||||
Non Designated Hedging Instruments
|
Condensed Consolidated Statements of Income (loss) - Financial income (expense), net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Designated Hedging Instruments
|
Condensed Consolidated Statements of Comprehensive Income (loss) - Cash flow hedges
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
F - 16
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Fair value measurements as of
|
||||||||||
Description
|
Fair Value
Hierarchy
|
September 30,
2023
|
December 31,
2022
|
|||||||
Assets:
|
||||||||||
Cash and cash equivalents:
|
||||||||||
Cash
|
Level 1
|
$
|
|
$
|
|
|||||
Money market mutual funds
|
Level 1
|
$
|
|
$
|
|
|||||
Deposits
|
Level 1
|
$
|
|
$
|
|
|||||
Derivative instruments |
Level 2 |
$ | $ | |||||||
Short-term marketable securities:
|
||||||||||
Corporate bonds
|
Level 2
|
$
|
|
$
|
|
|||||
U.S. Treasury securities |
Level 2 |
$ | $ | |||||||
Non - U.S. Government securities
|
Level 2
|
$
|
|
$
|
|
|||||
Long-term marketable securities:
|
||||||||||
Corporate bonds
|
Level 2
|
$
|
|
$
|
|
|||||
U.S. Treasury securities |
Level 2 |
$ | $ | |||||||
U.S. Government agency securities
|
Level 2
|
|
|
|
|
|||||
Non - U.S. Government securities
|
Level 2
|
$
|
|
$
|
|
|||||
Liabilities:
|
||||||||||
Derivative instruments
|
Level 2
|
$
|
(
|
)
|
$
|
(
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Balance, at the beginning of the period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Additions and adjustments to cost of revenues
|
|
|
|
|
||||||||||||
Usage and current warranty expenses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance, at end of the period
|
|
|
|
|
||||||||||||
Less current portion
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Long term portion
|
$
|
|
$
|
|
$
|
|
$
|
|
F - 17
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Balance, at the beginning of the period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Revenue recognized
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Increase in deferred revenues and customer advances
|
|
|
|
|
||||||||||||
Balance, at the end of the period
|
|
|
|
|
||||||||||||
Less current portion
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Long term portion
|
$
|
|
$
|
|
$
|
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total deferred revenues
|
$
|
|
September 30,
2023
|
December 31,
2022
|
|||||||
Accrued expenses
|
$
|
|
$
|
|
||||
Government authorities
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Accrual for sales incentives
|
|
|
||||||
Finance lease
|
|
|
||||||
Other
|
|
|
||||||
Total accrued expenses and other current liabilities
|
$
|
|
$
|
|
F - 18
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
The Convertible Senior Notes consisted of the following as of September 30, 2023 and December 31, 2022:
September 30,
2023
|
December 31,
2022
|
|||||||
Liability:
|
||||||||
Principal
|
$
|
|
$
|
|
||||
Unamortized issuance costs
|
(
|
)
|
(
|
)
|
||||
Net carrying amount
|
$
|
|
$
|
|
F - 19
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
a. |
Common stock rights: |
b. |
Secondary public offering: |
c. |
Equity Incentive Plans: |
F - 20
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Number of options
|
Weighted average exercise price
|
Weighted average remaining contractual term in years
|
Aggregate intrinsic Value
|
|||||||||||||
Outstanding as of December 31, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Exercised
|
(
|
)
|
|
-
|
|
|||||||||||
Outstanding as of September 30, 2023
|
|
$
|
|
|
$
|
|
||||||||||
Vested and expected to vest as of September 30, 2023
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable as of September 30, 2023
|
|
$
|
|
|
$
|
|
Number of RSUs
|
Weighted average grant date fair value
|
|||||||
Unvested as of December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Unvested as of September 30, 2023
|
|
$
|
|
Number of PSUs
|
Weighted average grant date fair value
|
|||||||
Unvested as of December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Unvested as of September 30, 2023
|
|
$
|
|
d. |
Employee Stock Purchase Plan ("ESPP"): |
F - 21
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
e. |
Stock-based compensation expenses: |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Stock-based compensation expenses:
|
||||||||||||||||
Cost of revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Research and development
|
|
|
|
|
||||||||||||
Selling and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Total stock-based compensation expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Stock-based compensation capitalized:
|
||||||||||||||||
Inventory
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other long-term assets
|
|
|
|
|
||||||||||||
Total stock-based compensation capitalized
|
$
|
|
$
|
|
$
|
|
$
|
|
F - 22
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
a. |
Guarantees: |
b. |
Contractual purchase obligations: |
c. |
Legal claims: |
F - 23
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities
|
||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Revaluation
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Tax on revaluation
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Reclassification
|
|
|
|
|
||||||||||||
Tax on reclassification
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Losses reclassified from accumulated other comprehensive income (loss)
|
|
|
|
|
||||||||||||
Net current period other comprehensive income (loss)
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Unrealized gains (losses) on cash flow hedges
|
||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||
Revaluation
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Tax on revaluation
|
|
|
|
|
||||||||||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Reclassification
|
|
|
|
|
||||||||||||
Tax on reclassification
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Losses reclassified from accumulated other comprehensive income (loss)
|
|
|
|
|
||||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature
|
||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Revaluation
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Unrealized gains (losses) on foreign currency translation
|
||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Revaluation
|
|
|
|
(
|
)
|
|||||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Total
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
F - 24
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Details about Accumulated Other
Comprehensive Loss Components
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Affected Line Item in the
Statement of Income
|
||||||||||||||
2023
|
2022
|
2023
|
2022
|
||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities
|
|||||||||||||||||
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Financial income (expense), net
|
||||||
|
|
|
|
Income taxes
|
|||||||||||||
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Total, net of income taxes
|
||||||
Unrealized gains (losses) on cash flow hedges, net
|
|||||||||||||||||
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Cost of revenues
|
|||||||||
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Research and development
|
|||||||||
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Sales and marketing
|
|||||||||
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
General and administrative
|
|||||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Total, before income taxes
|
|||||
|
|
|
|
Income taxes
|
|||||||||||||
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Total, net of income taxes
|
|||||||||
Total reclassifications for the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Impairment of goodwill and intangible assets
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Sale of assets
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Impairment of property, plant and equipment
|
|
(
|
)
|
|
|
|||||||||||
Total other operating expense (income), net
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
F - 25
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - 26
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Basic:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Denominator:
|
||||||||||||||||
Shares used in computing net EPS of common stock, basic
|
|
|
|
|
||||||||||||
Diluted:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income (loss) attributable to common stock, basic
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Notes due 2025
|
|
|
|
|
||||||||||||
Net income (loss) attributable to common stock, diluted
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Denominator:
|
||||||||||||||||
Shares used in computing net EPS of common stock, basic
|
|
|
|
|
||||||||||||
Notes due 2025
|
|
|
|
|
||||||||||||
Effect of stock-based awards
|
|
|
|
|
||||||||||||
Shares used in computing net EPS of common stock, diluted
|
|
|
|
|
||||||||||||
Earnings (loss) per share:
|
||||||||||||||||
Basic
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Diluted
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||
Shares excluded from the calculation of net diluted due to their anti-dilutive effect
|
|
|
|
|
F - 27
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three Months Ended
September 30, 2023
|
Nine Months Ended
September 30, 2023
|
|||||||||||||||
Solar
|
All other
|
Solar
|
All other
|
|||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of revenues
|
|
|
|
|
||||||||||||
Gross profit (loss)
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Research and development
|
|
|
|
|
||||||||||||
Sales and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Segments profit (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
F - 28
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 21: SEGMENT INFORMATION (Cont.)
Three Months Ended
September 30, 2022
|
Nine Months Ended
September 30, 2022
|
|||||||||||||||
Solar
|
All other
|
Solar
|
All other
|
|||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of revenues
|
|
|
|
|
||||||||||||
Gross profit
|
|
|
|
|
||||||||||||
Research and development
|
|
|
|
|
||||||||||||
Sales and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Segments profit (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Solar revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
All other revenues
|
|
|
|
|
||||||||||||
Revenues from finance component
|
|
|
|
|
||||||||||||
Consolidated revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Solar segment profit
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
All other segment loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Segments operating profit
|
|
|
|
|
||||||||||||
Amounts not allocated to segments:
|
||||||||||||||||
Stock based compensation expenses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization related to business combinations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Impairment of goodwill and intangible assets
|
|
|
|
(
|
)
|
|||||||||||
Disposal of assets related to Critical Power
|
|
|
|
(
|
)
|
|||||||||||
Sale of Critical Power assets
|
|
|
|
|
||||||||||||
Other unallocated expenses (income), net
|
(
|
)
|
|
|
|
|||||||||||
Consolidated operating income (expense)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
1. |
On November 1, 2023, the Company announced the approval by the Board of Directors of a share repurchase program which authorizes the repurchase of up to $
|
2. |
In October 2023, the Company decided to discontinue its light commercial e-Mobility ("LCV") activity related to the supply of products to its sole customer.
|
3. |
On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and putatively on behalf of all others similarly situated, in the U.S District Court of the Southern District of New York against the Company, the Company’s CEO and the Company’s CFO. The complaint alleges that the Company violated various securities laws and seeks class certification, damages, interest, attorneys’ fees, and other relief. Due to the early stage of this proceeding, we cannot reasonably estimate the potential range of loss, if any. The Company disputes the allegations of wrongdoing and intends to vigorously defend against them.
|
F - 29
• | future demand for renewable energy including solar energy solutions; |
• | changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; |
• | changes in the U.S. trade environment, including the imposition of import tariffs; |
• | federal, state, and local regulations governing the electric utility industry with respect to solar energy; |
• | changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; |
• | the retail price of electricity derived from the utility grid or alternative energy sources; |
• | interest rates and supply of capital in the global financial markets in general and in the solar market specifically; |
• | competition, including introductions of power optimizer, inverter and solar photovoltaic (“PV”) system monitoring products by our competitors; |
• | developments in alternative technologies or improvements in distributed solar energy generation; |
• | historic cyclicality of the solar industry and periodic downturns; |
• | product quality or performance problems in our products; |
• | our ability to forecast demand for our products accurately and to match production to such demand as well as our customers' ability to forecast demand based on inventory levels; |
• | our dependence on ocean transportation to timely deliver our products in a cost-effective manner; |
• | our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; |
• | capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; |
• | delays, disruptions, and quality control problems in manufacturing; |
• | shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; |
• | existing and future responses to and effects of pandemics, epidemics or other health crises; |
• | business practices and regulatory compliance of our raw material suppliers; |
• | performance of distributors and large installers in selling our products; |
• | disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine; |
• | disruption to our business operations due to the evolving state of war in Israel; |
• | our customers’ financial stability, creditworthiness, and debt leverage ratio; |
• | our ability to retain key personnel and attract additional qualified personnel; |
• | our ability to effectively design, launch, market, and sell new generations of our products and services; |
• | our ability to maintain our brand and to protect and defend our intellectual property; |
• | our ability to retain, and events affecting, our major customers; |
• | our ability to manage effectively the growth of our organization and expansion into new markets; |
• | our ability to integrate acquired businesses; |
• | fluctuations in global currency exchange rates; |
• | unrest, terrorism, or armed conflict in Israel; |
• | macroeconomic conditions in our domestic and international markets, as well as inflation concerns, financial institutions instability, rising interest rates, recessionary concerns, the prospect of a shutdown of the U.S. federal government and the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; |
• | consolidation in the solar industry among our customers and distributors; |
• | our ability to service our debt; |
• | any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; |
• | the impact of evolving legal and regulatory requirements, including emerging environmental, social and governance requirements; and |
• | the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent reports on Form 10-Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. |
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Inverters shipped | 273,883 | 264,515 | 938,171 | 704,018 | ||||||||||||
Power optimizers shipped | 3,266,487 | 6,123,479 | 15,238,543 | 17,062,684 | ||||||||||||
Megawatts shipped1 | 3,796 | 2,703 | 11,728 | 7,349 | ||||||||||||
Megawatts hour shipped - residential batteries | 121 | 321 | 612 | 671 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 725,305 | $ | 836,723 | $ | 2,660,484 | $ | 2,219,577 | ||||||||
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 | ||||||||||||
Gross profit | 142,817 | 222,001 | 760,248 | 583,601 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 80,082 | 69,659 | 246,481 | 210,855 | ||||||||||||
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 | ||||||||||||
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 | ||||||||||||
Other operating expense (income), net | — | (2,724 | ) | (1,434 | ) | 1,963 | ||||||||||
Total operating expenses | 159,543 | 137,594 | 482,462 | 412,318 | ||||||||||||
Operating income (loss) | (16,726 | ) | 84,407 | 277,786 | 171,283 | |||||||||||
Financial income (expense), net | (7,901 | ) | (33,146 | ) | 19,157 | (52,062 | ) | |||||||||
Other income (loss), net | (484 | ) | 7,654 | (609 | ) | 6,810 | ||||||||||
Income (loss) before income taxes | (25,111 | ) | 58,915 | 296,334 | 126,031 | |||||||||||
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 | ||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | 196,712 | $ | 72,950 |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Revenues | $ | 725,305 | $ | 836,723 | $ | (111,418 | ) | (13.3 | )% | $ | 2,660,484 | $ | 2,219,577 | $ | 440,907 | 19.9 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cost of revenues | $ | 582,488 | $ | 614,722 | $ | (32,234 | ) | (5.2 | )% | $ | 1,900,236 | $ | 1,635,976 | $ | 264,260 | 16.2 | % | |||||||||||||||
Gross profit | $ | 142,817 | $ | 222,001 | $ | (79,184 | ) | (35.7 | )% | $ | 760,248 | $ | 583,601 | $ | 176,647 | 30.3 | % |
• | a decrease in direct cost of revenues sold of $83.5 million associated mainly with a decrease in the volume of products sold; |
• | a decrease in customs duties of $5.0 million attributed to the decrease in volumes of products manufactured in China for the U.S. market; and |
• | a decrease in shipment and logistic costs in an aggregate amount of $3.2 million due to a decrease in shipment rates and a decrease in expedited shipments costs. |
• | an increase in warranty expenses and warranty accruals of $28.0 million associated primarily with an increase in the number of products in our install base as well as an increase in costs related to the different elements of our warranty expenses which include the cost of the products, shipment and other related expenses; |
• | an increase of $14.0 million in inventory accrual which is mainly attributed to a higher inventory write-down; |
• | an increase in other production costs of $6.6 million, which is mainly attributed to charges from our contract manufacturers related to the downsizing of our manufacturing in Mexico and China, as well as ramp up costs associated with Sella 2, our Li-Ion battery cell manufacturing facility located in South Korea; and |
• | an increase in personnel-related costs of $5.6 million related to the expansion of our production, operations, and support headcount, which grew in parallel to our growing install base worldwide and manufacturing volumes which were partially offset by the depreciation of the New Israeli Shekel (“NIS”) against the U.S. dollar. |
• | An increase in personnel and manufacturing related costs from the expansion of our infrastructure geared towards accelerated growth; |
• | an increase in costs related to our existing install base such as warranty expenses, which were divided this quarter by lower revenue resulting in lower gross margin; |
• | an increase in inventory accrual for impairment of excess inventory; |
• | an increased portion of sales of commercial products out of our total product mix, which are characterized with lower gross margin; and |
• | our non-solar businesses, referred to in our financial results as "all other segments", are generally characterized by a lower gross profit which effect was amplified this quarter. |
• | favorable exchange rates on our sales outside of the U.S.; |
• | gradual price increases across our product offerings; and |
• | continued cost reduction efforts. |
• | an increase in direct cost of revenues sold of $112.4 million associated primarily with an increase in the volume of products sold; |
• | an increase in warranty expenses and warranty accruals of $101.7 million associated primarily with an increase in the number of products in our install base as well as an increase in costs related to the different elements of our warranty expenses which include the cost of the products, shipment and other related expenses; |
• | an increase of $20.4 million in inventory accrual which is mainly attributed to changes in inventory valuations, and higher inventory accruals related to our initial manufacturing in Sella 2, partially offset by a decrease in inventory write-off related to the discontinuation of our UPS related activities in the comparable period; |
• | an increase in personnel-related costs of $14.8 million related to the expansion of our production, operations, and support headcount which grew in parallel to our growing install base worldwide; and |
• | an increase in other production costs of $6.5 million, which is mainly attributed to charges from our contract manufacturers related to the downsizing of our manufacturing sites in China and discontinuance of our manufacturing site in Mexico, as well as ramp up costs associated with Sella 2, our Li-Ion battery cell manufacturing facility located in South Korea. |
• | a decrease in customs duties of $4.2 million attributed to the decrease in volumes of products manufactured in China for the U.S. market; and |
• | a decrease in shipment and logistic costs in an aggregate amount of $2.7 million due to a decrease in shipment rates and a decrease in expedited shipments costs. |
• | gradual price increases across our product offerings; |
• | favorable exchange rates on our sales outside of the U.S.; |
• | a decrease in shipment rates as well as a reduced portion of expedited shipments out of our total shipments; and |
• | continued cost reduction efforts. These were partially offset by: |
• | an increased portion of sales of commercial products out of our total product mix, which are characterized with lower gross margins; |
• | an increase in warranty expenses and warranty accruals associated primarily with the change in the composition of our install base, as well as an increase in costs related to the different components of our warranty expenses, as reflected in our actual support costs; |
• | higher revenues from our non-solar businesses, which are generally characterized by a lower gross profit, which effect was amplified this quarter; and |
• | an increase in inventory accrual for impairment of excess inventory. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Research and development | $ | 80,082 | $ | 69,659 | $ | 10,423 | 15.0 | % | $ | 246,481 | $ | 210,855 | $ | 35,626 | 16.9 | % |
• | an increase in personnel-related costs of $6.4 million resulting from an increase in our research and development headcount as well as salary expenses associated with annual merit increases, which were partially offset by the depreciation of the NIS against the U.S. dollar and employee equity-based compensation. The increase in headcount reflects our continued investment in enhancements of existing products as well as research and development expenses associated with bringing new products to the market; and |
• | an increase in expenses related to consultants and sub-contractors in an amount of $2.4 million. |
• | an increase in personnel-related costs of $21.6 million resulting from an increase in our research and development headcount as well as salary expenses associated with annual merit increases, which were partially offset by the depreciation of the NIS against the U.S. dollar and employee equity-based compensation. The increase in headcount reflects our continued investment in enhancements of existing products as well as research and development expenses associated with bringing new products to the market; |
• | an increase in expenses related to consultants and sub-contractors in an amount of $7.4 million; |
• | an increase in depreciation expenses of property and equipment in an amount of $2.7 million; and |
• | an increase in expenses related to other overhead costs in an amount of $2.5 million. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and marketing | $ | 40,351 | $ | 42,726 | $ | (2,375 | ) | (5.6 | )% | $ | 125,539 | $ | 117,017 | $ | 8,522 | 7.3 | % |
• | an increase in personnel-related costs of $3.0 million as a result of an increase in headcount supporting our growth outside of the U.S, as well as salary expenses associated with annual merit increases and employee equity-based compensation, which were partially offset by the depreciation of the NIS against the U.S. dollar; |
• | an increase of $1.8 million in expenses related to other marketing activities; |
• | an increase of $1.4 million in training-related expenses as a result of resuming training activities that had been previously cancelled or postponed due to Covid-19 restrictions in 2022; and |
• | an increase in expenses related to other overhead costs of $0.9 million. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
General and administrative | $ | 39,110 | $ | 27,933 | $ | 11,177 | 40.0 | % | $ | 111,876 | $ | 82,483 | $ | 29,393 | 35.6 | % |
• | an increase in expenses related to doubtful debt of $7.6 million; |
• | an increase in expenses related to consultants and sub-contractors of $2.2 million; and |
• | an increase in personnel-related costs of $1.4 million resulting from an increase in our general and administrative headcount, as well as salary expenses associated with annual merit increases, which were partially offset by the depreciation of the NIS against the U.S. dollar. |
• | an increase in expenses related to consultants and sub-contractors of $11.7 million; |
• | an increase in expenses related to doubtful debt of $9.1 million; and |
• | an increase in personnel-related costs of $6.4 million resulting from an increase in our general and administrative headcount, as well as salary expenses associated with annual merit increases, which were partially offset by the depreciation of the NIS against the U.S. dollar. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other operating expense (income), net | $ | — | $ | (2,724 | ) | $ | 2,724 | (100.0 | )% | $ | (1,434 | ) | $ | 1,963 | $ | (3,397 | ) | (173.1 | )% |
• | a decrease of $1.6 million in income related to the discontinuation of our UPS-related activities and the sale of assets related to these activities; and |
• | a decrease of $1.1 million in income related to the sale of property, plant and equipment. |
• | a decrease of $4.0 million in expenses related to write-offs of goodwill and intangible assets related to the discontinuation of our UPS-related activities; and |
• | a decrease of $0.7 million in expenses related to write-offs of property, plant and equipment. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Financial income (expense), net | $ | (7,901 | ) | $ | (33,146 | ) | $ | 25,245 | (76.2 | )% | $ | 19,157 | $ | (52,062 | ) | $ | 71,219 | (136.8 | )% |
• | a decrease of $19.0 million in expenses due to fluctuations in foreign exchange rates, primarily between the Euro and the NIS against the U.S. dollar; and |
• | an increase of $4.6 million in income related to hedging transactions. |
• | an income of $4.8 million in the nine months ended September 30, 2023, compared to expenses of $55.4 million in the nine months ended September 30, 2022, as a result of fluctuations in foreign exchange rates, primarily between the Euro and the NIS against the U.S. dollar. |
• | an increase of $9.9 million in interest income and accretion (amortization) of discount (premium) on marketable securities. |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other income (loss), net | $ | (484 | ) | $ | 7,654 | $ | (8,138 | ) | (106.3 | )% | $ | (609 | ) | $ | 6,810 | $ | (7,419 | ) | (108.9 | )% |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Income taxes | $ | 36,065 | $ | 34,172 | $ | 1,893 | 5.5 | % | $ | 99,622 | $ | 53,081 | $ | 46,541 | 87.7 | % |
Three months ended September 30, 2023 to 2022 | Nine months ended September 30, 2023 to 2022 | |||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | (85,919 | ) | (347.2 | )% | $ | 196,712 | $ | 72,950 | $ | 123,762 | 169.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands) | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 40,585 | $ | 5,558 | $ | (40,203 | ) | $ | (80,016 | ) | ||||||
Net cash used in investing | (43,733 | ) | (54,581 | ) | (188,187 | ) | (380,514 | ) | ||||||||
Net cash provided by (used in) financing activities | (1,164 | ) | (1,271 | ) | (11,305 | ) | 647,135 | |||||||||
Increase (decrease) in cash and cash equivalents | $ | (4,312 | ) | $ | (50,294 | ) | $ | (239,695 | ) | $ | 186,605 |
Exhibit
No.
|
Description
|
Incorporation by Reference
|
|
Incorporated by reference to Exhibit 10.1 to Form 8-K filed with the SEC on July 7, 2023
|
|||
Filed with this report.
|
|||
Filed with this report.
|
|||
Filed with this report.
|
|||
Filed with this report.
|
|||
101
|
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Stockholders’ Equity, (v) Condensed Consolidated Statements of Cash Flows, (vi) Notes to Condensed Consolidated Financial Statements, and (vii) part II, Item 5(c)
|
Filed with this report.
|
|
104
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 formatted in Inline XBRL
|
Included in Exhibit 101
|
/s/ Zvi Lando
|
|
|
Zvi Lando
Chief Executive Officer
(Principal Executive Officer)
|
/s/ Ronen Faier
|
|
|
Ronen Faier
Chief Financial Officer
(Principal Financial Officer)
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of SolarEdge Technologies, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/s/ Zvi Lando
|
|
Zvi Lando
Chief Executive Officer
(Principal Executive Officer)
|
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of SolarEdge Technologies, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/s/ Ronen Faier
|
|
Ronen Faier
Chief Financial Officer
(Principal Financial Officer)
|
|
/s/ Zvi Lando
|
|
Zvi Lando
Chief Executive Officer
(Principal Executive Officer)
|
|
/s/ Ronen Faier
|
|
Ronen Faier
Chief Financial Officer
(Principal Financial Officer)
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances of trade receivable | $ 14,930 | $ 3,202 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 56,810,559 | 56,133,404 |
Common stock, outstanding shares | 56,810,559 | 56,133,404 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 |
Gross profit | 142,817 | 222,001 | 760,248 | 583,601 |
Operating expenses: | ||||
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Other operating expense (income), net | 0 | (2,724) | (1,434) | 1,963 |
Total operating expenses | 159,543 | 137,594 | 482,462 | 412,318 |
Operating income (loss) | (16,726) | 84,407 | 277,786 | 171,283 |
Financial income (expense), net | (7,901) | (33,146) | 19,157 | (52,062) |
Other income (loss), net | (484) | 7,654 | (609) | 6,810 |
Income (loss) before income taxes | (25,111) | 58,915 | 296,334 | 126,031 |
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 |
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Net basic earnings (loss) per share of common stock | $ (1.08) | $ 0.44 | $ 3.49 | $ 1.33 |
Net diluted earnings (loss) per share of common stock | $ (1.08) | $ 0.43 | $ 3.34 | $ 1.29 |
Weighted average number of shares used in computing net basic earnings (loss) per share of common stock | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Weighted average number of shares used in computing net diluted earnings (loss) per share of common stock | 56,671,504 | 58,747,538 | 59,297,423 | 57,886,041 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Other comprehensive income (loss), net of tax: | ||||
Available-for-sale marketable securities | 2,562 | (9,579) | 9,400 | (23,647) |
Cash flow hedges | (923) | (140) | (938) | (4,656) |
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (9,989) | (30,799) | (22,724) | (66,129) |
Foreign currency translation adjustments | 1,833 | 1,872 | 3,422 | (6,515) |
Total other comprehensive loss | (6,517) | (38,646) | (10,840) | (100,947) |
Comprehensive income (loss) | $ (67,693) | $ (13,903) | $ 185,872 | $ (27,997) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash flows from operating activities: | ||
Net income | $ 196,712 | $ 72,950 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 42,019 | 37,312 |
Loss (gain) from exchange rate fluctuations | (8,170) | 58,100 |
Stock-based compensation expenses | 115,015 | 106,932 |
Impairment of goodwill and intangible assets | 0 | 4,008 |
Deferred income taxes, net | (18,199) | (3,822) |
Other items | 6,915 | 8,594 |
Changes in assets and liabilities: | ||
Inventories, net | (437,801) | (188,579) |
Prepaid expenses and other assets | 19,822 | (55,478) |
Trade receivables, net | (40,011) | (377,089) |
Trade payables, net | (53,996) | 53,683 |
Employees and payroll accruals | 12,099 | 12,119 |
Warranty obligations | 130,863 | 82,025 |
Deferred revenues and customers advances | 18,580 | 41,440 |
Accrued expenses and other liabilities, net | (24,051) | 67,789 |
Net cash used in operating activities | (40,203) | (80,016) |
Cash flows from investing activities: | ||
Investment in available-for-sale marketable securities | (214,516) | (461,491) |
Proceeds from sales and maturities of available-for-sale marketable securities | 194,617 | 178,415 |
Purchase of property, plant and equipment | (130,024) | (125,085) |
Business combinations, net of cash acquired | (16,653) | 0 |
Purchase of intangible assets | (10,600) | 0 |
Disbursements for loans receivables | (13,000) | 0 |
Investment in privately-held companies | (8,000) | 0 |
Proceeds from governmental grant | 6,796 | 0 |
Proceeds from sale of a privately-held company | 0 | 24,175 |
Other investing activities | 3,193 | 3,472 |
Net cash used in investing activities | (188,187) | (380,514) |
Cash flows from financing activities: | ||
Tax withholding in connection with stock-based awards, net | (9,267) | (4,686) |
Payment of finance lease liability | (2,123) | (2,109) |
Proceeds from secondary public offering, net of issuance costs | 0 | 650,526 |
Other financing activities | 85 | 3,404 |
Net cash provided by (used in) financing activities | (11,305) | 647,135 |
Increase (decrease) in cash and cash equivalents | (239,695) | 186,605 |
Cash and cash equivalents at the beginning of the period | 783,112 | 530,089 |
Effect of exchange rate differences on cash and cash equivalents | 7,705 | (38,365) |
Cash and cash equivalents at the end of the period | 551,122 | 678,329 |
Supplemental disclosure of non-cash activities: | ||
Purchase of intangible assets and business combinations | 11,307 | 0 |
Right-of-use asset recognized with a corresponding lease liability | 17,658 | 43,274 |
Purchase of property, plant and equipment | $ 19,574 | $ 16,008 |
GENERAL |
9 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||
GENERAL |
NOTE 1: GENERAL
The Company and its subsidiaries sell products worldwide through large distributors, electrical equipment wholesalers, as well as directly to large solar installers and engineering, procurement, and construction firms.
On April 6, 2023, the Company completed the acquisition of all outstanding shares of Hark Systems Ltd. ("Hark"), a UK-based energy IoT company for the commercial and industrial ("C&I") sector, which operates under the newly established consulting segment (see note 2).
The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.
The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2022, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2023, have been applied consistently in these unaudited interim condensed consolidated financial statements. Certain prior year amounts have been reclassified to conform to current year presentation.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.
The Company depends on two contract manufacturers and several limited or single source component suppliers. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs.
As of September 30, 2023, and December 31, 2022, two contract manufacturers collectively accounted for 40.9% and 34.3% of the Company’s total trade payables, net, respectively.
In the second quarter of 2022, the Company announced the opening of “Sella 2”, a two gigawatt-hour (GWh) Li-Ion battery cell manufacturing facility located in South Korea. Sella 2 began producing and shipping cells at the end of 2022 and is expected to reach full manufacturing capacity in early 2024. Sella 2 is the Company's second owned manufacturing facility following the establishment of Sella 1 in 2020. Sella 1 is the Company's manufacturing facility in the North of Israel that produces power optimizers and inverters for the Company's solar activities.
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued or newly effective standards were not applicable to the Company, did not have a material impact on the condensed consolidated financial statements or are not expected to have a material impact on the condensed consolidated financial statements.
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BUSINESS COMBINATIONS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS |
NOTE 2: BUSINESS COMBINATIONS
On April 6, 2023, the Company completed the acquisition of all outstanding shares of Hark Systems Ltd. ("Hark"), a UK-based energy IoT company for the commercial and industrial ("C&I") sector for approximately $18,346 in cash. Hark's platform is expected to enable the Company to offer its commercial and industrial customers expanded capabilities in energy management and connectivity, including identification of potential energy savings, detection of anomalies in assets’ energy consumption, and optimization of energy usage and carbon emissions through load orchestration and storage control.
Pursuant to ASC 805, "Business Combination", the Company accounted for the Hark acquisition as a business combination using the acquisition method of accounting. Identifiable assets and liabilities of Hark, including identifiable intangible assets, were recorded based on their estimated fair values as of the date of the closing of the acquisition. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. The Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date. Such preliminary valuation required estimates and assumptions including, but not limited to, estimating future cash flows and direct costs in addition to developing the appropriate discount rates and current market profit margins. The Company’s management believes the fair values recognized for the assets acquired and the liabilities assumed were based on reasonable estimates and assumptions.
The following table summarizes the preliminary fair values estimation of assets acquired and liabilities assumed as of the date of the acquisition:
Acquisition costs were immaterial and are included in general and administrative expenses in the consolidated statements of income.
Goodwill generated from this acquisition was primarily attributable to the assembled workforce and expected post-acquisition synergies from combining Hark platform with the Company's product offering to its commercial and industrial customers. All of the Goodwill was assigned to the new Consulting segment (see Note 21). Goodwill was not deductible for tax purposes. The fair values of technology, customer relationships and trade name were derived by applying the multi-period excess earnings method, with-and-without method, and the relief-from-royalty method, respectively, all of which are under the income approach whose underlying inputs are considered Level 3. The fair values assigned to assets acquired and liabilities assumed were based on management's estimates and assumptions.
The results of Hark have been included in the Company's consolidated statements of income (loss) since the acquisition date and are not material. Pro forma financial information has not been presented because the impact of the acquisition was not material to the Company's statement of income.
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MARKETABLE SECURITIES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES |
NOTE 3: MARKETABLE SECURITIES
The following is a summary of available-for-sale marketable securities as of September 30, 2023:
The following is a summary of available-for-sale marketable securities as of December 31, 2022:
Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2023 and 2022 were $2,807 and $29,235, which led to realized losses of $125 and $723, respectively.
There were no proceeds from sales of available-for-sale marketable securities during the three months ended September 30, 2023.
Proceeds from sales of available-for-sale marketable securities during the three months ended September 30, 2022 were $5,811, which led to realized gains of $121.
As of September 30, 2023, and December 31, 2022, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.
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INVENTORIES, NET |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET |
NOTE 4: INVENTORIES, NET
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS
(1) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues.
(2) Loan receivables is a loan to a third party. The loan will be repaid on a monthly basis with an additional agreed interest for the long term portion of the loan. See Note 8 for additional information. The loan is measured at its amortized cost and is subjected to the Company's credit risk policy as stated in the most recent 10-K filing. Expected provision for credit loss regarding this loan was immaterial. The amortized cost of the loan receivable approximates its fair value as of September 30, 2023.
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INTANGIBLE ASSETS, NET |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS, NET |
NOTE 6: INTANGIBLE ASSETS, NET Acquired intangible assets consisted of the following as of September 30, 2023, and December 31, 2022:
* See Note 16
For the three months ended September 30, 2023 and 2022, the Company recorded amortization expenses related to intangible assets in the amount of $2,663 and $2,464, respectively.
For the nine months ended September 30, 2023 and 2022, the Company recorded amortization expenses related to intangible assets in the amount of $5,901 and $7,741, respectively.
Expected future amortization expenses of intangible assets as of September 30, 2023 are as follows:
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GOODWILL |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL |
NOTE 7: GOODWILL Changes in the carrying amount of goodwill for the period ended September 30, 2023 were as follows:
As of September 30, 2023 and December 31, 2022 there were $90,104 accumulated goodwill impairment losses.
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OTHER LONG TERM ASSETS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LONG TERM ASSETS |
NOTE 8: OTHER LONG TERM ASSETS
(1) In January 2023, the Company completed an investment of $5,500 in the common stock of a privately-held company which represents 34.8% of its outstanding shares. The Company accounted for this investment using the equity method of accounting. The Company's share of net earnings or losses in the nine months ended September 30, 2023 was immaterial.
(2) In April and July of 2023, the Company completed a total investment of $2,500 in the preferred stock of a privately-held company which represents 4.5% of its outstanding shares on a fully diluted basis. The Company accounted for this investment as an equity investment without readily determinable fair values. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
NOTE 9: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the nine months ended September 30, 2023, the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”). The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges.
As of September 30, 2023, the Company entered into forward contracts and put and call options to sell U.S. dollars (“USD”) for NIS in the amount of approximately NIS 38 million and NIS 622 million, respectively.
In addition to the above-mentioned cash flow hedge transactions, the Company occasionally enters into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the USD. These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income, under "Financial income (expense), net".
As of September 30, 2023, the Company entered into put and call option contracts to sell Euro ("EUR") for USD in the amount of EUR 120 million.
The Company classifies cash flows related to its hedging as operating activities in its condensed consolidated statement of cash flows.
The fair values of outstanding derivative instruments were as follows:
Gains (losses) on derivative instruments are summarized below:
See Note 17 for information regarding losses from designated hedging instruments reclassified from accumulated other comprehensive loss.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
NOTE 10: FAIR VALUE MEASUREMENTS
In accordance with ASC 820, "Fair Value Measurement" the Company measures its cash equivalents and marketable securities, at fair value using the market approach valuation technique. Cash and cash equivalents are classified within Level 1 because these assets are valued using quoted market prices. Marketable securities and foreign currency derivative contracts are classified within level 2 due to these assets being valued by alternative pricing sources and models utilizing market observable inputs.
The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy:
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WARRANTY OBLIGATIONS |
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Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARRANTY OBLIGATIONS |
NOTE 11: WARRANTY OBLIGATIONS
Changes in the Company’s product warranty obligations for the three and nine months ended September 30, 2023 and 2022, were as follows:
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DEFERRED REVENUES AND CUSTOMERS ADVANCES |
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Revenue Recognition and Deferred Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFERRED REVENUES AND CUSTOMERS ADVANCES |
NOTE 12: DEFERRED REVENUES AND CUSTOMERS ADVANCES
Deferred revenues consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products. Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized.
Changes in the balances of deferred revenues and customer advances during the period are as follows:
The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2023:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
NOTE 13: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
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CONVERTIBLE SENIOR NOTES |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE SENIOR NOTES |
NOTE 14: CONVERTIBLE SENIOR NOTES
On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.
Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock.
In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes, in multiples of $1,000 principal amount, at a repurchase price of 100% of the principal amount of the Notes, plus any accrued and unpaid special interest to, but excluding the fundamental change repurchase date. If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes may be increased.
The Convertible Senior Notes consisted of the following as of September 30, 2023 and December 31, 2022:
For the three months ended September 30, 2023 and 2022 the Company recorded amortized debt issuance costs related to the Notes in the amount of $733 and $730, respectively.
For the nine months ended September 30, 2023 and 2022 the Company recorded amortized debt issuance costs related to the Notes in the amount of $2,196 and $2,186, respectively.
As of September 30, 2023, the unamortized issuance costs of the Notes will be amortized over the remaining term of approximately 2 years.
The annual effective interest rate of the Notes is 0.47%.
As of September 30, 2023, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $578,048. The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.
As of September 30, 2023, the if-converted value of the Notes did not exceed the principal amount.
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STOCK CAPITAL |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK CAPITAL |
NOTE 15: STOCK CAPITAL
Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes, to share equally, on a per share basis, in bonuses, profits, or distributions out of fund legally available therefor, and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company.
On March 17, 2022, the Company offered and sold 2,300,000 shares of the Company’s common stock, at a public offering price of $295.00 per share. The shares of Common Stock were issued and sold in a registered offering pursuant to the underwriting agreement dated March 17, 2022, among the Company, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC (the “Underwriting Agreement”). All of the offered shares were issued at closing, including 300,000 shares of Common Stock that were issued and sold pursuant to the underwriters’ option to purchase additional shares under the Underwriting Agreement, which was exercised in full on March 18, 2022.
The net proceeds to the Company were $650,526 after deducting underwriters' discounts of $27,140 and commissions of $834.
The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grants were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, restricted stock units ("RSU"), performance stock units ("PSU"), and other share-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries. As of September 30, 2023, a total of 20,853,755 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 11,845,915 shares are still available for future grants.
The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan, commencing on January 1st of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that the Company’s board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31st.
The Company granted under its 2015 Plan, PSU awards to certain employees and officers which vest upon the achievement of certain performance or market conditions subject to their continued employment with the Company.
The market condition for the PSUs is based on the Company’s total shareholder return ("TSR") compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period. The Company uses a Monte-Carlo simulation to determine the grant date fair value for these awards, which takes into consideration the market price of a share of the Company’s common stock on the date of grant less the present value of dividends expected during the requisite service period, as well as the possible outcomes pertaining to the TSR market condition. The Company recognizes such compensation expenses on an accelerated vesting method.
The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000. As of September 30, 2023, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.
A summary of the activity in stock options and related information is as follows:
The intrinsic value is the amount by which the closing price of the Company’s common stock on September 30, 2023 of $129.51 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of in-the-money options.
A summary of the activity in the RSUs and related information is as follows:
A summary of the activity in the PSUs and related information is as follows:
The Company adopted an ESPP effective upon the consummation of the IPO. As of September 30, 2023, a total of 4,150,380 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.
The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 15% of their salaries to purchase common stock up to an aggregate limit of $15 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.
As of September 30, 2023, 780,370 shares of common stock have been purchased under the ESPP.
As of September 30, 2023, 3,370,010 shares of common stock were available for future issuance under the ESPP.
In accordance with ASC No. 718, the ESPP is compensatory and, as such, results in recognition of compensation cost.
The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income for the three and nine months ended September 30, 2023, and 2022, as follows:
The total tax benefit associated with stock-based compensation for the three months ended September 30, 2023 and 2022 was $3,124 and $2,646, respectively. The tax benefit realized from stock-based compensation for the three months ended September 30, 2023, and 2022 was $1,589 and $3,060, respectively.
The total tax benefit associated with stock-based compensation for the nine months ended September 30, 2023, and 2022 was $11,422 and $9,182, respectively. The tax benefit realized from stock-based compensation for the nine months ended September 30, 2023, and 2022 was $7,050 and $8,871, respectively.
As of September 30, 2023, there were total unrecognized compensation expenses in the amount of $290,401 related to non-vested equity-based compensation arrangements granted. These expenses are expected to be recognized during the period from October 1, 2023, through August 31, 2027.
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COMMITMENTS AND CONTINGENT LIABILITIES |
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Sep. 30, 2023 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES |
NOTE 16: COMMITMENTS AND CONTINGENT LIABILITIES
As of September 30, 2023, contingent liabilities exist regarding guarantees in the amounts of $5,804, and $1,821 in respect of office rent lease agreements and other transactions, respectively.
The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories and other purchase orders, which cannot be canceled without penalty. In addition, the Company acquires raw materials or other goods and services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand and manufacturing needs.
As of September 30, 2023, the Company had non-cancellable purchase obligations totaling approximately $1,116,593, out of which the Company recorded a provision for loss in the amount of $13,463.
As of September 30, 2023, the Company had contractual obligations for capital expenditures totaling approximately $120,572. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s general manufacturing process and mainly to its new manufacturing site in the U.S.
From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter.
In September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH, received a complaint filed by competitor SMA Solar Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleged that SolarEdge's 12.5kW - 27.6kW inverters infringed on two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5 million (approximately $5,830) for both patents. The Company challenged the validity of both patents and the first patent was invalidated and SMA’s appeal on the matter was denied in January 2023. In August 2021, the German Patent Court rendered SMA's second patent invalid, and this invalidity has been appealed by SMA. In May 2023 the Federal Supreme Court as final instance in the nullity proceedings revoked the second patent, and SMA withdrew its infringement complaint.
On July 28, 2022, the Company and its subsidiary SolarEdge Technologies Ltd were served with complaints filed by Ampt LLC ("Ampt") in the International Trade Commission (the “Commission”) pursuant to Section 337 of the Tariff Act of 1930, as amended, and related lawsuits in the District Court for the District of Delaware alleging patent infringement against the Company. On May 9, 2023, Ampt and the Company entered into a settlement agreement pursuant to which the parties agreed to dismiss all proceedings related to the complaints, and the parties have granted each other 10-year cross-licenses for certain intellectual property.
As of September 30, 2023, an immaterial amount for legal claims was recorded in accrued expenses and other current liabilities.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS |
NOTE 17: ACCUMULATED OTHER COMPREHENSIVE LOSS
The following table summarizes the changes in accumulated balances of other comprehensive gain (loss), net of taxes:
The following table summarizes the reclassification out of "Accumulated other comprehensive loss", net of taxes:
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OTHER OPERATING EXPENSE (INCOME) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER OPERATING EXPENSE (INCOME) |
NOTE 18: OTHER OPERATING EXPENSE (INCOME)
The following table presents the expenses (income) recorded in the three and nine months ended September 30, 2023, and 2022:
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES |
NOTE 19: INCOME TAXES
The effective tax rate for the three months ended September 30, 2023, and 2022 was (143.6)% and 58.0%, respectively.
The change in effective tax rate in the three months ended September 30, 2023 compared to the corresponding period in 2022 is mainly due to the IRC Section 174 R&D capitalization, and other expenses not recognized for GILTI purposes, which did not decrease in line with the decrease in our taxable income, as well as unfavorable impact of losses in foreign subsidiaries where we do not anticipate a future tax benefit.
The effective tax rate for the nine months ended September 30, 2023 and 2022 was 33.6% and 42.1%, respectively.
The lower tax rate in the nine months ended September 30, 2023 compared to the corresponding period in 2022 is mainly due to the fact that the Company's income before tax, most of which is subject to tax rates lower than the US statutory rate, increased. Conversely, the IRC Section 174 R&D capitalization, and other expenses not recognized for GILTI purposes, did not increase in the same proportion.
As of September 30, 2023, and December 31, 2022, unrecognized tax benefits were $3,155 and $2,756, respectively. If recognized, such benefits would favorably affect the Company’s effective tax rate.
The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were immaterial as of September 30, 2023, and December 31, 2022.
In August 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”), which includes several incentives intended to promote clean energy, battery and energy storage, electrical vehicles, and other solar products, and is expected to impact our business and operations. As part of such incentives the IRA, will among other things, extend the investment tax credit (“ITC”) through 2034 and is therefore expected to increase the demand for solar products. The IRA is expected to further incentivize residential and commercial solar customers and developers due to the inclusion of a tax credit for qualifying energy projects of up to 30%. Since these regulations are new and their implementation is still pending administrative guidance from the Internal Revenue Service and U.S. Treasury Department, the Company will be examining the benefits that may be available to it, such as the availability of tax credits for domestic manufacturers, in the coming months. During the third quarter, the Company began manufacturing inverters in the U.S..
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EARNINGS (LOSS) PER SHARE |
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Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE |
NOTE 20: EARNINGS (LOSS) PER SHARE
The following table presents the computation of basic and diluted earnings (loss) per share (“EPS”):
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SEGMENT INFORMATION |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION |
NOTE 21: SEGMENT INFORMATION
Following the discontinuation of Critical Power in June 2022, the Company operates in five different operating segments: Solar, Energy Storage, e-Mobility, Automation Machines, and the newly formed Consulting segment.
The Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the operating segments.
The Company does not allocate to its operating segments revenue recognized due to advance payments received for performance obligations that extend for a period greater than one year, related to ASC 606, “Revenue from Contracts with Customers”.
Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased intangible assets, impairments of goodwill and intangible assets, stock based compensation expenses, and certain other items.
The Company manages its assets on a group basis, not by segments, as many of its assets are shared or co-mingled. The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.
The Company identified one operating segment as reportable – the Solar segment. The other operating segments are insignificant individually and therefore their results are presented together under “All other”.
The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and a residential storage solution, compatible with the Company’s Energy Hub inverter, intended to store and supply power for back-up and to maximize self-consumption. The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, and cloud‑based monitoring platform.
The “All other” category includes the design, development, manufacturing, and sales of energy storage products, e-Mobility products, automated machines, and consulting services.
The following tables present information on reportable segments profit (loss) for the period presented:
The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:
The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:
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SUBSEQUENT EVENTS |
9 Months Ended | |||||||||
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Sep. 30, 2023 | ||||||||||
Subsequent Events [Abstract] | ||||||||||
SUBSEQUENT EVENTS |
NOTE 22: SUBSEQUENT EVENTS
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ (61,176) | $ 119,510 | $ 138,378 | $ 24,743 | $ 15,084 | $ 33,123 | $ 196,712 | $ 72,950 |
Insider Trading Arrangements |
9 Months Ended |
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Sep. 30, 2023
shares
| |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 10, 2023, Mr. Meir Adest adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 45,095 shares of Company common stock, 1,458 of which shares are to be acquired upon the exercise of employee stock options between November 9, 2023 and the earlier of March 29, 2024 or when 45,095 shares are sold, subject to certain conditions. |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 10, 2023 |
Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Name | Mr. Meir Adest |
Rule 10b5-1 Arrangement Adopted | true |
Meir Adest Trading Arrangement Common Stock [Member] | Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 45,095 |
Meir Adest Trading Arrangement Stock Options [Member] | Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 1,458 |
GENERAL (Policies) |
9 Months Ended | |||
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Sep. 30, 2023 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Basis of Presentation |
The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.
The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2022, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2023, have been applied consistently in these unaudited interim condensed consolidated financial statements. Certain prior year amounts have been reclassified to conform to current year presentation.
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Use of estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.
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Concentrations of supply risks |
The Company depends on two contract manufacturers and several limited or single source component suppliers. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs.
As of September 30, 2023, and December 31, 2022, two contract manufacturers collectively accounted for 40.9% and 34.3% of the Company’s total trade payables, net, respectively.
In the second quarter of 2022, the Company announced the opening of “Sella 2”, a two gigawatt-hour (GWh) Li-Ion battery cell manufacturing facility located in South Korea. Sella 2 began producing and shipping cells at the end of 2022 and is expected to reach full manufacturing capacity in early 2024. Sella 2 is the Company's second owned manufacturing facility following the establishment of Sella 1 in 2020. Sella 1 is the Company's manufacturing facility in the North of Israel that produces power optimizers and inverters for the Company's solar activities.
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New accounting standards updates |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued or newly effective standards were not applicable to the Company, did not have a material impact on the condensed consolidated financial statements or are not expected to have a material impact on the condensed consolidated financial statements.
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BUSINESS COMBINATIONS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value estimation of assets acquired and liabilities assumed [Table Text block] |
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MARKETABLE SECURITIES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of available-for-sale marketable securities |
The following is a summary of available-for-sale marketable securities as of September 30, 2023:
The following is a summary of available-for-sale marketable securities as of December 31, 2022:
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INVENTORIES, NET (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories, net |
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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of prepaid expenses and other current assets |
(1) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues.
(2) Loan receivables is a loan to a third party. The loan will be repaid on a monthly basis with an additional agreed interest for the long term portion of the loan. See Note 8 for additional information. The loan is measured at its amortized cost and is subjected to the Company's credit risk policy as stated in the most recent 10-K filing. Expected provision for credit loss regarding this loan was immaterial. The amortized cost of the loan receivable approximates its fair value as of September 30, 2023.
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INTANGIBLE ASSETS, NET (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquired intangible assets |
* See Note 16
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Schedule of future amortization expense |
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GOODWILL (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill activity |
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OTHER LONG TERM ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other long term assets |
(1) In January 2023, the Company completed an investment of $5,500 in the common stock of a privately-held company which represents 34.8% of its outstanding shares. The Company accounted for this investment using the equity method of accounting. The Company's share of net earnings or losses in the nine months ended September 30, 2023 was immaterial.
(2) In April and July of 2023, the Company completed a total investment of $2,500 in the preferred stock of a privately-held company which represents 4.5% of its outstanding shares on a fully diluted basis. The Company accounted for this investment as an equity investment without readily determinable fair values. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of outstanding derivative instruments |
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Schedule of gains (losses) on derivative instruments recognized in our income statements |
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value |
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WARRANTY OBLIGATIONS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of warranty obligations |
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DEFERRED REVENUES AND CUSTOMERS ADVANCES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of balances of deferred revenues |
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Schedule estimated revenues expected to recognized in future to performance obligations |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses and other current liabilities |
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CONVERTIBLE SENIOR NOTES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of convertible senior notes |
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STOCK CAPITAL (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the share options granted to employees and members of board of directors |
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Schedule of RSU activity |
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Schedule of recognized stock-based compensation expenses |
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Option [Member] | Employees and members of board of directors | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSU activity |
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in AOCI |
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Schedule of reclassifications out of AOCI |
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OTHER OPERATING EXPENSE (INCOME) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other operating expense (income) |
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EARNINGS (LOSS) PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted net earnings (loss) per share |
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SEGMENT INFORMATION (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reportable segments and operating income |
|
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Schedule of reconciliation to consolidated operating income |
The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:
The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:
|
GENERAL (Narrative) (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Concentration Risk As Percent | 40.90% | 34.30% |
BUSINESS COMBINATIONS (Narrative) (Details) $ in Thousands |
Apr. 06, 2023
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Approximate cash acquisition | $ 18,346 |
Hark Systems Ltd [Member] | |
Business Acquisition [Line Items] | |
Approximate cash acquisition | $ 18,346 |
BUSINESS COMBINATIONS (Schedule of Fair Values Estimation of Assets Acquired and Liabilities Assumed) (Details) $ in Thousands |
Apr. 06, 2023
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
Cash | $ 448 |
Net liabilities assumed | (1,837) |
Total | 18,346 |
Current technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 6,576 |
Weighted average life | 5 years |
Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 283 |
Weighted average life | 1 year |
Trade names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 610 |
Weighted average life | 5 years |
Goodwill [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 12,266 |
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Marketable Securities Schedule Of Contractual Maturities Details [Abstract] | |||
Proceeds from maturity of available-for-sale | $ 2,807 | $ 29,235 | |
Proceeds from sale of available-for-sale securities | $ 5,811 | ||
Realized loss | $ 121 | $ 125 | $ 723 |
MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Available-for-sale - matures within one year, Amortized cost | $ 486,236 | $ 246,327 |
Available-for-sale - matures within one year, Gross unrealized gains | 227 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (9,188) | (5,210) |
Available-for-sale - matures within one year, Fair value | 477,275 | 241,117 |
Available-for-sale - matures after one year, Amortized cost | 447,699 | 672,488 |
Available-for-sale - matures after one year, Gross unrealized gains | 49 | 80 |
Available-for-sale - matures after one year, Gross unrealized losses | (11,609) | (27,077) |
Available-for-sale - matures after one year, Fair value | 436,139 | 645,491 |
Amortized cost | 933,935 | 918,815 |
Gross unrealized gains | 276 | 80 |
Gross unrealized losses | (20,797) | (32,287) |
Fair value | 913,414 | 886,608 |
Corporate bonds [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 449,162 | 222,482 |
Available-for-sale - matures within one year, Gross unrealized gains | 227 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (8,838) | (4,657) |
Available-for-sale - matures within one year, Fair value | 440,551 | 217,825 |
Available-for-sale - matures after one year, Amortized cost | 400,408 | 657,238 |
Available-for-sale - matures after one year, Gross unrealized gains | 49 | 80 |
Available-for-sale - matures after one year, Gross unrealized losses | (10,950) | (26,460) |
Available-for-sale - matures after one year, Fair value | 389,507 | 630,858 |
US Treasury Securities [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 27,951 | 15,963 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (200) | (284) |
Available-for-sale - matures within one year, Fair value | 27,751 | 15,679 |
Available-for-sale - matures after one year, Amortized cost | 2,413 | 9,939 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures after one year, Gross unrealized losses | (43) | (261) |
Available-for-sale - matures after one year, Fair value | 2,370 | 9,678 |
U.S. Government agency securities [Member] | ||
Available-for-sale - matures after one year, Amortized cost | 42,477 | |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | |
Available-for-sale - matures after one year, Gross unrealized losses | 493 | |
Available-for-sale - matures after one year, Fair value | 41,984 | |
Non - U.S. Government securities [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 9,123 | 7,882 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (150) | (269) |
Available-for-sale - matures within one year, Fair value | 8,973 | 7,613 |
Available-for-sale - matures after one year, Amortized cost | 2,401 | 5,311 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures after one year, Gross unrealized losses | (123) | (356) |
Available-for-sale - matures after one year, Fair value | $ 2,278 | $ 4,955 |
INVENTORIES, NET (Schedule of Inventories, Net) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 420,281 | $ 503,257 |
Work in process | 26,801 | 23,407 |
Finished goods | 730,723 | 202,537 |
Total inventories, net | $ 1,177,805 | $ 729,201 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
||||
---|---|---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||
Vendor non-trade receivables | [1] | $ 94,180 | $ 147,597 | |||
Government authorities | 70,951 | 55,670 | ||||
Loan receivables | [2] | 8,125 | 0 | |||
Interest from marketable securities | 7,162 | 6,235 | ||||
Prepaid expenses and other | 37,302 | 31,580 | ||||
Total prepaid expenses and other current assets | $ 217,720 | $ 241,082 | ||||
|
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 2,663 | $ 2,464 | $ 5,901 | $ 7,741 |
INTANGIBLE ASSETS, NET (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | $ 67,187 | $ 40,416 | ||
Less - accumulated amortization | (25,240) | (20,487) | ||
Total intangible assets, net | 41,947 | 19,929 | ||
Current Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | 33,974 | 29,196 | ||
Customer relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | 3,058 | 2,958 | ||
Trade names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | 3,671 | 3,287 | ||
Assembled Workforce [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | 4,484 | 3,575 | ||
Patents and licenses [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross intangible assets | [1] | $ 22,000 | $ 1,400 | |
|
INTANGIBLE ASSETS, NET (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 2,351 | |
2024 | 8,735 | |
2025 | 7,834 | |
2026 | 7,281 | |
2027 | 4,134 | |
2028 and thereafter | 11,612 | |
Total intangible assets, net | $ 41,947 | $ 19,929 |
GOODWILL (Narrative) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment losses | $ 90,104 | $ 90,104 |
GOODWILL (Schedule of Goodwill Activities) (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | $ 31,189 |
Acquisitions | 12,266 |
Foreign currency adjustments | (2,254) |
Goodwill at September 30, 2023 | 41,201 |
Solar [Member] | |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | 28,768 |
Acquisitions | 0 |
Foreign currency adjustments | (1,882) |
Goodwill at September 30, 2023 | 26,886 |
All other [Member] | |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | 2,421 |
Acquisitions | 12,266 |
Foreign currency adjustments | (372) |
Goodwill at September 30, 2023 | $ 14,315 |
OTHER LONG TERM ASSETS (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Jul. 31, 2023 |
Apr. 30, 2023 |
Jan. 31, 2023 |
|
Other Assets, Noncurrent [Abstract] | |||
Investments | $ 2,500 | $ 2,500 | $ 5,500 |
Percentage of outstanding common shares | 4.50% | 4.50% | 34.80% |
OTHER LONG TERM ASSETS (Schedule of Other Long Term Assets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
||||
---|---|---|---|---|---|---|
Other Assets, Noncurrent [Abstract] | ||||||
Cloud computing arrangements | $ 9,898 | $ 3,457 | ||||
Severance pay fund | 8,275 | 8,799 | ||||
Investments in privately held companies | [1],[2] | 8,000 | 1,863 | |||
Loan receivables | 4,875 | 0 | ||||
Prepayments | 3,799 | 2,961 | ||||
Other | 1,256 | 1,726 | ||||
Other Assets, Noncurrent | $ 36,103 | $ 18,806 | ||||
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - Sep. 30, 2023 € in Thousands, ₪ in Millions |
EUR (€) |
ILS (₪) |
---|---|---|
Put and Call Options [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | € | € 120 | |
Put option [Member] | Foreign exchange forward contracts [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | ₪ 38 | |
Call option [Member] | Foreign exchange forward contracts [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | ₪ 622 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 4,873 | $ 0 |
Designated cash flow hedges [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 87 | 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | |
Designated cash flow hedges [Member] | Accrued expenses and other current liabilities [Member] | ||
Derivative liabilities of options and forward contracts: | ||
Total derivative liabilities | $ (2,966) | (1,874) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | |
Non-designated hedges [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 4,786 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Gains (Losses) on Derivative Instruments Recognized in our Income Statements) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Non Designated Hedging Instruments [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) on derivative instruments | $ 5,841 | $ 1,211 | $ 5,841 | $ 5,154 |
Designated Hedging Instruments [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) on derivative instruments | $ (2,713) | $ (1,399) | $ (6,861) | $ (8,928) |
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured at Fair Value) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Level 1 [Member] | Cash [Member] | ||
Fair value of assets | $ 508,057 | $ 695,004 |
Level 1 [Member] | Money market mutual funds [Member] | ||
Fair value of assets | 37,885 | 25,149 |
Level 1 [Member] | Deposits [Member] | ||
Fair value of assets | 5,180 | 62,959 |
Level 2 [Member] | Derivative instruments [Member] | ||
Fair value of assets | 4,873 | 0 |
Fair value of liabilities | (2,966) | (1,874) |
Level 2 [Member] | Short-term marketable securities: Corporate bonds [Member] | ||
Fair value of assets | 440,551 | 217,825 |
Level 2 [Member] | Short-term marketable securities: U.S. Treasury securities [Member] | ||
Fair value of assets | 27,751 | 15,679 |
Level 2 [Member] | Short-term marketable securities: Non - U.S. Government securities | ||
Fair value of assets | 8,973 | 7,613 |
Level 2 [Member] | Long-term marketable securities: Corporate bonds [Member] | ||
Fair value of assets | 389,507 | 630,858 |
Level 2 [Member] | Long-term marketable securities: U.S. Treasury securities [Member] | ||
Fair value of assets | 2,370 | 9,678 |
Level 2 [Member] | Long-term marketable securities: U.S. Government agency securities [Member] | ||
Fair value of assets | 41,984 | 0 |
Level 2 [Member] | Long-term marketable securities: Non - U.S. Government securities | ||
Fair value of assets | $ 2,278 | $ 4,955 |
WARRANTY OBLIGATIONS (Schedule of Product Warranty Obligations) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Changes in the Company's product warranty liability | |||||
Balance, at the beginning of the period | $ 488,587 | $ 324,176 | $ 385,057 | $ 265,160 | |
Additions and adjustments to cost of revenues | 85,171 | 56,815 | 266,372 | 163,783 | |
Usage and current warranty expenses | (57,946) | (34,852) | (135,617) | (82,804) | |
Balance, at end of the period | 515,812 | 346,139 | 515,812 | 346,139 | |
Less current portion | (174,125) | (97,222) | (174,125) | (97,222) | $ (103,975) |
Long term portion | $ 341,687 | $ 248,917 | $ 341,687 | $ 248,917 | $ 281,082 |
DEFERRED REVENUES AND CUSTOMERS ADVANCES (Schedule of Balances of Deferred Revenues and Customer Advances) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Balance, at the beginning of the period | $ 232,828 | $ 200,695 | $ 213,577 | $ 169,345 |
Revenue recognized | (19,869) | (12,731) | (25,819) | (20,974) |
Increase in deferred revenues and customer advances | 21,130 | 20,756 | 46,331 | 60,349 |
Balance, at the end of the period | 234,089 | 208,720 | 234,089 | 208,720 |
Less current portion | (22,064) | (31,896) | (22,064) | (31,896) |
Long term portion | $ 212,025 | $ 176,824 | $ 212,025 | $ 176,824 |
DEFERRED REVENUES AND CUSTOMERS ADVANCES (Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Deferred revenues | $ 234,089 | $ 232,828 | $ 213,577 | $ 208,720 | $ 200,695 | $ 169,345 |
2023 [Member] | ||||||
Deferred revenues | 13,214 | |||||
2024 [Member] | ||||||
Deferred revenues | 11,665 | |||||
2025 [Member] | ||||||
Deferred revenues | 11,094 | |||||
2026 [Member] | ||||||
Deferred revenues | 10,898 | |||||
2027 [Member] | ||||||
Deferred revenues | 8,968 | |||||
Thereafter [Member] | ||||||
Deferred revenues | $ 178,250 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 123,935 | $ 117,638 |
Government authorities | 49,323 | 67,514 |
Operating lease liabilities | 17,064 | 16,183 |
Accrual for sales incentives | 6,306 | 6,790 |
Finance lease | 3,034 | 3,263 |
Other | 3,786 | 2,724 |
Total accrued expenses and other current liabilities | $ 203,448 | $ 214,112 |
CONVERTIBLE SENIOR NOTES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 25, 2020 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Convertible Senior Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt conversion description | On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture. | ||||
Principal amount sold | $ 632,500 | ||||
Effective coupon rate | 0.00% | ||||
Maturity date | Sep. 15, 2025 | ||||
Conversion amount | $ 1,000 | ||||
Number of shares of common stock per $1,000 principal amount of Notes converted | 3.5997 | ||||
Amount of conversion | $ 1,000 | ||||
Conversion price | $ 277.8 | ||||
Amortization of debt discount and debt issuance costs | $ 733 | $ 730 | $ 2,196 | $ 2,186 | |
Amortized period | 2 years | 2 years | |||
Effective interest | 0.47% | 0.47% | |||
Senior Notes [Member] | Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value of notes | $ 578,048 | $ 578,048 |
CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Liability Abstract | ||
Net carrying amount | $ 626,647 | $ 624,451 |
Convertible Senior Notes [Member] | ||
Liability Abstract | ||
Principal | 632,500 | 632,500 |
Unamortized issuance costs | (5,853) | (8,049) |
Net carrying amount | $ 626,647 | $ 624,451 |
STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Mar. 17, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from secondary public offering, net of issuance costs | $ 0 | $ 650,526 | |||||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 10,000,000 | 10,000,000 | |||||
Equity based compensation expenses to employees and nonemployees | $ 3,124 | $ 2,646 | $ 11,422 | 9,182 | |||
Tax benefit realized from share-based compensation | 1,589 | $ 3,060 | 7,050 | $ 8,871 | |||
Unrecognized compensation expense | $ 290,401 | $ 290,401 | |||||
Price of intrinsic value of closing price | $ 129.51 | ||||||
IPO [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares sold in public offerings | 2,300,000 | ||||||
Per share price of common stock sold | $ 295 | ||||||
IPO [Member] | Underwriting Agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares sold in public offerings | 300,000 | ||||||
Proceeds from secondary public offering, net of issuance costs | $ 650,526 | ||||||
Underwriters discounts and commissions | 27,140 | ||||||
Offering costs | $ 834 | ||||||
Option [Member] | Two Thousand Seven Global Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 20,853,755 | 20,853,755 | |||||
Number of shares available for future grant under the plan | 11,845,915 | 11,845,915 | |||||
Option [Member] | Two Thousand Fifteen Global Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for future grant under the plan | 8,617,974 | 8,617,974 | 379,358 | ||||
Percentage Of Common Shares Increase Automatically Each Year | 5.00% | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 4,150,380 | 4,150,380 | |||||
Number of shares available for future grant under the plan | 3,370,010 | 3,370,010 | |||||
Percentage Of Common Shares Increase Automatically Each Year | 1.00% | ||||||
Period Of Plan Increase Automatically Number Of Shares | 487,643 | ||||||
Maximum Percentage Of Salary | 15.00% | 15.00% | |||||
Aggregate Limit Per Participant | $ 15 | ||||||
Purchase price of common stock, percent | 85.00% | ||||||
Number of Common stock purchased | 780,370 |
STOCK CAPITAL (Summary of the Activity in the Share Options) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
|
Number of options | ||
Outstanding at the beginning of the period | shares | 339,029 | |
Exercised | shares | (11,804) | |
Outstanding at the end of the period | shares | 327,225 | 339,029 |
Weighted average exercise price | ||
Outstanding at the beginning of the period | $ / shares | $ 50.64 | |
Exercised | $ / shares | 15.41 | |
Outstanding at the end of the period | $ / shares | $ 51.91 | $ 50.64 |
Weighted Average Remaining Contractual Term In Years [Abstract] | ||
Outstanding | 4 years 2 months 12 days | 4 years 10 months 9 days |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 28,935 | $ 79,414 |
Exercised | $ | $ 2,789 | |
Vested and expected to vest at the end of the period | ||
Number of options | shares | 326,961 | |
Weighted average exercise price | $ / shares | $ 51.79 | |
Weighted average remaining contractual term in years | 4 years 2 months 12 days | |
Aggregate intrinsic Value | $ | $ 28,931 | |
Exercisable at the end of the period | ||
Number of options | shares | 312,711 | |
Weighted average exercise price | $ / shares | $ 44.7 | |
Weighted average remaining contractual terms in years | 4 years 29 days | |
Aggregate intrinsic Value | $ | $ 28,736 |
STOCK CAPITAL (Schedule of RSUs and PSUs Activity) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 1,488,515 |
Granted | shares | 300,567 |
Vested | shares | (516,692) |
Forfeited | shares | (69,939) |
Unvested at end of period | shares | 1,202,451 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 232.05 |
Weighted average grant date fair value, granted | $ / shares | 234.72 |
Weighted average grant date fair value, vested | $ / shares | 192.22 |
Weighted average grant date fair value, forfeited | $ / shares | 262.12 |
Weighted average grant date fair value, end of period | $ / shares | $ 248.09 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 149,232 |
Granted | shares | 32,348 |
Vested | shares | (107,165) |
Unvested at end of period | shares | 74,415 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 295.88 |
Weighted average grant date fair value, granted | $ / shares | 314.22 |
Weighted average grant date fair value, vested | $ / shares | 296.76 |
Weighted average grant date fair value, end of period | $ / shares | $ 302.58 |
STOCK CAPITAL (Schedule of Stock-based Compensation Expense for Employees and Nonemployee) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 36,815 | $ 35,751 | $ 115,015 | $ 106,932 |
Total stock-based compensation capitalized | 1,077 | 881 | 2,925 | 978 |
Cost of revenues [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 5,882 | 4,660 | 17,732 | 15,008 |
Research and development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 16,481 | 14,553 | 50,962 | 46,357 |
Selling and marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 7,739 | 9,341 | 23,640 | 23,089 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 6,713 | 7,197 | 22,681 | 22,478 |
Inventory [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation capitalized | 655 | 765 | 1,666 | 765 |
Other long-term assets [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation capitalized | $ 422 | $ 116 | $ 1,259 | $ 213 |
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - 9 months ended Sep. 30, 2023 $ in Thousands, € in Millions |
EUR (€) |
USD ($) |
---|---|---|
Non-cancelable purchase obligations | $ 1,116,593 | |
Provision for loss | 13,463 | |
Contractual obligations for capital expenditures | 120,572 | |
Patents [Member] | ||
Value in dispute | € 5.5 | 5,830 |
Office rent lease agreements [Member] | ||
Guarantees amount | 5,804 | |
Projects with customers [Member] | ||
Guarantees amount | $ 1,821 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Beginning balance | $ (73,109) | $ (73,109) | ||||||
Net current period other comprehensive income (loss) | $ (6,517) | $ (228) | (4,095) | $ (38,646) | $ (43,553) | $ (18,748) | (10,840) | $ (100,947) |
Ending balance | (83,949) | (128,266) | (83,949) | (128,266) | ||||
Unrealized gains (losses) on available-for-sale marketable securities [Member] | ||||||||
Beginning balance | (18,611) | (25,449) | (18,777) | (4,709) | (25,449) | (4,709) | ||
Revaluation | 3,216 | (12,424) | 11,579 | (31,064) | ||||
Tax on revaluation | (654) | 2,694 | (2,257) | 6,522 | ||||
Other comprehensive income (loss) before reclassifications | 2,562 | (9,730) | 9,322 | (24,542) | ||||
Reclassification | 0 | 166 | 107 | 1,010 | ||||
Tax on reclassification | 0 | (15) | (29) | (115) | ||||
Losses reclassified from accumulated other comprehensive income (loss) | 0 | 151 | 78 | 895 | ||||
Net current period other comprehensive income (loss) | 2,562 | (9,579) | 9,400 | (23,647) | ||||
Ending balance | (16,049) | (18,611) | (28,356) | (18,777) | (16,049) | (28,356) | ||
Unrealized gains (losses) on cash flow hedges [Member] | ||||||||
Beginning balance | (1,776) | (1,761) | (3,642) | 874 | (1,761) | 874 | ||
Revaluation | (2,896) | (1,569) | (7,321) | (10,094) | ||||
Tax on revaluation | 183 | 170 | 460 | 1,166 | ||||
Other comprehensive income (loss) before reclassifications | (2,713) | (1,399) | (6,861) | (8,928) | ||||
Reclassification | 1,910 | 1,422 | 6,316 | 4,833 | ||||
Tax on reclassification | (120) | (163) | (393) | (561) | ||||
Losses reclassified from accumulated other comprehensive income (loss) | 1,790 | 1,259 | 5,923 | 4,272 | ||||
Net current period other comprehensive income (loss) | (923) | (140) | (938) | (4,656) | ||||
Ending balance | (2,699) | (1,776) | (3,782) | (3,642) | (2,699) | (3,782) | ||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature [Member] | ||||||||
Beginning balance | (50,695) | (37,960) | (52,750) | (17,420) | (37,960) | (17,420) | ||
Revaluation | (9,989) | (30,799) | (22,724) | (66,129) | ||||
Ending balance | (60,684) | (50,695) | (83,549) | (52,750) | (60,684) | (83,549) | ||
Unrealized gains (losses) on foreign currency translation [Member] | ||||||||
Beginning balance | (6,350) | $ (7,939) | (14,451) | $ (6,064) | (7,939) | (6,064) | ||
Revaluation | 1,833 | 1,872 | 3,422 | (6,515) | ||||
Ending balance | $ (4,517) | $ (6,350) | $ (12,579) | $ (14,451) | $ (4,517) | $ (12,579) |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Reclassifications of Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenues | $ 582,488 | $ 614,722 | $ 1,900,236 | $ 1,635,976 |
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Total, before income taxes | 159,543 | 137,594 | 482,462 | 412,318 |
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 |
Total, net of income taxes | (61,176) | 24,743 | 196,712 | 72,950 |
Available-for-sale marketable securities [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Financial income (expense), net | 0 | (166) | (107) | (1,010) |
Income taxes | 0 | 15 | 29 | 115 |
Total, net of income taxes | 0 | (151) | (78) | (895) |
Cash flow hedges [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenues | (219) | (157) | (734) | (542) |
Research and development | (1,138) | (808) | (3,789) | (2,841) |
Sales and marketing | (256) | (242) | (791) | (662) |
General and administrative | (297) | (215) | (1,002) | (788) |
Total, before income taxes | (1,910) | (1,422) | (6,316) | (4,833) |
Income taxes | 120 | 163 | 393 | 561 |
Total, net of income taxes | (1,790) | (1,259) | (5,923) | (4,272) |
Total reclassifications for the period | $ (1,790) | $ (1,410) | $ (6,001) | $ (5,167) |
OTHER OPERATING EXPENSE (INCOME) (Schedule of Other Operating Expense and Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Impairment of goodwill and intangible assets | $ 0 | $ 0 | $ 0 | $ 4,008 |
Sale of assets | 0 | (2,705) | (1,434) | (2,705) |
Impairment of property, plant and equipment | 0 | (19) | 0 | 660 |
Total other operating expense (income), net | $ 0 | $ (2,724) | $ (1,434) | $ 1,963 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Income Taxes Schedule Of Taxes On Income Details | |||||
Effective tax rate | 143.60% | 58.00% | 33.60% | 42.10% | |
Unrecognized tax benefits | $ 3,155 | $ 3,155 | $ 2,756 |
EARNINGS (LOSS) PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator: | ||||
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Denominator: | ||||
Shares used in computing net EPS of common stock, basic | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Numerator: | ||||
Net income (loss) attributable to common stock, basic | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Notes due 2025 | 0 | 551 | 1,608 | 1,651 |
Net income (loss) attributable to common stock, diluted | $ (61,176) | $ 25,294 | $ 198,320 | $ 74,601 |
Denominator: | ||||
Shares used in computing net EPS of common stock, basic | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Notes due 2025 | 0 | 2,276,818 | 2,276,818 | 2,276,818 |
Effect of stock-based awards | 0 | 740,392 | 584,725 | 820,489 |
Shares used in computing net EPS of common stock, diluted | 56,671,504 | 58,747,538 | 59,297,423 | 57,886,041 |
Earnings (loss) per share: | ||||
Basic | $ (1.08) | $ 0.44 | $ 3.49 | $ 1.33 |
Diluted | $ (1.08) | $ 0.43 | $ 3.34 | $ 1.29 |
Shares excluded from the calculation of net diluted due to their anti-dilutive effect | 3,349,756 | 138,916 | 1,251,243 | 181,802 |
SEGMENT INFORMATION (Narrative) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segment | 5 |
SEGMENT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 |
Gross profit (loss) | 142,817 | 222,001 | 760,248 | 583,601 |
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Solar segment profit | 45,677 | 126,734 | 459,400 | 324,689 |
All other segment loss | (22,612) | (6,498) | (61,581) | (32,598) |
Segments operating profit | 23,065 | 120,236 | 397,819 | 292,091 |
Amounts not allocated to segments: | ||||
Stock based compensation expenses | (36,815) | (35,751) | (115,015) | (106,932) |
Amortization related to business combinations | (2,750) | (2,559) | (6,164) | (8,039) |
Impairment of goodwill and intangible assets | 0 | 0 | 0 | (4,008) |
Disposal of assets related to Critical Power | 0 | 0 | 0 | (4,314) |
Sale of Critical Power assets | 0 | 1,559 | 0 | 1,559 |
Other unallocated expenses (income), net | (226) | 922 | 1,146 | 926 |
Operating Income (Loss) | (16,726) | 84,407 | 277,786 | 171,283 |
Solar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 676,410 | 788,610 | 2,532,275 | 2,084,206 |
Cost of revenues | 514,289 | 565,403 | 1,723,337 | 1,484,303 |
Gross profit (loss) | 162,121 | 223,207 | 808,938 | 599,903 |
Research and development | 56,293 | 47,943 | 174,218 | 140,215 |
Sales and marketing | 30,514 | 30,996 | 95,795 | 85,220 |
General and administrative | 29,637 | 17,534 | 79,525 | 49,779 |
Segments operating profit | 45,677 | 126,734 | 459,400 | 324,689 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,680 | 47,954 | 127,605 | 134,931 |
Cost of revenues | 59,780 | 42,594 | 153,927 | 125,883 |
Gross profit (loss) | (11,100) | 5,360 | (26,322) | 9,048 |
Research and development | 6,979 | 6,861 | 20,370 | 23,378 |
Sales and marketing | 1,777 | 2,202 | 5,367 | 8,059 |
General and administrative | 2,756 | 2,795 | 9,522 | 10,209 |
Segments operating profit | $ (22,612) | $ (6,498) | $ (61,581) | $ (32,598) |
SEGMENT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Solar revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 676,410 | 788,610 | 2,532,275 | 2,084,206 |
All other revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,680 | 47,954 | 127,605 | 134,931 |
Revenues from finance component [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 215 | $ 159 | $ 604 | $ 440 |
SUBSEQUENT EVENTS (Narrative) (Details) $ in Millions |
Nov. 01, 2023
USD ($)
|
---|---|
Subsequent Events [Member] | Common share repurchase program [Member] | |
Subsequent Event [Line Items] | |
Value of repurchase authorized | $ 300 |
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