The share of SolarEdge Technologies Inc.(Nasdaq:SEDG), whose IPO was held in March at $18 a share, now carries a $38.67 price tag, meaning that the company's market cap has doubled to $1.5 billion. At its peak, the share was traded at $40.81, and is now just 5.2% below that point. The company raised $144.9 million in its IPO, although its offering did not include an offer for sale.
SolarEdge was founded in 2006 by CEO and chairman Guy Sella (50), VP marketing and product strategy Lior Handelsman (40), VP R&D Yoav Galin (41), VP core technologies Meir Adest (39), and chief software architect Amir Fishelov. The company, which develops and manufactures solar energy optimization and monitoring systems, was selected as one of the "Globes" most promising startups for 2010. SolarEdge's system makes it possible to utilize more of the energy absorbed by each of the solar collectors, while providing real time data for their production.
One of the reasons for the surge in the share is the company's first quarter financial results (the third quarter of the company's fiscal year, which ends on June 30). The company had $86.4 million in revenue, reflecting quarterly growth of 17.9% and annual growth of 182.7 million. Non-GAAP net profit amounted to $8.7 million, $0.20 per share, compared with $0.12 per share in the company's second fiscal quarter and a $0.19 loss per share in the corresponding quarter last year. The offering boosted the company's cash to $138.8 million, and its balance sheet is free of debt.
Gross profit, an important measure of the company's success, totaled 27.6% last quarter, compared with 20.5% in the corresponding quarter last year.
SolarEdge also provided an encouraging forecast for the company's fourth quarter: $92-96 million in revenue and 26-218% gross profit. The forecast multiple for the company's fiscal year, which ends in June 2015, is 71.2
Sella is the only founder who still holds shares in the company., with a 1.6% stake worth $24 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2015
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