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SolarEdge Technologies Inc. (SEDG-1.77%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a significant decrease in revenues to $260.9 million from $725.3 million in the same quarter the previous year, attributed to a slowdown in demand and high inventory levels in distribution channels.
Cost of revenues increased to $963.2 million, leading to a gross loss of $702.3 million, compared to a gross profit of $142.8 million in the previous year. This increase is primarily due to inventory write-downs and price reductions.
The company reported a net loss of $1,205.3 million for the quarter, compared to a net loss of $61.2 million in the previous year, largely due to impairments and restructuring costs.
Research and development expenses decreased to $70.4 million from $80.1 million, reflecting cost-cutting measures and workforce reductions.
Sales and marketing expenses fell to $37.4 million from $40.4 million, with the decrease attributed to reduced personnel costs.
General and administrative expenses increased slightly to $41.2 million from $39.1 million, driven by higher doubtful debt expenses.
Other operating expenses rose significantly to $233.9 million, primarily due to impairments of property, plant, equipment, and intangible assets.
Cash used in operating activities was $325.7 million for the nine months ended September 30, 2024, compared to $40.2 million in the previous year, reflecting the impact of the net loss and changes in working capital.
SolarEdge's liquidity includes $303.9 million in cash and cash equivalents, with additional investments in marketable securities.
The company announced the repurchase of $50.3 million in common stock during the nine months ended September 30, 2024, as part of a share repurchase program.
SolarEdge's report highlights the impact of geopolitical events in Israel and the ongoing war, which have affected its operations and employee availability.
The company continues to focus on its Solar and Energy Storage segments, with revenues from the Solar segment decreasing by 63.4% and the Energy Storage segment decreasing by 55.0% compared to the previous year.
SolarEdge's management has implemented a restructuring plan to align with current market conditions, including workforce reductions and the discontinuation of certain activities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SolarEdge Technologies Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.