Solaredge, a technology company that provides solutions for the solar energy sector, had another weak quarter in the first quarter of the year. The forecast for the second quarter does not indicate a recovery is imminent. Two weeks ago, a competitor’s reports suggested a delay in market recovery, causing Solaredge’s stock to fall. After releasing its reports, Solaredge’s stock dropped by 8.5% in late trading.
The company has been experiencing a decline in demand for several quarters due to high inventory levels held by distributors. Revenues in the first quarter were higher than analysts expected at $204 million, a 78% drop from the corresponding quarter. Revenue from the solar sector decreased by 33% to $190 million. Most of the revenues came from Europe and the USA.
Solaredge reported a gross loss of $26.2 million and a net loss of $157 million according to GAAP rules. The company experienced a negative cash flow from current operations and used $33 million to purchase its own shares. The company expects revenues of $250-280 million in the second quarter, lower than analysts’ expectations.
Zvi Lando, the CEO of Solaredge, stated that the company anticipates an increase in solar system installations in the second quarter, leading to a decrease in inventories and improved revenues. The company is focusing on new product launches in preparation for industry growth. Earlier in the year, Solaredge announced layoffs of 900 employees.
Solaredge is traded on Nasdaq and is currently valued at approximately $3 billion. At its peak, the company’s value approached $20 billion. The company’s stock has experienced fluctuations following the release of their financial reports.Expressions of violence, racism, or incitement are filtered out and not published on the website.