SolarEdge terminated the agreement with flex Hungary
14 May, 2017
The production line will be transferred from flex to another manufacturing service provider in Central Europe. The agreement with Jabil remains intact. SolarEde revenues for the first quarter totalled $115.1 million
SolarEdge Technologies has decided to halt the production line of its Solar Inverters in flex Hungary, and transfer the line to another manufacturing services provider. Techtime has learned that the change will affect a special designed robotic production line operated by flex. SolarEdge is trying to further automate its production lines in order to achieve better yield and lower costs. The company develops the production process and utilizes tailored made production tools built for its specific needs. flex operates this kind of line in its production plant in Hungary.
Lior Handelsman, Co-founder and VP of Marketing & Product Strategy in SolarEdge Technologies, told Techtime that SolarEdge will move its equipment from flex plant to another manufacturing services provider in Central Europe. This change will not affect its relationships with Jabil, that operates production lines for SolarEdge in Europe and China.
In a SEC filing from May 10, the company refers to the production agreement change: “We depend on two contract manufacturers. We have recently entered into an agreement with an additioinal contract manufacturer and are in the process of ramping up manufacturing with the new manufacturer. During this ramp up period we will mainly rely on one contract manufacturer”, means Jabil.
Maximizing power generation
SolarEdge Technologies provides 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. The Company’s products consist mainly of power optimizers to maximize energy throughput from each solar panel and module, inverters which invert direct current (DC) from the PV module to alternating current (AC) and a cloud-based monitoring platform to monitor and manage the solar PV systems.
Better than expected quarterly results
SolarEdge’s revenues for the first quarter of 2017 totalled $115.1 million, and net income was $14.2 million. During the quarter it shipped approximately 455 Megawatts (AC) of inverters to customers. “In a quarter where the PV market is exhibiting decline in the United States, we have increased our revenues, profitability and cash flow,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “Much of this is attributed to increased sales in Europe and our growing worldwide geographic spread.” Following the report, SolarEdge price in NASDAQ jumped from about $15.8 to about $17.8, and it market value reached to approximately $727 million.
SolarEdge’s Robotic prodution line: