Solaredge, a technology company that provides solutions for the solar energy sector, had another weak quarter in the first quarter, with no sign of recovery yet. The company has been struggling with declining demand for several quarters due to high inventory levels held by distributors. First-quarter revenues were higher than analysts’ forecasts at $204 million, but still fell by 78% from the corresponding quarter. Solar sector revenues also fell by 33% to $190 million.
Solaredge reported a gross loss of $26.2 million and a net loss according to GAAP rules of $157 million, compared to a profit of $138 million in the corresponding quarter. The company’s cash flow from operations was negative at $217 million, and cash in the treasury decreased by $124 million to $214 million in the quarter.
For the second quarter, Solaredge expects revenues of $250-280 million, which is an improvement over the first quarter but still a decrease compared to the corresponding quarter. The company plans to focus on new products in preparation for the next growth cycle in the industry. After announcing layoffs of 900 employees earlier this year, Solaredge is currently trading at around $3 billion on Nasdaq, significantly down from its peak value of $20 billion.
