Smart energy solutions provider SolarEdge (NASDAQ:SEDG) said in its second-quarter earnings report that its overall business remained strong as rising international sales compensated for declining demand in the U.S.
SolarEdge said it shipped 1.44 gigawatts (GW) of solar panel inverters for the quarter, up 11% year over year, but down 22% from the first quarter of 2020.
Similarly, revenue from its core solar business rose 1% compared to Q2 2019, but dropped 24% from the first quarter. Strength in the Netherlands, Germany, Italy, and Australia bolstered its business as sales in the U.S. declined.
Gross profit margin shrank compared to both the previous year and the previous quarter. Margins from solar product sales were 36.4% a year ago and 34.6% in Q1 2020, versus 33.1% in the latest quarter. The company estimates that gross margin on solar product sales in the period that ends Sept. 30 will land in the 33% to 35% range.
Chief Executive Officer Zvi Lando said he was "satisfied" with the results considering the backdrop of the COVID-19 pandemic. He noted that 40% of the company's solar business comes from the U.S., which was heavily impacted by the pandemic. He also pointed out that the company started to see domestic sales and installation recovery in May and June.