SolarEdge Technologies 8-K Filing

TL;DR

SOLAREDGE filing 8-K on exit/disposal costs, details TBD.

AI Summary

SolarEdge Technologies, Inc. filed an 8-K on November 27, 2024, to report on cost associated with exit or disposal activities. The filing does not contain specific dollar amounts or detailed explanations of the exit or disposal activities within the provided text.

Why It Matters

This filing indicates potential restructuring or divestiture activities by SolarEdge Technologies, which could impact its future financial performance and operational focus.

Risk Assessment

Risk Level: medium — The filing indicates potential restructuring or disposal activities, which can introduce uncertainty and financial risk.

Key Players & Entities

• SOLAREDGE TECHNOLOGIES, INC (company) — Registrant
• November 27, 2024 (date) — Date of report
• 1 Hamada Street, Herziliya Pituach, Israel (address) — Principal executive offices

FAQ

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share SEDG NASDAQ (Global Selec
• $81 million — on and asset-related charges of between $81 million to $99 million, primarily comprised of
• $99 m — lated charges of between $81 million to $99 million, primarily comprised of between $
• $40 million — million, primarily comprised of between $40 million to $49 million of asset-related and imp
• $49 million — ily comprised of between $40 million to $49 million of asset-related and impairment charges
• $30 million — related and impairment charges, between $30 million to $37 million of costs related to inve
• $37 million — airment charges, between $30 million to $37 million of costs related to inventory write-off
• $4 million — -cancelable purchase orders and between $4 million to $5 million of severance and related
• $5 million — rchase orders and between $4 million to $5 million of severance and related benefit costs
• $38 million — e charges are anticipated to be between $38 million to $46 million, primarily related to th
• $46 m — nticipated to be between $38 million to $46 million, primarily related to the payment

Filing Documents

• zk2432400.htm (8-K) — 40KB
• exhibit_99-1.htm (EX-99.1) — 14KB
• image00002.jpg (GRAPHIC) — 8KB
• 0001178913-24-003848.txt ( ) — 206KB
• sedg-20241127.xsd (EX-101.SCH) — 4KB
• sedg-20241127_lab.xml (EX-101.LAB) — 21KB
• sedg-20241127_pre.xml (EX-101.PRE) — 16KB
• zk2432400_htm.xml (XML) — 4KB

05. Costs Associated with Exit or Disposal Activities

Item 2.05. Costs Associated with Exit or Disposal Activities On November 27, 2024, the Company announced the discontinuation of its Energy Storage Division (the "Discontinuation"). Under the Discontinuation, the Company expects to reduce its headcount by approximately 500 employees, primarily employees working in manufacturing positions in South Korea. This Discontinuation and associated headcount reduction represents approximately 12% of the Company's overall employee population, almost all of whom will be dismissed over the first half of 2025. A copy of the press release announcing the Discontinuation is attached hereto as Exhibit 99.1. The Company is taking these actions as part of its execution of its commitment to focus on its core solar activities. The adoption of the Discontinuation follows the Company's previous measures, which the Company has already taken to align with current market conditions, including the global workforce reduction and the adjustments of its manufacturing capacity in its solar activities. In connection with the Discontinuation, the Company expects to record aggregate pre-tax Discontinuation and asset-related charges of between $81 million to $99 million, primarily comprised of between $40 million to $49 million of asset-related and impairment charges, between $30 million to $37 million of costs related to inventory write-offs and non-cancelable purchase orders and between $4 million to $5 million of severance and related benefit costs (excluding stock-based compensation expense). Reductions in the workforce are subject to local regulatory requirements and the related charges will be recorded mostly in the fourth quarter of 2024 and in the first quarter of 2025. Asset impairments and inventory write-offs and non-cancelable purchase orders costs will be recorded mostly in the fourth quarter of 2024. Future cash payments related to these charges are anticipated to be between $38 million to $46 million, primarily related to the paymen

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description Exhibit 99.1 Press release, dated November 27, 2024 Exhibit 104 Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SOLAREDGE TECHNOLOGIES, INC. Date: November 27, 2024 By: /s/ Rachel Prishkolnik Name: Rachel Prishkolnik Title: Vice President General Counsel and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR