Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG) saw its share price rise 33% last week, during which it announced that it is closing its energy storage division in Korea. Since its low-point last month the share price has risen 50.9%.
SolarEdge, currently managed by interim CEO and CFO Ronen Faier, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar energy arrays. Despite its recent gains the company’s market cap of $917 million is a small fraction of its peak market cap of $19 billion three years ago.
The company has been coping with changes in the solar energy market that have hit its results. Last week’s announcement of the closure of SolarEdge’s energy storage division is designed to strengthen the company’s financial situation as its strives to return to profitability and create a positive cash flow, as it once again focuses on its core business. The division being closed, which has had revenue of $43 million since the start of the year, down from $52.5 million in the corresponding period of 2023, involves layoffs of 500 employees. Losses accrued from the operations of the division this year have totaled $113 million, double the losses during the corresponding period of last year.
Published by Globes, Israel business news – en.globes.co.il – on December 1, 2024.
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