SolarEdge (SEDG) 1 Nov 232023 Q3 Earnings call transcript

Welcome to the SolarEdge Conference Call for the Third Quarter ended September 30, 2023. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Event Calendar page. This call is the sole property and copyright of SolarEdge with all rights reserved, and any recording, reproduction or transmission of this call without the expressed written consent of SolarEdge is prohibited.

You may listen to a webcast replay of this call by visiting the Event Calendar page of the SolarEdge Investor website. I would now like to turn the call over to J.B. Lowe, Head of Investor Relations for SolarEdge.

good and Leo, you, afternoon, everyone. Thank quarter for for the you well the the joining XX, us results operating as fourth for outlook SolarEdge's discuss company's XXXX. third as to XXXX, Thank of quarter September ended Executive With Faier, and Chief Lando, Ronen Officer; me Officer. Zvi today are Chief Financial results XXXX. will Zvi the with quarter third brief a the begin ended of review for September XX, the quarter financial then for the by review of followed fourth the the results company's will for Ronen quarter, outlook XXXX. third

the the XXXX, a material or not have section obtain company's with for copyright the with measures not and webcast with website. copy in supplemental superior questions. Please could We quarter isolation understanding SolarEdge the believe how risks of GAAP. The company's from, materially contained today do note release this open net a Relations presentation are performance. the evaluating results complete call GAAP. filings measures call considered safe of that include All with non-GAAP and U.S. operating forward-looking involve including current may by net this which the encourage measures, differ then that will and in review substitutes Listeners description to means the These prepared not financial in copy XX, all press income are the be the who the because risks describes they visiting the reserved. and our of press note, share, harbor September will presented We the ended and per slides non-GAAP management property expectations. accordance Investor accordance with U.S. for or we diluted of prepared to of uncertainties. from management's non-GAAP sole more this for release such to cause statements published measures measures earnings and presentation non-GAAP Please in that certain you our material statements provide evaluates non-GAAP contained rights that as uncertainties should actual investors Technologies, a is the company's SEC in in

Now to Zvi. call turn will I the over

J.B. you, today. our us thank on Good you Thank afternoon, call all joining conference for and

As reflected and ago, today. are in few preliminary guidance announcement a our in weeks giving the we

We in are today, challenging going products. dynamics In related times call megawatt our how the and of terms inventory distributors and of through latest we and and market future of aggregated details general estimate revenue will to in specific share will take level. of quarter sales to the reach the near some sell-through third regions the long our levels business estimates data it in from underlying associated trends

Before picture, I getting perspective. into regional high-level to start want the with

to and supply led an which surge Indicators beginning particular, would in in that attributed demand other faced geopolitical increase the operational products, particular, demand, industry because discussed over this This to backlog and demand. reasons XXXX, XXXX, to the in significant at half time, where the During of challenges unprecedented went our through of our for second in in our in we a to prior calls. Europe. buildup particular in year, of we continue XXXX,

of high to late XXXX. in early our inverters the was were in commercial XXXX low dramatically supply this demand and improved in X-phase Specifically, that supply part related and

which offering released we were XXXX, of and backup early customers to adopt. in waiting for a residential in our Europe and battery, Additionally, invertor differentiated excited a X-phase

record we process of our result a levels demand. in were channel As these the elevated capacity the at in of XXXX of shipments increasing were first and to the factors, half meet

financial and distributors the challenges. slow to began in to However, market demand quarter experience began third

distributors, these orders the received or nature out note most on our push cancel amount orders. relationship we these that customers that to technically a accommodated requests. We As should our large of is a of requests with while these result, binding we such of are

quarter fourth Ronen in and margin term. I a our revenues on putting we As has burden short-term the the inventory we how will quarters, the anticipated are demand a that will revenue level significantly we on revenue corrections, built the are and describe recent pressure third the reflects quarter impact believe near to a of infrastructure sales financial and margins taking. run when our reach lower expected support while post growth market infrastructure result, rate that created than in stabilized is elaborate our actions and will our

the business of were concluded our quarter our results. with while $XXX third Now Revenues quarter approximately highlights from $XX let's million. nonsolar of million. were revenues million, businesses over revenues We $XXX go the solar our from

This shipped optimizers and million XXX,XXX quarter, we power X.X inverters.

quarter, we XXX-megawatt residential this from quarter. hours down shipped XXX-megawatt batteries, hours last Additionally, of

Our revenues and slowdown inventory in market solar XX% by year-over-year, by and high the business our declined XX% by driven channels. quarter-over-quarter of products

Moving Starting dynamics. Europe. now to market-by-market in

part cancellations the during quarter, unexpected backlog second we pushouts existing described, significant experienced and distributors. of our European from the third already of As

the Although greater are magnitude quarter what than call, much our during the earnings anticipated. cautioned we second with consistent dynamics grew we

We year in which which solar diverse be on the track year. indicating than with market and give more in strength in by X.X inverter we approximately our The XXXX. order countries expected introduced and this hub XXXX, trend, compared April also for this is goal XX market. regulatory XXX Europe, of color gigawatts energy to we what solar on of gigawatts of to in to installation optimized are X-phase connect I market with operate. According Germany, German has the note own announced long-term require X-phase per-country the dynamics. the government per year, of residential a one, reports, market. environment largest in the long-term on German annual to and achieved, would Consistent which the reach in battery to of that to our this gigawatts XX is grid country the a rooftop some comes its gigawatts some see will European market each energy-related is a basis top

from year-over-year adoption typically see We down which as and to X/X a of the in in Austrian about seen demand continue up the same and of expected quarter. in portfolio similarly grow grew quarter perspective, this XX% and sell-through of solution. From Germany, our second The to products the utilize peak good levels revenue the revenue-wise so size in Germany, the XX% and was are Swiss are Germany continue our in quarter-over-quarter in to third market XXXX XXXX. significantly far of

was In XXX% XX% year-over-year record quarter-over-quarter. through Down up markets us was revenue in for are continue in in these markets and and up growth XXXX. we quarter these fact, QX to well positioned Switzerland a in

market. in of platform and energy in which and in is June. the system net ONE believe the from become increased SolarEdge is long in number the favor of the uncertainty policies to in to installations at Netherlands. will market of dynamic to November. Intersolar dramatically The around phaseout government Moving capabilities in elections metering down term That after net of we with implementation that with our likely this to due the full home that there launched the work advanced metering Netherlands peak the we are the said, similar batteries, trends charging clearer may increase and The mid- management phaseout tariffs combined several levels EV

that X-phase built the the given base credit chargers Additionally, Italy, residential market with for residential potential push which additional use with the large our homes our bonus of residential well been earlier. leadership with tax X% has EV installed been as retrofit on Furthermore, sluggish and for products These X existing SolarEdge products, upsell enabled be could the up installations batteries and new And we country. of market in best Belgium Netherlands XX%. been point differentiated as has a we successful has great in depending changes to for a market This quarter-over-quarter. In year-over-year and Germany software market and by described regulation, X-phase in year-over-year including products sale one opportunity is since Netherlands of traditionally this declined down a what in as this year. have of service market. earlier combined have were our the saw there this ended our in XX% been and single-phase a in offering of super capabilities,

offset the On has significant and largely seen has the growth market in decline residential the the commercial hand, other market.

Our point-of-sale the were the in the was year-over-year our up the products in Italy Italy in strong XXX% All data and quarter. sell-through market in for demand XX% underlying XX. up down ended September X-month X% in third year-over-year Overall, European megawatt commercial in was all, period quarter-over-quarter.

quarter-over-quarter. third into an quarter down the buildup XX% aggregated to earlier. our heading sell-through and XX% year-over-year below year, was I in in Europe, basis, much up the expectation the the On described inventory Although that leading elevated

a sell-through for data, market up seen related quarter we uncertainties slight in quarter-over-quarter. commercial Battery possibly The adversely U.S. and adoption to In In X.X availability pace significant was appear our still be systems modules. dynamics around since of forward, and improvement the XX% that of sell-through of to Moving rates projects XX% are quarter in have quarter-over-quarter. on down as is not change California. moving we seeing third by quarter-over-quarter was hold X% to NIM impacted up a were being our the second market low-priced commercial, in high interest call. residential the was

third and sell-through not discuss quarter we baseline We noninventory new of to separately see products Using at we This the data coming quarters currently improvement revenue rate several environment. to positive by a modeling normalized from million are are margin data the model working overall rest largely are the the market will do market down were dominated we to think quarters. into revenues the time in dynamics, dynamics shifts use X change it data approximately that following for of next improvements third looking other. received market over share dynamics we include and estimate the Local a and discussed inventory additional of markets did run these inventory rest rate environment, potential sell-through X a a that which challenge higher which by revenue of correction in relatively patterns our and we XXXX offsetting dramatic countries $XXX by not in world distributors, take run quarters. In quarter quarter. the Taking world, could these the represented from We we installations, demand this as inventory account the to we revenue gradual per the estimated for level each have expect of significant impacted we to the million $XXX corrections. our indicates take above without continue interest commercial of for The in quarter-over-quarter. signs. our the model will that are stable, level and used specific largely see on revenue and

Moving to the side. operational

China. We reduced our discontinued projected align in course, taking adjust are, we run ramping to In we where cost Energy to are up parallel, already to in fourth manufacturing base our Hub with we products capacity business. the inverters Mexico quarter, reduced of units of and manufacturing our to measures in To per XX,XXX ship U.S. quarter. of of ramping have facility, expect this in level demand, a XX,XXX rate

second reduction revenue for levels as which to of Additionally, step We e-mobility will is the his comments. inverters intend on and delivered making commercial continue activity, quarter cost additional our final a of kits we vehicle rate to in producing profitability light [indiscernible] Stellantis in to we such, the which decision second commercial the by to October. non-core. discontinue adjustments to as optimizers discussed earlier, at Ronen our elaborate of are we achieve run XXXX. An begin And consider targeting

following and first U.S. applications. Moving that community solar XXX-kilowatt inverter our running in on some Asia. recently agri the This is to have specifically TV similar in and products. Europe for product been We time installed targeting installations

the fourth ago. XXXX. the deliveries We months ground expand quarter mount tracker in globally these product will for applications in further we released will a our be few for ramping This beyond production offering that

our the the repurchase up in approval by address which the through would million our to our of of a affecting Israel are growth of program is the share The of of company. quarter, repurchase authorizes situation stock to plan it company. reflects announcing XXXX. I our This $XXX and Directors the future ongoing in company's we how confidence like Board also now

corrections, remarks, business our between disruption projects and XX products, sure no the of to upcoming This, a ability products we XX market solar coming our now hand the conclude customers. services to market. On have rate products resources first impact share should this, we for for which over manufacture our opportunity has of new months. represents position minimum. sales to on will for we and recent gaining our deliver is above of force than our while been workforce, the the and it reserve approximately top projected a and half the made fourth in together and global developed inventory incremental growth to year. I our at with level my quarter entered for from strong and To new have the up to have make is based the focused XXXX XX% faster We create segments core duty, Israel-based improvements market reduced global revenue in of last an Approximately to to X% Ronen. is the the our energized at the on believe our to in portfolio workforce products setting and and demand that we prioritizing our aside are is underlying seen our reallocating called

million of Thank profit is you, is press review certain comprised release everyone. not and pro Full do stock-based of Gap] compensation of for and revenues. quarter solar include last impairments on a for afternoon, last that profit same million in a our XX% quarter third results quarter $XXX.X compared our million, forma less from the available last sales and for XX% decrease GAAP last GAAP a which non-GAAP approximately items. Total the segment, segment, goodwill assets, $XXX.X good compared issued today. quarter our from million solar residential were includes website Zvi, financial revenues and in batteries expenses decrease compared purchased same this discussion. of call on [Audio intangible amortization include the the gross This discussed $XXX.X decrease were expenses to the $XXX.X Revenues representing to quarter the year, the operating a a reconciliation and intangible XX% to trackers million of to and Segment decrease the XX% year. other of $XXX.X assets and and XX%

accumulation were our meaningful XXX Europe of the a flat representing Europe, quarter sales quarter-over-quarter million, million [Audio saw decrease a shipped from Gap] World $XXX.X from last the quarterly last XX% our XX% X.X and Europe grew revenues last solar and quarter a the same Rest across of in revenue with of increase of board X% Solar the revenues. In Germany year, [Audio and X.X quantities a Rest solar led from customers in inverter Gap] to the we compared XX% the noticeable the megawatts basis, demand third declines of in [indiscernible] United France, [indiscernible] lower to quarter world, drop revenues high. lower quarter of to World customers inverters we by were this revenues by decrease approximately of demand record and quantities of megawatt $XX.X by than megawatts Gap] large rest XX%, in channels. revenues. On were totaling beginning grew last where the than solar shipments. reaching anticipated of of a And quarter lower States, channels. gigawatts quarter our XX% year, of in the in batteries to a combination representing inventories to compared of the gigawatts to attributed an [Audio Europe large to solar XXX our X% the the revenues are

related ship to we catch with During ratio the Optimizer continued optimizers quarter, to previous a up of to higher order inverters in sales.

of In of our compared we XXX-megawatt Since shipped gigawatts of XXXX. hour batteries, X.X in X.X to were shipments ship commercial last and quarter, of third shipped the residential. decrease have commercial megawatt products remaining quarter. the residential beginning products we XX% quarter, the gigawatt all hour worldwide the from the During of a were year, the our XX% approximately XXX-megawatt

quarter, selling United sales from decrease $X.XXX our sales during euro. last increase prices not our States. the weaker While quarter increase weight result the remained battery we is in a $X.XXX, inverters United and per in this a battery quarter. change this quarter. of commercial battery watt optimizer our in Average per in was did overall States to significantly, mix the ASP This lower XX% revenues a In continue watt mix Europe and in of rates relatively an shipment the stable, installation in excluding see a decrease decreased general, predominantly steady the

an million quarter GAAP from Our quarter. year. hour $XXX battery kilowatt million, a our down margin margins same this $XX.X last were last XX.X% a Gross the to XX% $XX.X Non-GAAP in from quarter XX.X% like last on increase was and in the in in euro. Consolidated result ASP in quarter XX.X% the prior prior quarter XX% quarter per last solar our from for from the was was same XX.X% quarter this now the and slightly from segment segment $XXX, down third last fourth quarter quarter quarter, XX.X%, to compared down Revenues was ahead. mostly year. of prior XX.X% and the XX.X% to weaker gross address for nonsolar for gross quarter the same color the quarters in margins margin the gross and the the quarter the and compared provide would in quarter decrease year. I

sold costs manufacturing variable product the that et and costs, to logistics comprised Our expenses, of as are are correlated volume mix of shipping cost shift, goods cetera. and such

that and amount margin, optimizers when not to the revenues. some also time that basis segment quarter-over-quarter points result significant percentage operations, service have to points and our revenues. Of were support third to customer basis over existing are lower contract related and XXX to portion in of to basis of total process storage approximately installed an we absolute attributed underutilization our and associated basis our even our to of These indirect and et related in portion operation mix These in allocation of higher reduction correlated of that within product to commercial the dollar. product the support manufacturing mostly in volumes Noteworthy products of such abnormally not mix, points expense base the quarter, points growing X,XXX are have are of economies organizations the volume be are related and of solar costs is lower absolute onetime indirect devaluation require down against of mix decline related XXX costs quality The the our to and will related change manufacturing to changes our are the we of indirect growing and euro claims to points Around or value. remaining to a The base. to and scale across U.S. to costs the in manufactured warranty cetera. with lower increased higher revenues adjusted costs we a the again warranty decline. XXX and as significantly worsen levels usually costs costs the X/X due not low. department, are quarter-over-quarter Approximately a And to shipped on a revenue of remaining over to installed the recorded do related in the XXX basis allocation quarter quarter Mexico. other existing and fourth them base, actions basis. these the are made specific, addition, In expect costs adjustments the lower due in manufacturers. In as is fourth logistic be the persist of contract expenses costs discontinuation costs revenues

of the was of return same next a the Gross to last XX.X% revenues $XXX.X generated in to the $XXX.X in prior and will gradually same and our million quarter. Solar non-GAAP $XX.X period quarter, from for was quarter minus the level. segment for weaker operating financial $XX.X compared was $XX.X a income $XXX quarter million quarter the second a improve of was quarter margins million revenues million we previous our the quarter the The to for the year. quarter. On were XX.X% and million million million of normalized the last of a revenues to minus cost million and income expect year. this during for more basis, We in to for compared to quarter expenses as previous down the loss compared non-solar $XXX.X The continue the generated a first compared X.X% largely of revenues of year previous reduce the margin million XX.X% operating of quarter. $XXX loss an or income quarter. or operating XX.X% or Non-GAAP an to million for last the result $XXX the nonsolar quarter operating second segment in in financial non-GAAP million segment loss operating Non-GAAP in compared loss quarter. previous $XX.X to $X.X euro in of million $X.X as The

temporarily non-GAAP $XX.X due as expense quarterly compared the calculation same related as tax $XX.X expenses to the million million was Our the for higher of million purposes The is to unusual rate the for methodology. and tax previous $XX result amortization in well tax to quarter tax year. last mostly period R&D

our net expect net previous tax a non-GAAP rate quarter for third quarter XXXX the quarter GAAP to in same to year. $XX.X the the loss income of last for within net the income million in million XX%. of was to be million $XXX.X GAAP GAAP and compared entire We annual XX% $XX.X

earnings same same the and Non-GAAP diluted in per share last diluted $X.XX diluted net the year. and the compared to $XX per quarter of income the $X.XX was net non-GAAP the in of the previous Our a loss compared same $XXX.X previous last net diluted net non-GAAP per earnings third a share the $X.XX million non-GAAP year. GAAP a and loss earnings of was $X.XX year. quarter net non-GAAP in per $X.XX per quarter quarter income of in quarter GAAP to share share diluted for million net of share $XX.X diluted net previous was in quarter compared share quarter to net net last million loss a non-GAAP GAAP a earnings per for $X.XX of

after to inventory credit Under approximately As points of $XXX gross the to Zvi, from levels solar stabilized benefits basis non-GAAP including XX% targeted run be its expect course, corporate million we mentioned to by scenario, be to has approximately revenue are correction $XXX this will that margins the million XX%, XXX quarterly. operating and IRA and and reduction from are cost to from improvement scenario reiterate levels manufacturing after on profit XX% margin XX% I that activities. targeted at third implementing demand margins tax no new is be quarter products. incremental assumes our in or revenues based this no sell-through

the Turning sheet. balance now to

As restricted amount of XX, and million. cash cash, billion. $X.X September debt, XXXX, deposits $XXX.X of were bank investments equivalents, deposits, Net is this

by generated cash increase materials $XX.X quarter, This and finished from inventories our as was account in offset reduction operations goods inventories. receivables in were million partially raw a an

As from handling to the payment operations This representing from we $X.XX third inventory compared operations in decreased anticipated, in than outstanding. in quarter, in to provided billion million customers, to swung Europe this in to to to extended outstanding as days see them especially resulted net described. levels the assist flow generation greater XXX and customers' cash desired, with we we last higher quarter back flow quarter. previously terms increase cash from sales days order Accounts $XXX quarter, expect had receivable fourth our

of million raw abrupt the offset billion solely inventory. to September in of increase The shipments, to compared a slowdown attributed at the net decrease quarter. is material was in XX, $XXX.X $X.X a higher As result last level in our by reserve finished goods inventory inventories, of

a quarter of We're to million for range guiding XXXX. fourth guidance our million. to the to be of $XXX Turning $XXX revenues within

We points range IRA expect manufacturing to non-GAAP within including X% of be of a tax net margin XXX credit. gross X%, basis to approximately

for $XXX to points expected million. to the it the be credit. I expenses million is be open our within $XXX Gross segment approximately from IRA non-GAAP basis including We net the Revenues expect from to manufacturing $XXX range of our the operator of tax to be the operating solar $XXX within segment million. to call expected margin to now are the XX%, questions. over X% range range of turn of within will up to to XXX solar million

question [Operator Instructions]. of We'll from first take Shen MKM. our ROTH Philip

correction I explore the wanted some to more. cadence

range, or to you subsequent to $XXX X have X revenue X the relates X talked you this things the QX, about could gradually grow it and to $XXX coming million As in quarters to quarters. million how

So X is either $XXX X kind be number similar the well? it when $XXX of here for you you well? for QX it X in this do could margins, we challenge you as way, get of to margin front to gradually next to you quantify do relates million. kind of to post jump talked X could to has the then much revenue very a sketch more you improving, same very any then in in right reasonable. through And QX, or as year X as quarter million for do -- mix that to that with can You the but things about QX, QX, of was guide Would mix. you're your And and back even correction, with once expect away

Phil. Okay,

me. thank I not, hope you for correct First and if everything, of capture I'll please that the I all, question,

them, And now right did But normalized basically overall start saying we're and the U.S., rest analyzing see at on forecasting right of them remarks. prepared in that we've in look of that cadence basically we world, level. markets XX% Zvi of we we will compared as we data, looking the of shipments the Europe we by I the that that the we the changes, rate his see the approximately in and our numbers particular, were at are because seen changes that based of sell-through that now, mentioned when to analyze the representing So are that a fact relatively complicated way fast.

it when is say, a between Now correction, I the and would U.S. Europe. of difference, to the bit there little comes

actually or QX, see, quarter to we usually to The a that a it's QX important the compared bit winter, because, to you down winter, let's we Europe saw you be QX, looks a this role. changes then as to like. revenues -- QX of lot should light that necessarily and as of will then flatter line you here, therefore, bit than we've QX on, a it for growth a predictable third see of inventory If even is our do distributed. a winter bit grow but manner. already not the and little steeper then phase, where year, They in a a a QX If channels, not residential example, run from in the, revenue of little way beginning let's U.S., a We composition comes of a quarter back Europe, they we commercial, on to and evenly need more it a of QX because, than will right see we mentioned bit to growth though in a maybe it's you The a of of relatively higher behaving then of sorry, see heavy growth be of single QX. and in first the plays And shipped we First slower within be all, last quarter, or bit from that in overall see in from should is was see not commercial to do it U.S., little and hard end where the the higher will faster. since little both how inverters bit a a believe of increase. When optimizers We little to distribution second with the see growth see that of of be seasonality. predictable. do installations, expect understand of bigger starting the in little situation revenues the that a out a are is very year, than this lot a that to QX and it and now, little you have at all, a bit going market products, in believe therefore, commercial compared reliance into relatively will linear QX then -- compared to say, linear see in the expect is may some channels the Europe to a lower because a slowdown we again, the say, are is level more relatively quarters, winter we going we inventory And going a up last products. QX optimizers. that higher the we

QX so to let's end in the And the relatively see would slowdown little be, linear is can similar following say, bit of don't a therefore, would with to you of from And this maybe much of the the see, quarters, revenues, You to growth. expect year. we quarter I because seasonality say, relatively of I see. with as world rest expected small a similar say,

a beginning the million the winter will million point little going we see a going little we'll to that simply And The see product now, how thing the see pretty I third how will drop of a items. Because normalize similar I look away. From is we're we of say, overall now view, little that on is to materials then, does X. changes of QX do to expect yes, see, be be growth summarize that relatively variable would again, X impact we course, the from at pay that with at world like. the winter from I happening inventory it's clearing a be if again, for which as materially. $XXX of major is should until to things is should and to million, of they would try into, U.S. lighter, on the, bit So nonvariable are bit right bit how should be QX we see really all something QX, a I'll the million, $XXX QX. call, The not forward move need bit the to we do get linear of next rest a view, develops quarters. because say, today, a we say, to -- relatively linear. where would QX seeing If pretty $XXX supposed be that price see in But and bill change the little we margin a there of over starting to not we let's may more where areas, it the would $XXX will different be better may from with, quarter where our point this the

let's try So to look of at some them.

our a will the that that contract very after course, they First and contract of is in going manufacturers both as fixed is have of of not when we because them the make in to in going at large capacity this manufacturers time, growth adjustments. remarks, is that see production good are the this be aiming help that our that it we them with at that, QX the you, down. QX is the supporting in the on especially for is see to time reduction revenues, that prepared the and new building happening, mentioned as given work we or as level basis costs revenues now also have cover with all, lower. fact And in weighing these changes And takes to

have today the we And related to we support the team. -- of do relatively any revenues away. At we will you have, a not much chargers So going give will these efficiencies that here, therefore, to are and department QX, that little the better. that reductions the bit hours. percentage it's same have expenses operations We and denominator go economies therefore, higher existing level you around we that less our the be believe have more to to therefore, support mostly to is a the time, want our do prior of these cost that working we scale going on fleet the in because will reduce extra to fact flat

second gross tilted So be do it improvement continue the will up the will way, linear more or we I all expect of towards, will try see and quarter more summarize and be that IRAs. to if U.S. will to by not see but this, growth you to margins, the to our related I XXXX in factory again, a fact see the of more here, ramp tilted third quarter. This that is also,

lot would change. the inclines leaner quite say less linear, moving many I but And moving of again, parts a the margin for more but it's of that's revenue gross return So complexity towards sorry parts, and QX the business.

guys be a Shifting to cash gone how you bit or you much to follow do you lot QX the more flow then normalize marketable wondering year? share and know I burn you And the securities. bulk of correction this to flow if expect of and you quarters inventory you expect kind and as I cash balance could coming see have on capital cash the little trend in QX expect for do to of I a was sheet. of And you healthily kind how has how when do expect see next do working of up well? then through as substantially. that line you

Okay.

and flow about way is cash consume for about at from customer then also manufacturing, of is answer little credits. bit the talk increase next cash free the inventories, you of you little more that a a And and because -- a capital. need capital here, also give growing, that working flow then are more result So quarters, talk you usually when that bit we X the investments. let's capital about cash this you're you operations, working you because let's When flow means actually look

from flow So see increase actually in expect from we an generation. from cash operations, a operations to cash the flow

As I this we have in my $XX about prepared generated quarter. mentioned million remarks,

shipped QX little sold to simply more. to the that expect large because the quarter a quarter fourth see and QX, and a have in higher numbers bit of We we from much number customer balances continuing increase fact towards relatively and the we that

for a QX, more levels inventory And As bit inventory And anticipating you we're this relatively at therefore, also this is to over going we correlated vendors, were will your sorry, look to little we're that because, high carrying, on means customers. QX again, when European increased comes we carrying to payment quite heavily collect fact terms our -- the our I mentioned, that cash. that levels we're back QX it will time. and within growth. those. When the levels. also This manufacturing to go inventory paying the to And is start that we consuming

therefore, when payables. you're paying actually to less, you're So your less manufacturing

in using So of course, of still but fact starting see QX, from hopefully be operations to that it's and, means in growth see the in starting flow because impact accelerating and to we expect revenues cash we again supposed to that flow an positive within collect still that QX inventory. and to cash

the in free reduced. do right for capital lines. that we That right is taking automatic This cash flow part at the world. to payments of everywhere take the were contract and investments something assembly almost means to make is areas that, much manufacturers of second the more of very That part example, our as expenditures. how activity suitable. here than U.S. do now, reduce them well, will that course, aimed procurement other to means, last around be is increasing The for it manufacturing lot translate year we're and our capital we A of manufacturing expenditures now capacity

this, growing, to in little do we see you're like activities. a course, that cash to we of bit areas a you're not more also labs. only that flow in bigger investing cash addition allowing investing labs you're yourself means flow a will will time, newer of bit when operations, or see little In at lower And maybe this from that higher

So we an accelerating see in overall, growth cash. should

We'll Blanchard take our next Deutsche question of from Corinne Bank.

which strong we state, would more should by about it you are you be next it broke be seen able maybe demand into very I but maybe bit and you question, waken of to I how the have previous you year? thinking area X which -- going color in U.S. about provided mean, overview you a a the good give Could -- know little

Yes.

referring monitoring to that the we our for this rate monitoring the installation main indicator Corinne, data are that us portal. connections our So for to use purpose is

we down point of some other the say increase Puerto around can a relatively for for an states connection California the other view. it, recently overall, of call that showing in residential, I So This Rico, decline is XX the the it in residential -- states, the been flat. has on nation. break instance, the by it's in state, XX, rate the weeks, And and last, when inverter and small

states. up increase rate. consistent installing many or in some are rates a that in installation those whoever installing other batteries. of Again, increase this in are although Puerto Rico And from is pace the is California batteries seeing historical of coming down, we're are And see batteries, an connection in California because example. also from with we because installations battery For installation are

it's flat. On up. also picture So down projects. -- being country that markets rate on for the that interest it's strong installation states we of people positive there installation, clarity where type commercial flat. commercial data are of those we of understand time for the a California a seeing for in gradual are some see is sell-through for installation because and slightly some people are the projects I time. clarity where low-cost after in slightly dynamics residential the remarks, the on the been period be I installation increase, waiting rates trend specifically that We're that connection with IRA in on is seeing some not other understanding the rate in the of relatively as relatively mentioned or elements of have for and on that some residential and the believe same And this pattern as commercial across dramatic, the and -- held still the for the fact U.S. overall, commercial, this mentioned, is the is And there accumulated won't the modules and prepared we're but of

projects we continue. expect on trend and this that were So with they're to moving the hold, ahead

you follow-up, seeing you're could talk a with in a for new about the that is products. coming but competition here, switching bit maybe And right. Tesla U.S., the All little out

does quarters? over expect there? you what do pricing mean terms in that And X X maybe what So of or the next pressure

have of Yes. times we of a We in We've lot good are we're U.S., from feeling trajectory in product in phase and about reliability phase the some batteries. portfolio. what improvements, get our both gained a single into of on especially single a the recently on in share and current feedback a portfolio. product and the the not lot inverters product we ease released And positive call recently naturally particular didn't introduced we that mid-tier the of conversation, feel this in But -- call installation good released the perspective the the installation installers. of market

with are So we have tier. always been strong a large

we've battery -- price believe long bit where related a see in We more the major U.S. and offering. Batteries see changes might for of we don't a they're we in and to we dynamics incremental a or But it as in unrelated, gaining are expect And here type continue. tail. been we've an price are and stability we purposes, And the pricing. optimizers, mid-tier. market been the for weaker see result, reduce some is don't oversupply the volume major change there But in -- market ground the of on inverter battery the these general, dynamic. the expectation inverters for in And U.S., we in not pattern. only

our from Lee of question Sachs. Brian take We'll next Goldman

couple I here. had a

of moving lot dramatically a from there's parts we've moving because well of as quarters. past couple numbers that quite the picture bigger a as maybe are what Just just seen

$XX to level, of So margins $XXX million about level to basis then this million million maybe that points. being to gross talking start, that's million revenue, $XXX normalized you're of XXX including but $XX at

without I at you back revenues than component XX% to XX% XX% then and euro even IRA core XXXX, were gross gross benefit? then, if XX% and struggling the doing margins that margin. some look business And like the gross were with So issues, you is But level higher margin. doing higher to but of

like are the had more points prior it XXX maybe million target So bit? here you prior, what to are back get seems IRA? What's us Because you level. to maybe you it I can't revenue like a lower from feels help driving lower because don't take basis margins now the do know, that, costs reconcile if you even structurally, $XXX it just than again, million And out is margins why of of just including kind you're the system? weren't $XXX

sure, you thank question. for So And Brian. the

that there months in years new we -- out and general, is The believe that on to trying by are then at are start whether X way, after beginning, is of in therefore, X go the level we ago. I this will are X.X least in this we as evaluate that point-of-sale that we that data at normalized So across took normalized way board, here level areas the very think last here. the the still which again, being saying And a looking from and actually or that bust because, a what this sometimes this this a that that that by cases, as capacity we, the from last see we saw I months should something we we've from based years a the is level in mentioned is for market, that we we cost that that each that cautious -- several really in level and will actually point to finding it saw the that well. base to or cautiously very all if not we're situation returning to do higher to going these taking going is having that every sure level the expense little adjustments we market some maybe from cycles as are again, be we and seen is activities all something at the bit after necessary the but we're that ourselves boom And look of we reduction adjusting chase having and making making a again, products are air-ship rate. see our expense, up, means within able are that to did

doesn't I build it to beginning, not indeed the to assuming base this difference we big wanted company, we operate we into a do. are do going sure expense make think every necessarily cautious should the we our actually quarters while to modeling, But -- how that order modeling So mean whatever will how we the we that here. is will mean and took into down assumption, needed more X cautious be cost very capitalizing little road. the the approach would or a see a going It that and effort that's not activity on say that that reduction from we X that modeling I we bit real-world are in in and level that between can doesn't

that's, very limitation itself. So it, the the beginning, would the model of call I from

fact do continues The second is take the see that here element grow. that commercial we percentage need we our that to our within to portfolio

the conservative, characterized put product. As well. And offering products the And to here grow again, to do we as allow This is least commercial bit of related the last little attention this that, fact good, these further that see because a our to before. beginning, while gross lower that's will wanted mentioned least the the at were give thing little are that we being tilted at us that Maybe little we're towards new actually were a quarter, areas usually maybe stronger, XX% high here before, that And megawatts see. see of we applications But like still, getting we're is was margin. components lacking in we expect products. in we commercial revenue we growing. bit that do at growth bit are don't a little is products and of to these continue in the of it's with bit will fact commercial that that we record a because the shipped this more the other

would I we try say bit conservative to that in more be things. modeling the general, So a in little that we are way here

to adjust little a the also as we will as long next of can our highest revenue the us, possible. And continue of the margins commercial possible see. the you the more X we that in we be making about moving. new as believe action to way, to that I And we something gather and higher will to to we're see And allow we We is will will to increase you information. quarters. bit we're learn -- we by every increase We give normalized color next be X that do course, for we general, aiming this And how level effort course, by and because do in get, of will way, see it. the profitability level calls intend tell that the the base to this in

of of the additional I duration. more see kind Sungrow, peers maybe experiencing? SMA out give and than do the there things back-wise, there recent U.S. like is data-wise some also through positive. who the days, are but about questions. comfort you maybe Okay. gives position they're some is guys share a not just I like follow-up you lot the magnitude that were gives that earlier Europe you investors then an relatively context. know think or that data Like the issue And of versus or some comfort, evidence these you one updates share correction how see concern you here, hear you all appreciate share all. that there, at loss this I a just space correction had or And just that same can anything have guess, us a about X maybe the in or are provide whether is not that what positive could given the in sense a it's both, inverter going of we and this that I inventory to everyone the is growing points

we comments, it's and one Yes. that based market availability. referring -- And in take utility to the don't largest Related it give very distributors we losing earlier on we some serve we worth the is my you I focusing serve. that are on market, actually. recently a back, we I'll definitely so of sense in data Obviously, I'll at XXXX what closely. you're a in it's that to look Brian. we the the markets subjective different. of that it what were the at look And Obviously, to names that just of European Thanks, that sampled But share the dynamics related said also step -- are with it's something is. and utility don't point we part and latter we

XXXX. goes the This country, quarter, an widen by country we the as sat include during then with our that with on I suppliers distributor, was something And period in in that of increase in once from to demand a We that -- of people concern And their SolarEdge and We call it. a be supply relates the we tried line of same systematic And card. installers every installers demand distributor largest one XXXX there the inverter overall, point of been back SolarEdge periods pan-European saw line of one, on the constraint. And once us, very availability installers reduce months have we lack strong. the XXXX. will for system because of the the share to in SolarEdge in to by And relative and couldn't those also install -- of this way of of our out. was became all distributors strong were in in decreased availability first availability reported they last recently, recovering mapped their our one using to back longer no that was and went country normal, were bring this going less view. usage card long-term And and products. identify to other mentioned through for picture market their that going more they So was have they sales their an The based to we very in a the monitoring that products. of share brands. urgency shortage, and X

that seeing level and of looking optimistic fluctuations that So share. the high the and we although said, as about And there the we've at availability since due a detail. beginning second lost signs that we are of we've to we the half of recovering are we been are XXXX, at share that I all of in haven't been -- XXXX recovered

as situation are see to the that that that we of inventory part related we the So dynamics described. don't

Our question Oppenheimer. of Colin next is Rusch from

growing exiting you in into rate, [ up world you Guys, particularly ] are be and that can geographies able little talk a here of to might a ended incremental the that other that healthy about of or bit move you guys in geographies out transition? rest the this

and country spoke in nearby. think Yes, are that -- names from I their addressed would necessarily And before, in them some usually the some mentioned never are we central you about Europe beginning and to not that like Slovenia have there past, evolve it's influenced that. Romania, some like of places they're or markets I

up then increase oversee market the it's Greece, we Greece but be in now or don't of like well. cases many Italy. in recently. by from back like know, our we And had slowly case, picking influenced Italy, -- market are years back. way, will XX%. markets quiet And I instance, before Spain are was our for the we There these presence this countries that -- and we XXXX, evolving and and For years, or that, in the then markets as in And share in in it's some again, in not did was that XX% glaring probably, will these, or markets. those they mostly active other And location, from exist central they're were markets are these they

huge rate very but installed base growth our high, in small numbers. and very, is it's a in have Greece We still relatively Spain

in market the there's we time, are sinter, examples there the there that In Thailand it the small growing new those Philippines the Asia, So level realized like that dynamic of our we activity -- evolving. our lot Brazil were a that growing and is definitely, is is is the and some The at market that instance, a are for And we Brazil beginning are completely market is and few would are same a that growing of Korean it's is market. be, there positive. within talk countries and -- bit in to are momentum a be is reduced a to countries expected quickly. of a not and grow Europe. quickly. is Europe, that that a where -- Taiwan Outside what market markets Korean in

potential it. some are and -- opportunities compared I the the are current in there the the these from But much in of So demand. and these growth in although of are larger and are markets, we markets. Europe there to to circumstances improvement environment, see terms gain interest share U.S. in think rate under benefiting

super how helpful. you're of and and mentioning batteries internal the the there, That's third-party the how And with that's is on that and inventory dealing about manage really some along the expecting up ramping internal you're to sell-through production? that sale battery then given follow-up the agreements and manufacturing with cell your

Yes.

to the think I ways. X -- I'll in answer try

cells. is As we markets. And it's -- we to to intended from in on as on those you ramp And is on cells. XXXX, be to will using will third-party continue of offering the current to over sales to the and offering we and At offering ramping the know, our rate, these battery continue our factory third-party and meanwhile, the factory our increasing, residential based sell based XXXX. our happen customers factoring And we're residential a ramp based shift X of time, the than now and installation -- selling current batteries historical sales our don't what some the that factory in lower we've that been capacity for business that storage ramp anticipated. and for We are the expect have considering we that cost more structure. we lower to to of but years, them to will better it's shift

high or of are energy customers some nonsolar related them cell storage applications. And C-rate new

our that XXXX, we third-party supply the continue to based single-phase be have be cell in batteries So -- will solar attached on today.

We JPMorgan. from will take Mark our next question Strouse of

please. Two of them,

downside just there's of half you to mentioned the sense first that just million. and you of What the of you like cancellations the a accelerated saw question. -- to the one, sounds quarter. that it gives in that the that trying now risk million following distributor order on further cancellations, stabilized? $XXX some up kind to latter get to think no number? upside that I $XXX Brian's Has delays I'm comfort

Yes.

June. our sell-through Europe, in globally first Mark maybe ever actually at ever point. So data highest month Actually, or was

record June a we our of in XXXX, So reached our distributors of record a or reached of sell-through products.

July So vacation a typically -- month Europe. in and bit then July, lower, a the is sell-through was but

number in So decline the And in it's quarter. rate summer -- And -- installation quarter-over-quarter from second last the the pattern XX% to during year. higher was place. the is and perspective, half then the as remember -- to the clear, around although of I was it as picture across got if same we said, took correctly, and a us was our that reduction, the quarter-over-quarter of of QX still it's mentioned and quarter where the from the distributors Europe, all the shift than same QX to quarter

more drop in reported. stable into the we of has that the indicator monitoring. Switzerland, view of a Netherlands less has months rate last the down end accurate, sell-through, have the the is across at to in to been the been indicator live countries are we third of their until information saw couple other it and and much We looking installation recent of Germany, quarter. the provide we is of the up The because date the but the at indicator connection receive weeks Europe in later installation relatively all installation has Austria, And of rates and and in rate the the that a monitoring collect places the like as since summer it some fourth towards the us. quarter, to distributors Europe connection and of the the been overall, end going in But we the

does will obviously, the -- we the we confidence judgment the revenue the -- data that which the visibility, in we go is but to rate, that up on it that through are stabilized begin that setting further but won't Now when it gave. pick projection -- this that not is down scenario or in point give that revenue baseline have

of your downturn follow-up. Can of lean the R&D where some during this you're a some appetite competitors because just then so balance not that -- may your all have. your might the to better positioned potentially to lean look sheet, kind you even I of coming of downturn? competitively? you to sheet with got And balance have about some M&A into talk this you've talk into macro your Okay. appetite at about Can you out mean

rooftop of to to opportunity, believers Mark, evolution also applications, and perspective in not energy include C&I. long-term the use of solar long management to a core optimizers, midterm of and in partially in chargers, software residential seeing I'll we're the perspective balance in this it's and And that serve, partially the related on, for -- related trajectory cyber not markets are the is the put balance we grid also that but PV So and the that markets the the sheet With sheet. smart batteries, of going are all manage the And P&L. not growth EV only these broader which directly to It's we to important services term firm the give inverters related broader only protection. market. the solutions that but that to that's

the the that question we we to or along improve markets, in our balance where use for and products us us that So is but develop going priority very that sheet at highest continue or to in put so, the these and and of leadership our transient is do see well the is also portfolio long-term terms level in we serve happen, served our to as differentiation gave that situation that we modeling accelerate And answer will is position those and the a leadership long we are have to how a the has includes in this will that us to not positioned are. And that to keep that sure lead. it see take market balance we also the potential when attractive will sheet and the it definitely. value markets and you strengthen,

Bank question America. Dumoulin-Smith of next from Our of Julian comes

to this. that One, perhaps transactions of rapidly step little highlight learned moved? being coming. Again, cycle today here, I and recovery. talking don't recap I of the little you 'XX Thank are mean identify parameters the just watermark how what talked share that through you are appreciate didn't you back the very you, around high we How the that the we operator. confidence swiftly sort Can mind, about transpired guys you you of we we appreciate sort Appreciate understand obviously, of such thoughtfulness trajectory pace month-by-month a presumably circle If kind and the just it. we back outlook of the playbook And are look, how opportunity. here? can a will, and in obviously, I Square June right? happens ago Good from walk today, kind then I to to afternoon, back that during year. a how that June so want it know bit about things about it a earlier can the where bit and summer. deteriorated. your some insider there here? little XQ, lessons do team. step just this of was you if you Obviously, 'XX but we But how here a to course got through see what guys gives confidence on moment we would or the the after didn't And it's watermark. specifically us really Really of swiftly bit at and more get a this identify But the

question. the for you Yes, thank Julian,

data. pattern we're looking to that going we maybe because say, need that to coming year. business sets after back I at, So we by to was of major where when COVID see is we're and again, that would going, analyze I'll the XXXX trying QX is see X a And start it understand this

The first shipping one is, how of much course, we're shipping and where we're it.

as on coming Second out monthly basis. is, then something the see one-to-one levels that our mentioned the that the data inventory is and merged we by measure point correlated a from until beginning And Up are that of basically looking is our these we what we're from the very sale distributors. and almost distributors a CV, we saw data it's at of X point-of-sale shipping we our that result QX, of with things. saw that

you days hand, little very saw inventory in one on that the channel. means that So

X-phase months said If single-phase you we saw recall consistently. At relief and we or ability And a something comes in have commercial started materialized only especially from we this in our X when that products. year of we QX, X-phase saw this of beginning some to sometimes our products, the inventory products, that a full at it at our cases, to looked ability see relief in of is the gradual X provide X.X products saw to manufacture time, we to product. and calls to that QX single-phase actually close we that in

days, ratios, we hand all continue where point-of-sale we QX, of what -- X saw we the numbers steep the correlation on market ranging the they're is And therefore, So And X, some point-of-sale shipment the in between is be and we higher our by actual our during data sell-through numbers very the more we're which tight. are the we [indiscernible]. normality XX a into time very sale. XX QX level we way, to hand inventory we a and into But sales would to some are we based that inventory and when the saw back see higher going comfortable see. between the that like point growing be with took more than with increase the of channels level lower QX and And that up saw channel came usually the a would the efficient it monitor the shipping. than on to nice distributors, of started a the the data. or the sorry a -- distributor because normal days are overall that them will on to we to the less But felt depends into data. the at

of usually, XXth the the reports monthly around a Now getting it when the following basis, we're happens months. on

than XXth So we numbers. I was at the the were started make continue June significantly there. backlog that would say were July, when because as of customers orders record that accept high before. and to seen that our numbers approximately And we've got higher July. Europe orders already to the -- or from such, everything These -- We,

is around in vacations August, this If you we large backlog. see is had we the we to decline. Usually, not remember, July see see we typical decline. see I say, which of again the the but we similar ones decline, way, would time. But than end this we or, lower July. a August a numbers very are a are Comes because a that And lot but receiving Europe data, in happening flat of by relatively do the a huge either June,

much lower found for more they this. But actually Actually, to September this by that say, a of in very acted than a close that say, the after orders. We a compared time when strong September the orders the is is end the upon September it that United weeks very that the see see XX So from and that July, started years this and we're but dramatically to were XXth at our time, come is September, this the materializing, delay not declines down, the But August we getting Europe again, -- to distributors is was September not them saw September. we when start actual end pattern little pressure of several that that down. start to bit I then actually And the many numbers. September States, an see August of was down numbers as we and would usually received for used June, way, and years, they jump told we data, expectation is increasing the that materializing August a see usually, August quarter. is first to see to, to is slower again, do to and would but say, and that they not, a to XX I they that by see is area And the compared July X of the see you but is we over expected. last, the And surprising. see would we you not September, to October, last, of the I the

our that see QX behavior. what grow the see take result that that, guidance relatively middle inventory up this Now is you numbers -- is everyone to the because is sometimes you is to August to levels and again, leading again similar the when we're until continuing a and expected of

decrease. that cannot understood, that not Now to very, of way, this do quarter the better it's days like have because how not again, or are fourth data days is our be together, we're like. that October The have how hand look the is higher channels. the basis inventory this looks are high, now data customers waiting than big X the you on the in see the see with yet was QX we -- We I we even usually but that XX when it believe cautiousness. that this the December than much very better to the is And our can that of any do is and September. going for, by

that actually X and of a point something last So September to that would from of before. lot the orders this deviation our time push came as pattern actually, at that I see weeks of X was the and where say, understand, the or can outs. not that a fact cancellations pattern led understood the And you to we is that used was to in basically

I your hope I answered So question.

I Maybe, course, Julian, described of from it, on learn is dynamic the -- from topic to of but the we it. need when

of visible. had products distributors surge is they demand, was install. happened this of One and the also the down, and when dynamic talking they in and lack slow Then visibility at of is we're inventory it handle but including take inventory orders, event availability, not the consumed in part prefer everybody down our especially to they typically how on installers terms we what was the elements is the an that their to building inventory, they of don't is that levels inventory unprecedented slow with coming installers they into of because inventory that on meaningful of that off of and are

is of especially our data our levels installation better So data rates, track help a occur, inventory clarity installers, that extreme of typically that distributors such that sell-through have levels fluctuations. when in to add points will fluctuations we terms inventory to at large the

We'll take our next Cowen. question from Osborne Jeff of

important capacity. of now pricing? quarter of it's wouldn't side. to what my you in Two you I and whenever knife the sort when the payment pricing levels sort said at outlook of million in one Obviously, a with part meaningfully terms excess in like But question. revenue two of current with part Ronen, stable and a others a demand as capacity. there $XXX is term. industry know year? the questions terms $XXX more fight there But that levels? assumed on summer, of was half tech were near of flat it normalization sure was that rationalizing wouldn't million, That were the to the looks the be about why quick talked a down normalizes is second just industry why go you're is in I'm And next will. distributors. not

Okay.

first So we be normalized X therefore, changes I'll saying And is. by do of there's a the all, assumption going say we that point-of-sale as data for to start yes, last is taking in the modeled pricing. I higher in you way yes, it level the mentioned, the then that, can also months numbers about if we number. in would this, take an our that see recovery as

inverter impact I'm we on the believe within least did pricing. at will given that not prices X And now, do now, you that in As have the the change changing that mentioned, is on we there right with levels our not QX. side, right you we anything sure almost that fact inventory see

taking orders. because is of First all, nobody

demand everyone elasticity to that we behavior very no they're if can their because they the have, of change that change curves. actually the is do reason orders, not see So plus inventory the taking little pricing selling along it

say sure related or The for not It will batteries, have that a we I we moving will going baked-in that much going And even possible that rates. capabilities, cheapest adjustment number, believe because assume can example, we'll also as you you we're wanted our need better the on company products the very are forward, maybe see, there implement. in price we a Brian to see the way the after So I mentioned never we take if that is that expensive they're this to say, places. reason very stabilization be dynamic cautious missing offering do we're in the little we I have prices will we answer do to if history, to to my to event the this markets actually there in moving prices in may be to These yes, modeling. to to must look of unprecedented in that we're market. maybe allowing is adjusted that down that that not are are we adjust be put are tell our to quarter more that would some competition at bit have them, we prices, the when in a in assumption that because fact need happened I more that today,

from We'll next Jonathan Capital take Kees Markets. our question of Daiwa

mine in quick keep I'll interest time. of the

I to up in guess, regarding, wanted Israel. So ask I call the

me, especially guess of the under business more board? XX% folks, in and maybe and across I'll wanted just offline. professional leave is professionals is to that, male it terms my kind that it's seems the your occupational more engineers, take significant, and of call with not to I'll it your across I material and significant. You like staff of the somewhat is talked questions rest or there I with board of level. the ask, about Or obviously, -- that X% about in the worldwide. That Israel, but XX the your

Yes.

quick a male it's So correction, and female.

even So regard. it's not that -- it's in

business quite the our not make I impact that not activities not main have them execution with and business to as are mentioned, any And perspective, Our we're in and that is Israel, that and infrastructure and forward. is them. to quantity dependent significant type with and manufacturing that's that across aligned right towards R&D discussion move here reallocate people. distributed on real our projects the around Israel gives an over outside ability the different one right to the of identify move staffed customers. does And quality anything operated drivers the actually having business people of put this it's caught-up departments of not are sure critical evenly environment key focus on mostly why and the this is and business the the people us are an there the of and to what impact, to From on mass

we're So for reasons. that's doing both what

it's in are interruption. will the -- -- -- I execute to without able we we business, So in think that support is regard, it's what important to

comes question Andrew of Stanley. Percoco final Morgan Our from

you in in already one-off to some there And the but for I can if you orders I just or through I little we to guess a nature? discuss do is payment a walk just is decided process cancellations why maybe and want run? in this, gain truly maybe make answered backlog this decision-making apologies how on maybe your of anything mutually long terms more to return, comfort that future And guess, concessions those accommodate on bit that you these beneficial it got requests? you just

do and multiple building our market And Europe in been And both we've Yes. operating all we continue grew that to products partners and across network I'll done this countries. We of them years services. we've short, countries share partners, since intend long-term relationships with and distribution a position XXXX. installation and quality through keep these with of it to but partners delivering in come. and for

that that is consideration in that players at are as the working to we that financial within ups not market. is other in helping long-term continue process do huge And don't to will inventory and hazard, and them and the we've them times this is not out of the decision of do and to and put the to law So the our that so. quality and take thing we force long-term downs that's critical the the core of where to sticking thought we been fluctuations each These a part of during our market. with view letter market are they right of future need and

conclude as our And for this afternoon. well question-and-answer call as does this session today's

disconnect your You may now lines, and a day. have everyone, great

Thank you.