SolarEdge Technologies, Inc. (NASDAQ:SEDG), a global leader in smart energy technology currently valued at approximately $800 million, announced today the appointment of Dalia Litay as its new Chief Legal Officer, effective January 1, 2025. The company, which has seen its stock decline by over 85% in the past year, is currently trading below its InvestingPro Fair Value.
This executive shift comes as part of the company's succession planning following the retirement announcement of Ms. Rachel Prishkolnik, who has served as VP General Counsel and Corporate Secretary for nearly fifteen years. The leadership transition occurs during a challenging period for SolarEdge, with InvestingPro data showing a 70% year-over-year revenue decline and significant cash burn. (Discover 13 more exclusive InvestingPro Tips for SEDG's outlook.)
Ms. Prishkolnik will retire from her current role at the end of the day on December 31, 2024, but will remain with the company in a non-executive capacity until August 31, 2025, to ensure a smooth transition of leadership. During this period, her cash compensation will stay the same and she will not receive additional equity or bonuses for the year 2025.
Ms. Litay brings extensive legal experience to SolarEdge, having previously served as General Counsel of ironSource Ltd. until its merger with Unity Software Inc . (NYSE:NYSE:U) in November 2022. Post-merger, she managed the legal team of Grow Solutions, a division of Unity which included ironSource, until her departure in 2024.
With a legal background that includes positions at prominent law firms and an in-house role at Time Inc., Ms. Litay is well-equipped for her new position. She holds an LL.M. in Corporate Law from NYU School of Law and an LL.B. from the University of Warwick School of Law, and is a member of both the New York and Israeli Bar Associations.
The company's leadership and board express their gratitude to Ms. Prishkolnik for her substantial contributions over her tenure with SolarEdge and look forward to the expertise Ms. Litay will bring to the team. Despite current challenges, the company maintains a healthy current ratio of 2.34, indicating strong short-term liquidity. For deeper insights into SolarEdge's financial health and future prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
This announcement is based on information contained in a recent SEC filing by SolarEdge Technologies, Inc.
In other recent news, SolarEdge Technologies has seen significant shifts in its business landscape. Goldman Sachs (NYSE:GS) recently upgraded SolarEdge to a buy rating with a $19 target, citing the company's ability to manage its $347.5 million convertible bond due in 2025. This is a notable divergence from GLJ Research's maintained sell rating and a year-end 2025 price target of $3.90 per share.
SolarEdge has also undergone a major change in leadership, with the appointment of Shuki Nir, the former Chief Marketing Officer, as the new CEO. This transition follows the departure of interim CEO Ronen Faier. The company's financial performance has been challenging, with a considerable shortfall in third-quarter earnings, reporting earnings per share (EPS) of -$15.33, markedly lower than the forecasted -$1.65, and total revenues of $261 million.
Looking forward, Goldman Sachs anticipates 2025 as a pivotal year for SolarEdge. The analyst's forecast is 6% below the consensus for the company's 2025 revenue and 3% below for 2026. They predict a negative EPS for 2025 but anticipate a positive earnings quarter in 4Q25 and a significant acceleration in growth for 2026.
SolarEdge is expected to enter a product redesign phase and introduce new products to the market by late 2025 or early 2026. The company has provided revenue guidance for Q4 2024 between $180 million and $200 million and aims to return to positive free cash flow by the first half of 2025.
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