SolarEdge (SEDG.US) recorded a $1 billion write-down in Q3, leading to a sharp drop in revenue and profits.

CECEP Solar Energy equipment manufacturer SolarEdge Technologies (SEDG.US) released its third-quarter financial report on Wednesday Eastern time, showing that sales decreased by 64% year-on-year to $2.609 billion, lower than the analysts' general expectations of $2.909 billion. Non-GAAP loss per share was $15.33, below analysts' general expectations. The company took a $1 billion write-down and warned that the profit margin for the next quarter could be zero or even negative, causing the stock price to plummet by over 20%. The fourth-quarter revenue expectation of $190 million was also disappointing, 38.9% lower than analysts' expectations. The company anticipates a Non-GAAP gross margin between -4% and 0%, including a benefit of 1,000 basis points from IRA manufacturing tax credits. Interim CEO Ronen Faier stated, "As SolarEdge navigates through this challenging period in the company's history, we are focused on three key priorities: financial stability, regaining market share, and refocusing on our core CECEP Solar Energy and storage opportunities." The disappointing performance and guidance reflect the challenges facing the CECEP Solar Energy industry, including high rates and inventory overhang. The company attributed the $1.03 billion write-down to the decrease in the value of various assets after valuation analysis. As of writing, the stock has fallen by 17.07% in after-hours trading, with a cumulative decline of over 80% year-to-date. Even for a stock like SolarEdge that has historically experienced significant fluctuations, this decline is worth noting.