- Published: 30 April 2010
- Written by Editor
Power-One Posts Strong First Quarter 2010 Results
Power-One, Inc. (NASDAQ: PWER), a leading provider of renewable energy and energy-efficient power conversion and power management solutions, today announced financial results for the first quarter 2010. Power-One recorded net sales of $152 million for the first quarter ended April 4, 2010, an increase of 56% from the first quarter 2009. Net income attributable to common stockholders for the first quarter was $3.8 million, or $0.04 per diluted share, compared to a net loss of $61 million, or $0.70 per share for the same period last year.
Renewable energy products again recorded strong sequential revenue gains in the first quarter 2010, with positive demand trends continuing in 2010. The company’s renewable energy products posted a record $82 million in revenue for the first quarter 2010, equating to a year-over-year increase of 556% from $13 million in the first quarter 2009.
For the first time, renewable energy products contributed the majority of the company’s revenue, at 54% of total sales in the quarter, versus 13% in the first quarter of 2009. Power-One’s power products generated revenue of $70 million in the first quarter 2010 versus $85 million in the same period of 2009, with the majority of the decline due to component shortages experienced in the industry. Total 90-day backlog showed extraordinary growth, as Power-One posted $205 million in 90-day backlog. The renewable energy products 90-day backlog rose to $142 million, while the power products backlog grew to $63 million.
Power-One expanded gross margin for the fourth consecutive quarter, improving to 30% in the first quarter of 2010, compared with 14% for the same period last year. Volume increases, a favorable product mix, improved processes and supply chain management contributed to the expansion. Gross margin was negatively affected by approximately $1.6 million in charges related to the closure of the Dominican Republic facility. Operating income for the first quarter 2010 was $21.1 million, or 14% of revenue, and was impacted by $2.6 million in total charges related to the closure of the Dominican Republic facility, slated to be completed by the end of the second quarter 2010. Net income included a $5.7 million dollar loss from the repurchase of $4.5 million in face value of Power-One’s 8% Senior Secured Convertible Notes due 2013.
“Renewable energy products once again showed considerable strength, driving sales and gross margin improvements for Power-One,” commented Richard Thompson, Chief Executive Officer. “With the growth in renewable energy and the restructuring of our power products, we are excited with our near-term opportunities. We are expanding capacity for our renewable energy inverters, signing new licensing agreements with marquee customers for our digital power technology and recording significant wins across most product lines.”
“Based on the strength and efficiency of our products and technology, we believe that we are taking market share,” continued Mr. Thompson. “Strategically, we are continuing to introduce new products and streamline manufacturing costs while expanding our global presence.”
Business Outlook
Consistent with prior quarters, the Company is not providing financial guidance for the quarter or the year.
Earnings Conference Call
Power-One will discuss its 2010 first quarter results today beginning at 2:00 p.m. Pacific Time. The call will be available over the Internet through the Company’s investor relations Web site at http://investor.power-one.com. To listen to the call, please go to the Web site at least 10 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, the webcast will be available on the investor relations section of the Company’s Web site at http://investor.power-one.com throughout the current quarter.
About Power-One
Power-One designs and manufactures energy-efficient power conversion and power management solutions for alternative/renewable energy, routers, data storage and servers, wireless communications, optical networking, semiconductor test equipment, industrial markets and custom applications. Power-One, with headquarters in Camarillo, California, has global sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas. Power-One is a public company listed on NASDAQ under the ticker symbol PWER. For more information about the Company, please visit www.Power-One.com.
Safe Harbor Statement
Statements made in this press release which state the Company's or management's intentions, beliefs, expectations or predictions for the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and may include statements regarding anticipated future productivity. It is important to note that future performance and actual results could differ materially from those discussed in or underlying such forward-looking statements as a result of risks and uncertainties that cannot be predicted or quantified and that are beyond the Company’s control. Important factors that could cause actual results to differ materially include, but are not limited to: economic conditions in general and business conditions in the power supplies and renewable energy markets; foreign exchange rates; the Company’s ability to improve its operational and supply chain efficiencies; competitive factors such as pricing and technology; the timing and results achieved in completing product manufacturing transitions to Company facilities in China or other low-cost locations; the threat of a prolonged economic slowdown or a lengthy or severe recession; continued volatility of the financial markets, including fluctuations in interest rates and trading prices of the Company's equity securities; the results of pending legal proceedings; the Company’s ability to secure market share in higher margin, high-growth markets; the market growth of product sectors targeted by the Company as sectors of focus; and the Company’s ability to increase working capital. Additional information concerning factors that could cause actual results to differ materially from expectations expressed in this press release are described in the Company's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 from time to time, which are also available through the Company's Website at www.power-one.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Power-One undertakes no obligation to publicly update or revise any forward-looking statement.
| POWER-ONE, INC. | |||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||
| (In thousands, except per share data) | |||||||||
| (UNAUDITED) | |||||||||
| Three Months Ended | |||||||||
| April 4, | March 29, | ||||||||
| 2010 | 2009 | ||||||||
| NET SALES | $ | 152,377 | $ | 97,840 | |||||
| COST OF GOODS SOLD | 106,649 | 83,975 | |||||||
| GROSS PROFIT | 45,728 | 13,865 | |||||||
| GENERAL AND ADMINISTRATIVE | |||||||||
| Selling, general and administrative | 14,974 | 13,186 | |||||||
| Research and development | 8,378 | 7,508 | |||||||
| Amortization of intangibles | 377 | 402 | |||||||
| Restructuring costs | 929 | 1,131 | |||||||
| Goodwill impairment | - | 56,999 | |||||||
| Total expenses | 24,658 | 79,226 | |||||||
| INCOME (LOSS) FROM OPERATIONS | 21,070 | (65,361 | ) | ||||||
| INTEREST AND OTHER INCOME (EXPENSE): | |||||||||
| Interest income | - | 205 | |||||||
| Interest expense | (2,019 | ) | (2,125 | ) | |||||
| Other income (expense), net | (4,858 | ) | 5,114 | ||||||
| Total interest and other income (expense) | (6,877 | ) | 3,194 | ||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 14,193 | (62,167 | ) | ||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 9,700 | (852 | ) | ||||||
| EQUITY IN EARNINGS FROM JOINT VENTURE | 108 | 141 | |||||||
| NET INCOME (LOSS) | $ | 4,601 | $ | (61,174 | ) | ||||
| PREFERRED STOCK DIVIDEND AND ACCRETION | 851 | - | |||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 3,750 | $ | (61,174 | ) | ||||
| BASIC INCOME (LOSS) PER SHARE | $ | 0.04 | $ | (0.70 | ) | ||||
| DILUTED INCOME (LOSS) PER SHARE | $ | 0.04 | $ | (0.70 | ) | ||||
| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 88,300 | 87,865 | |||||||
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 95,562 | 87,865 | |||||||
| POWER-ONE, INC. | |||||||||
| CONSOLIDATED BALANCE SHEET | |||||||||
| (In thousands) | |||||||||
| (UNAUDITED) | |||||||||
| April 4, | January 3, | ||||||||
| 2010 | 2010 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 101,114 | $ | 89,553 | |||||
| Accounts receivable: | |||||||||
| Trade (net of allowance) | 120,669 | 119,783 | |||||||
| Other | 2,583 | 2,763 | |||||||
| Inventories | 77,380 | 73,173 | |||||||
| Prepaid expenses and other current assets | 10,821 | 10,612 | |||||||
| Total current assets | 312,567 | 295,884 | |||||||
| PROPERTY AND EQUIPMENT, net | 47,312 | 48,906 | |||||||
| INTANGIBLE ASSETS, net | 17,868 | 18,602 | |||||||
| OTHER ASSETS | 8,141 | 7,943 | |||||||
| TOTAL ASSETS | $ | 385,888 | $ | 371,335 | |||||
| LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Bank credit facilities and notes payable | $ | - | $ | 504 | |||||
| Accounts payable | 101,387 | 89,074 | |||||||
| Restructuring reserve | 6,647 | 6,866 | |||||||
| Long-term debt, current portion | 1,257 | 1,269 | |||||||
| Other accrued expenses and current liabilities | 42,891 | 38,080 | |||||||
| Total current liabilities | 152,182 | 135,793 | |||||||
| LONG-TERM DEBT, less current portion | 73,174 | 78,146 | |||||||
| OTHER LONG-TERM LIABILITIES | 19,700 | 16,281 | |||||||
| REDEEMABLE CONVERTIBLE PREFERRED STOCK | 18,793 | 18,533 | |||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Common stock | 88 | 88 | |||||||
| Additional paid-in capital | 620,237 | 620,261 | |||||||
| Accumulated other comprehensive income | 34,147 | 39,267 | |||||||
| Accumulated deficit | (532,433 | ) | (537,034 | ) | |||||
| Total stockholders' equity | 122,039 | 122,582 | |||||||
| TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | $ | 385,888 | $ | 371,335 | |||||
| POWER-ONE, INC. | ||||||||
| FINANCIAL HIGHLIGHTS | ||||||||
| (In thousands, except per share data) | ||||||||
| (UNAUDITED) | ||||||||
| Three Months Ended | ||||||||
| April 4, | March 29, | |||||||
| 2010 | 2009 | |||||||
| Orders | $ | 452,825 | $ | 76,854 | ||||
| Sales | $ | 152,377 | $ | 97,840 | ||||
| Operating Income (Loss) | $ | 21,070 | $ | (65,361 | ) | |||
| Net Income (Loss) Attributable to Common Stockholders | $ | 3,750 | $ | (61,174 | ) | |||
| Basic Income (Loss) Per Share | $ | 0.04 | $ | (0.70 | ) | |||
| Diluted Income (Loss) Per Share | $ | 0.04 | $ | (0.70 | ) | |||
| Basic Weighted Average Shares Outstanding | 88,300 | 87,865 | ||||||
| Diluted Weighted Average Shares Outstanding | 95,562 | 87,865 | ||||||
Power-One, Inc.
Kevin Trosian
Vice President, Investor Relations
(805) 383-5888
This email address is being protected from spambots. You need JavaScript enabled to view it.
