- Quarterly revenue reaches $245 million; Shipped 740 MW of inverters
- Posts third quarter operating income of $34 million; GAAP Net Income of $41 million
- Increases global market share and expands in new markets
CAMARILLO, Calif., Oct. 27, 2011 (GLOBE NEWSWIRE) -- 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 third quarter 2011. For the quarter ended October 2, 2011, Power-One recorded net sales of $245 million, with Renewable Energy Solutions contributing $174 million and Power Solutions posting $71 million. Net income attributable to common stockholders for the third quarter was $40.6 million, or $0.27 per diluted share. Included in third quarter results was income of $16.9 million, or $0.11 per diluted share, related to the release of cumulative translation adjustments upon the liquidation of a foreign subsidiary.
"Power-One gained significant customer wins in the third quarter, as we expanded revenue in high growth solar markets, such as India and other regions in Asia ," said Richard Thompson, Chief Executive Officer of Power-One. "Despite difficult global macroeconomic conditions that impacted both SBUs, we generated $59 million of operating cash flow and ended the quarter with $183 million of cash and cash equivalents"
Renewable Energy Solutions
In the third quarter of 2011, Renewable Energy Solutions increased penetration of Asia-Pacific, particularly with sales to India. Inverter and related products generated sales of $174 million for the third quarter 2011. During the quarter, Power-One shipped 740 MW of inverters, bringing the 2011 year-to-date total to 2.1 gigawatts, versus 1.7 gigawatts during the same period in 2010.
Power Solutions
Power Solutions recorded sales of $71 million in the third quarter 2011. In the quarter, revenue was negatively impacted by slower demand in the Network Power Systems and Servers, Storage and Networking markets. During the third quarter, Power Solutions' posted its fourth consecutive quarter of operating profit. This was driven by improved operating efficiencies.
Business Outlook
Global macroeconomic uncertainty continues to influence end market demand in both SBUs. For the fourth quarter of 2011, Power-One forecasts revenue of $220 million to $250 million.
Earnings Conference Call
Power-One will discuss its 2011 third quarter results today at 2:00 p.m. Pacific Time. The call will be available both via the telephone at (877) 390-5535 or (631) 291-4579, conference ID # 18232823, or over the Internet through the Power-One investor relations Web site at http://investor.power-one.com. To listen to the call, please log-in 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 Power-One's web site at http://investor.power-one.com throughout the current quarter.
About Power-One
Power-One is a leading provider of renewable energy and energy-efficient power conversion and power management solutions and is the world's second largest designer and manufacturer of photovoltaic inverters. Its renewable energy products enable the industry's highest yielding conversion of power from solar arrays for use by utilities, commercial enterprises and homes. Power-One has a 40 year history as the leader in high efficiency and high density power supply products for a variety of industries including Renewable Energy, Servers Storage & Networking, Industrial and Network Power Systems. The company is headquartered in Camarillo, CA and has global sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas. Power-One is traded on NASDAQ under the ticker symbol PWER. For more information, please visit www.Power-One.com.
The Power-One, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7338
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 | Nine Months Ended | |||
| October 2, | October 3, | October 2, | October 3, | |
| 2011 | 2010 | 2011 | 2010 | |
| RENEWABLE ENERGY SALES | $ 174,325 | $ 228,356 | $ 505,980 | $ 452,722 |
| POWER SALES | 70,706 | 85,689 | 243,898 | 228,249 |
| TOTAL SALES | 245,031 | 314,045 | 749,878 | 680,971 |
| COST OF GOODS SOLD | 176,223 | 184,936 | 509,434 | 426,727 |
| GROSS PROFIT | 68,808 | 129,109 | 240,444 | 254,244 |
| GENERAL AND ADMINISTRATIVE | ||||
| Selling, general and administrative | 22,613 | 19,280 | 64,593 | 52,479 |
| Research and development | 11,575 | 8,959 | 34,957 | 25,905 |
| Litigation Charges | 236 | -- | 1,109 | -- |
| Amortization of intangibles | 489 | 360 | 1,399 | 1,093 |
| Restructuring costs and asset impairment | -- | -- | -- | 3,852 |
| Total expenses | 34,913 | 28,599 | 102,058 | 83,329 |
| INCOME FROM OPERATIONS | 33,895 | 100,510 | 138,386 | 170,915 |
| INTEREST AND OTHER INCOME (EXPENSE): | ||||
| Interest income | 446 | 50 | 1,638 | 76 |
| Interest expense | (1,697) | (1,249) | (4,715) | (5,284) |
| Liquidation of subsidiary | 16,879 | -- | 16,879 | -- |
| Other income (expense), net | 8,656 | (2,954) | 1,947 | (7,090) |
| Total interest and other income (expense) | 24,284 | (4,153) | 15,749 | (12,298) |
| INCOME BEFORE INCOME TAXES | 58,179 | 96,357 | 154,135 | 158,617 |
| PROVISION FOR INCOME TAXES | 16,774 | 33,079 | 50,826 | 66,037 |
| EQUITY IN EARNINGS FROM JOINT VENTURE | 32 | 441 | 627 | 902 |
| NET INCOME | $ 41,437 | $ 63,719 | $ 103,936 | $ 93,482 |
| PREFERRED STOCK DIVIDEND AND ACCRETION | 874 | 859 | 2,610 | 2,565 |
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 40,563 | $ 62,860 | $ 101,326 | $ 90,917 |
| BASIC INCOME PER SHARE | $ 0.34 | $ 0.53 | $ 0.85 | $ 0.84 |
| DILUTED INCOME PER SHARE | $ 0.27 | $ 0.40 | $ 0.67 | $ 0.61 |
| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 103,804 | 102,061 | 103,744 | 92,938 |
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 139,788 | 144,193 | 140,330 | 142,034 |
| POWER-ONE, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
| (UNAUDITED) | ||
| October 2, | January 2, | |
| 2011 | 2011 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 182,706 | $ 227,907 |
| Accounts receivable: | ||
| Trade (net of allowance) | 232,395 | 262,546 |
| Other | 5,447 | 7,980 |
| Inventories | 156,583 | 152,286 |
| Prepaid expenses and other current assets | 20,330 | 21,671 |
| Total current assets | 597,461 | 672,390 |
| PROPERTY AND EQUIPMENT, net | 81,449 | 63,325 |
| INTANGIBLE ASSETS, net | 18,012 | 18,802 |
| OTHER ASSETS | 8,465 | 7,295 |
| TOTAL ASSETS | $ 705,387 | $ 761,812 |
| LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 141,101 | $ 213,096 |
| Long-term debt, current portion | -- | 103 |
| Income Tax Payable | 23,289 | 103,739 |
| Other accrued expenses and current liabilities | 64,154 | 67,888 |
| Total current liabilities | 228,544 | 384,826 |
| LONG-TERM DEBT, less current portion | 36,020 | 35,911 |
| OTHER LONG-TERM LIABILITIES | 54,703 | 39,445 |
| REDEEMABLE CONVERTIBLE PREFERRED STOCK | 20,436 | 19,597 |
| STOCKHOLDERS' EQUITY: | ||
| Common stock | 104 | 104 |
| Additional paid-in capital | 630,422 | 629,687 |
| Accumulated other comprehensive income | 20,400 | 41,420 |
| Accumulated deficit | (285,242) | (389,178) |
| Total stockholders' equity | 365,684 | 282,033 |
|
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY |
$ 705,387 | $ 761,812 |