Power-One, Inc. (NASDAQ:PWER), a leading provider of power conversion
and power management solutions, today announced that for the second
quarter ended June 29, 2008, net sales were $149.3 million, an increase
of 21% from $123.8 million in the second quarter of 2007. Net loss was
$0.04 per share compared to a net loss of $0.13 per share for the same
period last year, which included $0.03 of restructuring and impairment
charges.
Revenue and earnings for the quarter were driven primarily by demand
across the Company’s core markets, with
particular strength in the renewable energy market. Bookings of $149.3
million in the second quarter of 2008 increased 18% over bookings of
$126.9 million in the second quarter of 2007. The Company ended the
second quarter of 2008 with approximately $107 million in 90-day
backlog, up from $92 million last year.
Gross margin was 20.5% compared to 20.8% in the second quarter of 2007.
The benefit of higher volume versus the year-ago quarter was offset by
continued manufacturing inefficiencies, particularly costs associated
with expediting past due orders. The loss from operations narrowed to
$0.6 million compared to $9.5 million for the same period last year,
which included restructuring and impairment charges of $2.8 million.
Richard Thompson, CEO, commented, “We are
pleased with the strong sales performance in the second quarter and
particularly with the large opportunity for Power-One in renewable
energy. We made progress on many of our previously announced
profitability initiatives, even as we worked to satisfy strong customer
demand and ship past-due orders. This progress was reflected in the
narrowing of our net loss and a 240-basis point increase in our gross
margin from the first quarter. Despite this progress, we were not
satisfied with the extent of the improvement, particularly given the
strong top line. While the economy presents some challenges going
forward, we believe our results will be driven by changes we are making
in our business. ”
Business Outlook
For the third quarter of 2008, the Company anticipates that sales will
be approximately $140-$145 million. The decline from the second quarter
primarily reflects a weaker economic environment impacting demand from
some of our North American customers and seasonal softness in Europe,
which has become a greater percentage of our sales. Net loss is expected
to narrow slightly from the second quarter to a range of breakeven to
$0.03 cent loss per share.
For full-year 2008, the Company continues to estimate year-over-year
revenue growth in the range of 8%-10% as compared to 2007. The net loss
for 2008 is still expected to be in the range of $12 million to $20
million.
Earnings Conference Call
Power-One will be holding a conference call with investors and analysts
on Thursday, July 24, 2008 at 2:00 p.m. PT. The call will be available
over the Internet through the Company’s
investor relations Web site at www.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 www.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,
medical diagnostics, military, railway controls, semiconductor test
equipment, and custom applications. Power-One, with headquarters in
Camarillo, CA, has global sales offices, manufacturing, and R&D
operations in Asia, Europe, and the Americas. Please visit www.power-one.com
for more information.
For information on Power-One and its products, visit the Company’s
Web site at www.power-one.com.
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. It is important to note that
actual results could differ materially from those discussed in such
forward-looking statements. Important factors that could cause actual
results to differ materially include, but are not limited to; the
Company’s ability to improve its operational
efficiencies; the Company’s success in
securing improvements and improving efficiencies in its supply chain;
the timing and results achieved in completing product manufacturing
transitions to Company facilities in China or other low-cost locations;
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 those in the forward-looking statements is contained from time to
time in the Company's SEC filings, which may be obtained by contacting
the Company or the SEC. These filings are also available through the
Company's web site at http://www.power-one.com
or through the SEC's Electronic Data Gathering and Analysis Retrieval
System (EDGAR) at http://www.sec.gov.
We undertake 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
Six Months Ended
June 29,
July 1,
June 29,
July 1,
2008
2007
2008
2007
NET SALES
$
149,273
$
123,771
$
267,031
$
247,792
COST OF GOODS SOLD
118,692
98,021
215,124
198,125
GROSS PROFIT
30,581
25,750
51,907
49,667
EXPENSES:
Selling, general and administrative
18,834
18,931
39,048
39,445
Engineering and quality assurance
11,796
12,552
23,824
25,113
Amortization of intangibles
540
972
1,408
2,381
Restructuring costs
-
2,018
-
2,018
Asset impairment
-
734
-
734
Total expenses
31,170
35,207
64,280
69,691
INCOME (LOSS) FROM OPERATIONS
(589
)
(9,457
)
(12,373
)
(20,024
)
INTEREST AND OTHER INCOME (EXPENSE):
Interest income
165
271
383
671
Interest expense
(3,149
)
(1,764
)
(5,120
)
(3,417
)
Other income (expense), net
(968
)
539
(2,686
)
832
Total interest and other income (expense)
(3,952
)
(954
)
(7,423
)
(1,914
)
INCOME (LOSS) BEFORE INCOME TAXES
(4,541
)
(10,411
)
(19,796
)
(21,938
)
PROVISION (BENEFIT) FOR INCOME TAXES
240
665
(200
)
1,448
EQUITY IN EARNINGS FROM JOINT VENTURE
872
-
2,048
-
NET INCOME (LOSS)
$
(3,909
)
$
(11,076
)
$
(17,548
)
$
(23,386
)
BASIC EARNINGS (LOSS) PER SHARE
$
(0.04
)
$
(0.13
)
$
(0.20
)
$
(0.27
)
DILUTED EARNINGS (LOSS) PER SHARE
$
(0.04
)
$
(0.13
)
$
(0.20
)
$
(0.27
)
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (1)
87,554
86,989
87,473
86,855
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (1)
87,554
86,989
87,473
86,855
(1) Basic weighted average shares outstanding (WASO) is utilized
for periods with a net loss. This is due to the fact that diluted
WASO would be anti-dilutive for these periods. Diluted WASO is
utilized for periods with net income.
POWER-ONE, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(UNAUDITED)
June 29,
December 30,
2008
2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
37,738
$
28,364
Investments
7,477
Accounts receivable:
Trade (net of allowance)
146,719
129,984
Other
5,621
5,634
Inventories
120,389
105,930
Prepaid expenses and other current assets
10,794
7,487
Total current assets
321,261
284,876
PROPERTY & EQUIPMENT, net
63,814
62,809
INTANGIBLE ASSETS, net
85,289
82,748
OTHER ASSETS
7,172
1,163
TOTAL ASSETS
$
477,536
$
431,596
LIABILITIES & EQUITY
CURRENT LIABILITIES:
Bank credit facilities and notes payable
$
31,916
$
21,843
Accounts payable
120,719
107,751
Restructuring reserve
4,783
6,726
Long-term debt, current portion
1,480
2,338
Other accrued expenses and current liabilities
29,227
24,410
Total current liabilities
188,125
163,068
LONG-TERM DEBT, less current portion
75,594
50,550
OTHER LONG-TERM LIABILITIES
16,785
18,552
STOCKHOLDERS' EQUITY:
Common stock
88
87
Additional paid-in capital
617,047
615,040
Accumulated other comprehensive income
53,673
40,527
Accumulated deficit
(473,776
)
(456,228
)
Total stockholders' equity
197,032
199,426
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$
477,536
$
431,596
POWER-ONE, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 29,
July 1,
June 29,
July 1,
2008
2007
2008
2007
Orders
$
149,292
$
126,916
$
304,387
$
251,442
Sales
$
149,273
$
123,771
$
267,031
$
247,792
Operating Income (Loss)
$
(589
)
$
(9,457
)
$
(12,373
)
$
(20,024
)
Net Income (Loss)
$
(3,909
)
$
(11,076
)
$
(17,548
)
$
(23,386
)
Basic Earnings (Loss) Per Share (1)
$
(0.04
)
$
(0.13
)
$
(0.20
)
$
(0.27
)
Diluted Earnings (Loss) Per Share (1)
$
(0.04
)
$
(0.13
)
$
(0.20
)
$
(0.27
)
Basic Weighted Average Shares Outstanding (1)
87,554
86,989
87,473
86,855
Diluted Weighted Average Shares Outstanding (1)
87,554
86,989
87,473
86,855
(1) Basic weighted average shares outstanding (WASO) is utilized
for periods with a net loss. This is due to the fact that diluted
WASO would be anti-dilutive for these periods. Diluted WASO is
utilized for periods with net income.
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