- Quarterly revenue grows 21 percent year-over-year to $260 million
- Second quarter diluted EPS reaches $0.21 on operating income of $53 million
- Customer wins and share gains in the United States, China and India spur renewable energy sales
CAMARILLO, Calif., July 28, 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 second quarter 2011. For the quarter ended July 3, 2011, Power-One recorded net sales of $260 million, an increase of 21 percent from the second quarter 2010. Net income attributable to common stockholders for the second quarter was $31 million, or $0.21 per diluted share, compared to $24 million, or $0.17 per share for the same period last year.
"Power-One has made significant progress expanding into the fast growing solar markets in the United States, China and India, resulting in important customer wins and increased market share," said Richard Thompson, Chief Executive Officer of Power-One. "Power-One continued to perform well in an uncertain marketplace, highlighting the strength of our products and global business model."
"For the second half of 2011, we anticipate the solar market will begin to gain momentum in Europe and be bolstered by gains in new geographies, while the Power Solutions business continues to show improvements," continued Mr. Thompson.
Renewable Energy Solutions
During the second quarter of 2011, Renewable Energy Solutions posted a 27 percent revenue increase versus the same period last year, as Power-One showed continued momentum in the photovoltaic (PV) inverter market. The Company gained new customers in the United States, China and India which contributed to the increase in Renewable Energy revenue in North American and Asia Pacific, as these regions increased from 4% of total revenue last quarter to 18% in the second quarter of 2011.
Inverter and related products generated sales of $180 million for the second quarter 2011. During the quarter, Power-One shipped 718 MW of inverters, bringing the 2011 year-to-date total to 1.3 gigawatts, versus 800 megawatts during the same period in 2010.
Power Solutions
Power Solutions increased sales by 11 percent year-over-year, with revenue of $80 million in the second quarter 2011 versus $72 million in the same period of 2010. During the second quarter, Power Solutions' profitable performance was driven by continued operating efficiencies, including better absorption and reduced delinquencies. The unit continues to focus on reducing operating expenses and will continue to develop and implement plans to achieve its objectives.
Business Outlook
Power-One continues to expand its reach into new customers and geographies. For the third quarter of 2011, Power-One forecasts revenue of $265 million to $280 million, indicating increasing revenue versus the second quarter of 2011. Third quarter revenue is expected to be positively impacted by increased Renewable Energy sales to regions such as North America and Asia, as well as a stabilizing to improving market in the European region. For the year, Power-One anticipates generating revenue between $1.05 billion and $1.15 billion.
Earnings Conference Call
Power-One will discuss its 2011 second 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 #82102371, 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 | Six Months Ended | |||
| July 3, | July 4, | July 3, | July 4, | |
| 2011 | 2010 | 2011 | 2010 | |
| RENEWABLE ENERGY SALES | $ 180,026 | $ 142,276 | $ 331,655 | $ 224,366 |
| POWER SALES | 80,278 | 72,273 | 173,192 | 142,560 |
| TOTAL SALES | 260,304 | 214,549 | 504,847 | 366,926 |
| COST OF GOODS SOLD | 172,926 | 135,142 | 333,211 | 241,791 |
| GROSS PROFIT | 87,378 | 79,407 | 171,636 | 125,135 |
| GENERAL AND ADMINISTRATIVE | ||||
| Selling, general and administrative | 20,895 | 18,225 | 41,980 | 33,199 |
| Research and development | 12,086 | 8,568 | 23,382 | 16,946 |
| Litigation Charges | 638 | -- | 873 | -- |
| Amortization of intangibles | 468 | 356 | 910 | 733 |
| Restructuring costs and asset impairment | -- | 2,923 | -- | 3,852 |
| Total expenses | 34,087 | 30,072 | 67,145 | 54,730 |
| INCOME FROM OPERATIONS | 53,291 | 49,335 | 104,491 | 70,405 |
| INTEREST AND OTHER INCOME (EXPENSE): | ||||
| Interest income | 709 | 26 | 1,192 | 26 |
| Interest expense | (1,631) | (2,016) | (3,018) | (4,035) |
| Other income (expense), net | (4,496) | 722 | (6,709) | (4,136) |
| Total interest and other income (expense) | (5,418) | (1,268) | (8,535) | (8,145) |
| INCOME BEFORE INCOME TAXES | 47,873 | 48,067 | 95,956 | 62,260 |
| PROVISION FOR INCOME TAXES | 16,601 | 23,258 | 34,052 | 32,958 |
| EQUITY IN EARNINGS FROM JOINT VENTURE | 413 | 353 | 595 | 461 |
| NET INCOME | $ 31,685 | $ 25,162 | $ 62,499 | $ 29,763 |
| PREFERRED STOCK DIVIDEND AND ACCRETION | 870 | 855 | 1,736 | 1,706 |
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 30,815 | $ 24,307 | $ 60,763 | $ 28,057 |
| BASIC INCOME PER SHARE | $ 0.26 | $ 0.23 | $ 0.51 | $ 0.28 |
| DILUTED INCOME PER SHARE | $ 0.21 | $ 0.17 | $ 0.41 | $ 0.21 |
| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 103,636 | 88,453 | 103,713 | 88,377 |
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 140,283 | 142,278 | 140,602 | 140,955 |
| POWER-ONE, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
| (UNAUDITED) | ||
| July 3, | January 2, | |
| 2011 | 2011 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 142,715 | $ 227,907 |
| Accounts receivable: | ||
| Trade (net of allowance) | 238,420 | 262,546 |
| Other | 6,061 | 7,980 |
| Inventories | 177,345 | 152,286 |
| Prepaid expenses and other current assets | 21,829 | 21,671 |
| Total current assets | 586,370 | 672,390 |
| PROPERTY AND EQUIPMENT, net | 79,729 | 63,325 |
| INTANGIBLE ASSETS, net | 18,816 | 18,802 |
| OTHER ASSETS | 8,494 | 7,295 |
| TOTAL ASSETS | $ 693,409 | $ 761,812 |
| LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 143,856 | $ 213,096 |
| Long-term debt, current portion | -- | 103 |
| Income Tax Payable | 6,340 | 103,739 |
| Other accrued expenses and current liabilities | 63,537 | 67,888 |
| Total current liabilities | 213,733 | 384,826 |
| LONG-TERM DEBT, less current portion | 35,986 | 35,911 |
| OTHER LONG-TERM LIABILITIES | 53,327 | 39,445 |
| REDEEMABLE CONVERTIBLE PREFERRED STOCK | 20,153 | 19,597 |
| STOCKHOLDERS' EQUITY: | ||
| Common stock | 104 | 104 |
| Additional paid-in capital | 627,951 | 629,687 |
| Accumulated other comprehensive income | 68,834 | 41,420 |
| Accumulated deficit | (326,679) | (389,178) |
| Total stockholders' equity | 370,210 | 282,033 |
| TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | $ 693,409 | $ 761,812 |