- Quarterly revenue of $205 million
- 765 megawatts of inverters shipped in the quarter
- Reports first quarter net loss per share of $0.06, includes a $0.04 net loss on litigation charge
- Operating cash flow of $36 million in the quarter
CAMARILLO, Calif., May 2, 2013 (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 first quarter of 2013. For the quarter ended March 31, 2013, Power-One recorded net sales of $205 million, with Renewable Energy Solutions contributing $146 million and Power Solutions posting $58 million. Net loss attributable to common stockholders for the first quarter was $7 million, or $0.06 per diluted share. This includes a loss of $0.04 per share on charges related to the ongoing SynQor litigation.
Gross margins improved sequentially in the first quarter as the result of cost reduction actions in both SBU's and improved factory cost absorption on the higher volumes in Renewable Energy Solutions.
"In the first quarter of 2013, Power-One was able to exceed its revenue guidance forecast as a result of higher demand for commercial inverters in Europe," said Richard Thompson, Chief Executive Officer of Power-One. "We experienced a sequential increase in inverter revenue in most of our major markets in Europe, with particular strength in Italy, the U.K. and France."
"In addition to the upturn in demand in Europe, our new liquid-cooled ULTRA central inverters are being well received in North America," continued Mr. Thompson. "While revenue from ULTRA in North America for the first quarter was modest, bookings were strong, giving us confidence that we are beginning to gain traction on this important new product."
Renewable Energy Solutions
In the first quarter of 2013, Renewable Energy Solutions generated sales of $146 million and an operating margin of 4.0%. Sales increased by 19% sequentially. In the quarter, Power-One shipped 765 MW of inverters, up 22% from the fourth quarter of 2012. Dr. Alex Levran, President of Power-One's renewable energy business commented, "We are pleased with the progress we are making with our ULTRA product family, where to date, we have received purchase orders from customers for 140 MW in North America and nearly 250 MW globally. Additionally, we successfully launched our microinverter product in the first quarter and were encouraged by early shipments and incoming order rates."
Power Solutions
Power Solutions recorded sales of $58 million and an operating margin of 2.6% for the first quarter of 2013. Revenues declined by 14% sequentially, reflecting seasonality along with general market weakness in the Network Power Systems and Industrial product segments.
Balance Sheet
At March 31, 2013, Power-One had cash and short term investments of $290 million, as compared with $266 million at December 30, 2012. The Company generated $36 million in operating cash flow during the first quarter of 2013 on strong working capital management, as accounts receivable and inventory were reduced despite sequentially higher revenue.
Business Outlook
In the second quarter, Power-One expects stronger demand in the United States and seasonal improvement in the Power Solutions business, offset by uncertainties related to incentive programs in Italy and Germany, and the potential impact on demand of the European Commission's anti-dumping investigation against Chinese solar panel manufacturers. Accordingly, Power-One forecasts revenue of $215 million to $230 million in the second quarter of 2013.
Pending Acquisition
On April 22, 2013, Power-One and ABB (NYSE:ABB) announced that their boards of directors have agreed to a transaction in which ABB will acquire Power-One for $6.35 per share in cash or $1,028 million equity value. The transaction is structured as a merger and is subject to the satisfaction of customary closing conditions, including approval of Power One's shareholders at a special meeting and receipt of customary regulatory approvals. The transaction is expected to close in the second half of 2013.
Earnings Conference Call
Power-One will discuss its 2013 first 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 # 48041529, 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 web site at http://investor.power-one.com/events.cfm 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.
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 | ||
| March 31 | April 1 | |
| 2013 | 2012 | |
| RENEWABLE ENERGY SALES | $ 146,128 | $ 148,736 |
| POWER SOLUTIONS SALES | 58,479 | 77,013 |
| TOTAL SALES | 204,607 | 225,749 |
| COST OF GOODS SOLD | 166,519 | 170,765 |
| GROSS PROFIT | 38,088 | 54,984 |
| GENERAL AND ADMINISTRATIVE | ||
| Selling, general and administrative | 25,759 | 24,247 |
| Research, development and engineering | 11,608 | 11,741 |
| Amortization of intangibles | 415 | 413 |
| Litigation charges | 4,267 | 82 |
| Total expenses | 42,049 | 36,483 |
| (LOSS) INCOME FROM OPERATIONS | (3,961) | 18,501 |
| INTEREST AND OTHER INCOME (EXPENSE): | ||
| Interest income | 400 | 202 |
| Interest expense | (882) | (239) |
| Other income (expense), net | 1,176 | (8,951) |
| Total interest and other income (expense) | 694 | (8,988) |
| (LOSS) INCOME BEFORE INCOME TAXES | (3,267) | 9,513 |
| PROVISION FOR INCOME TAXES | 3,753 | 4,231 |
| EQUITY IN LOSSES FROM JOINT VENTURE | (141) | (303) |
| NET (LOSS) INCOME | $ (7,161) | $ 4,979 |
| BASIC (LOSS) INCOME PER SHARE | $ (0.06) | $ 0.03 |
| DILUTED (LOSS) INCOME PER SHARE | $ (0.06) | $ 0.03 |
| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 122,076 | 121,894 |
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 122,076 | 156,231 |
| POWER-ONE, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
| (UNAUDITED) | ||
| March 31 | December 30, | |
| 2013 | 2012 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 255,465 | $ 230,524 |
| Investments in fixed-income securities | 34,614 | 35,242 |
| Accounts receivable: | ||
| Trade (net of allowance) | 193,978 | 205,556 |
| Other | 12,113 | 16,124 |
| Inventories | 149,423 | 160,234 |
| Prepaid expenses and other current assets | 19,331 | 18,787 |
| Total current assets | 664,924 | 666,467 |
| PROPERTY AND EQUIPMENT, net | 100,097 | 101,946 |
| INTANGIBLE ASSETS, net | 15,031 | 15,549 |
| OTHER ASSETS | 15,052 | 14,970 |
| TOTAL ASSETS | $ 795,104 | $ 798,932 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 138,070 | $ 131,078 |
| Income tax payable | 6,516 | 3,600 |
| Other accrued expenses and current liabilities | 75,658 | 73,380 |
| Total current liabilities | 220,244 | 208,058 |
| OTHER LONG-TERM LIABILITIES | 75,988 | 73,941 |
| STOCKHOLDERS' EQUITY: | ||
| Preferred stock | 36,326 | 36,326 |
| Common stock | 122 | 122 |
| Additional paid-in capital | 665,336 | 661,395 |
| Accumulated other comprehensive income | 1,469 | 16,310 |
| Accumulated deficit | (204,381) | (197,220) |
| Total stockholders' equity | 498,872 | 516,933 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 795,104 | $ 798,932 |