Power-One Announces First Quarter 2013 Results
May 02 2013 - 4:05PM
- 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
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 |
CONTACT: Investor Contact:
Larry Clark
Investor Relations for Power-One
Investor.Relations@Power-One.com
(310) 478-2700 ext. 29
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