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Power-One Announces Fourth Quarter 2012 Results

  • Quarterly revenue of $192 million
  • 628 megawatts of inverters shipped in the quarter and 3.6 gigawatts, up 23% for the full year
  • Reports fourth quarter net loss per share of $0.14, includes a $0.04 net loss on FX remeasurement
  • Began commercially shipping new ULTRA product in Europe

CAMARILLO, Calif., Jan. 31, 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 fourth quarter of 2012 ended December 30, 2012. Power-One recorded net sales of $192 million with Renewable Energy Solutions contributing $123 million and Power Solutions posting $68 million. Net loss attributable to common stockholders for the fourth quarter was $17 million, or $0.14 per share. This includes a loss, net of tax, of $0.04 per share on foreign currency remeasurement as a result of the recent strengthening Euro versus the U.S. dollar late in the fourth quarter.

"In the fourth quarter of 2012, Power-One shipped 628 megawatts of inverters, lower than we initially expected and due to weakness in Germany and Italy," said Richard Thompson, Chief Executive Officer of Power-One. "Despite the difficult current market conditions, our new products continued to be well received in the marketplace as our TRIO family of string inverters posted record sales for the year and our liquid-cooled ULTRA series of central inverters began shipping commercially in Europe in the fourth quarter and is expected to ship in the U.S. in the first quarter."

"The worldwide PV market is expected to grow by approximately 7% in 2013, largely driven by growth in North America and Asia-Pacific," Mr. Thompson continued. "We will benefit from this growth through our investment in these key markets and the introduction of industry-leading new product offerings."

Renewable Energy Solutions

In the fourth quarter of 2012, Renewable Energy Solutions generated sales of $123 million and an operating loss of $8.5 million. The operating loss was primarily due to lower gross margins resulting from the revenue shortfall, new product ramp-up costs, lower pricing and inventory charges. In the quarter, Power-One shipped 628 megawatts of inverters, bringing the 2012 total to 3.6 gigawatts, an increase of 23% over 2011.

Power Solutions

Power Solutions recorded sales of $68 million and an operating margin of 4% for the fourth quarter of 2012. Sales increased by $1 million from the third quarter, but were down from the fourth quarter of 2011 as demand was lower across a number of key end markets.

Balance Sheet

At December 30, 2012, Power-One had cash and short term investments of $266 million, as compared with $205 million at January 1, 2012. The Company generated $91 million in operating cash flow during the year and spent $31 million in capital expenditures.

Business Outlook

As the Company enters a seasonally slow quarter and as demand in Germany and Italy is expected to remain low, Power-One forecasts revenue of $175 million to $200 million in the first quarter of 2013. It is expected that gross margins will improve sequentially from the fourth quarter as a result of the cost reduction initiatives that have been undertaken.

Earnings Conference Call

Power-One will discuss its 2012 fourth 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 #88122939, 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. An accompanying slide presentation for the conference call is also available in the investor relations section of the web site. 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.

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 Twelve Months Ended
December 30, January 1, December 30, January 1,
2012 2012 2012 2012
RENEWABLE ENERGY SALES $ 123,303 $ 191,306 $ 743,010 $ 697,286
POWER SOLUTIONS SALES 68,355 75,527 279,568 319,425
TOTAL SALES 191,658 266,833 1,022,578 1,016,711
COST OF GOODS SOLD 165,965 194,573 762,453 704,007
GROSS PROFIT 25,693 72,260 260,125 312,704
GENERAL AND ADMINISTRATIVE
Selling, general and administrative 27,198 23,863 104,183 88,456
Research and development 11,515 13,120 46,088 48,077
Litigation charges -- 236 282 1,345
Amortization of intangibles 408 438 1,634 1,837
Total expenses 39,121 37,657 152,187 139,715
INCOME FROM OPERATIONS (13,428) 34,603 107,938 172,989
INTEREST AND OTHER INCOME (EXPENSE):
Interest income 276 328 1,459 1,966
Interest expense (449) (783) (1,751) (5,498)
Liquidation of subsidiary -- 1,546 -- 18,425
Other income (expense), net (6,973) 5,814 (10,314) 7,761
Total interest and other income (expense) (7,146) 6,905 (10,606) 22,654
INCOME BEFORE INCOME TAXES (20,574) 41,508 97,332 195,643
PROVISION FOR INCOME TAXES (3,413) 9,098 41,416 59,924
EQUITY IN EARNINGS (LOSSES) FROM JOINT VENTURE 9 (50) (254) 577
NET INCOME $ (17,152) $ 32,360 $ 55,662 $ 136,296
PREFERRED STOCK DIVIDEND AND ACCRETION -- 371 -- 2,981
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (17,152) $ 31,989 $ 55,662 $ 133,315
BASIC INCOME PER SHARE $ (0.14) $ 0.23 $ 0.37 $ 1.08
DILUTED INCOME PER SHARE $ (0.14) $ 0.21 $ 0.36 $ 0.88
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 120,305 114,549 121,672 106,445
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 120,305 133,093 156,261 138,521
POWER-ONE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(UNAUDITED)
December 30, January 1,
2012 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 230,524 $ 204,881
Investments in fixed-income securities 35,242
Accounts receivable: --
Trade (net of allowance) 205,569 233,252
Other 16,124 9,639
Inventories 160,252 160,515
Prepaid expenses and other current assets 18,616 15,351
Total current assets 666,327 623,638
PROPERTY AND EQUIPMENT, net 101,946 87,223
INTANGIBLE ASSETS, net 15,549 17,414
OTHER ASSETS 14,969 15,241
TOTAL ASSETS $ 798,791 $ 743,516
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 131,078 $ 177,333
Income tax payable 3,443 4,020
Other accrued expenses and current liabilities 73,379 64,754
Total current liabilities 207,900 246,107
OTHER LONG-TERM LIABILITIES 73,941 56,824
STOCKHOLDERS' EQUITY:
Preferred stock 36,326 36,326
Common stock 122 122
Additional paid-in capital 661,395 652,971
Accumulated other comprehensive income 16,327 4,048
Accumulated deficit (197,220) (252,882)
Total stockholders' equity 516,950 440,585
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 798,791 $ 743,516

CONTACT: Investor Contact: Larry Clark Investor Relations for Power-One Investor.Relations@Power-One.com (310) 478-2700 ext. 29

Source:Power-One, Inc.