Power-One Announces Fourth Quarter 2011 Results
CAMARILLO, Calif., Feb. 2, 2012 (GLOBE NEWSWIRE) -- Power-One, Inc. (Nasdaq:PWER), a leading provider of renewable energy and energy-efficient power conversion and power management solutions, today announced strong financial results for the fourth quarter 2011. For the quarter ended January 1, 2012, Power-One recorded net sales of $267 million, with Renewable Energy Solutions contributing $191 million and Power Solutions posting $76 million. Net income attributable to common stockholders for the fourth quarter was $32 million, or $0.21 per diluted share.
"In 2011, Power-One again recorded over $1 billion in sales, highlighting our ability to execute and generate profits in difficult operating environments," said Richard Thompson, Chief Executive Officer of Power-One. "Both SBUs performed well in the fourth quarter, as Power-One generated $48 million of operating cash flow in the quarter and finished the year with over $200 million in cash. Further, during the quarter, Power-One shipped 829 MW of inverters, bringing the 2011 total to 2.9 GW, versus 2.6 GW in 2010."
"Power-One continues to expand in high growth solar markets, such as India and the United States," continued Mr. Thompson. "As we move forward in 2012, look for Power-One to provide innovative new products to meet our customers' demands for better yields, higher uptimes and greater control of their PV assets." Renewable Energy Solutions
In the fourth quarter of 2011, Renewable Energy (RE) Solutions increased its penetration of North America and Asia-Pacific. These regions increased to 25% of RE revenue versus 17% in the third quarter. Inverter and related products generated sales of $191 million for the fourth quarter 2011, with a greater percentage of full-year 2011 sales achieved in the utility market, reflecting the current global trend of increasing ground mount and large-scale installations versus roof-top. Power Solutions
Power Solutions recorded sales of $76 million in the fourth quarter 2011 and an operating margin of 5%. In the quarter, revenue was positively impacted in the Servers, Storage and Networking market, with Power Solutions' posting its fifth consecutive quarter of operating profit. This was driven by increased volume over the prior quarter and improved operating efficiencies. Business Outlook
Due to uncertainty on feed-in-tariffs and other legislation, as well as the global macroeconomic uncertainty affecting end market demand in both SBUs, Power-One is not providing full-year guidance for 2012. For the first quarter of 2012, Power-One forecasts revenue of $190 million to $210 million, reflecting traditional seasonality in the first quarter. Earnings Conference Call
Power-One will discuss its 2011 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 #42980217, 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
Twelve Months Ended
January 1,
January 2,
January 1,
January 2,
2012
2011
2012
2011
RENEWABLE ENERGY SALES
$ 191,306
$ 262,680
$ 697,286
$ 715,402
POWER SALES
75,527
103,488
319,425
331,737
TOTAL SALES
266,833
366,168
1,016,711
1,047,139
COST OF GOODS SOLD
194,573
217,290
704,007
644,017
GROSS PROFIT
72,260
148,878
312,704
403,122
GENERAL AND ADMINISTRATIVE
Selling, general and administrative
23,863
22,152
88,456
74,631
Research and development
13,120
10,496
48,077
36,401
Litigation charges
236
22,128
1,345
22,128
Amortization of intangibles
438
440
1,837
1,533
Restructuring costs and asset impairment
--
--
--
3,852
Total expenses
37,657
55,216
139,715
138,545
INCOME FROM OPERATIONS
34,603
93,662
172,989
264,577
INTEREST AND OTHER INCOME (EXPENSE):
Interest income
328
285
1,966
361
Interest expense
(783)
(1,421)
(5,498)
(6,705)
Liquidation of subsidiary
1,546
--
18,425
--
Other income (expense), net
5,814
(891)
7,761
(7,981)
Total interest and other income (expense)
6,905
(2,027)
22,654
(14,325)
INCOME BEFORE INCOME TAXES
41,508
91,635
195,643
250,252
PROVISION FOR INCOME TAXES
9,098
37,578
59,924
103,615
EQUITY IN EARNINGS FROM JOINT VENTURE
(50)
317
577
1,219
NET INCOME
$ 32,360
$ 54,374
$ 136,296
$ 147,856
PREFERRED STOCK DIVIDEND AND ACCRETION
371
862
2,981
3,427
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$ 31,989
$ 53,512
$ 133,315
$ 144,429
BASIC INCOME PER SHARE
$ 0.23
$ 0.44
$ 1.08
$ 1.30
DILUTED INCOME PER SHARE
$ 0.21
$ 0.35
$ 0.88
$ 0.96
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING
114,549
104,113
106,445
95,731
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
133,093
141,793
138,521
141,910
POWER-ONE, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (UNAUDITED)
January 1,
January 2,
2012
2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 204,881
$ 227,907
Accounts receivable:
Trade (net of allowance)
233,252
262,546
Other
9,639
7,980
Inventories
160,515
152,286
Prepaid expenses and other current assets
15,351
21,671
Total current assets
623,638
672,390
PROPERTY AND EQUIPMENT, net
87,223
63,325
INTANGIBLE ASSETS, net
17,414
18,802
OTHER ASSETS
15,241
7,295
TOTAL ASSETS
$ 743,516
$ 761,812
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 177,333
$ 213,096
Long-term debt, current portion
--
103
Income Tax Payable
4,020
103,739
Other accrued expenses and current liabilities
64,754
67,888
Total current liabilities
246,107
384,826
LONG-TERM DEBT, less current portion
--
35,911
OTHER LONG-TERM LIABILITIES
56,824
39,445
REDEEMABLE CONVERTIBLE PREFERRED STOCK
--
19,597
STOCKHOLDERS' EQUITY:
Preferred stock
36,326
--
Common stock
122
104
Additional paid-in capital
652,971
629,687
Accumulated other comprehensive income
4,048
41,420
Accumulated deficit
(252,882)
(389,178)
Total stockholders' equity
440,585
282,033
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
$ 743,516
$ 761,812 CONTACT: Investor Contact:
Power-One, Inc.
Kevin Trosian
Vice President, Finance & Investor Relations
Investor.Relations@Power-One.com
(805) 383-5888