EX-99.1 2 a11-5185_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

Investor Contact:

Power-One, Inc.

Kevin Trosian

Vice President, Finance & Investor Relations

(805) 987-8741

 

Media Contact:

Edelman for Power-One

Jon Murchinson

Jon.Murchinson@edelman.com

Phone: 415-486-3274

 

POWER-ONE ANNOUNCES RECORD FOURTH QUARTER AND

 

FISCAL YEAR 2010 RESULTS

 


 

·      Revenue exceeds $1 billion in 2010

·      Quarterly revenue grows 157% year-over-year to $366 million

·      Operating income reaches $265 million in 2010

·      2010 diluted EPS of $0.96 includes $0.14 charge from SynQor litigation

 

Camarillo, CA, February 3, 2011 — 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 and fiscal year 2010.  For the quarter ended January 2, 2011, Power-One posted net sales of $366 million, an increase of 157% from the fourth quarter 2009.  Net income attributable to common stockholders for the fourth quarter was $54 million, or $0.35 per diluted share, compared to $5 million, or $0.05 per share for the same period last year.  Net income was negatively impacted by a $22 million charge as a result of the SynQor litigation, which lowered diluted EPS by $0.14.

 

For the full year, Power-One achieved net sales of $1.05 billion, an increase of 143% compared to 2009.  Net income attributable to common stockholders was $144 million, or $0.96 per diluted share, compared to a loss of $65 million, or a $0.74 loss per share for the prior year.

 

“We gained market share and achieved record sales and net income in 2010, as both Renewable Energy Solutions and Power Solutions posted positive operating income in the fourth quarter,” said Richard Thompson, Chief Executive Officer of Power-One. “With our focus on technology-leading products and customer service, Power-One is positioned for continued revenue and profitability growth in 2011.”

 

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Renewable Energy Solutions

 

Renewable Energy Solutions posted a revenue increase of 285% versus last year as it continued to grow at a faster pace than the photovoltaic (PV) inverter market.  In the quarter, Power-One introduced its U.S. inverter product line and opened its manufacturing and research and design center in Phoenix, Arizona.

 

Inverter and related product sales reached a record $263 million in revenue for the fourth quarter 2010. Renewable Energy Solutions contributed nearly 72% of the company’s revenue, versus 48% in the fourth quarter of 2009. In the quarter, Power-One shipped 932 MW of inverters, bringing its 2010 total to 2.6 GW.

 

Power Solutions

 

Power Solutions increased sales by 39% year-over-year, with revenue of $103 million in the fourth quarter 2010 versus $74 million in the same period of 2009.  During the fourth quarter, Power Solutions introduced products that exceed Climate Savers Computing Initiative platinum targets, providing its customers with greater efficiency and higher power density. At the same time, Power-One recorded a number of design wins with its platinum-level products.

 

Business Outlook

 

For the first quarter of 2011, Power-One forecasts revenue of $260 million to $290 million, indicating 80% growth at the midpoint of the forecast versus the prior year period. First quarter revenue is expected to be impacted by seasonality, heightened by inclement weather in Europe and a reduction in feed-in-tariffs across multiple markets, as well as excess inverter inventory in the channel. Based on current market demand and expectations of further feed-in-tariff reductions, coupled with expected contributions from the US and China, primarily in the second half of the year, Power-One anticipates generating revenue between $1.1 billion and $1.3 billion for the full year 2011.

 

Earnings Conference Call

 

Power-One will discuss its 2010 fourth quarter results today beginning 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 # 35367972, or over the Internet through the Power-One’s 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 designs and manufactures energy-efficient power conversion and power management solutions for alternative/renewable energy, routers, data storage and servers, wireless communications, optical networking, semiconductor test equipment, industrial markets and custom applications. Power-One, with headquarters in Camarillo, California, has global sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas. Power-One is a public company listed on NASDAQ under the ticker symbol PWER.  For more information about the Company, please visit www.Power-One.com.

 

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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.

 

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POWER-ONE, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share data)

(UNAUDITED)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

January 2,

 

January 3,

 

January 2,

 

January 3,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

RENEWABLE ENERGY SALES

 

$

262,680

 

$

68,154

 

$

715,402

 

$

128,594

 

POWER SALES

 

103,488

 

74,280

 

331,737

 

302,978

 

TOTAL SALES

 

366,168

 

142,434

 

1,047,139

 

431,572

 

COST OF GOODS SOLD

 

217,290

 

101,336

 

644,017

 

335,279

 

GROSS PROFIT

 

148,878

 

41,098

 

403,122

 

96,293

 

 

 

 

 

 

 

 

 

 

 

GENERAL AND ADMINISTRATIVE

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

22,152

 

16,702

 

74,631

 

57,662

 

Research and development

 

10,496

 

8,408

 

36,401

 

30,314

 

Litigation Charges

 

22,128

 

 

22,128

 

 

Amortization of intangibles

 

440

 

394

 

1,533

 

1,553

 

Restructuring costs and asset impairment

 

 

2,367

 

3,852

 

8,035

 

Goodwill impairment

 

 

 

 

56,999

 

Total expenses

 

55,216

 

27,871

 

138,545

 

154,563

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

93,662

 

13,227

 

264,577

 

(58,270

)

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

Interest income

 

285

 

19

 

361

 

240

 

Interest expense

 

(1,421

)

(2,231

)

(6,705

)

(8,744

)

Other income (expense), net

 

(891

)

823

 

(7,981

)

9,807

 

Total interest and other income (expense)

 

(2,027

)

(1,389

)

(14,325

)

1,303

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

91,635

 

11,838

 

250,252

 

(56,967

)

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

37,578

 

5,762

 

103,615

 

6,866

 

EQUITY IN EARNINGS FROM JOINT VENTURE

 

317

 

189

 

1,219

 

568

 

NET INCOME (LOSS)

 

$

54,374

 

$

6,265

 

$

147,856

 

$

(63,265

)

 

 

 

 

 

 

 

 

 

 

PREFERRED STOCK DIVIDEND AND ACCRETION

 

862

 

848

 

3,427

 

2,198

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

53,512

 

$

5,417

 

$

144,429

 

$

(65,463

)

 

 

 

 

 

 

 

 

 

 

BASIC INCOME (LOSS) PER SHARE

 

$

0.44

 

$

0.06

 

$

1.30

 

$

(0.74

)

DILUTED INCOME (LOSS) PER SHARE

 

$

0.35

 

$

0.05

 

$

0.96

 

$

(0.74

)

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING

 

104,113

 

88,201

 

95,731

 

88,054

 

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

141,793

 

158,260

 

141,910

 

88,054

 

 



 

POWER-ONE, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(UNAUDITED)

 

 

 

January 2,

 

January 3,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

227,907

 

$

89,553

 

Accounts receivable:

 

 

 

 

 

Trade (net of allowance)

 

262,546

 

119,783

 

Other

 

7,980

 

2,763

 

Inventories

 

152,286

 

73,173

 

Prepaid expenses and other current assets

 

21,671

 

10,612

 

 

 

 

 

 

 

Total current assets

 

672,390

 

295,884

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

63,325

 

48,906

 

INTANGIBLE ASSETS, net

 

18,802

 

18,602

 

OTHER ASSETS

 

7,295

 

7,943

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

761,812

 

$

371,335

 

 

 

 

 

 

 

LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Bank credit facilities and notes payable

 

$

 

$

504

 

Accounts payable

 

213,096

 

89,074

 

Restructuring reserve

 

549

 

6,866

 

Long-term debt, current portion

 

103

 

1,269

 

Income Tax Payable

 

103,739

 

11,955

 

Other accrued expenses and current liabilities

 

67,339

 

26,125

 

 

 

 

 

 

 

Total current liabilities

 

384,826

 

135,793

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

35,911

 

78,146

 

OTHER LONG-TERM LIABILITIES

 

39,445

 

16,281

 

 

 

 

 

 

 

REDEEMABLE CONVERTIBLE PREFERRED STOCK

 

19,597

 

18,533

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Common stock

 

104

 

88

 

Additional paid-in capital

 

629,687

 

620,261

 

Accumulated other comprehensive income

 

41,420

 

39,267

 

Accumulated deficit

 

(389,178

)

(537,034

)

 

 

 

 

 

 

Total stockholders’ equity

 

282,033

 

122,582

 

 

 

 

 

 

 

TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

$

761,812

 

$

371,335