EX-99.1 2 a09-4789_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Contacts:

 

 

Linda Heller

 

Kristyn Moll

Senior Vice President, Finance and CFO

 

Avalon Investor Relations

(805) 987-8741

 

(512) 514-6046

 

POWER-ONE ANNOUNCES FOURTH QUARTER AND YEAR-END 2008 RESULTS

 

Achieves Results within Guidance and Net Income of $0.02 per Share

 

Camarillo, CA, February 5, 2009 — Power-One, Inc. (NASDAQ: PWER) (the “Company”), a leading provider of power conversion and power management solutions, today announced that for the fourth quarter ended December 28, 2008, net sales were $130.4 million, a decrease of 1.5% from $132.3 million in the fourth quarter of 2007.  Net income was $0.02 per share, which included a gain of $3.9 million, or $0.04 per share, from the repurchase of $10 million of outstanding convertible debt during the quarter, compared to a net loss of $0.07 per share for the same period last year.  For full-year 2008, sales increased by 5.1% to $537.5 million, and net loss was $17.5 million or $0.20 per share compared with sales of $511.6 million and net loss of $36.4 million, or $0.42 per share for full-year 2007.

 

Revenue for the quarter was negatively affected by the difficult market environment and approximately $4.8 million related to the appreciation of the U.S. dollar against European currencies. Bookings of $104.6 million in the fourth quarter of 2008 decreased 15% from bookings of $122.7 million in the fourth quarter of 2007.  The Company ended the fourth quarter of 2008 with approximately $69 million in 90-day backlog, compared to  approximately $76 million for the same period last year.

 

Gross margin improved to 22.0% in the fourth quarter of 2008 compared with 21.1% in the fourth quarter of 2007, as a result of continued efforts to improve operating efficiencies.  Operating expenses decreased to 21.7% of net sales compared with  23.3% of net sales for the fourth quarter of 2007.

 

The Company continues to implement aggressive cost reduction actions in response to ongoing demand uncertainty.  As a result, the Company will reduce its global headcount by approximately 1,000, or 22% of the workforce, and will incur charges of approximately $1.3 million related to severance.  The Company expects to recoup the cash severance payments from related salary and benefits savings within three months of being incurred and will realize the substantial majority of the run rate benefit in the second quarter of 2009.

 

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Richard Thompson, CEO, commented, “During the quarter we performed well and met our revenue and earnings guidance in a challenging economic climate. We continued to make improvements on our expense reductions, operating results and strategic initiatives while gaining momentum in the renewable energy market and with a number of major power customers as a result of improved order execution and our broad based product solutions.”

 

Continuing, Mr. Thompson said, “As we enter 2009, we are adjusting our cost basis to a lower revenue run rate as we continue to invest in our sales footprint, engineering and service delivery in the renewable energy space.  Likewise, we will continue to implement changes throughout the business  to build on our product momentum and further improve profitability and working capital efficiency.”

 

Business Outlook

 

Due to the current economic uncertainty and poor demand visibility, the Company is not providing financial guidance for the first quarter and full year 2009.

 

Earnings Conference Call

 

Power-One will discuss its fiscal 2008 fourth quarter and year-end results, today beginning at 2:00 p.m. Pacific Time.  The call will be available over the Internet through the Company’s investor relations Web site at www.power-one.com.   To listen to the call, please go to the Web site 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 Company’s Web site at www.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, medical diagnostics, military, railway controls, semiconductor test equipment, and custom applications.  Power-One, with headquarters in Camarillo, CA, has global sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas.

 

For information on Power-One and its products, visit the Company’s Web site at 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

 

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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; 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

 

 

 

December 28,

 

December 30,

 

December 28,

 

December 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

130,372

 

$

132,344

 

$

537,459

 

$

511,613

 

COST OF GOODS SOLD

 

101,631

 

104,477

 

426,882

 

406,528

 

GROSS PROFIT

 

28,741

 

27,867

 

110,577

 

105,085

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

17,806

 

18,663

 

75,057

 

76,020

 

Engineering and quality assurance

 

10,517

 

12,139

 

45,498

 

48,828

 

Amortization of intangibles

 

482

 

1,014

 

2,408

 

4,400

 

Restructuring costs

 

—

 

77

 

—

 

3,117

 

Asset impairment

 

—

 

3

 

—

 

1,193

 

Total expenses

 

28,805

 

31,896

 

122,963

 

133,558

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

(64

)

(4,029

)

(12,386

)

(28,473

)

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

Interest income

 

105

 

242

 

685

 

1,230

 

Interest expense

 

(2,452

)

(2,028

)

(10,018

)

(7,904

)

Other income (expense), net

 

3,813

 

(809

)

1,337

 

1,173

 

Total interest and other income (expense)

 

1,466

 

(2,595

)

(7,996

)

(5,501

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

1,402

 

(6,624

)

(20,382

)

(33,974

)

 

 

 

 

 

 

 

 

 

 

PROVISION (BENEFIT) FOR INCOME TAXES

 

98

 

(172

)

(184

)

2,396

 

EQUITY IN EARNINGS FROM JOINT VENTURE

 

404

 

—

 

2,657

 

—

 

NET INCOME (LOSS)

 

$

1,708

 

$

(6,452

)

$

(17,541

)

$

(36,370

)

 

 

 

 

 

 

 

 

 

 

BASIC INCOME (LOSS) PER SHARE

 

$

0.02

 

$

(0.07

)

$

(0.20

)

$

(0.42

)

DILUTED INCOME (LOSS) PER SHARE

 

$

0.02

 

$

(0.07

)

$

(0.20

)

$

(0.42

)

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING

 

87,792

 

87,325

 

87,627

 

87,052

 

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

87,793

 

87,325

 

87,627

 

87,052

 

 

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POWER-ONE, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

(UNAUDITED)

 

 

 

December 28,

 

December 30,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

28,414

 

$

28,364

 

Investments

 

—

 

7,477

 

Accounts receivable:

 

 

 

 

 

Trade (net of allowance)

 

143,093

 

129,984

 

Other

 

2,698

 

5,634

 

Inventories

 

101,608

 

105,930

 

Prepaid expenses and other current assets

 

11,037

 

7,487

 

 

 

 

 

 

 

Total current assets

 

286,850

 

284,876

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

55,381

 

62,809

 

INTANGIBLE ASSETS, net

 

79,311

 

82,748

 

OTHER ASSETS

 

7,417

 

1,163

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

428,959

 

$

431,596

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Bank credit facilities and notes payable

 

$

26,949

 

$

21,843

 

Accounts payable

 

100,658

 

107,751

 

Restructuring reserve

 

3,651

 

6,726

 

Long-term debt, current portion

 

472

 

2,338

 

Other accrued expenses and current liabilities

 

26,544

 

24,410

 

 

 

 

 

 

 

Total current liabilities

 

158,274

 

163,068

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

70,425

 

50,550

 

OTHER LONG-TERM LIABILITIES

 

16,041

 

18,552

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Common stock

 

88

 

87

 

Additional paid-in capital

 

618,255

 

615,040

 

Accumulated other comprehensive income

 

39,645

 

40,527

 

Accumulated deficit

 

(473,769

)

(456,228

)

 

 

 

 

 

 

Total stockholders’ equity

 

184,219

 

199,426

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

428,959

 

$

431,596

 

 

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POWER-ONE, INC.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(UNAUDITED)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 28,

 

December 30,

 

December 28,

 

December 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Orders

 

$

104,649

 

$

122,680

 

$

530,451

 

$

492,181

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

130,372

 

$

132,344

 

$

537,459

 

$

511,613

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

$

(64

)

$

(4,029

)

$

(12,386

)

$

(28,473

)

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

1,708

 

$

(6,452

)

$

(17,541

)

$

(36,370

)

 

 

 

 

 

 

 

 

 

 

Basic Income (Loss) Per Share

 

$

0.02

 

$

(0.07

)

$

(0.20

)

$

(0.42

)

Diluted Income (Loss) Per Share

 

$

0.02

 

$

(0.07

)

$

(0.20

)

$

(0.42

)

 

 

 

 

 

 

 

 

 

 

Basic Weighted Average Shares Outstanding

 

87,792

 

87,325

 

87,627

 

87,052

 

Diluted Weighted Average Shares Outstanding

 

87,793

 

87,325

 

87,627

 

87,052

 

 

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