EX-99.1 2 a09-32101_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contact:

Kevin Trosian

Vice President, Investor Relations

(805) 383-5888

 

POWER-ONE REPORTS THIRD QUARTER 2009 RESULTS

 

 

Continued Progress with Turnaround; Renewable Energy Gaining Momentum

 

Camarillo, CA, October 22, 2009 – Power-One, Inc. (NASDAQ: PWER), a leading provider of traditional and renewable energy power conversion and power management solutions, today announced net sales of $100.1 million for the third quarter ended September 27, 2009, an increase of 10% over the second quarter 2009 and a decrease of 29% from the third quarter 2008.  Net loss attributable to common shareholders for the third quarter was $2.9 million, or $0.03 per share, compared to $6.8 million, or $0.08 per share in the second fiscal quarter, and a loss of $1.7 million, or $0.02 for the same period last year.

 

The renewable energy product line continued to gain traction during the quarter, with increased momentum resulting in record sales of $31.1 million for the quarter, an increase of 63% versus $19.1 million in the third quarter of 2008. Power-One’s traditional power product lines generated revenue of $69.0 million, down 43% from $120.9 million in the third quarter 2008; however, backlog from the power product lines increased at the end of the third quarter to $44 million from $37 million at the end of the second quarter of 2009. The Company ended the third quarter 2009 with a 90-day backlog of $84 million. The third quarter 2009 book-to-bill ratio was 1.34, compared to 0.98 in the second quarter of 2009. The book-to-bill ratio for the third quarter for the renewable energy product line was 1.97 and was 1.06 for the power product line.

 

Gross margin improved to 23.2% in the third quarter of 2009, compared with 21.4% for the same period last year. Continued cost improvements, as well as a favorable product mix, contributed to the expansion in gross margin. Operating income for the third quarter 2009 was $0.9 million. Operating income included $1.4 million in costs from restructuring charges and other expenses related to the closure of the Dominican Republic facility.

 

Richard Thompson, Chief Executive Officer, commented, “Demand for renewable energy products increased in the quarter and 90-day backlog improved in both the traditional power conversion and renewable energy markets. The increasing demand, coupled with Power-One’s continued cost initiatives, led to higher gross and operating margins. Additionally, the improved operating performance and more efficient balance sheet management lowered our debt position.”

 

The cash balance at the end of the third quarter was $75.8 million, approximately equal to last quarter, as Power-One continues to reduce its debt and generate positive cash flow. Due to better working capital management in the quarter, inventory decreased to $77.5 million versus $81.4 million in the second quarter of 2009. As part of Power-One’s overall restructuring, the closure of the Dominican Republic facility and other cost-cutting initiatives remain on track.

 


 

Mr. Thompson continued, “Overall, our end markets are beginning to show signs of recovery, with customer demand improving for both power and renewable energy products, as indicated by our 90-day backlog.”

 

Business Outlook

 

Consistent with prior quarters, the Company is not providing financial guidance for the fourth quarter of 2009.

 

Earnings Conference Call

 

Power-One will discuss its 2009 third quarter 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 may state the Company’s or management’s beliefs, expectations or predictions for the future and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding anticipated future demand. It is important to note that future demand for the Company’s products could differ materially expectations 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, 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 impact the Company’s performance 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

 

Nine Months Ended

 

 

 

September 27,

 

September 28,

 

September 27,

 

September 28,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

100,129

 

$

140,056

 

$

289,138

 

$

407,087

 

COST OF GOODS SOLD

 

76,940

 

110,127

 

233,943

 

325,251

 

GROSS PROFIT

 

23,189

 

29,929

 

55,195

 

81,836

 

 

 

 

 

 

 

 

 

 

 

GENERAL AND ADMINISTRATIVE

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

14,121

 

18,203

 

40,960

 

57,251

 

Engineering and quality assurance

 

7,164

 

11,157

 

21,906

 

34,981

 

Amortization of intangibles

 

385

 

518

 

1,159

 

1,926

 

Restructuring costs

 

655

 

—

 

5,668

 

—

 

Goodwill impairment

 

—

 

—

 

56,999

 

—

 

Total expenses

 

22,325

 

29,878

 

126,692

 

94,158

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

864

 

51

 

(71,497

)

(12,322

)

 

 

 

 

 

 

 

 

 

 

INTEREST AND OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

Interest income

 

(1

)

197

 

221

 

580

 

Interest expense

 

(2,177

)

(2,446

)

(6,513

)

(7,566

)

Other income (expense), net

 

688

 

210

 

8,984

 

(2,476

)

Total interest and other income (expense)

 

(1,490

)

(2,039

)

2,692

 

(9,462

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

(626

)

(1,988

)

(68,805

)

(21,784

)

 

 

 

 

 

 

 

 

 

 

PROVISION (BENEFIT) FOR INCOME TAXES

 

1,510

 

(82

)

1,104

 

(282

)

EQUITY IN EARNINGS FROM JOINT VENTURE

 

104

 

205

 

379

 

2,253

 

NET INCOME (LOSS)

 

$

(2,032

)

$

(1,701

)

$

(69,530

)

$

(19,249

)

 

 

 

 

 

 

 

 

 

 

PREFERRED STOCK DIVIDEND AND ACCRETION

 

844

 

—

 

1,350

 

—

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

(2,876

)

$

(1,701

)

$

(70,880

)

$

(19,249

)

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED INCOME (LOSS) PER SHARE

 

$

(0.03

)

$

(0.02

)

$

(0.81

)

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

88,134

 

87,770

 

88,001

 

87,572

 

 


 

POWER-ONE, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

(UNAUDITED)

 

 

 

September 27,

 

December 28,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

75,767

 

$

28,414

 

Accounts receivable:

 

 

 

 

 

Trade (net of allowance)

 

106,161

 

143,093

 

Other

 

3,175

 

2,698

 

Inventories

 

77,517

 

101,608

 

Prepaid expenses and other current assets

 

13,666

 

11,037

 

 

 

 

 

 

 

Total current assets

 

276,286

 

286,850

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

49,798

 

55,381

 

INTANGIBLE ASSETS, net

 

19,200

 

79,311

 

OTHER ASSETS

 

7,695

 

7,417

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

352,979

 

$

428,959

 

 

 

 

 

 

 

LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Bank credit facilities and notes payable

 

$

13,093

 

$

26,949

 

Accounts payable

 

70,323

 

100,658

 

Restructuring reserve

 

5,365

 

3,651

 

Long-term debt, current portion

 

221

 

472

 

Other accrued expenses and current liabilities

 

34,296

 

26,544

 

 

 

 

 

 

 

Total current liabilities

 

123,298

 

158,274

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

74,717

 

70,425

 

OTHER LONG-TERM LIABILITIES

 

17,117

 

16,041

 

 

 

 

 

 

 

REDEEMABLE CONVERTIBLE PREFERRED STOCK

 

18,276

 

—

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Common stock

 

88

 

88

 

Additional paid-in capital

 

621,530

 

618,255

 

Accumulated other comprehensive income

 

41,252

 

39,645

 

Accumulated deficit

 

(543,299

)

(473,769

)

 

 

 

 

 

 

Total stockholders’ equity

 

119,571

 

184,219

 

 

 

 

 

 

 

TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

$

352,979

 

$

428,959

 

 


 

POWER-ONE, INC.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(UNAUDITED)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 27,

 

September 28,

 

September 27,

 

September 28,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Orders

 

$

134,175

 

$

121,415

 

$

300,030

 

$

425,801

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

100,129

 

$

140,056

 

$

289,138

 

$

407,087

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

$

864

 

$

51

 

$

(71,497

)

$

(12,322

)

 

 

 

 

 

 

 

 

 

 

Net Loss Attributable to Common Stockholders

 

$

(2,876

)

$

(1,701

)

$

(70,880

)

$

(19,249

)

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss Per Share

 

$

(0.03

)

$

(0.02

)

$

(0.81

)

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Weighted Average Shares Outstanding

 

88,134

 

87,770

 

88,001

 

87,572