Power-One Announces Fourth Quarter 2012 Results

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

The Power-One, Inc. logo is available at

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 describedin 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.

(In thousands, except per share data)
                             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          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                                        
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      (7,146)     6,905      (10,606)    22,654
income (expense)
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)   9           (50)       (254)       577
NET INCOME                   $(17,152)  $32,360   $55,662    $136,296
PREFERRED STOCK DIVIDEND AND  --         371        --         2,981
NET INCOME ATTRIBUTABLE TO    $(17,152)  $31,989   $55,662    $133,315
BASIC INCOME PER SHARE        $(0.14)    $0.23     $0.37      $1.08
DILUTEDINCOME PER SHARE      $(0.14)    $0.21     $0.36      $0.88
BASIC WEIGHTED AVERAGE SHARES 120,305     114,549    121,672     106,445
DILUTED WEIGHTED AVERAGE      120,305     133,093    156,261     138,521

(In thousands)
                                              December 30, January 1,
                                              2012         2012
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
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

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

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