Power-One Announces First Quarter 2013 Results

Power-One Announces First Quarter 2013 Results

  *Quarterly revenue of $205 million
  *765 megawatts of inverters shipped in the quarter
  *Reports first quarter net loss per share of $0.06, includes a $0.04 net
    loss on litigation charge
  *Operating cash flow of $36 million in the quarter

CAMARILLO, Calif., May 2, 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 first quarter of 2013. For the quarter ended March 31, 2013,
Power-One recorded net sales of $205 million, with Renewable Energy Solutions
contributing $146 million and Power Solutions posting $58 million. Net loss
attributable to common stockholders for the first quarter was $7 million, or
$0.06 per diluted share. This includes a loss of $0.04 per share on charges
related to the ongoing SynQor litigation.

Gross margins improved sequentially in the first quarter as the result of cost
reduction actions in both SBU's and improved factory cost absorption on the
higher volumes in Renewable Energy Solutions.

"In the first quarter of 2013, Power-One was able to exceed its revenue
guidance forecast as a result of higher demand for commercial inverters in
Europe," said Richard Thompson, Chief Executive Officer of Power-One. "We
experienced a sequential increase in inverter revenue in most of our major
markets in Europe, with particular strength in Italy, the U.K. and France."

"In addition to the upturn in demand in Europe, our new liquid-cooled ULTRA
central inverters are being well received in North America," continued Mr.
Thompson. "While revenue from ULTRA in North America for the first quarter was
modest, bookings were strong, giving us confidence that we are beginning to
gain traction on this important new product."

Renewable Energy Solutions

In the first quarter of 2013, Renewable Energy Solutions generated sales of
$146 million and an operating margin of 4.0%. Sales increased by 19%
sequentially. In the quarter, Power-One shipped 765 MW of inverters, up 22%
from the fourth quarter of 2012. Dr. Alex Levran, President of Power-One's
renewable energy business commented, "We are pleased with the progress we are
making with our ULTRA product family, where to date, we have received purchase
orders from customers for 140 MW in North America and nearly 250 MW globally.
Additionally, we successfully launched our microinverter product in the first
quarter and were encouraged by early shipments and incoming order rates."

Power Solutions

Power Solutions recorded sales of $58 million and an operating margin of 2.6%
for the first quarter of 2013. Revenues declined by 14% sequentially,
reflecting seasonality along with general market weakness in the Network Power
Systems and Industrial product segments.

Balance Sheet

At March 31, 2013, Power-One had cash and short term investments of $290
million, as compared with $266 million at December 30, 2012. The Company
generated $36 million in operating cash flow during the first quarter of 2013
on strong working capital management, as accounts receivable and inventory
were reduced despite sequentially higher revenue.

Business Outlook

In the second quarter, Power-One expects stronger demand in the United States
and seasonal improvement in the Power Solutions business, offset by
uncertainties related to incentive programs in Italy and Germany, and the
potential impact on demand of the European Commission's anti-dumping
investigation against Chinese solar panel manufacturers. Accordingly,
Power-One forecasts revenue of $215 million to $230 million in the second
quarter of 2013.

Pending Acquisition

On April 22, 2013, Power-One and ABB (NYSE:ABB) announced that their boards of
directors have agreed to a transaction in which ABB will acquire Power-One for
$6.35 per share in cash or $1,028 million equity value. The transaction is
structured as a merger and is subject to the satisfaction of customary closing
conditions, including approval of Power One's shareholders at a special
meeting and receipt of customary regulatory approvals. The transaction is
expected to close in the second half of 2013.

Earnings Conference Call

Power-One will discuss its 2013 first 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 # 48041529, 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 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

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.

(In thousands, except per share data)
                                           Three Months Ended
                                           March 31   April 1
                                           2013       2012
RENEWABLE ENERGY SALES                      $146,128 $148,736
POWER SOLUTIONS SALES                       58,479    77,013
TOTAL SALES                                 204,607   225,749
COST OF GOODS SOLD                          166,519   170,765
GROSS PROFIT                                38,088    54,984
GENERAL AND ADMINISTRATIVE                            
Selling, general and administrative         25,759    24,247
Research, development and engineering       11,608    11,741
Amortization of intangibles                 415       413
Litigation charges                          4,267     82
Total expenses                              42,049    36,483
(LOSS) INCOME FROM OPERATIONS               (3,961)   18,501
Interest income                             400       202
Interest expense                            (882)     (239)
Other income (expense), net                 1,176     (8,951)
Total interest and other income (expense)   694       (8,988)
(LOSS) INCOME BEFORE INCOME TAXES           (3,267)   9,513
PROVISION FOR INCOME TAXES                  3,753     4,231
NET (LOSS) INCOME                           $(7,161) $4,979
BASIC (LOSS) INCOME PER SHARE               $(0.06)  $0.03
DILUTED (LOSS) INCOME PER SHARE             $(0.06)  $0.03

(In thousands)
                                              March 31   December 30,
                                              2013       2012
CURRENT ASSETS:                                          
Cash and cash equivalents                      $255,465 $230,524
Investments in fixed-income securities         34,614    35,242
Accounts receivable:                                     
Trade (net of allowance)                       193,978   205,556
Other                                          12,113    16,124
Inventories                                    149,423   160,234
Prepaid expenses and other current assets      19,331    18,787
Total current assets                           664,924   666,467
PROPERTY AND EQUIPMENT, net                    100,097   101,946
INTANGIBLE ASSETS, net                         15,031    15,549
OTHER ASSETS                                   15,052    14,970
TOTAL ASSETS                                   $795,104 $798,932
CURRENT LIABILITIES:                                     
Accounts payable                               $138,070 $131,078
Income tax payable                             6,516     3,600
Other accrued expenses and current liabilities 75,658    73,380
Total current liabilities                      220,244   208,058
OTHER LONG-TERM LIABILITIES                    75,988    73,941
STOCKHOLDERS' EQUITY:                                    
Preferred stock                                36,326    36,326
Common stock                                   122       122
Additional paid-in capital                     665,336   661,395
Accumulated other comprehensive income         1,469     16,310
Accumulated deficit                            (204,381) (197,220)
Total stockholders' equity                     498,872   516,933

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

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