• 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
May 2, 2013 - Power-One, Inc. 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 765MW 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 250MW globally. Additionally, we successfully launched our microinverter product in the first quarter and were encouraged by early shipments and incoming order rates."
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.
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.
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.
On April 22, 2013, Power-One and 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.