Power-One, Inc. announced that for the third fiscal quarter ended September 30, 2006, net sales were $78.7 million and net income was $0.01 per share, compared with revenue and a net income of $67.2 million and $0.02 per share, respectively, during the third quarter of 2005. Revenue for the quarter slightly exceeded the high-end of the company's guidance primarily due to strength in orders placed by new customers.
"As our September quarter results demonstrate, we clearly remain on track with our strategic plan for strong organic revenue growth, and in addition have recently completed an acquisition (referring to Magnetek's Power Electronics Group) that we believe will drive our revenue and profitability to new highs," said Bill Yeates, Chief Executive Officer. "We believe that the resulting enterprise will give us the critical mass necessary to compete effectively with any other company in our market. With a revenue expectation of well over a half-billion for 2007, and numerous sales and cost synergy expectations and opportunities, we believe that Power-One will become an even more formidable and profitable competitor. At this time, we expect that it will take 12 to 18 months to fully integrate the acquired business and execute on all of the synergies, although some will happen much faster."
Yeates continued, "This is a true watershed moment in the history of Power-One. From a strategic standpoint, we have combined two world-class companies with an expanded sales force and additional top-tier engineering talent. In addition, the company has acquired additional low-cost manufacturing operations to accommodate the anticipated volume and timely delivery to customers. And while the acquisition will facilitate growth of our core business, Power-One also has an advantage in next-generation technology. Our industry is clearly headed in the direction of digital power management, and Power-One holds a strong suite of key patents in this technology, with dozens more in process, and we continue to log design wins with major customers."
