Power-One Announces Second Quarter 2007 Results

Power-One, Inc. announced that net sales for the second fiscal quarter ended June 30, 2007 were on target at $123.8 million, compared with $124.0 million for the first quarter of 2007. The loss for the second quarter, before restructuring and impairment charges of $2.8 million, was $8.3 million or $0.10 per share. The net loss, including the $0.03 loss per share due to restructuring and impairment charges, was $11.1 million, or $0.13 per share, compared with a net loss of $12.3 million, or $0.14 per share, for the first quarter in 2007.

The company attained 57% year-over-year revenue growth with new orders in the second quarter of 2007 of $126.9 million compared with $124.5 million in the first quarter of 2007. Bookings were particularly strong for custom and alternative energy products. The company ended the second quarter with approximately $108 million in 180-day backlog and $92 million in 90-day backlog. Both backlogs are the largest in recent history for the company.

Bill Yeates, CEO, commented, "We are pleased with the progress that has been made in our efforts to better align our cost structure and integrate the Power Electronics Group (PEG) acquisition. During the quarter we completed the closure of the Chatsworth, California operation according to our plans and moved those operations to lower-cost locations. Additionally, we made significant progress on our SG&A cost reduction plans announced in May and are on track to attain the anticipated $20 million annualized cost savings over the next few quarters. As part of the realignment, a number of other cost cutting efforts have been implemented including reductions in force. We are now seeing strong bookings and demand strength across our core and custom businesses. As we enter the second half of the year, we expect to realize the original synergies that were planned from the PEG acquisition, such as material and component cost reduction and improvements in efficiencies. We are convinced that the PEG acquisition was an important strategic move for the company to allow us to better leverage our costs, particularly in the higher-volume markets. In fact, due to this strategic move, we are seeing many significant opportunities with our customers in every market segment."

Yeates concluded, "On the digital power management side of the business, traction of the Z-One architecture is continuing and just this week we announced a major introduction of higher-power Z-One modules. These modules provide three times the power of our existing Z-Series and are targeted toward the server/storage market. Additionally, we anticipate a favorable outcome of Power-One’s patent infringement lawsuit against Artesyn Technologies, now a subsidiary of Emerson, that is set to go to jury trial in mid-August."