News

Power-One Announces Second Quarter 2008 Results

July 28, 2008 by Jeff Shepard

Power-One, Inc. announced that for the second quarter ended June 29, 2008, net sales were $149.3 million, an increase of 21% from $123.8 million in the second quarter of 2007. Net loss was $0.04 per share compared to a net loss of $0.13 per share for the same period last year, which included $0.03 of restructuring and impairment charges.

Revenue and earnings for the quarter were driven primarily by demand across the company’s core markets, with particular strength in the renewable energy market. Bookings of $149.3 million in the second quarter of 2008 increased 18% over bookings of $126.9 million in the second quarter of 2007. The company ended the second quarter of 2008 with approximately $107 million in 90-day backlog, up from $92 million last year.

Gross margin was 20.5% compared to 20.8% in the second quarter of 2007. The benefit of higher volume versus the year-ago quarter was offset by continued manufacturing inefficiencies, particularly costs associated with expediting past due orders. The loss from operations narrowed to $0.6 million compared to $9.5 million for the same period last year, which included restructuring and impairment charges of $2.8 million.

Richard Thompson, CEO, commented, "We are pleased with the strong sales performance in the second quarter and particularly with the large opportunity for Power-One in renewable energy. We made progress on many of our previously announced profitability initiatives, even as we worked to satisfy strong customer demand and ship past-due orders. This progress was reflected in the narrowing of our net loss and a 240-basis point increase in our gross margin from the first quarter. Despite this progress, we were not satisfied with the extent of the improvement, particularly given the strong top line. While the economy presents some challenges going forward, we believe our results will be driven by changes we are making in our business."