Power-One Inc. announced financial results for the third quarter of 2012 ended September 30, 2012. Power-One recorded net sales of $284 million with Renewable Energy Solutions contributing $216 million and Power Solutions posting $67 million. Net income attributable to common stockholders for the third quarter was $21 million, or $0.13 per diluted share. This includes a loss, net of tax, of $0.03 per share on foreign currency remeasurement due to the recent strengthening of the Euro versus the U.S. dollar.
"In the third quarter of 2012, Power-One shipped 1,007 megawatts of inverters, primarily driven by ongoing strength in Europe and growth in residential and commercial installations in North America and Asia-Pacific," said Richard Thompson, Chief Executive Officer of Power-One. "During the quarter, we announced a number of new products, several of which specifically target the growing U.S. market. These include our liquid-cooled ULTRA series of central inverters for utility scale power plants and our TRIO 20.2/27.6KW inverters recently adapted for the U.S. commercial rooftop market. We are excited about each of our new products and expect them to drive our global market share growth."
"The worldwide PV market is anticipated to increase by approximately 9% in 2013, driven by growth in North America and Asia-Pacific," Mr. Thompson continued. "While the European market is forecasted to decline next year, we expect our Renewable Energy Solutions revenue outside of Europe to grow to approximately 40% of total segment revenue in 2013, based on our new product introductions tailored to the utility and commercial markets."
Renewable Energy Solutions
In the third quarter of 2012, Renewable Energy Solutions benefited from continued strength in the European region as well as strength in Asia-Pacific. Inverter and related products generated sales of $216 million and an operating margin of 22% for the third quarter of 2012. In the quarter, Power-One shipped 1,007 megawatts of inverters, bringing the 2012 year-to-date total to 2.9 gigawatts, an increase of 42% over the same period in 2011.
Power Solutions
Power Solutions recorded sales of $67 million and an operating margin of 6% for the third quarter of 2012. Year-over-year demand was lower across a number of key end markets due to ongoing macroeconomic uncertainties. Despite the reduced volumes, Power Solutions operating margin increased by over 250 basis points year-over-year due to improved operating efficiencies and a shift in mix towards higher margin products.
Balance Sheet
At September 30, 2012, Power-One had cash and short term investments of $287 million, as compared with $205 million at January 1, 2012. The Company generated $32 million in operating cash flow during the quarter and spent $9 million in capital expenditures.
Share Repurchase Program
On October 23, 2012, the Board of Directors authorized the repurchase of up to 15 million shares of the Company's outstanding common stock over a three year period in the open-market or in privately negotiated transactions. This authorization replaces the previous share repurchase program that expired on September 21, 2012.
Business Outlook
As demand in Germany and Italy is expected to moderate, Power-One forecasts revenue of $210 million to $230 million in the fourth quarter of 2012. We expect our Renewable Energy business in North America to increase from the third quarter and represent approximately 15% of total segment revenue in the fourth quarter.
