Power-One Reports Third Quarter 2009 Results
Power-One, Inc. announced net sales of $100.1 million for the third quarter ended September 27, 2009, an increase of 10% over the second quarter 2009 and a decrease of 29% from the third quarter 2008. Net loss attributable to common shareholders for the third quarter was $2.9 million, or $0.03 per share, compared to $6.8 million, or $0.08 per share in the second fiscal quarter, and a loss of $1.7 million, or $0.02 for the same period last year.
The renewable energy product line continued to gain traction during the quarter, with increased momentum resulting in record sales of $31.1 million for the quarter, an increase of 63% versus $19.1 million in the third quarter of 2008. Power-One’s traditional power product lines generated revenue of $69.0 million, down 43% from $120.9 million in the third quarter 2008; however, backlog from the power product lines increased at the end of the third quarter to $44 million from $37 million at the end of the second quarter of 2009. The company ended the third quarter 2009 with a 90-day backlog of $84 million. The third quarter 2009 book-to-bill ratio was 1.34, compared to 0.98 in the second quarter of 2009. The book-to-bill ratio for the third quarter for the renewable energy product line was 1.97 and was 1.06 for the power product line.
Gross margin improved to 23.2% in the third quarter of 2009, compared with 21.4% for the same period last year. Continued cost improvements, as well as a favorable product mix, contributed to the expansion in gross margin. Operating income for the third quarter 2009 was $0.9 million. Operating income included $1.4 million in costs from restructuring charges and other expenses related to the closure of the Dominican Republic facility.
Richard Thompson, Chief Executive Officer, commented, "Demand for renewable energy products increased in the quarter and 90-day backlog improved in both the traditional power conversion and renewable energy markets. The increasing demand, coupled with Power-One’s continued cost initiatives, led to higher gross and operating margins. Additionally, the improved operating performance and more efficient balance sheet management lowered our debt position."
The cash balance at the end of the third quarter was $75.8 million, approximately equal to last quarter, as Power-One continues to reduce its debt and generate positive cash flow. Due to better working capital management in the quarter, inventory decreased to $77.5 million versus $81.4 million in the second quarter of 2009. As part of Power-One’s overall restructuring, the closure of the Dominican Republic facility and other cost-cutting initiatives remain on track.
Thompson continued, "Overall, our end markets are beginning to show signs of recovery, with customer demand improving for both power and renewable energy products, as indicated by our 90-day backlog."