News

Power-One Updates First Quarter Outlook

April 14, 2008 by Jeff Shepard

Power-One, Inc. announced that it expects revenues for the first quarter of 2008 to be in the range of $116 to $118 million compared to prior guidance of $130 million to $135 million. The company expects a net loss in the range of $0.14 to $0.16 per share versus its previous guidance of net loss of $0.04 to $0.07 per share.

The company claims that the primary factors affecting revenue and profitability were related to the company’s inability to deliver product on time to its customers. These factors included manufacturing planning inefficiencies and supply chain constraints. It is claimed that overall order rates and bookings during the first quarter were strong, particularly in renewable energy inverters and server/storage products.

The company states that it is in the process of implementing detailed plans to improve its operational and financial performance and drive long-term growth and profitability. Based on these plans, the company claims that it has already launched initiatives addressing supply chain issues, including programs to lower material costs, the acceleration of the transfer of manufacturing to China, and the implementation of new sales and operations planning processes. The company expects these steps to result in the improvement of on-time delivery, reduction of manufacturing inefficiencies, and an increase in gross margin. Coupled with what the company claims is a strong backlog, it is asserted that these initiatives should result in significantly improved financial performance beginning in the second quarter and accelerating into the third quarter.

Management will discuss its plans and recently implemented initiatives during its first-quarter results conference call, which is scheduled at the close of market on Thursday, April 24.