Power-One, Inc. announced that net sales for the first fiscal quarter ended March 30, 2003 increased 16.4%, or $7.9 million, to $56.3 million compared to $48.4 million for the first quarter of 2002. Revenues for the quarter represent a 14.7% sequential decline compared with net sales of $66.0 million for the fourth quarter of 2002.
GAAP net loss for the first fiscal quarter ended March 30, 2003 was $3.1 million, or $0.04 per basic share compared with a GAAP net loss of $7.2 million, or $0.09 per basic share, for the same quarter in 2002. GAAP net income for the fourth quarter of 2002 was $5.1 million, or $0.06 per diluted share.
Net new orders in the first quarter of 2003 were $60.7 million, an increase of 13.3% compared with $53.6 million of net new orders recorded during the fourth quarter of 2002. The book-to-bill ratio was 1.08 for the first quarter of 2003 compared with 0.81 in the fourth quarter of 2002. The Company's 180-day backlog at the end of the first quarter was $39.9 million, an improvement of 21.6% compared with $32.8 million at the end of the fourth quarter of 2002; 90-day backlog was $36.1 million, an increase of 23.9% compared with $29.2 million at the end of the fourth quarter. Overall turns business was approximately 50% during the first quarter compared with 40% in the fourth quarter of 2002. The Company expects turns business to be in the range of 40% to 45% during the second quarter of 2003.
"The impact of our aggressive cost reduction program was clearly evident during the first quarter as we were able to achieve positive EBITDA while maintaining significant investments in R&D," said Steve Goldman, chief executive officer of Power One. "We continued to see other signs of financial improvement as well, including a faster than expected recovery in gross margins to the mid-30s, and significant growth in our backlog as a result of very strong bookings."
Mr. Goldman continued, "During the quarter, we completed three major strategic initiatives. First, as we announced today we completed the formation of a new division within the Company, Silicon Power Systems, which introduced its first and very innovative product to the market. This is a result of our increased investment in new technology over the last 18 months."
"The new SPS product line, named "maXyz(TM)", (pronounced max-sys) is our first entry into a silicon-based product using a fabless semiconductor business model. The first product, the maXyz(TM) 3000 Series is capable of 15 Amps of output current with a footprint smaller than a contact lens and only 1.5mm high. This product puts Power-One at the forefront of technology in the leading position for the Intermediate Bus Architecture systems - and this is only the first of many products in this new area."
"Second, and as we also announced today, we launched a new corporate image initiative that includes the first redesign of our logo since the company was founded 30 years ago. We created this image and logo to reflect changes at Power-One and to highlight our launch into new technological and business strategies."
"Third, we announced the acquisition of di/dt in February, which significantly enhanced our product pipeline and strengthened our R&D team in the area of DC/DC bricks and Point of Load (POL) products."
Mr. Goldman concluded: "Power-One remains focused on restoring its profit potential in today's adverse economic environment while remaining committed to strengthening our business through prudent capital management and providing the advanced technology our customers need. I am extremely excited about our new change campaign and the formation of our SPS division. The new 'maXyz(TM)' X3000 Series is the densest product in the market and, shows how Power-One is 'changing the shape of power', especially in innovative packaging and circuitry."
