Power-One, Inc. (PWER)

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Power-One Posts Record Second Quarter 2010 Results



CAMARILLO, Calif., July 29, 2010 (GLOBE NEWSWIRE) -- Power-One, Inc. /quotes/comstock/15*!pwer/quotes/nls/pwer (PWER 10.75, -0.40, -3.59%) , a leading provider of renewable energy and energy-efficient power conversion and power management solutions, today announced financial results for the second quarter 2010. Power-One posted record net sales of $215 million for the second quarter ended July 4, 2010, an increase of 135% from the second quarter 2009. Net income attributable to common stockholders for the second quarter was $24 million, or $0.17 per diluted share, compared to a net loss of $7 million, or $0.08 per share for the same period last year. Consolidated bookings reached $757 million in the second quarter of 2010.

"In the second quarter, we drove significantly improved revenue growth from renewable energy products, due to capacity expansion and specific demand for Power-One's industry-leading products. In turn, this led to expanded gross and operating margins and the third straight quarter of net profit," said Richard Thompson, Chief Executive Officer of Power-One. "Orders were strong in the quarter, backlog increased and we expect to grow revenue again in the third quarter. Strategically, we are positioning the company to achieve profitable growth across all of our business segments through new product introductions, expansion and manufacturing efficiencies."

Power-One expanded consolidated gross margin for the fifth consecutive quarter, improving to 37% in the second quarter of 2010, compared with 19.9% for the same period last year. A favorable product mix, better absorption and an improving manufacturing cost structure contributed to the expansion. Gross margin was negatively affected by approximately $1.8 million in charges related to the closure of the Dominican Republic facility, which was near completion at the end of the second quarter 2010. Operating income for the second quarter 2010 was $49 million, or 23% of revenue, and included $4.7 million in total charges primarily related to the closure of the Dominican Republic facility.

Strategic Business Units

Beginning this quarter, Power-One will report revenue and operating income specific to its newly formed strategic business units, or SBUs, in the company's filings with the Securities & Exchange Commission.

Renewable Energy Solutions

Renewable Energy Solutions posted strong sequential revenue gains in the second quarter 2010. Inverter and related product sales posted a record $142 million in revenue for the second quarter 2010, or a year-over-year increase of 745% from $17 million in the second quarter 2009. Renewable Energy Solutions contributed the majority of the company's revenue, at 66% of total sales in the quarter, versus 18% in the second quarter of 2009. Power-One shipped 529 MW of inverters in the quarter.

"Based on the efficiency, harvesting power and quality of our products and technology, we are continuing to take share in the inverter market," said Dr. Alex Levran, President of the Renewable Energy Solutions SBU. "We are implementing strategies and investments to continue our momentum, including new product introductions, capacity expansion and investments into sales, marketing and R&D."

Power Solutions

Power Solutions generated revenue of $72 million in the second quarter 2010 versus $74 million in the same period of 2009. Component availability continues to impact the production and sale of Power Solutions products.

"The closure of the Dominican republic facility, among other initiatives, will improve the margin profile of the Power Solutions SBU," commented Mr. Steve Hogge, President of the Power Solutions SBU. "We will continue to reshape this business, as well as focus on new product offerings and design wins with marquee customers, in order to improve growth and profitability for this SBU."

The Power-One, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7338

Business Outlook

Effective today, Power-One will begin issuing quarterly revenue guidance. For the third quarter of 2010, Power-One forecasts revenue of $250 to $270 million.

Earnings Conference Call

Power-One will discuss its 2010 second quarter results today beginning at 2:00 p.m. Pacific Time. The call will be available both via the telephone at [phone] or [phone], conference ID #87190408, or over the Internet through the Power-One's investor relations Web site at http://investor.power-one.com. To listen to the call, please log-in at least 10 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, the webcast will be available on the investor relations section of the Power-One's web site at http://investor.power-one.com throughout the current quarter.




just for the record.