Power-One, Inc. (PWER)

[eastunder]

UPDATE 1-Power-One cuts Q1 revenue view on incentive cut fears

http://www.reuters.com/article/2011/04/06/powerone-idUSL3E7F63A220110406?feedType=RSS&feedName=marketsNews&rpc=43

Wed Apr 6, 2011 6:08pm EDT

* Sees Q1 rev $240-245 mln vs est $275.5 mln

* Prior rev view was $260-$290 mln

* Cites uncertainty on expected incentives cuts in Italy, Germany

* Shares down 5 pct in after market trade (Follows alert)

April 6 (Reuters) - Solar-power inverter manufacturer Power-One Inc cut its first-quarter revenue forecast on uncertainties from an expected drop in incentives in Italy and Germany, sending its shares down 5 percent in extended trade.

Italy, one of the world's fastest growing solar markets, has been favourable to the so-called German model, under which incentives are automatically reduced once installed capacity reaches a fixed amount. [ID:nLDE7351SH]

Power-One shares had slumped more than a fifth in February after it forecast weak first-quarter revenue on expected subsidy cuts in Germany, the world's top solar market. [ID:nSGE7130B4]

Italy aims to complete a much-awaited decree on the new incentives next week, but Power-One -- with about 90 percent exposure to Europe -- still sees some support for the adoption of solar power in the two European countries.

"Based on current developments, we still anticipate European countries such as Italy and Germany will continue to support solar adoption," Chief Executive Richard Thompson said.

However, the Camarillo, California-based company cut its first-quarter revenue outlook to $240-245 million, from $260-$290 million earlier.

Analysts, on an average, were expecting revenue of $275.5 million, according to Thomson Reuters I/B/E/S.

Power-One's shares were trading $7.84 after the bell. They closed at $8.29 on Wednesday on Nasdaq. (Reporting by Mayuresh Tungare in Bangalore; Editing by Joyjeet Das)