Power-One, Inc. announced financial results for the fourth quarter of 2012 ended December 30, 2012. Power-One recorded net sales of $192 million, down from $267 million in the same period a year ago. Renewable Energy Solutions contributed $123 million in the current quarter compared with $191 million in the year-earlier period. Power Solutions posted $68 million in the current period compared with $75 million a year earlier. Net loss attributable to common stockholders for the fourth quarter was $17 million, or $0.14 per share. This includes a loss, net of tax, of $0.04 per share on foreign currency remeasurement as a result of the recent strengthening Euro versus the U.S. dollar late in the fourth quarter.
"In the fourth quarter of 2012, Power-One shipped 628 megawatts of inverters, lower than we initially expected and due to weakness in Germany and Italy," said Richard Thompson, Chief Executive Officer of Power-One. "Despite the difficult current market conditions, our new products continued to be well received in the marketplace as our TRIO family of string inverters posted record sales for the year and our liquid-cooled ULTRA series of central inverters began shipping commercially in Europe in the fourth quarter and is expected to ship in the U.S. in the first quarter."
"The worldwide PV market is expected to grow by approximately 7% in 2013, largely driven by growth in North America and Asia-Pacific," Mr. Thompson continued. "We will benefit from this growth through our investment in these key markets and the introduction of industry-leading new product offerings."
In the fourth quarter of 2012, Renewable Energy Solutions generated sales of $123 million and an operating loss of $8.5 million. The operating loss was primarily due to lower gross margins resulting from the revenue shortfall, new product ramp-up costs, lower pricing and inventory charges. In the quarter, Power-One shipped 628 megawatts of inverters, bringing the 2012 total to 3.6 gigawatts, an increase of 23% over 2011.
Power Solutions recorded sales of $68 million and an operating margin of 4% for the fourth quarter of 2012. Sales increased by $1 million from the third quarter, but were down from the fourth quarter of 2011 as demand was lower across a number of key end markets.
At December 30, 2012, Power-One had cash and short term investments of $266 million, as compared with $205 million at January 1, 2012. The Company generated $91 million in operating cash flow during the year and spent $31 million in capital expenditures.
As the Company enters a seasonally slow quarter and as demand in Germany and Italy is expected to remain low, Power-One forecasts revenue of $175 million to $200 million in the first quarter of 2013. It is expected that gross margins will improve sequentially from the fourth quarter as a result of the cost reduction initiatives that have been undertaken.
