Power-One, Inc. has provided an updated outlook for its fourth quarter 2012 financial results. The Company expects to report fourth quarter revenue of $190 million to $195 million, which is below the previously estimated range of $210 million to $230 million. Softer than expected market conditions in the Renewable Energy business, primarily in Italy and Germany, driven by reduced feed-in tariffs and a difficult financing environment, led to lower sales in the quarter.
As a result, the Company expects to report a net loss of $12 million to $15 million for the quarter due to lower than expected gross margins resulting from the revenue shortfall and new product ramp-up costs. Included in the expected results is a loss, net of tax, of approximately $6 million on foreign currency remeasurement due to the strengthening of the Euro versus the dollar late in the fourth quarter.
“Greater than anticipated weakness in key European markets was the chief contributor to revenue being below our expectations,” said Richard Thompson, Chief Executive Officer of Power-One. “We continue to believe that Europe will be a major market for solar power over the long-term, however, near-term demand will be more volatile as the market adjusts to the recent changes in PV incentives.”
Power-One will report its fourth quarter 2012 financial results on Thursday, January 31, 2013. In conjunction with its financial results announcement, members of the public are invited to listen to the company’s live quarterly conference call on the Internet on Thursday, January 31, 2013 at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. The conference call will feature Richard Thompson, Chief Executive Officer and Gary Larsen, Chief Financial Officer. Financial results will be released over the newswires after the market closes on Thursday, January 31, 2013.