Power-One CFO Expects Sales to Rise Two-Thirds This Year
Camarillo, California, June 28 (Bloomberg) -- Power-One Inc. expects sales of its power systems to rise about two-thirds this year as networking companies seek to prevent costly equipment malfunctions caused by power surges and outages.
Sales will reach $460 million to $470 million, Power-One Chief Financial Officer Ed Schnopp said. That's up from $282 million last year, including results from two recent acquisitions.
The company, based in Camarillo, California, makes devices that control voltage levels and convert alternating current to direct current, ensuring steady supplies of electricity to telecommunications systems. Cisco Systems Inc., the No. 1 maker of computer-networking equipment, is Power-One's biggest customer.
They really have a full range of products for communications customers,'' said James Savage, an analyst with Thomas Weisel Partners LLC who rates Power-One a ``strong-buy.'' ``There are very few companies that have those capabilities.''
Power-One has won some customers away from Lucent Technologies Inc., the biggest phone-equipment maker, analysts say. Lucent is selling its power-systems unit, which had sales of $1.2 billion last year, to focus on faster-growing businesses such as fiber optics.
``We expect to see a near doubling of (Power-One's) backlogs from the prior quarter,'' said Keith Dunne, an analyst with Robertson Stephens & Co. who rates the shares a ``buy.''
Power-One shares have surged almost ninefold in the past year. They rose 1 11/16 to 115 1/16 in early trading. |
