Wednesday January 24, 6:30 am Eastern Time
Press Release
Power-One Announces Record Q4 and Year-End 2000 Results Company Exceeds Analysts Expectations
CAMARILLO, Calif.--(BUSINESS WIRE)--Jan. 24, 2001--Power-One, Inc. (Nasdaq:PWER - news)
Record 2000 Net Sales of $511 Million, Up 115% vs. Q4 '99; Record Q4 Sales of $170 Million, Up 130% vs. Q4 '99
2000 Cash EPS $0.83 Per Diluted Share, Up 159% vs. 1999; Q4 Cash EPS $0.27 Per Diluted Share, Up 125% vs. Q4 '99
Backlog Increases to Record $255 Million
Management Optimistic About FY2001 Outlook With Revenue Growth Expected to be 55%-60%
Power-One, Inc. (Nasdaq:PWER - news) today announced that net sales for the fiscal year ended December 31, 2000 increased $273.8 million, or 115%, to a record $511.0 million, compared with $237.2 million in 1999. Results for 2000 include eight months of Powec AS, which was acquired on May 16, 2000.
Net income for the 2000 fiscal year, before acquisition related charges increased 250% to a record $55.6 million, or $0.71 per diluted share, compared with $15.9 million, or $0.25 per diluted share, for the same period in 1999. Including acquisition related charges, net income was $43.9 million for the fiscal year ended December 31, 2000, or $0.56 per diluted share, compared with $11.6 million, or $0.18 per diluted share, for the same period in 1999.
Cash earnings per share, or earnings before amortization of intangibles and acquisition related charges, net of income taxes, for the fiscal year ended December 31, 2000 increased 159% to $0.83 per diluted share, compared to $0.32 per diluted share for the same period in 1999.
Net sales for the fourth quarter ended December 31, 2000 increased 130% to a record $169.7 million, compared to $73.9 million for the same year-ago quarter. Net sales for the fourth quarter of 2000 increased sequentially by $19.3 million, or 13%, compared to the $150.4 million achieved in the third quarter of 2000. This is the ninth consecutive quarter in which the company has recorded sequential revenue growth.
Net income for the fourth quarter ended December 31, 2000 increased 135% to a record $18.8 million compared with $8.0 million for the same year-ago quarter. Earnings per share increased 109% to $0.23 per diluted share compared with $0.11 per diluted share for the same year-ago quarter.
Cash earnings per share for the fourth quarter ended December 31, 2000 increased 125% to $0.27 per diluted share, compared to $0.12 per diluted share for the same year-ago quarter.
Commenting on the results, Steve Goldman, Chief Executive Officer of Power-One, said, ``Our outstanding results for the quarter and year clearly demonstrate that we are successfully executing our strategic plan. During 2000, we continued to effectively capitalize on the opportunity in the communications infrastructure applications market for power conversion products and experienced strong growth across all of our business divisions.''
``We are particularly excited about the growth in our high-density board-mounted DC/DC (''Bricks``) division, which posted an increase in net sales of 225% year-over-year, primarily driven by strong demand from network equipment manufacturers, as well as the rapidly accelerating shift to Distributed Power Architecture. We also continued to further penetrate the communications market during the year with telecom systems and communications-oriented AC/DC product lines. Sales to the communications market in 2000 increased 190% to $360 million or 70% of total sales.''
The company also reported increased 180-day backlog at year-end to a record $255 million, up 7% from the $238 million reported at the end of the third quarter. Power-One's 90-day backlog continued to increase and reached $171 million at the end of the fourth quarter, an increase of 8% compared to $159 million at the end of the third quarter.
2000 highlights include:
During the year, Power-One acquired HC Power and Powec, significantly diversifying its customer base and increasing its market share in the communications market by adding a ``third pillar'' to its product lines. The acquisitions enabled Power-One to provide telecom power systems to the communications and Internet service providers and opened up an additional estimated $4.0 billion worldwide market for the company.
Power-One significantly expanded its manufacturing capacity, and by the end of the first quarter 2001 will have the ability to support an annual run rate of $1.0 billion.
Power-One invested heavily in R&D to roll-out the next generation of its power conversion products. The company plans to introduce the largest number of new products in its history in the coming months, specifically targeting the fastest growth sectors of the communications market. Next week Power-One plans to introduce a revolutionary new DC-DC brick with the industry's first telecom brick rated at 100 Amps in a 3/4 brick package. This product will allow customers to replace two bricks with a single package resulting in a smaller footprint and lower cost. Samples of the new 100 Amp Brick will be available shortly and full scale production in the second half of the year.
Power-One was added to the S&P 500 stock index in October, 2000.
Goldman concluded, ``We remain very optimistic about our future growth potential. Despite the recent softness in portions of the communications industry, we expect to sustain our rapid growth as our communication customers accelerate their conversion to Distributed Power Architecture brick technology and we continue to be successful on design wins. With a strong balance sheet, including substantial cash resources and synergistic teamwork among our divisions, Power-One is positioned to strengthen its technological leadership at an accelerated rate.''
Future Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
First Quarter 2001 Outlook
For the first quarter of 2001, the company currently anticipates net sales to be approximately $174 -- $178 million with cash earnings per share in the range of $0.27 -- $0.28 per diluted share.
Year 2001 Outlook
The company is forecasting net sales in 2001 to increase 55%-60% or $790-$810 million with cash earnings per share in the range of $1.33-$1.35 per diluted share.
Earnings Conference Call
Power-One will be holding a conference call with investors and analysts on Wednesday, January 24, 2001 at 8:00 a.m. PT. The call will be available over the Internet through SteetFusion at www.streetfusion.com. To listen to the call, please go to the website at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call at www.streetfusion.com through January 31, 2001.
About Power-One:
Power-One is a leading manufacturer of power conversion products designed primarily for communications infrastructure applications. DC rack power systems are sold directly to Internet service providers and telecom central offices. Embedded OEM power products include AC/DC and DC/DC products and are sold to manufacturers of datacom and telecom equipment. Power-One also supports key customers in the semiconductor-test capital equipment industry and other high-end industrial markets.
The company is comprised of the AC&DC Power Systems, High Density-Board Mounted Power, Compact Power Systems, Telecom Systems and Powec divisions.
Power-One, with headquarters in Camarillo, CA, has over 7,500 employees with manufacturing operations in Irvine, CA; Boston, MA; Mexico; Dominican Republic; Puerto Rico; Norway; Switzerland; Ireland; Slovakia; and China.
For information on Power-One and its products, visit the company's Web site at www.power-one.com.
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as ``expect,'' ``anticipate,'' ``believe,'' ``forecast'' and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Future results may be adversely affected by various factors including a general recession, a downturn in our principal customers' businesses and increased prices for components. See ``Risk Factors'' in the Company's 1999 Form 10-K and Registration Statement on Form S-3 (filed October 18, 2000) on file with the Securities and Exchange Commission for greater detail regarding factors that constitute cautionary statements with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from those in such forward-looking statements. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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POWER-ONE, INC
CONSOLIDATED STATEMENT OF OPERATIONS
FINAL RESULTS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
----------------------- ----------------------
December 31, January 2, December 31, January 2,
2000 2000 2000 2000
----------- ---------- ----------- ---------
NET SALES $ 169,713 $ 73,917 $ 510,955 $ 237,157
COST OF GOODS SOLD 105,196 43,305 311,672 142,818
GROSS PROFIT 64,517 30,612 199,283 94,339
GENERAL AND ADMINISTRATIVE
Selling, general
and administrative 21,313 13,163 80,458 43,210
Engineering and
quality assurance 9,984 6,136 36,586 21,508
Amortization of
Intangibles 3,642 1,298 11,363 6,212
In process research
and development - - - 3,300
---------- ---------- ---------- ---------
Total Expenses 34,939 20,597 128,407 74,230
INCOME FROM OPERATIONS 29,578 10,015 70,876 20,109
OTHER INCOME (EXPENSE)
Interest income 1,880 739 3,304 807
Interest expense (2,071) (359) (6,446) (3,211)
Other income (expense) (336) 182 (1,063) 307
---------- ---------- ---------- ---------
Total other, net (527) 562 (4,205) (2,097)
INCOME BEFORE INCOME TAXES 29,051 10,577 66,671 18,012
INCOME TAXES 10,233 2,595 22,780 6,458
---------- ---------- ----------- ---------
NET INCOME $ 18,818 $ 7,982 $ 43,891 $ 11,554
========== ========== =========== =========
BASIC EARNINGS PER
COMMON SHARE $ 0.25 $ 0.11 $ 0.59 $ 0.19
========== ========== =========== =========
DILUTED EARNINGS PER
COMMON SHARE $ 0.23 $ 0.11 $ 0.56 $ 0.18
========== ========== =========== =========
BASIC SHARES 76,619 71,646 73,957 60,597
========== ========== =========== =========
DILUTED SHARES 80,996 74,028 77,871 62,469
========== ========== =========== =========
POWER-ONE, INC
CONSOLIDATED BALANCE SHEET
FINAL RESULTS
(In thousands)
December 31, January 2,
2000 2000
------------ ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 137,113 $ 63,769
Accounts receivable:
Trade (net of allowance) 124,306 45,805
Other 6,492 1,914
Inventories 225,121 61,834
Deferred income tax assets,
net--current 4,527 1,916
Current portion of notes
receivable from stockholders - 30
Prepaid expenses and
other current assets 4,300 1,795
------- -------
Total current assets 501,859 177,063
PROPERTY & EQUIPMENT, net 104,020 55,608
INTANGIBLE ASSETS, net 162,799 59,217
NOTES RECEIVABLE FROM STOCKHOLDERS,
less current portion - 79
OTHER ASSETS 12,395 3,137
------- -------
TOTAL ASSETS $ 781,073 $ 295,104
======= =======
LIABILITIES & EQUITY
CURRENT LIABILITIES:
Credit facility $ 9,279 $ 7,579
Current portion of long
term debt 1,387 4,002
Current portion of capital
leases 558 897
Bank overdraft 12,879 5,804
Accounts payable 64,678 13,107
Accrued payroll and related
expenses 5,642 2,583
Other accrued expenses 29,268 16,811
------- -------
Total current liabilities 123,691 50,783
LONG TERM DEBT, less current
portion 10,374 3,379
LONG TERM CAPITAL LEASES,
less current portion 281 842
DEFERRED INCOME TAX LIABILITY,
net--noncurrent 12,319 2,757
OTHER LIABILITIES 579 112
STOCKHOLDERS' EQUITY:
Common stock 78 72
Additional paid-in capital 564,426 212,148
Accumulated other
comprehensive loss (2,188) (3,476)
Retained earnings 71,513 28,487
------- -------
Total stockholders'
equity 633,829 237,231
======= =======
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $ 781,073 $ 295,104
======= =======
POWER-ONE, INC
FINANCIAL HIGHLIGHTS
(In thousands, except per share earnings)
(UNAUDITED)
FINAL RESULTS
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. 31, Jan. 2, Dec. 31, Jan. 2,
2000 2000 2000 2000
------- ------- ------- -------
Orders $ 192,836 $ 72,237 $ 725,083 $ 278,250
Sales 169,713 73,917 510,955 237,157
Operating Income 29,578 10,015 70,876 20,109
EBITDA 37,087 14,085 108,322 38,548
Cash Earnings (1) 21,571 8,916 64,375 19,750
Net Income 18,818 7,982 43,891 11,554
Cash Earnings
per Share
- Diluted (1) 0.27 0.12 0.83 0.32
Earnings per
Share - Diluted 0.23 0.11 0.56 0.18
Weighted
shares - Diluted 80,996 74,028 77,871 62,469
(1) Earnings before amortization of intangibles and acquisition
related charges, net of income taxes.
--------------------------------------------------------------------------------
Contact:
Power-One
Ed Schnopp, 805/987-8741 (CFO)
or
Thomson Financial Carson Group
Jill Fatzinger, 415/617-2565
jill.fatzinger@tfn.com
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