Previous Statements by PWER
» Power-One, Inc. Q1 2010 Earnings Call Transcript
» Power-One Inc. Q2 2009 Earnings Call Transcript
» Power-One Inc. Q1 2009 Earnings Call Transcript
Today’s call also contains historical non-GAAP financial measures. The non-GAAP measures exclude restructuring charges and/or costs related tot eh closure of our Dominican Republic facility. Additionally, in adherence with regulation FD, we have opened up this call so that all interested investors are free to listen in. The press release and this conference call will be our only forum to answer questions regarding our estimated performance going forward. Consequently, should you have any questions regarding our estimates of sales and profits, or other financial matters for the upcoming quarter, as well as how they may affect our income statement models and balance sheet, this is the time that we are able to respond to these questions.I will now turn the call over to Richard Thompson, the company’s Chief Executive Officer. Please go ahead, Rich. Richard Thompson Thank you, Kevin. I will begin today’s call with an overview of the company’s Q2 performance, describe the creation of the renewable energy and power SBUs, and discuss our future strategy to continue to take global market share while driving improving margins. After my remarks, Linda Heller, Our Chief Financial Officer, will provide greater detail on the financials, including the results of the quarter and guidance. We will then answer your questions. Let me begin by highlighting a few of the key accomplishments this quarter. First, we achieved our third consecutive quarter of GAAP profitability. Second, we grew consolidated revenue 41% sequentially, and 135% year-over-year. Renewable Energy, or RE revenue, increased 73% sequentially and 745% year-over-year. In fact, we shipped 529 MW of inverters in the Q2, bringing our total to over 800 MW this year. Third, from an operational standpoint we expanded capacity and are strengthening our supply chain. And fourth, we created two strategic business units, or SBUs, to provide a more distinct focus on each of our end markets. The SBUs were created within Power-One to open further opportunities for revenue and margin expansion based on both the high growth in the inverter and solar markets and the expansion opportunities available to Power-One and its power conversion products. While each SBU is well-grounded in power conversion technology, they possess different sets of business characteristics including product design, customers, supply chain, manufacturing, and sales. These differences are fundamental and require two distinct management approaches to optimize each business.
Renewable Energy Solutions will design, manufacture, sell inverters and related infrastructure products for the solar and wind markets and will be led by Dr. Alex Levran as President. Alex and his team have been largely responsible for the growth in this SBU, and will continue to focus on attracting new customers and entering into new geographies. Our solution will focus on Power-One’s traditional AC/DC and DC/DC power conversion products – network power systems and digital power technology, selling into the networking, storage, server, and industrial markets among others.We believe the initiatives we have put in place will create operating margin improvements for Power Solutions. Dave Hogge will head the Power Solutions SBU as President, and recently joined Power-One from Cooper Industries. I’d like to begin speaking about each SBU, including the first half performance, second half tactical issues and strategic initiatives. In RE Solutions we continue to take market share. The high yields our inverters provide through efficiency, harvesting capabilities and uptime, have influenced customers to purchase our Aurora inverter line. In fact, we have added new customers across all channels, including a number of new EPCs and distributors. Turning to the broader market, we see positive demand indicators in the second half for solar inverters. Based on our backlog and bookings, demand appears strong well into 2011 as recent feed and tear proposals have been more favorable than previously expected. However, as industry capacity ramps and supply chain loosens, we do not believe the current rates of bookings or revenue growth are sustainable over the long run. Read the rest of this transcript for free on seekingalpha.com