Power-One Beats Estimates on Lower Sales

Power-One

(PWER)

said its first-quarter earnings beat estimates by 2 cents, but sales fell from the same period a year ago.

The maker of power conversion products for telecom companies and Internet service providers said its first-quarter cash loss, before nonrecurring items, was 7 cents a share, compared with earnings of 24 cents a share in the year-ago quarter. According to Thomson Financial/First Call, analysts had been expecting a loss of 9 cents a share.

On a GAAP basis, the company lost $7.2 million, or 9 cents a share, compared with net income of $16.4 million, or 20 cents a share, a year ago.

First-quarter sales dropped almost 72% from last year to $48.4 million from $169.9 million, but increased 1% sequentially from $47.9 million in the fourth quarter. The company said it's beginning to see improved order flow from some key customers, and it is "optimistic" about the early indications for second-quarter order rates.

In a press release, Power-One said the economic environment continues to be challenging, but the company met its cash loss outlook by cost reductions and restructuring initiatives.

The company expects to see a second-quarter loss per share in the range of 5 cents to 7 cents on revenue of $50 million to $55 million, slightly better than analysts' estimates of a loss of 7 cents a share on revenue of $50.2 million.

Shares of Power-One closed at $8.09 Tuesday.