Power-One Falls as it Warns of Second-Half Losses

Author:
Publish date:

Power conversion products maker Power-One (PWER) was down 6.5% in preopen Instinet trading after warning that it would post losses for the third and fourth quarters as a result of deterioration in the communications equipment sector.

Power-One said it expects a third-quarter loss of 12 to 15 cents a share on revenue of $50 million to $55 million, and a fourth-quarter loss of 5 to 8 cents a share with similar revenue.

Analysts were expecting Power-One to lose 13 cents a share in the third quarter and 2 cents a share in the fourth quarter, according to Thomson Financial/First Call.

Power-One said it would take charges of between $7 million and $8 million for restructuring in the third quarter, and $7 million to $10 million related to excess or obsolete inventory. The company would also take a charge of $5 million to $6 million related to excess manufacturing capacity.