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PowerOne Inc. Reports Operating Results (10-Q)

October 26, 2012 | About:
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10qk

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PowerOne Inc. (PWER) filed Quarterly Report for the period ended 2012-09-30.

Power-one, Inc. has a market cap of $539.8 million; its shares were traded at around $4.1 with a P/E ratio of 6.3 and P/S ratio of 0.5.

Highlight of Business Operations:

Gross profit for the first nine months of fiscal 2012 decreased by $6.0 million to $234.4 million from a gross profit of $240.4 million in the comparable period in 2011. As a percentage of net sales, gross margin decreased to 28.2% for the first nine months of fiscal 2012 from a gross margin of 32.1% for the same period in 2011. Gross margin for the nine months ended September 30, 2012 was negatively impacted by reductions in pricing, increased warranty-related expenses, and factory ramp-up costs in our Renewable Energy SBU, partially offset by reductions in material costs.

Research and Development Research and development expense decreased by $0.4 million, or 1%, to $34.6 million for the first nine months of fiscal 2012 from $35.0 million in the first nine months of fiscal 2011. As a percentage of net sales, research and development decreased to 4% for the first nine months of fiscal 2012 compared with 5% for the same period of 2011. Research and development decreased to $10.9 million in the third quarter of fiscal 2012 from $11.6 million in the third quarter of fiscal 2011. As a percentage of net sales, research and development decreased to 4% during the third quarter of 2012 from 5% during the same period of 2011.

Provision for Income Taxes The provision for income taxes was $44.8 million for the first nine months of fiscal 2012 compared to $50.8 million for the first nine months of fiscal 2011. The provision for income taxes was $15.4 million for the third quarter of fiscal 2012 as compared to $16.8 million recorded during the third quarter of fiscal 2011. The provision for income taxes recorded primarily related to taxes recorded at certain of our profitable European locations. The effective tax rate increased to 38% for the first nine months of fiscal 2012 from 33% in the first nine months of fiscal 2011 and to 42% for the third quarter as a result of higher pre-tax losses in the U.S., where no deferred tax benefit is recorded as a result of valuation allowances.

During the first nine months of fiscal 2012, revenue increased $113.7 million, or 22%, to $619.7 million from $506.0 million during the comparable period of fiscal 2011. During the third quarter of fiscal 2012, revenue increased $42.0 million, or 24%, to $216.3 million from $174.3 million during the comparable period of fiscal 2011. The increase in revenue was a result of volume increases due to higher demand in Europe based on reductions in Feed-in-Tariffs in Germany and Italy, which were effective in the third quarter of 2012, and gains in market share within Europe.

During the first nine months of fiscal 2012, revenue decreased $32.7 million, or 13%, to $211.2 million from $243.9 million during the comparable period of fiscal 2011. Operating margins decreased to 6% during the first nine months of fiscal 2012 as compared to 7% operating margins in the comparable period of 2011. Revenue for the first nine months of fiscal 2011 was favorably impacted as it included a substantial amount of delinquent backlog, built up as a result of the constrained supply chain during fiscal 2010, which was cleared out during that nine-month period. The decreased operating margin in the first nine months of 2012 was the result of the reduction in sales volumes.

Read the The complete Report

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10qk
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