Weaker than expected demand in key markets of Italy and Germany in the fourth quarter has led PV inverter supplier Power-One to lower revenue guidance to between US$190 million to US$195 million, down from a range of US$210 million to US$230 million.
The company cited reduced feed-in tariffs and a difficult financing environment for the fall in demand. As a result, Power-One expects to generate a net loss of US$12 million to US$15 million for the quarter as well as a result of new product ramp-up costs.
Richard Thompson, Chief Executive Officer of Power-One said: “Greater than anticipated weakness in key European markets was the chief contributor to revenue being below our expectations. We continue to believe that Europe will be a major market for solar power over the long-term, however, near-term demand will be more volatile as the market adjusts to the recent changes in PV incentives.”
Power-One is expected to report fourth quarter 2012 financial results on Thursday, January 31.