Power-One posts 2011 revenue of US$1.02 billion but withholds 2012 guidance

February 3, 2012
Facebook
Twitter
LinkedIn
Reddit
Email

PV inverter manufacturer, Power-One, reported net sales of US$267 million, with Renewable Energy Solutions contributing US$191 million and Power Solutions segment sales reaching US$76 million for the fourth quarter of 2011. Driving sales was greater market penetration in the utility-scale sector in North America and Asia-Pacific, as revenue in these regions increased to 25%, compared to 17% in the prior quarter. Power-One had sales of 829MW of PV inverters in the fourth quarter.

“In 2011, Power-One again recorded over $1 billion in sales, highlighting our ability to execute and generate profits in difficult operating environments,” said Richard Thompson, chief executive officer of Power-One. “Both SBUs performed well in the fourth quarter, as Power-One generated US$48 million of operating cash flow in the quarter and finished the year with over US$200 million in cash. Further, during the quarter, Power-One shipped 829MW of inverters, bringing the 2011 total to 2.9 GW, versus 2.6 GW in 2010.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

However, management declined to provide 2012 financial guidance, following PV inverter leader SMA Solar. Power-One cited ‘uncertainty on feed-in-tariffs and other legislation for not providing guidance. For the first quarter of 2012, Power-One is forecasting revenue in the range of US$190-US$210 million, said to reflect traditional seasonality in the first quarter.

Management noted in a conference call to discuss financial results that they had noted a surge in demand in the fourth quarter as PV installers met year-end demand as feed-in tariff cuts loomed, but did not see a demand surge in January 2012, on the back of further feed-in tariff cuts in Germany and the mild winter weather. Management noted that they expected world-wide demand to be flat in 2012. 

According to Jeffries analyst, Jesse Pichel, in a research note that a key business factor for the company in 2012 would be to ‘capitalize on utility scale solar growth in the US, China, Japan, and India, which can mitigate weakness in Europe. Launch of a micro inverter may also enhance [share price] valuations.

Pichel also noted that Power-One was ramping manufacturing capacity in China to 500MW, up from 250MW and would manufacturer microinverters in China. Power-One is believed to have 5GW capacity with the current potential to expand to 6GW.

Analyst, Mark Bachman at Avian Securities said in another research note that “Expansion into the US solar market is opening up new opportunities and especially so for utility scale inverter sales, but we remain concerned about the resolution of the Chinese/US solar trade war and the potential disruption in this market.”
 
According to equity analyst, Julien Desmaretz at Bryan & Garnier, Power-One expects “ASP erosion in the low-double digit range, with the majority of this to incur in H1 2012. In our SMA’s model, we assume a 10% ASP decline in 2012. However, Power-One is more exposed to the utilities clients than SMA (50% of sales vs. 30%), where the price pressure is more intense”, noted Desmaretz. 


 

Read Next

November 28, 2025
The EBRD will invest in a 531MW solar PV portfolio in Romania from Israeli renewables company Nofar Energy.
November 28, 2025
The European Patent Office (EPO) has revoked a patent for a key solar cell manufacturing process, which has been hailed as “good news” for European solar PV manufacturing.
November 28, 2025
LONGi has acquired system integrator PotisEdge, and plans to launch an ‘Energy Storage One-Stop Solution’.
November 28, 2025
Chinese module manufacturer Huasun Energy has launched a new heterojunction module with a 760 W output, a 2,000 V system voltage and 24.5% module efficiency.
Premium
November 27, 2025
Prateek Tare tells PV Tech Premium how Distributed Energy Infrastructure transformed a Superfund site into the Acton PV-plus-storage project.
November 27, 2025
The World Bank will invest in a huge 4GW, 5.12GWh solar-plus-storage complex in Malaysia, which will form part of a pan-Southeast Asian power grid initiative.

Upcoming Events

Solar Media Events
December 2, 2025
Málaga, Spain
Upcoming Webinars
December 4, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy