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

Premium
March 27, 2026
PV Tech Premium explores the challenges of solar panel recycling, the evolving policy landscape and opportunities for recyclers in the US.
March 27, 2026
The US International Trade Commission (ITC) has begun an investigation into tunnel oxide passivated contact (TOPCon) solar products in the US, following a complaint by US thin-film module manufacturer First Solar.
Premium
March 27, 2026
PV Tech spoke with Maximo on the use of robotic solar installation solution at AES' Bellefield utility-scale project and upcoming trends in PV robotics.
Premium
March 27, 2026
Arthur Cao outlines how fresh approaches are needed to ensuretracker-based PV systems are designed adequately to avoid unnecessary failures.
March 27, 2026
Two module production facilities in China have been awarded the first Supply Traceability Standard certifications by Europe’s Solar Stewardship Initiative (SSI).
March 27, 2026
Axpo will supply 83GWh of solar to McDonald’s under a 10-year PPA, while EDP adds 90MW with two Navarra PV plants.

Upcoming Events

Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland