Power-One Inc., among the worlds largest makers of power inverters for the solar market, managed to pull its second-quarter profits up by 29 percent despite uncertainty in Europe thanks to improved sales in the United States, China and India.
The company’s net income was $31 million or 21 cents per diluted share compared with $24 million or 17 cents per share a year ago.
Revenue rose 21 percent to $260 million, above the average analyst estimate of $253.88 million.
Power-One has been successful in expanding into the United States, China and India, winning their market share and customers, Power-One chief executive Richard Thompson said.
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During the second quarter, the company’s Renewable Energy Solutions business in power inverters for solar and wind power systems posted a 27-percent revenue increase or $180,026 compared with $142,276 in the same period last year. The company said this was partly due to increased demand for solar photovoltaic inverters.
The share of revenues gained from North America and Asia Pacific sales increased from 4 percent of total revenue last quarter to 18 percent in the second quarter.
Power-One shipped 718 MW worth of inverters. In total, the company delivered 1.3 gigawatts for the past two quarters, compared with 800 MW during the same period in 2010.
European market
Italy accounted for 36 percent of Power-One’s total sales in 2010. Thanks to generous government incentives, Italy had become the world’s second-largest solar market.
In May, however, the Italian government reduced its solar subsidies to limit projects and curb explosive growth in solar project installations seen in recent years in Europe. The incentive cuts brought demand with it, resulting in terminated solar projects and some solar companies revising their revenue outlook for the year.
«Power-One continued to perform well in an uncertain marketplace, highlighting the strength of our products and global business model,» Mr. Thompson said.
«For the second half of 2011, we anticipate the solar market will begin to gain momentum in Europe and be bolstered by gains in new geographies,” he adds.
For the third quarter, the company expects to have revenues between $265 million to $280 million. The company said performance in the current quarter would benefit from continued increased sales in North America and Asia as well as an improved market in Europe.
For the full year, the Power-One forecasts revenue at $1.05 billion to $1.15 billion, slightly below its previously forecasted range of $1.1 billion to $1.25 billion.
Power-One was trading its shares at $6.88 apiece when trading closed on July 28, which was when the company released their financial report. Share prices quickly picked up next trading day, hitting a $7.73 high midday and closing at $7.22 on July 29.
According to IMS Research in August 2010, Power-One became the second largest manufacturer worldwide of power inverters for the renewable energy, claiming 11 percent market share. Power-One has jumped from ninth place in 2008 to second at the end of the second quarter of 2010.
