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Power-One, Artesyn report mixed earnings results

Posted: 27 Jul 2004 ?? ?Print Version ?Bookmark and Share

Keywords:power-one? artesyn technologies? power supply?

Power supply companies Power-One Inc. and Artesyn Technologies Inc. reported second-quarter sales gains as the power suppliers continued to benefit from the industry recovery. However, Power-One saw its earnings backslide as the company incurred losses due to restructuring.

Power-One, Camarillo, California, recorded sales of $72.5 million, up 5 percent from $69.3 million in the year-ago second quarter and meeting the company's previously announced guidance. However, the company posted a net loss of $3.9 million, or 5 cents per share, compared to a net loss of $1.1 million, or 1 cent per share, in the same quarter a year ago.

Second quarter 2004 earnings were impacted by previously-announced restructuring and asset impairment charges of $2.4 million, as well as foreign exchange losses of $1.2 million, related to downsizing of the company's Swiss operations announced in May. These moves are expected to produce annual savings of $1 million per quarter starting the third quarter.

Power-One, which derives most of its revenue from communications infrastructure customers, has restructured its operations the past few years, reducing its workforce and consolidating manufacturing in lower-cost offshore locations. Over the past year, Power-One has seen sales improve and losses lessen, though profitability continues to be elusive.

Over a year ago, the company launched a new division focusing on silicon-based power technology based on a fabless semiconductor business model.

Artesyn Technologies, Boca Raton, Fla., reported net income of $3.1 million on sales of $105.5 million, compared to a loss of $4.2 million on sales of $87.6 million in the year-ago second quarter.

The company saw sales for the first six months of 2004 grow 19 percent to $202 million, up from $169.6 million for the same period a year ago. Net income for the first six months of 2004 was $5 million, compared to a net loss of $11.6 million a year ago.

According to Joseph O'Donnell, chief executive of Artesyn, improved demand for embedded board products and dc-dc converters from customers in the wireless infrastructure market accounted for the higher sales.

- Spencer Chin

EE Times

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