Power One Revenue Up After Melcher Deal

Power One in Camarillo said that 1998 revenue rose 10.1% to $102.5 million, compared with $93.1 million for the comparable period in 1997.

However, net income decreased 14.7% to $5.7 million or 33 cents per diluted share, compared with $6.7 million or 64 cents per share in 1997.

The annual financial results include the Melcher Group of companies beginning Sept. 1. Power-One purchased Melcher, a supplier of DC/DC power products throughout Europe, for $42 million on Aug. 31.

Revenue for the three months ended Dec. 27 increased 3.9% to $28.4 million, compared with $27.3 million for the fourth quarter of 1997. Net loss for the period was $700,000 or 4 cents per diluted share, compared with net income of $3.3 million or 21 cents per diluted share for the comparable period in 1997.

“Considering the widespread and ongoing softness in the electronics industry, we are pleased to have delivered the consensus earnings estimates of 46 cents for the year and 4 cents for the fourth quarter before acquisition-related purchase adjustments,” said Chief Executive Steve Goldman. “This slowdown was largely attributable to weak economic conditions in Asia as well as domestic inventory corrections.”

Goldman said acquisition of the Melcher Group has added to Power-One’s cash flow.

Power-One, which makes power supplies for electronic equipment manufacturers in the United States and Europe, has 1,800 employees with manufacturing operations in seven countries.