Power-One Loss in 4th Quarter to Exceed Forecasts

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From Bloomberg News

Power-One Inc., a maker of power conversion equipment for Internet and telecommunications companies, said it expects a fourth-quarter loss that will be wider than analysts’ estimates.

The Camarillo-based company said it expects to lose 5 cents to 8 cents a share in the period ending Dec. 31. Analysts on average had forecast a loss of 2 cents, according to Thomson Financial/First Call.

For the current quarter, Power-One said it expects a loss of 13 cents, which is within the range of analysts’ forecasts, but sales probably will be $50 million to $55 million, less than the $65 million to $70 million the company had forecast.


Power-One took a third-quarter charge of about $7 million to $8 million for job cuts and plant consolidations and an asset impairment charge of $5 million to $6 million. Power-One also will write off about $7 million of technology investments and take a charge of about $7 million to $10 million for excess and obsolete inventory.

The company, which has cut its work force to 2,500 from 7,500 this year, said demand isn’t expected to recover until 2003.

Shares of Power-One fell 7 cents to $7.36 on Nasdaq. They have fallen 81% this year.