Power-One stock falls on revised Q1 guidance
Shares of Power-One Inc. (Nasdaq: PWER) fell in after-hours trading today after the power conversion products manufacturer issued lowered revenue guidance for the first quarter ended March 31.
Camarillo, Calif.-based Power-One said its North American business did not achieve anticipated forecasts.
The company will release full results on May 1. It then expects to report a net loss of about $0.14 per share on revenue of $124 million.
Six analysts polled by Thomson First Call were expecting earnings per share of $0.01 on revenue of $129.6 million.
North America experienced a softening of sales to distributors and certain key customers, who have taken actions to make their inventory positions significantly leaner, the company said. The weakness occurred particularly during the latter part of the quarter.
Still, the company believes that the shortfall reflects a general market contraction rather than impact from declining company market share.
Shares of Power-One were down by $0.63, or 11.5%, to $4.85 late today. The stock has traded between $5.06 (on July 18, 2006) and $8.15 (on Oct. 20, 2006) in the past year.
On April 11, RBC Capital Markets initiated coverage on the stock with a “Sector Perform” rating.
