Power-One (NASDAQ:PWER) updated its financial outlook yesterday. The company expects to post revenues of $240-245 million, which is below the previous guidance of $260-290 million. The company is blaming market conditions and feed-in tariff cuts in Germany and Italy. Despite the downward revision, revenues will still come in about 60% higher than the year ago quarter. The company reports official earnings on May 5.
According to CEO Richard Thompson:
Although we expect to post a nearly 60 percent increase in revenue in the first quarter of 2011 compared to 2010, we’ve revised our guidance for the quarter due to recent adverse conditions in the European solar market. Based on current developments, we still anticipate European countries such as Italy and Germany will continue to support solar adoption to reduce reliance on non-renewable sources of power. Further, for the remainder of 2011 and 2012, we believe we are better positioned to handle similar regional anomalies due to our expanded product line and focus on developing new markets, including the United States, China and India.
Technically, shares of PWER remain under pressure and trade below important resistance of the 50- and 200-day moving averages. The stock was down 4% yesterday and was down another 5% in after hours trading.