Not a good earnings report out of Power-One (PWER). The company missed on both the top and bottom line posting a non GAAP EPS of .16/share (vs the estimate for .19/share) on revenues of $245 million (vs the estimate for $248 million). That’s a significant drop over the year ago numbers when the company reported .40 and $314 million respectively. It doesn’t get better next quarter. The company is guiding below the analyst estimate of $267 million to $220 – $250 million.
As CEO’s do best, Richard Thompson tried to put a positive spin on the resutls. "Power-One gained significant customer wins in the third quarter, as we expanded revenue in high growth solar markets, such as India and other regions in Asia. Despite difficult global macroeconomic conditions that impacted both SBUs, we generated $59 million of operating cash flow and ended the quarter with $183 million of cash and cash equivalents.” Traders aren’t buying it with the stock down more than 7% in early trading. Technically, this is a stock that remains in a firm downtrend and should continue to be avoided.