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Power-One Revenues Fall Due to Softness in Market

November 03, 1998|BARBARA MURPHY

Power-One Inc. in Camarillo announced third-quarter revenues of $23.8 million, a 4.2% decrease from a year earlier, and net income of $287,000 or 2 cents per diluted share, compared to $2.1 million or 18 cents per share for the same period in 1997.

The latest financial results include the month of September for the Melcher Group of companies. Power-One purchased Melcher, a supplier of AC/DC power products throughout Europe, for $42 million on Aug. 31.

"Considering the widespread and ongoing softness in the electronics industry, we are pleased that we were able to exceed the consensus earnings estimates of 4 cents for the third quarter before acquisition-related purchase adjustments," said Steve Goldman, Power-0ne chief executive officer. "We are also delighted with the strong performance of the Melcher Group in September, which added to . . . both earnings and cash flow."

Goldman said the Melcher purchase gives Power-One access to the European market and allows Melcher to more effectively sell to North American markets.

"Since Melcher's market segment focus is primarily in the areas of telecommunications, transportation and industrial markets, we have not only diversified our base of operations but have gained instant access to new markets and customers," Goldman said.

Power-One designs and manufactures power supplies for electronic equipment manufacturers in the United States.

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