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No. of Recommendations: 2
Hi Prof,

Is there a big job or account that made the last quarter so great as far as revenue?

I don't think so. At least, there was nothing like that in the earnings release or conference call. As far as I can tell, it's just growth and gaining market share.


Is any one client more than 10% of revenue?

Customer concentration is down, as mentioned in the notes, from five covering 28% of revenue in 2007 to five covering 22%. I didn't see anybody called out as a 10% customer in the last 10-K.


Is the original older part of the business now profitable or is it a drag on earnings

For this quarter, it operated just shy of break even ($100,000 loss), which is a big improvement over the past.

One article (pub'd 9/20/10) I read had this to say: "Power-One still makes power conversion and management gear for telecommunications and industrial equipment, a business [CEO] Thompson said the firm 'will continue to mend.' It closed its Dominican Republic plant, consolidated facilities in China for efficiency and moved Italian production to Slovakia. The company is looking for higher-margin niches where it can compete successfully against much bigger companies like Emerson. 'You have to build a better mousetrap, but you have also have a very cost-competitive product,' Thompson said."


One last note. From the same article: "While its other lines will still factor into the revenue mix, Nasdeo [director of research at Ardour Capital Investments] and Thompson both peg renewables as the division where big gains will come. Power-One’s inverters are a necessary component of any renewable electricity system, but they aren’t tied to particular panel or turbine technology and can be adapted as new ways to capture sunlight or wind come about. 'We see renewable energy as a growth market for years to come,' Thompson said."

Cheers,
Jim
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