| Power-One, Inc. | |||
| Ticker: | PWER | 740 Calle Plano | |
| Exchange: | NASDAQ-National Market | Camarillo, CA 93012 | |
| Industry: | Manufacturing (SIC Code 3679) | (805) 987-8741 | |
| # of Employees: | 1704 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/5/97 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 9/30/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $14.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.98 | |
| Offering Amount: | $60,000,000 | Selling: | $0.55 | |
| Expenses: | $1,000,000 | Reallowance: | $0.10 | |
| Shares Out After: | 16,446,968 |
| Manager | Tier | Phone |
| Stephens Inc. | Lead Manager | (501) 377-2130 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Robertson, Stephens & Company | Co-manager | (415) 989-8500 |
| Issuer's Law Firm: | O'Melveny & Meyers |
| Bank's Law Firm: | Wright Lindsey & Jennings |
| Auditor: | Deloitte & Touche |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $74.21 | $40.17 | $40.74 | Assets: | $76.94 |
| Net Income: | $2.87 | $2.57 | $2.05 | Curr Assets: | $37.83 |
| EPS: | $0.24 | $0.22 | Liabilities: | $74.09 | |
| Prior EPS: | $1.68 | $1.94 | Curr Liabilities: | $26.49 | |
| Cash Flow/Oper: | $4.25 | -$0.37 | $0.11 | Equity: | $2.85 |
| Cash Flow/Fin: | -$2.86 | -$0.94 | -$2.08 | Cash: | $2.05 |
| Cash Flow/Inv: | -$3.46 | -$0.94 | Working Cap: | $11.34 | |
| Business Description |
| The company is a leading designer and manufacturer of power supplies for electronic equipment manufacturers in the U.S. The company manufactures a broad line of more than 700 high-quality brand name products based on quality, reliability and service. The Company's products are sold to an installed base of more than 10,000 end-users in the communications, automatic test equipment, medical equipment, industrial and other electronic equipment industries. The company's OEM customers include industry leaders such as Teradyne, Cisco Systems, Siemens, General Electric, Hewlett-Packard and Unisys. The Company is also a leading provider of power supplies to electronic distribution customers in the U.S., including Pioneer Standard Electronics, Sterling Electronics, Capstone (Arrow) and Kent Electronics. Power supplies perform many essential functions relating to the supply, regulation and distribution of electrical power within electronic equipment. Virtually every electronic device that plugs into an AC wall socket requires some type of AC/DC power supply. The Company's power supplies encompass both standard and modified standard products, as well as a unique modular high-power product line. Standard power supplies are not typically industry-wide standards; rather, they are power supplies that a company manufactures as its standard catalog products that can be used for many different applications. |
| Competition |
| The design, manufacture and sale of power supplies is highly competitive. The company's competition includes numerous companies located throughout the world, some of which have advantages over the Company in terms of labor and component costs and technology. Certain of the Company's competitors have substantially greater resources and geographic presence than the Company. There can be no assurance that the Company will not encounter increased competition from existing competitors or new market entrants. The company also faces competition from current and prospective customers that may design and manufacture their own power supplies. There can be no assurance that the Company will be able to compete favorably on the basis of value by offering superior customer service and design engineering services, continuously improving quality and reliability levels, and offering flexible, reliable delivery schedules, and a competitive price. In times of an economic downturn, or when dealing with high-volume orders, price becomes an increasingly important competitive factor, which could cause the Company to reduce price levels on its products and thereby adversely affect the Company's financial statements. There can be no assurance that the Company will continue to be able to compete successfully against current or future competitors in the market. |
| Business Plan |
| The company's business strategy is to power its customers' technologies by offering one of the broadest ranges of standard and modified standard power supplies available from any manufacturer. Key elements of the company's strategy include: (I) Further Expand Standard Product Line, (ii) Target Its Primary Market, (iii) Expand Relationships With Key OEMs and (iv) Pursue External Growth Opportunities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness, payment of amounts owed to certain officers and for general corporate purposes including possible acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Stephens Group, Inc. | 32.70% | 22.70% |
| Steven J. Goldman | 15.80% | 11.00% |
| Jon E.M. Jacoby | 12.80% | 8.90% |
| W.R. Stephens, Jr. | 6.70% | 4.70% |
| Elizabeth Stephens Campbell | 5.90% | 4.10% |
| Warren A. Stephens | 5.20% | 3.60% |
| Officer Name | Title | Age |
| Dennis R. Roark | Executive Vice President | 50 |
| Steven J. Goldman | President, Chief Executive Officer and Chairman of the Board | 40 |
| Eddie K. Schnopp | Vice President--Finance and Logistics, Chief Financial Officer and Secretary | 39 |
| Donna M. Koep | Vice President--Human Resources | 37 |
| John A. Martins | Vice President--Quality Assurance | 38 |
| David J. Hage | Vice President--Sales and Marketing | 50 |
| Brad W. Godfrey | Vice President--Worldwide Manufacturing | 38 |