With all its challenges, 2001 was a transition year for Power-One and some of the significant accomplishments include a company-wide cost reduction program which focused on lowering production costs, reducing excess manufacturing capacity and reducing our workforce
. This resulted in significantly reduced breakeven sales levels, and it is anticipated that this program will return the company to profitability in the second half of 2002. Additionally, a focused cash management program has resulted in an $80 million cash position at year-end which is net of a $13.3 million pay-off of outstanding bank credit-line debt and a $6.6 million tax refund.
Power-One remains committed to its technology leadership position and invested heavily in R&D to roll-out the next generation of its power conversion products. Power-One also implemented a global account management strategy that coordinates its efforts across all product offerings.
This has resulted in many new design wins and a more diversified customer base by developing and supporting second tier customers.
Mr. Goldman concluded, "We have positioned ourselves to operate successfully at significantly lower business levels during this downturn and are continuing to focus our efforts on four core objectives: new product development, increasing market share, cash management and cost control. Our R&D investment focus is specifically geared toward next generation advanced technology for the communications infrastructure industry.
I am confident that as a result of our new product pipeline, strong customer relationships and market share position, and by remaining focused on our long-term strategy to power the communications infrastructure industry, we will exit this downturn in an even stronger position."