Powell Industries (POWL) 8-K Powell Industries Announces Fiscal 2007 Fourth Quarter and Year-end Results

EXHIBIT 99.1

Press Release

	Contacts:	Don R. Madison, CFO
FOR IMMEDIATE RELEASE		Powell Industries, Inc.
		713-947-4422
		Ken Dennard / ksdennard@drg-e.com
		Karen Roan / kcroan@drg-e.com
		DRG&E / 713-529-6600

POWELL INDUSTRIES ANNOUNCES FISCAL 2007
FOURTH QUARTER AND YEAR-END RESULTS

HOUSTON — DECEMBER 5, 2007 — Powell Industries, Inc. (NASDAQ: POWL), a leading manufacturer of equipment and systems for the management and control of electrical energy and other critical processes, today announced results for the fiscal 2007 fourth quarter and year ended September 30, 2007. As previously announced, the Company changed its fiscal year-end to September 30 from October 31, effective September 30, 2006. Therefore, the comparable periods of fiscal 2006 are comprised of the two months and eleven months ended September 30, 2006, respectively.

     Revenues for the fourth quarter of fiscal 2007 were $150.5 million compared to revenues of $88.3 million for the fourth quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac^® product line acquisition contributed revenues of $19.1 million in the fourth quarter of fiscal 2007. Net income for the fourth quarter was $2.5 million, or $0.22 per diluted share, compared to net income of $2.2 million, or $0.20 per diluted share, in the fourth quarter of fiscal 2006.

     Thomas W. Powell, chairman and chief executive officer, stated, “We are very pleased with our overall performance for the year. We generated record bookings of $200 million in the fourth quarter, had total bookings for the year of $667 million and closed the year with a record backlog of $464 million. We continue to see excellent activity and opportunities in all of our key markets and are responding to customers’ needs and successfully closing business at an unprecedented rate.

     “The relocation of the acquired Power/Vac^® product line is on track for a March 2008 completion. This relocation, a greenfield start-up, has been accomplished during a very challenging period of growth. We continue to be encouraged by the direction and future of the Company.”

     The Electrical Power Products segment recorded revenues of $145.2 million in the fiscal 2007 fourth quarter compared to $82.5 million in the fourth quarter of fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $19.1 million in the fourth quarter of fiscal 2007. Income before income taxes for Electrical Power Products in the fourth quarter totaled $3.7 million versus income before income taxes of $1.8 million in last year’s fourth quarter.

     The company’s order backlog as of September 30, 2007 was a record $464 million compared to $355 million at the end of the fiscal 2006 fourth quarter ended September 30, 2006 and compared to $411 million at the end of the third quarter of fiscal 2007 ended June 30, 2007. New orders placed during the fourth quarter of fiscal 2007 totaled a record $200 million compared to $156 million in the fourth quarter of fiscal 2006 and compared to $151 million in the third quarter of fiscal 2007.

FULL YEAR RESULTS

     Revenues for fiscal 2007 were $564.3 million compared to revenues of $374.5 million for the fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $85.7 million in fiscal 2007. Net income for fiscal 2007 was $9.9 million, or $0.88 per diluted share, compared to net income of $8.4 million, or $0.76 per diluted share, in fiscal 2006.

     The Electrical Power Products segment recorded revenues of $541.6 million in fiscal 2007 compared to $347.9 million in fiscal 2006. The business operations of the Company’s August 2006 Power/Vac product line acquisition contributed revenues of $85.7 million in the fiscal 2007. Income before income taxes for Electrical Power Products in fiscal 2007 totaled $14.8 million versus income before income taxes of $11.3 million in fiscal 2007.

OUTLOOK

     The following statements are based on the current expectations of the Company. These statements are forward-looking and actual results may differ materially as further elaborated in the last paragraph below.

     Powell Industries expects full year fiscal 2008 revenues to range between $625 million and $650 million and full year fiscal 2008 earnings to range between $1.65 and $1.90 per diluted share.

CONFERENCE CALL

     Powell Industries has scheduled a conference call for Wednesday, December 5, 2007, at 11:00 a.m. eastern time. To participate in the conference call, dial 303-262-2143 at least 10 minutes before the call begins and ask for the Powell Industries conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until December 12, 2007. To access the replay, dial 303-590-3000 using a passcode of 11102933.

     Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visitinghttp://www.powellind.com. To listen to the live call on the web, please visit the website at least fifteen minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately 90 days athttp://www.powellind.com.

     Powell Industries, Inc., headquartered in Houston, designs, manufactures and packages systems and equipment for the control, distribution and management of electrical energy and other dynamic processes. Powell provides products and services to large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations, commuter railways and other vehicular transportation facilities. For more information, please visitwww.powellind.com.

     Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, including but not limited to the results of the Company’s internal investigation relating to the accounting errors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company’s filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

- Tables to follow -

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three			Two			Twelve			Eleven
	Months			Months			Months			Months
	Ended			Ended			Ended			Ended
	Sept 30,			Sept 30,			Sept 30,			Sept 30,
	2007			2006			2007			2006
(In thousands, except per share data)	(Unaudited)						(Unaudited)
Revenues	$	150,463		$	88,282		$	564,282		$	374,547
Cost of goods sold		125,153			72,580			468,691			305,489
Gross profit		25,310			15,702			95,591			69,058
Selling, general and administrative expenses		20,770			12,805			77,246			55,345
Income before interest, income taxes and minority interest		4,540			2,897			18,345			13,713
Interest expense		972			488			3,501			1,625
Interest income		(148	)		(191	)		(558	)		(927	)
Income before income taxes and minority interest		3,716			2,600			15,402			13,015
Income tax provision		1,314			399			5,468			4,609
Minority interest in net income (loss)		(58	)		(25	)		21			(3	)
Net income	$	2,460		$	2,226		$	9,913		$	8,409
Net earnings per common share:
Basic	$	0.22		$	0.20		$	0.90		$	0.77
Diluted	$	0.22		$	0.20		$	0.88		$	0.76
Weighted average shares:
Basic		11,111			10,907			11,045			10,876
Diluted		11,306			11,102			11,233			11,089
SELECTED FINANCIAL DATA:
Depreciation and amortization	$	3,339		$	1,592		$	11,564		$	6,498
Capital expenditures	$	3,227		$	3,632		$	14,338		$	8,435

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,		September 30,
	2007		2006
(In thousands)	(Unaudited)
Assets:
Current assets	$	236,886	$	193,500
Property, plant and equipment (net)		67,401		60,336
Other assets		36,728		38,842
Total assets	$	341,015	$	292,678
Liabilities & stockholders’ equity:
Current liabilities	$	135,612	$	98,612
Long-term debt and capital lease obligations, net of current maturities		27,372		33,886
Deferred and other long-term liabilities		4,184		2,971
Stockholders’ equity and minority interest		173,847		157,209
Total liabilities and stockholders’ equity	$	341,015	$	292,678

POWELL INDUSTRIES, INC. & SUBSIDIARIES
BUSINESS SEGMENTS

	Three		Two		Twelve		Eleven
	Months		Months		Months		Months
	Ended		Ended		Ended		Ended
	Sept 30,		Sept 30,		Sept 30,		Sept 30,
	2007		2006		2007		2006
(In thousands)	(Unaudited)				(Unaudited)
Revenues:
Electrical Power Products	$	145,156	$	82,515	$	541,584	$	347,928
Process Control Systems		5,307		5,767		22,698		26,619
Total revenues	$	150,463	$	88,282	$	564,282	$	374,547
Income before income taxes:
Electrical Power Products	$	3,674	$	1,751	$	14,781	$	11,273
Process Control Systems		42		849		621		1,742
Total income before income taxes	$	3,716	$	2,600	$	15,402	$	13,015

	September 30,		September 30,
	2007		2006
(In thousands)	(Unaudited)
Backlog:
Electrical Power Products	$	434,902	$	324,688
Process Control Systems		29,596		30,440
Total backlog	$	464,498	$	355,128

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