For more information, contact:

Mike El-Hillow Advanced Energy Industries, Inc. 970.407.6570 mike.el-hillow@aei.com

Cathy Kawakami Advanced Energy Industries, Inc. 970.407.6732 cathy.kawakami@aei.com

Advanced Energy Reports Third Quarter 2002 Results

Fort Collins, Colorado (October 17, 2002)—Advanced Energy (Nasdaq: AEIS) today reported financial results for the third quarter ended September 30, 2002. Advanced Energy is a leading global provider of critical components and sub-systems used in the production of semiconductors, flat panel displays, data storage products and other advanced applications.

 

Revenue for the third quarter of 2002 increased 83 percent to $70.7 million, compared to third quarter 2001 revenue of $38.7 million. Revenue for the third quarter of 2002 increased 4 percent compared to second quarter 2002 revenue of $67.9 million. Revenue for the second and third quarters of 2002 includes contributions from the Aera Japan Ltd. and Dressler HF Technik GmbH acquisitions

Net loss for the third quarter of 2002 was $5.6 million or $0.17 per share including restructuring charges of $3.2 million (on a pretax basis) or $0.07 per share related to the cost reduction actions announced on August 14, 2002. This compares to the third quarter 2001 net loss of $7.5 million, or $0.24 per share, and the second quarter 2002 net loss of $5.1 million, or $0.16 per share.

Sales for the nine months ended September 30, 2002 were $181.5 million compared to $159.6 million for the first nine months of 2001. Net loss for the 2002 nine-month period was $19.5 million, or $0.61 per share, compared to a net loss of $16.9 million, or $0.53 per share, for the 2001 nine-month period.

Doug Schatz, chairman, president and chief executive officer, said, “Orders continued to be somewhat stable throughout most of the third quarter and we achieved financial results within our expectations. We experienced strength in mass flow control sales to both end users and OEMs, as well as a pick up in demand from our flat panel display OEM customers. This quarter also marked a number of design wins in oxide etch, photoresist strip and PVD applications, further solidifying our market lead for both current and next generation processing tools.”

Based on information currently available, the Company expects fourth quarter revenues in the $53 million to $55 million range and an operating loss per share of $0.28 to $0.30.

“As we enter the fourth quarter, activity throughout the industry is decreasing. We are evaluating the company’s cost structure to further reduce our break-even point, below the $70 million revenue level that we planned for the first quarter of 2003, to the $55 million to $60 million revenue level if industry conditions do not improve,” said Mr. Schatz.

Third Quarter 2002 Conference Call
Management will host a conference call today, Thursday, October 17, 2002 at 5:00 pm Eastern time to discuss the financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-679-7720. For a replay of this teleconference, please call 706-645-9291, code 5677868. The replay will be available through Thursday, October 24, 2002. There will also be a webcast available at www.advanced-energy.com.

About Advanced Energy
Advanced Energy is a global leader in the development, marketing and support of components and sub-systems critical to plasma-based manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass, and other applications that require precise thin-film processes. AE offers a comprehensive line of technology solutions in power, flow and thermal management, plasma and ion beam sources, and integrated process monitoring and control to original equipment manufacturers (OEMs) and end-users around the world. AE operates in regional centers in North America, Asia and Europe, and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, AE is a publicly-held company traded on Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com. View Report