For more information, contact:
Lawrence D. Firestone
Advanced Energy Industries, Inc.
970.407.6570
lawrence.firestone@aei.com |
Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com
|
Advanced Energy Announces First Quarter 2009 Results
FORT COLLINS, Colo., April 23, 2009—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the first quarter ended March 31, 2009. Sales for the first quarter of 2009 were $32.6 million, representing a 63.3% decline from $88.9 million in the same quarter a year ago and a 51.7% decline from $67.5 million in the fourth quarter of 2008. Sales were lower across all of the Company's markets, as the global financial crisis reduced consumer and commercial spending, resulting in limited capital expansion in our markets. Our book to bill ratio for the quarter increased sequentially to 0.87:1, from quarter's 0.70:1, from the fourth quarter of 2008, though on a much lower revenue base.
Our gross margins in the first quarter were impacted by the lower revenues, resulting in lower absorption of manufacturing overhead in the first quarter. Margins fell to 19.6%, down from 40.3% in the first quarter of 2008 and 27.2% in the fourth quarter of 2008.
During the quarter we implemented a restructuring plan that resulted in a charge of $3.4 million or $0.08 per share related to a reduction in workforce. Due to the current economic downturn and a significant decline in the Company's market capitalization, we recorded an estimated non-cash impairment charge in the first quarter of $63.3 million or $1.51 per share related to our goodwill. These charges do not affect our cash balance, liquidity, or operating cash flow.
The result was a net loss for the first quarter of 2009 of $79.8 million, or $1.90 loss per diluted share, compared to net income of $6.0 million, or $0.13 earnings per diluted share, in the first quarter of 2008. The quarterly net loss increased from $19.0 million, or $0.45 per diluted share, in the fourth quarter of 2008. Our balance sheet remained strong as we closed the quarter with $173.4 million of cash and investments.
"This was an exceptionally difficult quarter as we experienced revenue levels not seen since the late 1990s. We responded once again by reducing our cost structure, yet maintaining our critical technology development and product initiatives. Our healthy balance sheet remains a key strategic asset, which we plan to leverage during these difficult times," said Hans Betz, president and CEO. "Although we experienced a significant drop in all of our markets during the quarter and visibility remains limited, we have seen some positive signs of investment in some markets, which we hope will provide some near-term stability. We remain committed to our strategy of being the strong and healthy supplier of choice to all of our OEM and end user customers."
Second Quarter 2009 Guidance
The Company anticipates second quarter 2009 results to be within the following ranges:
- Sales of $30.0 million to $36.0 million
- Loss per share of $0.41 to $0.34
First Quarter 2009 Conference Call
Management will host a conference call today, Thursday, April 23, 2009, at 5:00 pm Eastern Daylight Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing (888) 713-4717. International callers may access the call by dialing (816) 650-2836. Participants will need to provide a conference passcode 94779571. For a replay of this teleconference, please call (800) 642-1687 or (706) 645-9291, and enter the passcode 94779571. The replay will be available through 12:00 a.m. Eastern Daylight Time, April 25, 2009. A webcast will also be available on the Investor Relations webpage at http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar power generation. Specifically, AE targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.
Forward-Looking Statements
The Company's expectations with respect to financial results for the second quarter ended June 30, 2009 are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the effects of global macroeconomic conditions upon demand for our products, the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry, the timing of orders received from customers, the company's ability to realize cost improvement benefits from the global operations initiatives underway, and unanticipated changes to management's estimates, reserves or allowances. These and other risks are described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements filed with the Securities and Exchange Commission. These reports and statements are available on the SEC's website at www.sec.gov. Copies may also be obtained from Advanced Energy's website at www.advanced-energy.com or by contacting Advanced Energy's investor relations at 970-407-6555. Forward-looking statements are made and based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
--------------------
March 31, December 31,
----------- ------------
2009 2008 2008
---- ---- ----
Sales $32,627 $88,887 $67,525
Cost of sales 26,239 53,039 49,128
------ ------ ------
Gross profit 6,388 35,848 18,397
Operating expenses:
Research and development 11,098 13,085 13,424
Selling, general and administrative 9,395 14,468 9,513
Amortization of intangible assets 222 240 257
Impairment of goodwill 63,260 - -
Restructuring charges 3,396 674 1,898
----- ----- -----
Total operating expenses 87,371 28,467 25,092
Income (loss) from operations (80,983) 7,381 (6,695)
Other income, net 282 905 553
---- ---- ----
Income (loss) from continuing operations
before income taxes (80,701) 8,286 (6,142)
Provision (benefit) for income taxes (938) 2,320 12,835
---- ----- ------
Net income (loss) $(79,763) $5,966 $(18,977)
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Basic earnings (loss) per share $(1.90) $0.13 $(0.45)
Diluted earnings (loss) per share $(1.90) $0.13 $(0.45)
Basic weighted-average common shares
outstanding 41,881 44,662 41,832
Diluted weighted-average common shares
outstanding 41,881 45,065 41,832
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $115,409 $116,448
Marketable securities 29,588 33,266
Accounts receivable, net 35,578 56,549
Inventories, net 46,024 46,659
Deferred income taxes 12,781 13,253
Other current assets 4,649 5,324
----- -----
Total current assets 244,029 271,499
Property and equipment, net 29,960 31,322
Long-term investments 28,418 30,401
Deposits and other 7,557 7,505
Goodwill and intangibles, net 6,009 72,918
Customer service equipment, net - 23
Deferred income tax assets, net 7,955 6,969
----- -----
Total assets $323,928 $420,637
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,087 $8,005
Other accrued expenses 21,843 23,928
------ ------
Total current liabilities 27,930 31,933
Long-term liabilities 10,653 12,155
------ ------
Total liabilities 38,583 44,088
Stockholders' equity 285,345 376,549
------- -------
Total liabilities and stockholders' equity $323,928 $420,637
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