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 Second Quarter 2009 Results
Fort Collins, Colo., July 23, 2009—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the second quarter ended June 30, 2009.
Sales for the second quarter of 2009 were $35.6 million, a 9.2% increase from $32.6 million in the first quarter of 2009. Sales decreased 59.6% from $88.0 million in the second quarter of 2008.
Sales to the semiconductor market drove overall sales growth, increasing 27.3% sequentially to $12.2 million. Semiconductor equipment OEMs worked through their inventories and fabs increased utilization, reflecting what we believe is the beginning of the market recovery. With equipment sitting idle for the last few quarters, manufacturers’ need for repairs and upgrades also grew, leading to a sequential increase of 14.2% in service and support revenues to $8.8 million, taking them to 24.8% of total sales. Sales to our non-semiconductor markets fell 5.0% to $14.6 million and represented 41.0% of total sales for the quarter. Strong orders during the quarter drove a sequential increase in our book to bill ratio to 1.06:1 from 0.87:1 in the first quarter of 2009 on a higher revenue base.
Higher revenues and the cost reduction efforts that have been implemented over the last several quarters resulted in improved gross margins of 22.3% in the second quarter, up from 19.6% in the first quarter of 2009. Gross margins decreased from 40.1% in the second quarter of 2008.
The second quarter net loss was $16.0 million or $0.38 loss per share, up from a net loss of $79.8 million or $1.90 loss per share in the first quarter of 2009, which included a non-cash goodwill impairment charge of $63.3 million or $1.51 loss per share. Net income was $5.9 million or $0.14 earnings per diluted share in the second quarter of 2008.
“We were pleased with the improvement in our second quarter results, which we believe points to signs of modest recovery in certain markets. For the first time in more than a year, sales to our semiconductor OEMs increased. Sales to our semi-related service business also grew, typically reflecting near-term modest growth in the semiconductor market,” said Hans Betz, president and CEO.
“Our strong commitment to technology investment is fueling our diversification strategy. As such, we are very encouraged by the order momentum for our 500KW Solaron inverter. The successful launch of the 500KW Solaron demonstrates AE’s commitment to technology development as we look to expand our product portfolio and our market presence.”
Third Quarter 2009 Guidance
The Company anticipates third quarter 2009 results to be within the following ranges:
- Sales of $40 million to $45 million
- Loss per share of $0.35 to $0.29
Second Quarter 2009 Conference Call
Management will host a conference call today, Thursday, July 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 19233458. For a replay of this teleconference, please call (800) 642-1687 or (706) 645-9291, and enter the passcode 19233458. The replay will be available through 12:00 a.m. Eastern Daylight Time, July 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. The Company’s expectations with respect to guidance to financial results for the third quarter ending September 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.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, March 31, June 30,
-------- --------- --------
2009 2008 2009 2009 2008
---- ---- ---- ---- ----
Sales $35,567 $87,996 $32,627 $68,194 $176,883
Cost of sales 27,636 52,720 26,239 53,875 105,759
------ ------ ------ ------ -------
Gross profit 7,931 35,276 6,388 14,319 71,124
22.3% 40.1% 19.6% 21.0% 40.2%
Operating expenses:
Research and
development 10,742 13,762 11,098 21,840 26,847
Selling,
general and
administrative 10,166 13,955 9,395 19,561 28,423
Amortization
of intangible
assets 120 226 222 342 466
Impairment of
goodwill - - 63,260 63,260 -
Restructuring
charges 739 393 3,396 4,135 1,067
----- ----- ----- ----- -----
Total
operating
expenses 21,767 28,336 87,371 109,138 56,803
Income (loss) from
operations (13,836) 6,940 (80,983) (94,819) 14,321
Other income, net 627 996 282 909 1,901
--- --- --- --- -----
Income (loss) from
operations before
income taxes (13,209) 7,936 (80,701) (93,910) 16,222
Provision
(benefit) for
income taxes 2,825 2,073 (938) 1,887 4,393
----- ----- ---- ----- -----
Net income (loss) $(16,034) $5,863 $(79,763) $(95,797) $11,829
======== ====== ======== ======== =======
Basic earnings
(loss) per share $(0.38) $0.14 $(1.90) $(2.28) $0.27
Diluted earnings
(loss) per share $(0.38) $0.14 $(1.90) $(2.28) $0.27
Basic weighted-
average common
shares
outstanding 41,948 41,869 41,881 41,915 43,265
Diluted weighted-
average common
shares
outstanding 41,948 42,290 41,881 41,915 43,686
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2009 2008
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $137,416 $116,448
Marketable securities 37,897 33,266
Accounts receivable, net 32,298 56,549
Inventories, net 39,809 46,659
Deferred income taxes 11,754 13,253
Other current assets 3,593 5,324
----- -----
Total current assets 262,767 271,499
Property and equipment, net 29,385 31,322
Long-term investments - 30,401
Deposits and other 7,539 7,528
Goodwill and intangibles, net 6,055 72,918
Deferred income tax assets, net 8,993 6,969
----- -----
Total assets $314,739 $420,637
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,736 $8,005
Other accrued expenses 20,346 23,928
------ ------
Total current liabilities 28,082 31,933
Long-term liabilities 11,538 12,155
------ ------
Total liabilities 39,620 44,088
Stockholders' equity 275,119 376,549
------- -------
Total liabilities and stockholders'
equity $314,739 $420,637
======== ========
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