For more information, contact:
Danny Herron
Advanced Energy Industries, Inc.
970.407.6570
danny.herron@aei.com |
Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com |
Advanced Energy Announces Second Quarter Results
- Revenue of $138.2 million, a 38.1% increase over Q2, 2010
- Operating Income of $17.3 million, 12.5% of revenue
- EPS of $0.31 share
FORT COLLINS, Colo., July 25, 2011—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the second quarter ended June 30, 2011. The company posted second quarter sales of $138.2 million, operating income of 12.5%, and earnings of $0.31 per diluted share from continuing operations.
“Our renewables business in the second quarter was pressured by several industry dynamics, including declining panel prices, increasing competition, and changing incentive programs, which impacted our results more than anticipated. We were nonetheless pleased that our thin films business unit was in-line with expectations,” said Dr. Hans Betz, chief executive officer. “Looking at our expectations for the remainder of 2011, we believe the benefits of our diversification strategy become clear. As our thin film business softens with market cyclicality, our renewables business is poised to capture previously-deferred business as customers initiate projects in order to take advantage of tax credits by year-end. Longer-term, we continue to see demand for our utility-scale inverter products in North America and remain confident that Advanced Energy’s strategy of selling based on levelized cost of energy (LCOE), superior uptime performance and best-in-class service offering will continue to differentiate us in the market.”
Thin Film Business UnitThin Films business unit sales were $97.3 million versus $85.7 million in the same period of 2010, a 13.5% improvement year over year. Total Thin Film sales met our expectations this quarter, although declined slightly on a sequential basis from $100.1 million in the first quarter of 2011. Strength in our flat panel display market this quarter was somewhat offset by the initial signs of a pause in semiconductor capital spending, as well as the overcapacity and resulting price declines in the solar panel industry. Renewables Business UnitRenewables business unit sales were $40.8 million in the quarter versus $14.4 million in the same period of 2010. The significant year-over-year improvement reflects the acquisition of PV Powered and the ongoing growth of the North American solar equipment market. Renewable sales were impacted by several industry dynamics during the quarter, leading to slower than anticipated sequential growth of 9%. Operating income was $17.3 million or 12.5% of revenue. Net income from continuing operations was $13.5 million or $0.31 per diluted share, compared to net income from continuing operations of $18.8 million or $0.43 per diluted share in the first quarter of 2011. Bookings for the second quarter were $101.7 million. Third Quarter 2011 Guidance The Company anticipates third quarter 2011 results from continuing operations, to be within the following ranges:
- Sales of $130 million to $145 million
- Earnings per share of $0.20 to $0.30
Second Quarter 2011 Conference CallManagement will host a conference call tomorrow, Tuesday, July 26, 2011, at 8:30 a.m. Eastern Daylight Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing (866) 362-4820. International callers may access the call by dialing (617) 597-5345. Participants will need to provide a conference pass code 76215669. For a replay of this teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code 29763068. The replay will be available for two weeks following the conference call. A webcast will also be available on the Investor Relations web page at http://ir.advanced-energy.com. About Advanced Energy Advanced Energy (NASDAQ: AEIS - News) is a global leader in innovative power and control technologies forthin-film manufacturing and high-growth solar-power generation. Advanced Energy is headquartered in Fort Collins, Colorado, with dedicated support and service locations around the world. For more information, go to www.advanced-energy.com. Forward-Looking LanguageThe Company’s expectations with respect to guidance to financial results for the third quarter ending September 30, 2011 and statements that are not historical information 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 continuation of RPS (renewable portfolio standards), the timing and availability of incentives and grant programs in the US and Europe related to the renewable energy market, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment market, the timing of orders received from customers, the company's ability to realize benefits from cost improvement efforts, the ability to source materials and manufacture products, 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.advancedenergy.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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ADVANCED ENERGY INDUSTRIES,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
(in thousands, except per
share data)
Three Months Ended Six Months Ended
---------------------------------- ----------------------
June 30, March 31, June 30,
---------------------- ---------- ----------------------
2011 2010 2011 2011 2010
---------- ---------- ---------- ---------- ----------
SALES $ 138,154 $ 100,107 $ 137,652 $ 275,806 $ 169,794
COST OF SALES 82,777 55,548 75,607 158,384 96,028
---------- ---------- ---------- ---------- ----------
GROSS PROFIT 55,377 44,559 62,045 117,422 73,766
40.1% 44.5% 45.1% 42.6% 43.4%
OPERATING EXPENSES:
Research and development 17,137 13,515 15,862 32,999 24,657
Selling, general and
administrative 20,001 17,183 20,905 40,906 29,412
Amortization of intangible
assets 921 767 921 1,842 767
---------- ---------- ---------- ---------- ----------
Total operating expenses 38,059 31,465 37,688 75,747 54,836
---------- ---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 17,318 13,094 24,357 41,675 18,930
Other income, net 92 220 663 755 605
---------- ---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 17,410 13,314 25,020 42,430 19,535
Provision for income taxes 3,898 1,857 6,254 10,152 3,228
---------- ---------- ---------- ---------- ----------
INCOME FROM CONTINUING
OPERATIONS 13,512 11,457 18,766 32,278 16,307
Results from discontinued
operations, net of tax 74 2,162 140 214 3,529
---------- ---------- ---------- ---------- ----------
INCOME FROM DISCONTINUED
OPERATIONS, NET OF INCOME
TAXES 74 2,162 140 214 3,529
---------- ---------- ---------- ---------- ----------
NET INCOME $ 13,586 $ 13,619 $ 18,906 $ 32,492 $ 19,836
========== ========== ========== ========== ==========
Basic weighted-average
common shares outstanding 43,571 42,806 43,440 43,505 42,440
Diluted weighted-average
common shares outstanding 44,187 43,327 44,133 44,156 43,004
EARNINGS PER SHARE:
CONTINUING OPERATIONS:
BASIC EARNINGS PER SHARE $ 0.31 $ 0.27 $ 0.43 $ 0.74 $ 0.38
DILUTED EARNINGS PER SHARE $ 0.31 $ 0.26 $ 0.43 $ 0.73 $ 0.38
DISCONTINUED OPERATIONS
BASIC EARNINGS PER SHARE $ 0.00 $ 0.05 $ 0.00 $ 0.00 $ 0.08
DILUTED EARNINGS PER SHARE $ 0.00 $ 0.05 $ 0.00 $ 0.00 $ 0.08
NET INCOME:
BASIC EARNINGS PER SHARE $ 0.31 $ 0.32 $ 0.44 $ 0.75 $ 0.47
DILUTED EARNINGS PER SHARE $ 0.31 $ 0.31 $ 0.43 $ 0.74 $ 0.46
ADVANCED ENERGY INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(in thousands)
December
June 30, 31,
2011 2010
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 135,564 $ 130,914
Marketable securities 10,124 9,640
Accounts receivable, net 128,802 119,893
Inventories, net 100,392 77,593
Deferred income taxes 7,689 7,510
Income taxes receivable 2,388 6,061
Other current assets 11,689 10,156
---------- ----------
Total current assets 396,648 361,767
Property and equipment, net 38,408 34,569
Deposits and other 8,795 8,874
Goodwill and intangibles,
net 93,094 96,781
Deferred income tax assets,
net 5,059 3,166
---------- ----------
Total assets $ 542,004 $ 505,157
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 48,828 $ 56,185
Other accrued expenses 47,130 46,140
---------- ----------
Total current liabilities 95,958 102,325
Long-term liabilities 30,393 28,864
---------- ----------
Total liabilities 126,351 131,189
Stockholders' equity 415,653 373,968
---------- ----------
Total liabilities and
stockholders' equity $ 542,004 $ 505,157
========== ==========
ADVANCED ENERGY INDUSTRIES,
INC.
SEGMENT INFORMATION
(in thousands)
Three Months Ended Six Months Ended
---------------------------------- ----------------------
June 30, March 31, June 30,
---------------------- ---------- ----------------------
2011 2010 2011 2011 2010
---------- ---------- ---------- ---------- ----------
SALES:
Thin Films $ 97,331 $ 85,697 $ 100,099 $ 197,430 $ 153,120
Renewables 40,823 14,410 37,553 78,376 16,674
---------- ---------- ---------- ---------- ----------
Total Sales 138,154 100,107 137,652 275,806 169,794
========== ========== ========== ========== ==========
OPERATING INCOME:
Thin Films $ 20,042 $ 24,824 $ 44,866
Renewables 321 2,512 2,833
---------- ---------- ----------
Total segment operating
income 20,363 27,336 47,699
Corporate expenses (3,045) (2,979) (6,024)
Other income, net 92 663 755
---------- ---------- ----------
Income from continuing
operations before income
taxes $ 17,410 $ 25,020 $ 42,430
========== ========== ==========
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Advanced Energy Industries, Inc.
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