EX-99.1 2 d56008exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
(AE Advanced Energy Logo)
     
Contacts:
    
Lawrence D. Firestone
   Annie Leschin/Brooke Deterline
Advanced Energy Industries, Inc.
   Advanced Energy Industries, Inc.
970.407.6570
   970.407.6555
lawrence.firestone@aei.com
   ir@aei.com
FOR IMMEDIATE RELEASE
ADVANCED ENERGY ANNOUNCES STRONG FIRST QUARTER 2008 FINANCIAL RESULTS
Fort Collins, Colo., April 23, 2008 — Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2008. Sales were $88.9 million for the quarter, representing a decline of 17.2% from $107.3 million in the first quarter of 2007 and an increase of 6.0% from $83.8 million in the fourth quarter of 2007.
Net income for the first quarter of 2008 was $6.0 million, or $0.13 per diluted share, compared to $12.7 million, or $0.28 per diluted share, in the first quarter of 2007. However, net income increased sequentially from $4.2 million, or $0.09 per diluted share, in the fourth quarter of 2007, primarily due to higher revenues and gross profit.
“Strength in our solar equipment and flat panel display markets drove total revenue and EPS above our guided range this quarter. We were pleased with our continued diversification, as we grew our non-semiconductor business 18% sequentially,” said Dr. Hans Betz, president and chief executive officer of Advanced Energy. “We implemented cost reductions in G&A during the first quarter that will equate to an estimated $5.5 million in annual savings. This will position us to operate more effectively and profitably in the future.”
Second Quarter 2008 Guidance
The Company anticipates the semiconductor market to remain weak through the second quarter 2008 and our results to be within the following ranges:
  •   Sales of $81 million to $87 million.
 
  •   Earnings per share of $0.07 to $0.12

 

 

First Quarter 2008 Conference Call
Management will host a conference call today, Wednesday, April 23, 2008, at 5:00 p.m. Eastern Daylight Time, to discuss Advanced Energy’s financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-634-7937. Participants will need to provide a conference passcode 42737664. For a replay of this teleconference, please call 800-642-1687 or 706-645-9291, and enter the passcode 42737664. The replay will be available through 12:00 a.m. Eastern Daylight Time, April 25, 2008. A webcast will also be available on the Investor Relations webpage at http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy® develops innovative power and control technologies that enable high-growth, plasma thin-film manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy® also develops grid connect inverters for the solar energy market.
The Company’s expectations with respect to financial results for the second quarter of 2008 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 volatility and cyclicality of the industries the company serves, particularly the semi-conductor 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 INCOME (UNAUDITED)
(in thousands, except per share data)
                         
    Three Months Ended  
    March 31,     December 31,  
    2008     2007     2007  
Sales
   $ 88,887     $ 107,323     $ 83,836  
Cost of sales
     53,039       59,014       51,017  
 
                  
Gross profit
     35,848       48,309       32,819  
Operating expenses:
                        
Research and development
     13,085       12,035       12,510  
Selling, general and administrative
     14,468       15,218       16,075  
Amortization of intangible assets
     240       324       218  
Restructuring charges
     674       2,792       (219 )
 
                  
Total operating expenses
     28,467       30,369       28,584  
 
                  
Income from operations
     7,381       17,940       4,235  
Other income, net
     905       1,554       1,444  
 
                  
Income from continuing operations before income taxes
     8,286       19,494       5,679  
Provision for income taxes
     2,320       6,823       1,512  
 
                  
Net income
   $ 5,966     $ 12,671     $ 4,167  
 
                  
Basic and diluted earnings per share
   $ 0.13     $ 0.28     $ 0.09  
Basic weighted-average common shares outstanding
     44,662       44,941       45,274  
Diluted weighted-average common shares outstanding
     45,065       45,636       45,758  

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
                 
    March 31,     December 31,  
    2008     2007  
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 99,064     $ 94,588  
Marketable securities
     37,816       110,676  
Accounts receivable, net
     70,493       64,188  
Inventories, net
     51,603       50,532  
Deferred income taxes
     14,156       23,696  
Other current assets
     3,757       4,289  
 
            
Total current assets
     276,889       347,969  
Property and equipment, net
     31,870       30,912  
Deposits and other
     46,140       7,045  
Goodwill and intangibles, net
     72,528       67,768  
Customer service equipment, net
     1,060       1,236  
Deferred income tax assets, net
     14,614       4,098  
 
            
Total assets
   $ 443,101     $ 459,028  
 
            
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Trade accounts payable
   $ 16,786     $ 12,424  
Other accrued expenses
     25,669       29,590  
 
            
Total current liabilities
     42,455       42,014  
Long-term liabilities
     9,979       9,953  
Total liabilities
     52,434       51,967  
Stockholders’ equity
     390,667       407,061  
 
            
Total liabilities and stockholders’ equity
   $ 443,101     $ 459,028