FORT COLLINS, Colo., Feb. 7 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) today announced financial
results for the fourth quarter and year ended December 31, 2007.
Sales were $83.8 million for the fourth quarter of 2007, in line
with the Company's revised guidance announced on January 22, 2008.
This represented a decrease of 19.8% from $104.5 million in the
fourth quarter of 2006, and a sequential decline of 7.4% from $90.5
million in the third quarter of 2007, driven primarily by further
declines in the semiconductor equipment industry and order delays
by key OEMs. Gross margin for the fourth quarter of 2007 was 39.1%,
down from 42.9% in the fourth quarter of 2006, and down from 40.6%
in the third quarter of 2007, due to lower sales. Net income from
continuing operations for the fourth quarter of 2007 was $4.2
million, or $0.09 per diluted share, compared to $39.4 million, or
$0.87 per diluted share, in the fourth quarter of 2006, which
includes a tax benefit of $23.5 million related to the reversal of
a valuation allowance for deferred taxes. Net income from
continuing operations for the fourth quarter of 2006, adjusted to
exclude such tax benefit, was $15.9 million or $0.35 per diluted
share. Net income from continuing operations also decreased
sequentially from $5.9 million, or $0.13 per diluted share, in the
third quarter of 2007. Sales were $384.7 million for 2007, a 6.3%
decrease from $410.7 million in 2006. Net income from continuing
operations for 2007 was $34.4 million, or $0.75 per diluted share,
compared to $87.2 million, or $1.93 per diluted share, in 2006. Net
income from continuing operations for 2006, adjusted to exclude the
tax benefit mentioned above, was $63.7 million, or $1.41 per
diluted share. "While 2007 was a challenging year for Advanced
Energy, we have seen growth in our solar business including the
successful launch of our Solaron(TM) inverter product. However,
declines in the semiconductor equipment market pressured our sales
once again in the fourth quarter," said Dr. Hans Betz, president
and chief executive officer of Advanced Energy. "As we move into
2008, we continue to focus on the diversification of our business
and are working to drive down our costs, thereby positioning
Advanced Energy for growth and profitability." First Quarter 2008
Guidance The Company anticipates first quarter 2008 financial
results to be within the following ranges: -- Sales of $82 million
to $88 million -- Earnings per share of $0.07 to $0.11 -- Effective
tax rate of 32% Fourth Quarter 2007 Conference Call Management will
host a conference call today, Thursday, February 7, 2008 at 5:00 pm
eastern standard 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 31990872. For a replay of this teleconference, please call
(800)-642-1687 or (706) 645-9291 utilizing the same passcode. The
replay will be available through February 11, 2008. A webcast will
also be available on Advanced Energy's Investor Relations webpage
at http://ir.advanced-energy.com/. About Advanced Energy Advanced
Energy(R) develops innovative power and control technologies that
enable high-growth, plasma-based thin-film manufacturing processes
worldwide, including semiconductors, flat panel displays, data
storage products, solar cells, architectural glass, and other
advanced product applications. Advanced Energy(R) also develops
grid-connect inverters for the solar energy market. This press
release presents the company's net income from continuing
operations for the fourth quarter and year ended December 31, 2006,
as adjusted to exclude a tax benefit of $23.5 million related to
the reversal of a valuation allowance for deferred taxes. Such
adjusted financial information for each period is a non-GAAP
financial measure. Net income from continuing operations, also
presented in this press release, is the most directly comparable
financial measure calculated in accordance with U.S. generally
accepted accounting principles (GAAP). A reconciliation of the
differences between the non-GAAP financial measures we reference
with such comparable GAAP financial measures are included at the
end of this press release. Management believes that the non-GAAP
financial measures included in this press release provide a useful
measure of the company's operating results and a meaningful
comparison with the company's 2007 operating results. Management
and the board of directors of the company utilize these non-GAAP
financial measures, in addition to GAAP financial measures, to
evaluate and compare the company's operating performance against
internal financial forecasts and budgets, as well as current
operating performance. Management and the board of directors,
however, do not consider the non-GAAP financial measures to be a
substitute for, or superior to, measures of financial performance
calculated in accordance with GAAP. The Company's expectations with
respect to financial results for the first 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 semiconductor equipment 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. Implementation of the
board-authorized repurchase of up to $75 million of the company's
stock also may affect the anticipated earnings per share set forth
in this press release. 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
http://www.sec.gov/. Copies may also be obtained from Advanced
Energy's website at http://www.advanced-energy.com/ or by
contacting Advanced Energy's investor relations at 970-407-6555.
Forward looking statements are 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 (UNAUDITED) (in
thousands, except per share data) Three Months Ended Twelve Months
Ended December 31, September 30, December 31, 2007 2006 2007 2007
2006 Sales $83,836 $104,533 $90,492 $384,700 $410,742 Cost of sales
51,017 59,639 53,765 221,891 235,524 Gross profit 32,819 44,894
36,727 162,809 175,218 Operating expenses: Research and development
12,510 12,240 12,937 50,393 44,848 Selling, general and
administrative 16,075 15,535 15,537 62,243 61,037 Amortization of
intangible assets 218 450 201 945 1,833 Restructuring charges (219)
20 556 3,287 111 Total operating expenses 28,584 28,245 29,231
116,868 107,829 Income from operations 4,235 16,649 7,496 45,941
67,389 Other income, net 1,443 1,060 308 4,810 4,677 Income from
continuing operations before income taxes 5,678 17,709 7,804 50,751
72,066 Provision for income taxes (1,512) 21,697 (1,948) (16,390)
15,118 Income from continuing operations 4,166 39,406 5,856 34,361
87,184 Gain on sale of discontinued assets - 1,000 - - 1,138 Income
from discontinued operations - 1,000 - - 1,138 Net income $4,166
$40,406 $5,856 $34,361 $88,322 Net income per basic share Income
from continuing operations $0.09 $0.88 $0.13 $0.76 $1.95 Income
from discontinued operations $- $0.02 $- $- $0.03 Basic earnings
per share $0.09 $0.90 $0.13 $0.76 $1.97 Net income per diluted
share Income from continuing operations $0.09 $0.87 $0.13 $0.75
$1.93 Income from discontinued operations $- $0.02 $- $- $0.03
Diluted earnings per share $0.09 $0.89 $0.13 $0.75 $1.95 Basic
weighted-average common shares outstanding 45,274 44,826 45,248
45,156 44,721 Diluted weighted-average common shares outstanding
45,758 45,345 45,761 45,704 45,265 CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED) (in thousands) December 31, December 31, 2007
2006 ASSETS Current assets: Cash and cash equivalents $94,588
$58,240 Marketable securities 110,676 85,978 Accounts receivable,
net 64,188 74,794 Inventories, net 50,532 52,778 Deferred income
taxes 23,696 24,434 Assets held for sale - - Other current assets
4,289 4,503 Total current assets 347,969 300,727 Property and
equipment, net 30,912 33,571 Deposits and other 7,045 2,640
Goodwill and intangibles, net 67,768 65,584 Customer service
equipment, net 1,236 832 Deferred income tax assets, net 4,098
8,549 Total assets $459,028 $411,903 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Trade accounts payable $12,424 $16,310
Other accrued expenses 29,590 36,619 Total current liabilities
42,014 52,929 Long-term liabilities 9,953 3,184 Total liabilities
51,967 56,113 Stockholders' equity 407,061 355,790 Total
liabilities and stockholders' equity $459,028 $411,903 CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) RECONCILIATION OF
GAAP EARNINGS TO "ADJUSTED" EARNINGS (in thousands, except per
share data) Three Months Ended Twelve Months Ended December 31,
2006 December 31, 2006 GAAP Adjustment "Adjusted" GAAP Adjustment
"Adjusted" Sales $104,533 $- $104,533 $410,742 $- $410,742 Cost of
sales 59,639 - 59,639 235,524 - 235,524 Gross profit 44,894 -
44,894 175,218 - 175,218 Operating expenses 28,245 - 28,245 107,829
- 107,829 Income from operations 16,649 - 16,649 67,389 - 67,389
Other income (expense), net 1,060 - 1,060 4,677 - 4,677 Income from
continuing operations before income taxes 17,709 - 17,709 72,066 -
72,066 Benefit (provision) for income taxes 21,697 (23,492)(1)
(1,795) 15,118 (23,492)(1)(8,374) Income from continuing operations
39,406 (23,492) 15,914 87,184 (23,492) 63,692 Gain on sale of
discontinued assets 1,000 - 1,000 1,138 - 1,138 Income from
discontinued operations 1,000 - 1,000 1,138 - 1,138 Net income
$40,406 $(23,492) $16,914 $88,322 $(23,492) $64,830 Net income per
basic share Income from continuing operations $0.88 $(0.52) $0.36
$1.95 $(0.53) $1.43 Income from discontinued operations $0.02 $-
$0.02 $0.03 $- $0.03 Basic earnings per share $0.90 $(0.52) $0.38
$1.98 $(0.53) $1.45 Net income per diluted share Income from
continuing operations $0.87 $(0.52) $0.35 $1.93 $(0.52) $1.41
Income from discontinued operations $0.02 $- $0.02 $0.03 $- $0.03
Diluted earnings per share $0.89 $(0.52) $0.37 $1.95 $(0.52) $1.43
Basic weighted- average common shares outstanding 44,826 44,721
Diluted weighted- average common shares outstanding 45,345 45,265
(1) To eliminate the effect of the reversal of the valuation
allowance on net deferred tax assets at December 31, 2006. We
assess the recoverability of our net deferred tax assets on a
quarterly basis, in accordance with SFAS No. 109, to determine if
it is more likely than not that our net deferred tax assets will be
realized. Based on our 2006 operating results, our management
concluded that it was more likely than not that the majority of net
deferred tax assets would be realized and recorded a reduction in
the valuation allowance of approximately $23.5 million in the
fourth quarter of 2006.
http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO
http://photoarchive.ap.org/ DATASOURCE: Advanced Energy Industries,
Inc. CONTACT: Lawrence D. Firestone, +1-970-407-6570, , or Annie
Leschin, or Brooke Deterline, both +1-970-407-6555, , all of
Advanced Energy Industries, Inc. Web site:
http://www.advanced-energy.com/
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