FORT COLLINS, Colo., Feb. 23 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) today announced financial
results for the fourth quarter and year ended December 31, 2008.
Sales for the fourth quarter of 2008 were $67.5 million,
representing a 19.5% decline from $83.8 million in the same quarter
a year ago and a 20.1% decline from $84.5 million in the third
quarter of 2008. The weak economy affected all of our markets, led
by semiconductor equipment, which experienced a revenue decrease of
20.2% sequentially. Our book to bill ratio for the quarter was
0.7:1. Sales to our non-semiconductor markets represented 48.3% of
total sales for the quarter, driven by continued strength from the
solar market, which represented 23.6% of total sales. Service
revenues were 18.4% of total sales, down 20.5% sequentially,
primarily due to softness in the semiconductor market, where the
majority of our installed base resides. Gross margin for the fourth
quarter was 27.2%, down from 39.1% in the fourth quarter of 2007,
and 41.7% in the third quarter of 2008. Margins were lower due to a
$5.1 million charge to cost of goods sold for excess and obsolete
inventory, which impacted gross margin by 7.6%, as well as lower
revenues and the resulting lower absorption of manufacturing
overhead. We reduced operating expenses 15.7% sequentially in the
quarter, as we implemented additional cost reduction measures
including discretionary spending controls, global shutdown weeks
during the holiday season and workforce reductions. During the
fourth quarter of 2008, we also recorded a non-cash charge of $18.0
million, or $0.43 per share, for income taxes related to a
valuation allowance against our deferred tax assets. This resulted
in a net loss for the fourth quarter of 2008 of $19.0 million, or
$0.45 per diluted share, compared to net income of $4.2 million, or
$0.09 per diluted share, in the fourth quarter of 2007. Net income
also decreased sequentially from $5.4 million, or $0.13 per diluted
share, in the third quarter of 2008. For the full year 2008, sales
were $328.9 million, a 14.5% decrease from $384.7 million in 2007.
The primary driver of the reduction in sales was a 39.0% drop in
revenues to the semiconductor equipment market, partially offset by
a 118.7% increase in revenues to the solar market. Net loss from
continuing operations for 2008 was $1.8 million, or $0.04 per
diluted share, compared to net income of $34.4 million, or $0.75
per diluted share, in 2007. During 2008, we generated $24.7 million
in cash from operations to end the year with $180.1 million in
cash, cash equivalents and investments, including auction rate
securities of $30.4 million. "In 2008, non-semiconductor revenue
grew faster and became a larger part of total revenue. In an
otherwise difficult environment during the year, our strategy of
targeting a diverse group of markets for our leading power
conversion technology proved to be effective," said Hans Betz,
president and CEO. "Though overall revenues declined
year-over-year, we doubled our solar revenue, grew our services
business and introduced successful new products such as the
Solaron(R) 500KW inverter, while maintaining a healthy balance
sheet with a strong cash position. As the year ended with extremely
challenging economic conditions across all industries and very
limited visibility, we took quick, decisive action to implement
major cost reductions. Going forward, we continue to see a weak
economic outlook that may persist for some time. We will take
additional cost reduction measures in the future as needed to drive
our breakeven point even lower and address further deterioration in
our markets. We remain focused on our core market and technology
initiatives to ensure Advanced Energy is well positioned to take
market share during the downturn and is poised for tremendous
leverage when our markets recover." First Quarter 2009 Guidance The
Company anticipates first quarter 2009 results to be within the
following ranges: -- Sales of $30.0 million to $36.0 million --
Loss per share of $0.46 to $0.53 Fourth Quarter 2008 Conference
Call Management will host a conference call today, Monday, February
23, 2009 at 5:00 pm Eastern Standard 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 85170369. For a replay of this
teleconference, please call 800-642-1687 or 706-645-9291, and enter
the passcode 85170369. The replay will be available through 12:00
a.m. Eastern Standard Time, February 25, 2009. A webcast will also
be available on the Investor Relations webpage at
http://ir.advanced-energy.com/. About Advanced Energy Advanced
Energy(R) 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 financial
results for the first quarter ended March 31, 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 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 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) Twelve Months Three Months Ended
Ended ------------------ ------------- December 31, December 31,
------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ----
Sales $67,525 $83,836 $328,918 $384,699 Cost of sales 49,128 51,017
204,136 221,890 ------ ------ ------- ------- Gross profit 18,397
32,819 124,782 162,809 Operating expenses: Research and development
13,424 12,510 54,952 50,393 Selling, general and administrative
9,513 16,075 52,273 62,179 Amortization of intangible assets 257
218 946 1,010 Restructuring charges 1,898 (219) 3,487 3,287 -----
---- ----- ----- Total operating expenses 25,092 28,584 111,658
116,869 Income (loss) from operations (6,695) 4,235 13,124 45,940
Other income, net 553 1,443 2,883 4,810 --- ----- ----- -----
Income (loss) from continuing operations before income taxes
(6,142) 5,678 16,007 50,750 Provision for income taxes 12,835 1,512
17,786 16,389 ------ ----- ------ ------ Net income (loss)
$(18,977) $4,166 $(1,779) $34,361 ======== ====== ======= =======
Basic earnings (loss) per share $(0.45) $0.09 $(0.04) $0.76 Diluted
earnings (loss) per share $(0.45) $0.09 $(0.04) $0.75 Basic
weighted-average common shares outstanding 41,832 45,274 42,537
45,156 Diluted weighted-average common shares outstanding 41,832
45,758 42,537 45,704 CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands) December 31, December 31, 2008 2007 ---- ---- ASSETS
Current assets: Cash and cash equivalents $116,448 $94,588
Marketable securities 33,266 110,676 Accounts receivable, net
56,549 61,545 Inventories, net 46,659 50,532 Deferred income taxes
13,253 23,696 Other current assets 5,324 6,932 ----- ----- Total
current assets 271,499 347,969 Property and equipment, net 31,322
30,912 Long-term investments 30,401 1,483 Deposits and other 7,505
5,562 Goodwill and intangibles, net 72,918 67,768 Customer service
equipment, net 23 1,236 Deferred income tax assets, net 6,969 4,098
----- ----- Total assets $420,637 $459,028 ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $8,005 $12,424 Other accrued expenses 23,928 29,590 ------
------ Total current liabilities 31,933 42,014 Long-term
liabilities 12,155 9,953 ------ ----- Total liabilities 44,088
51,967 Stockholders' equity 376,549 407,061 ------- ------- Total
liabilities and stockholders' equity $420,637 $459,028 ========
======== http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO
http://photoarchive.ap.org/ DATASOURCE: Advanced Energy Industries,
Inc. CONTACT: Lawrence D. Firestone of Advanced Energy Industries,
Inc., +1-970-407-6570, , or Annie Leschin or Vanessa Lehr, both of
Advanced Energy Industries, Inc., +1-970-407-6555, Web Site:
http://www.advanced-energy.com/
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