FORT COLLINS, Colo., April 23 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) today announced financial
results for the first quarter ended March 31, 2009. Sales for the
first quarter of 2009 were $32.6 million, representing a 63.3%
decline from $88.9 million in the same quarter a year ago and a
51.7% decline from $67.5 million in the fourth quarter of 2008.
Sales were lower across all of the Company's markets, as the global
financial crisis reduced consumer and commercial spending,
resulting in limited capital expansion in our markets. Our book to
bill ratio for the quarter increased sequentially to 0.87:1, from
quarter's 0.70:1, from the fourth quarter of 2008, though on a much
lower revenue base. Our gross margins in the first quarter were
impacted by the lower revenues, resulting in lower absorption of
manufacturing overhead in the first quarter. Margins fell to 19.6%,
down from 40.3% in the first quarter of 2008 and 27.2% in the
fourth quarter of 2008. During the quarter we implemented a
restructuring plan that resulted in a charge of $3.4 million or
$0.08 per share related to a reduction in workforce. Due to the
current economic downturn and a significant decline in the
Company's market capitalization, we recorded an estimated non-cash
impairment charge in the first quarter of $63.3 million or $1.51
per share related to our goodwill. These charges do not affect our
cash balance, liquidity, or operating cash flow. The result was a
net loss for the first quarter of 2009 of $79.8 million, or $1.90
loss per diluted share, compared to net income of $6.0 million, or
$0.13 earnings per diluted share, in the first quarter of 2008. The
quarterly net loss increased from $19.0 million, or $0.45 per
diluted share, in the fourth quarter of 2008. Our balance sheet
remained strong as we closed the quarter with $173.4 million of
cash and investments. "This was an exceptionally difficult quarter
as we experienced revenue levels not seen since the late 1990s. We
responded once again by reducing our cost structure, yet
maintaining our critical technology development and product
initiatives. Our healthy balance sheet remains a key strategic
asset, which we plan to leverage during these difficult times,"
said Hans Betz, president and CEO. "Although we experienced a
significant drop in all of our markets during the quarter and
visibility remains limited, we have seen some positive signs of
investment in some markets, which we hope will provide some
near-term stability. We remain committed to our strategy of being
the strong and healthy supplier of choice to all of our OEM and end
user customers." Second Quarter 2009 Guidance The Company
anticipates second quarter 2009 results to be within the following
ranges: -- Sales of $30.0 million to $36.0 million -- Loss per
share of $0.41 to $0.34 First Quarter 2009 Conference Call
Management will host a conference call today, Thursday, April 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 94779571. For a replay of this teleconference,
please call (800) 642-1687 or (706) 645-9291, and enter the
passcode 94779571. The replay will be available through 12:00 a.m.
Eastern Daylight Time, April 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. Forward-Looking Statements The Company's expectations
with respect to financial results for the second quarter ended June
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
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) Three Months Ended
-------------------- March 31, December 31, -----------
------------ 2009 2008 2008 ---- ---- ---- Sales $32,627 $88,887
$67,525 Cost of sales 26,239 53,039 49,128 ------ ------ ------
Gross profit 6,388 35,848 18,397 Operating expenses: Research and
development 11,098 13,085 13,424 Selling, general and
administrative 9,395 14,468 9,513 Amortization of intangible assets
222 240 257 Impairment of goodwill 63,260 - - Restructuring charges
3,396 674 1,898 ----- ----- ----- Total operating expenses 87,371
28,467 25,092 Income (loss) from operations (80,983) 7,381 (6,695)
Other income, net 282 905 553 ---- ---- ---- Income (loss) from
continuing operations before income taxes (80,701) 8,286 (6,142)
Provision (benefit) for income taxes (938) 2,320 12,835 ---- -----
------ Net income (loss) $(79,763) $5,966 $(18,977) ======== ======
======== Basic earnings (loss) per share $(1.90) $0.13 $(0.45)
Diluted earnings (loss) per share $(1.90) $0.13 $(0.45) Basic
weighted-average common shares outstanding 41,881 44,662 41,832
Diluted weighted-average common shares outstanding 41,881 45,065
41,832 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March
31, December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash
and cash equivalents $115,409 $116,448 Marketable securities 29,588
33,266 Accounts receivable, net 35,578 56,549 Inventories, net
46,024 46,659 Deferred income taxes 12,781 13,253 Other current
assets 4,649 5,324 ----- ----- Total current assets 244,029 271,499
Property and equipment, net 29,960 31,322 Long-term investments
28,418 30,401 Deposits and other 7,557 7,505 Goodwill and
intangibles, net 6,009 72,918 Customer service equipment, net - 23
Deferred income tax assets, net 7,955 6,969 ----- ----- Total
assets $323,928 $420,637 ======== ======== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $6,087
$8,005 Other accrued expenses 21,843 23,928 ------ ------ Total
current liabilities 27,930 31,933 Long-term liabilities 10,653
12,155 ------ ------ Total liabilities 38,583 44,088 Stockholders'
equity 285,345 376,549 ------- ------- Total liabilities and
stockholders' equity $323,928 $420,637 ======== ========
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 Vanessa Lehr, +1-970-407-6555, , all of Advanced Energy
Industries, Inc. Web Site: http://www.advanced-energy.com/
http://ir.advanced-energy.com/
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