FORT COLLINS, Colo., July 23 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) today announced financial
results for the second quarter ended June 30, 2009. Sales for the
second quarter of 2009 were $35.6 million, a 9.2% increase from
$32.6 million in the first quarter of 2009. Sales decreased 59.6%
from $88.0 million in the second quarter of 2008. Sales to the
semiconductor market drove overall sales growth, increasing 27.3%
sequentially to $12.2 million. Semiconductor equipment OEMs worked
through their inventories and fabs increased utilization,
reflecting what we believe is the beginning of the market recovery.
With equipment sitting idle for the last few quarters,
manufacturers' need for repairs and upgrades also grew, leading to
a sequential increase of 14.2% in service and support revenues to
$8.8 million, taking them to 24.8% of total sales. Sales to our
non-semiconductor markets fell 5.0% to $14.6 million and
represented 41.0% of total sales for the quarter. Strong orders
during the quarter drove a sequential increase in our book to bill
ratio to 1.06:1 from 0.87:1 in the first quarter of 2009 on a
higher revenue base. Higher revenues and the cost reduction efforts
that have been implemented over the last several quarters resulted
in improved gross margins of 22.3% in the second quarter, up from
19.6% in the first quarter of 2009. Gross margins decreased from
40.1% in the second quarter of 2008. The second quarter net loss
was $16.0 million or $0.38 loss per share, up from a net loss of
$79.8 million or $1.90 loss per share in the first quarter of 2009,
which included a non-cash goodwill impairment charge of $63.3
million or $1.51 loss per share. Net income was $5.9 million or
$0.14 earnings per diluted share in the second quarter of 2008. "We
were pleased with the improvement in our second quarter results,
which we believe points to signs of modest recovery in certain
markets. For the first time in more than a year, sales to our
semiconductor OEMs increased. Sales to our semi-related service
business also grew, typically reflecting near-term modest growth in
the semiconductor market," said Hans Betz, president and CEO. "Our
strong commitment to technology investment is fueling our
diversification strategy. As such, we are very encouraged by the
order momentum for our 500KW Solaron inverter. The successful
launch of the 500KW Solaron demonstrates AE's commitment to
technology development as we look to expand our product portfolio
and our market presence." Third Quarter 2009 Guidance The Company
anticipates third quarter 2009 results to be within the following
ranges: -- Sales of $40 million to $45 million -- Loss per share of
$0.35 to $0.29 Second Quarter 2009 Conference Call Management will
host a conference call today, Thursday, July 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 19233458. For a replay of this teleconference,
please call (800) 642-1687 or (706) 645-9291, and enter the
passcode 19233458. The replay will be available through 12:00 a.m.
Eastern Daylight Time, July 25, 2009. A webcast will also be
available on the Investor Relations webpage at
http://ir.advanced-energy.com/. About Advanced Energy Advanced
Energy 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 guidance
to financial results for the third quarter ending September 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
(UNAUDITED) (in thousands, except per share data) Three Months
Ended Six Months Ended ------------------ ---------------- June 30,
March 31, June 30, -------- --------- -------- 2009 2008 2009 2009
2008 ---- ---- ---- ---- ---- Sales $35,567 $87,996 $32,627 $68,194
$176,883 Cost of sales 27,636 52,720 26,239 53,875 105,759 ------
------ ------ ------ ------- Gross profit 7,931 35,276 6,388 14,319
71,124 22.3% 40.1% 19.6% 21.0% 40.2% Operating expenses: Research
and development 10,742 13,762 11,098 21,840 26,847 Selling, general
and administrative 10,166 13,955 9,395 19,561 28,423 Amortization
of intangible assets 120 226 222 342 466 Impairment of goodwill - -
63,260 63,260 - Restructuring charges 739 393 3,396 4,135 1,067
----- ----- ----- ----- ----- Total operating expenses 21,767
28,336 87,371 109,138 56,803 Income (loss) from operations (13,836)
6,940 (80,983) (94,819) 14,321 Other income, net 627 996 282 909
1,901 --- --- --- --- ----- Income (loss) from operations before
income taxes (13,209) 7,936 (80,701) (93,910) 16,222 Provision
(benefit) for income taxes 2,825 2,073 (938) 1,887 4,393 -----
----- ---- ----- ----- Net income (loss) $(16,034) $5,863 $(79,763)
$(95,797) $11,829 ======== ====== ======== ======== ======= Basic
earnings (loss) per share $(0.38) $0.14 $(1.90) $(2.28) $0.27
Diluted earnings (loss) per share $(0.38) $0.14 $(1.90) $(2.28)
$0.27 Basic weighted- average common shares outstanding 41,948
41,869 41,881 41,915 43,265 Diluted weighted- average common shares
outstanding 41,948 42,290 41,881 41,915 43,686 CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31,
2009 2008 ---- ---- (unaudited) ASSETS Current assets: Cash and
cash equivalents $137,416 $116,448 Marketable securities 37,897
33,266 Accounts receivable, net 32,298 56,549 Inventories, net
39,809 46,659 Deferred income taxes 11,754 13,253 Other current
assets 3,593 5,324 ----- ----- Total current assets 262,767 271,499
Property and equipment, net 29,385 31,322 Long-term investments -
30,401 Deposits and other 7,539 7,528 Goodwill and intangibles, net
6,055 72,918 Deferred income tax assets, net 8,993 6,969 -----
----- Total assets $314,739 $420,637 ======== ======== LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$7,736 $8,005 Other accrued expenses 20,346 23,928 ------ ------
Total current liabilities 28,082 31,933 Long-term liabilities
11,538 12,155 ------ ------ Total liabilities 39,620 44,088
Stockholders' equity 275,119 376,549 ------- ------- Total
liabilities and stockholders' equity $314,739 $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/
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