FORT COLLINS, Colo., Feb. 16 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) today announced financial
results for the fourth quarter ended December 31, 2009. Sales for
the fourth quarter of 2009 increased 28.4% to $66.4 million from
$51.8 million in the third quarter of 2009, and decreased 1.6% from
$67.5 million in the fourth quarter of 2008. Sales to the
semiconductor capital equipment markets rose 58.2% sequentially to
$32.9 million, representing 49.6% of total sales for the quarter.
Sales to the non-semiconductor markets grew 8.6% sequentially to
$22.0 million, representing 33.2% of total sales for the quarter.
Service revenue also continued strong, increasing 7.6% sequentially
to $11.5 million or 17.3% of total sales for the quarter. Bookings
for the fourth quarter were $98.0 million, which drove our book to
bill ratio to 1.48:1, up from 1.16:1 in the third quarter of 2009.
Ending backlog increased 91.2% sequentially to $66.2 million at the
end of the fourth quarter compared to $34.6 million at the end of
the third quarter of 2009. Gross margin improved significantly to
36.8% in the fourth quarter, up from 30.1% in the third quarter of
2009 and 27.2% for the fourth quarter of 2008. The sequential
improvement was driven largely by leverage against our fixed costs
from the increase in revenues. Fourth quarter net income was $1.5
million or $0.04 per diluted share, compared to a net loss of $8.4
million or a loss per share of $0.20 in the third quarter of 2009.
In the fourth quarter of 2008, the net loss was $19.0 million or a
loss per share of $0.45, the vast majority of which was a non-cash
charge of $18.0 million for income taxes related to a valuation
allowance against our deferred tax assets. We are pleased to report
that we ended 2009 with cash, cash equivalents and investments of
$177.5 million, a decline of just $2.6 million due to our careful
cash management during the year. For the full year 2009, sales were
$186.4 million, 43.3% below sales of $328.9 million in 2008. The
challenging economic environment impacted sales across all markets,
most notably in the semiconductor capital equipment market where
sales fell 43.1% from 2008. Net loss from operations for 2009 was
$102.7 million, or a loss per share of $2.45. More than half of
this was due to a non-cash goodwill impairment charge in the first
quarter of 2009 of $63.3 million or $1.51 per share. Net loss for
2008 was $1.8 million or $0.04 per diluted share. "The fourth
quarter marked a high point in 2009, as we grew revenues and
achieved profitability by leveraging the cost reductions taken
during the year," said Hans Betz, chief executive officer. "The
pace of the recovery in the semiconductor capital equipment market
ramped significantly in the quarter, as did the penetration of our
Solaron inverters into larger, multi-megawatt projects. When the
global economy recovers, we expect to benefit from the investments
we made in technology during the downturn and our growth in
multiple markets." First Quarter 2010 Guidance The Company
anticipates first quarter 2010 results to be within the following
ranges: -- Sales of $77 million to $83 million -- Earnings per
share of $0.13 to $0.17 Fourth Quarter 2009 Conference Call
Management will host a conference call today, Tuesday, February 16,
2010, at 8:30 am 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 54700348. For a replay of this teleconference,
please call (800) 642-1687 or (706) 645-9291, and enter the
passcode 54700348. The replay will be available through 12:00 a.m.
Eastern Standard Time, February 18, 2010. 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 first quarter ending March 31, 2010
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, 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.advancedenergy.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 Twelve Months Ended -----------------------------
------------------- December 31, September 30, December 31, 2009
2008 2009 2009 2008 ---- ---- ---- ---- ---- Sales $66,439 $67,525
$51,762 $186,395 $328,918 Cost of sales 41,972 49,128 36,181
132,028 204,136 ------ ------ ------- ------- ------- Gross profit
24,467 18,397 15,581 54,367 124,782 36.8% 27.2% 30.1% 29.2% 37.9%
Operating expenses: Research and development 11,227 13,424 10,195
43,262 54,952 Selling, general and administrative 11,135 9,513
10,788 41,484 52,273 Impairment of goodwill - - - 63,260 -
Amortization of intangible assets 148 257 123 613 946 Restructuring
charges 6 1,898 235 4,376 3,487 ------ ------ ------- -------
------- Total operating expenses 22,516 25,092 21,341 152,995
111,658 Income (loss) from operations 1,951 (6,695) (5,760)
(98,628) 13,124 Other income, net 495 553 506 1,910 2,883 ------
------ ------- ------- ------- Income (loss) from operations before
income taxes 2,446 (6,142) (5,254) (96,718) 16,007 Provision for
income taxes 923 12,835 3,177 5,987 17,786 ------ ------ -------
------- ------- Net income (loss) $1,523 $(18,977) $(8,431)
$(102,705) $(1,779) ====== ====== ======= ======= ======= Basic
earnings (loss) per share $0.04 $(0.45) $(0.20) $(2.45) $(0.04)
Diluted earnings (loss) per share $0.04 $(0.45) $(0.20) $(2.45)
$(0.04) Basic weighted- average common shares outstanding 42,032
41,832 42,004 41,966 42,537 Diluted weighted- average common shares
outstanding 42,464 41,832 42,004 41,966 42,537 CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) December 31,
---------------------- 2009 2008 ---- ---- ASSETS Current assets:
Cash and cash equivalents $133,106 $116,448 Marketable securities
44,401 33,266 Accounts receivable, net 50,267 56,549 Inventory
37,118 46,659 Deferred income taxes, net 9,215 13,253 Other current
assets 5,640 5,324 -------- -------- Total current assets 279,747
271,499 Property and equipment, net 30,615 31,322 Long-term
investments - 30,401 Deposits and other 9,294 7,528 Goodwill and
intangibles, net 5,982 72,918 Deferred income taxes, net 19,487
6,969 -------- -------- Total assets $345,125 $420,637 ========
======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $23,802 $8,005 Other accrued expenses 24,176
23,928 -------- -------- Total current liabilities 47,978 31,933
Long-term liabilities 18,813 12,155 -------- -------- Total
liabilities 66,791 44,088 Stockholders' equity 278,334 376,549
-------- -------- Total liabilities and stockholders' equity
$345,125 $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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