FORT COLLINS, Colo.,
April 22 /PRNewswire-FirstCall/ --
Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced
financial results for the first quarter ended March 31, 2010.
Sales for the first quarter of 2010 increased 22.7% to
$81.6 million from $66.4 million in the fourth quarter of 2009, and
increased 150.0% from $32.6 million
in the first quarter of 2009.
Sales were robust in the first quarter driven by strong growth
in the semiconductor market. Semiconductor sales rose 47.7%
sequentially to $48.6 million,
representing 59.6% of total sales for the quarter. Sales to the
non-semiconductor markets increased 3.9% sequentially to
$21.5 million, representing 26.3% of
total sales for the quarter. Service revenue was flat sequentially
at $11.5 million, representing 14.1%
of total sales for the quarter.
Bookings for the first quarter were $96.7
million compared to $98.0
million in the fourth quarter of 2009, resulting in a book
to bill ratio of 1.19:1 for the first quarter. Ending backlog
increased 22.8% sequentially to $81.3
million at the end of the first quarter compared to
$66.2 million at the end of the
fourth quarter of 2009.
Gross margin improved significantly to 40.6% in the first
quarter, up from 36.8% in the fourth quarter of 2009, as a result
of greater efficiencies and improved operating leverage due to
higher revenues. This compares to 19.6% in the same period last
year.
Operating expenses rose 11.0% sequentially to $25.0 million as we eliminated our temporary cost
reductions related to pay cuts and shutdowns. In addition, expenses
associated with the pending acquisition of PV Powered were
$325,000 ($0.01 per share).
First quarter net income was $6.2
million or $0.15 per diluted
share, compared to net income of $1.5
million or $0.04 per diluted
share in the fourth quarter of 2009. In the same period a year ago,
net loss was $79.8 million or a loss
of $1.90 per share due primarily to a
non-cash goodwill impairment charge of $63.3
million or $1.51 per share.
Cash, cash equivalents and investments were $163.4 million at the end of the first quarter, a
decrease of $14.1 million from the
fourth quarter due to increases in accounts receivable and
inventory to support the growth in revenues.
"Marked by the third consecutive quarter of greater than 20%
total revenue growth, we were extremely pleased with our first
quarter results. Momentum in the semiconductor capital equipment
market drove the majority of the growth this quarter continuing the
three-quarter trend of over 40% expansion in that market," said Dr.
Hans Betz, chief executive officer.
"Advanced Energy once again distinguished itself as one of
the premier suppliers as we successfully managed through supply
chain constraints in order to meet aggressive customer demand."
"In keeping with our strategy to increase Advanced Energy's
presence in the renewable energy market, we announced a definitive
agreement to acquire PV Powered, a leading manufacturer of
grid-tied PV inverters serving the commercial and residential
markets. The combined company will offer a complete suite of
products, propelling Advanced Energy forward as a leader in the
North American solar inverter market."
On March 24, 2010, Advanced Energy
announced a definitive agreement to acquire 100% of the outstanding
shares of PV Powered. Pending review under the Hart-Scott Rodino
Act, we expect the acquisition to close in early May. We will
provide updated guidance once the acquisition is complete.
Second Quarter 2010 Guidance
The Company anticipates second quarter 2010 results to be within
the following ranges:
- Sales of $92 million to $102
million
- Earnings per share of $0.21 to
$0.31
First Quarter 2010 Conference Call
Management will host a conference call today, Thursday April 22, 2010, 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 67518997. For a replay of
this teleconference, please call (800) 642-1687 or (706) 645-9291,
and enter the passcode 67518997. The replay will be available
through 12:00 a.m. Eastern Daylight
Time, April 24, 2010. A
webcast will also be available on the Investor Relations web page
at http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy is a global leader in innovative power and
control technologies for high-growth markets, including advanced
thin-film manufacturing and commercial grid-tied inverters for
solar-power generation. Advanced Energy is headquartered in
Fort Collins, Colorado, with
dedicated support and service locations around the world. For more
information, go to www.advanced-energy.com.
The Company's expectations with respect to guidance to financial
results for the second quarter ending June
30, 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 www.sec.gov. Copies may also be obtained from Advanced
Energy's website at 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
|
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2009
|
|
|
|
|
|
|
|
|
Sales
|
$
81,552
|
|
$
32,627
|
|
$
66,439
|
|
Cost of sales
|
48,444
|
|
26,239
|
|
41,972
|
|
Gross profit
|
33,108
|
|
6,388
|
|
24,467
|
|
|
40.6%
|
|
19.6%
|
|
36.8%
|
|
Operating expenses:
|
|
|
|
|
|
|
Research and
development
|
11,590
|
|
11,098
|
|
11,227
|
|
Selling, general and
administrative
|
13,283
|
|
9,395
|
|
11,135
|
|
Impairment
of goodwill
|
-
|
|
63,260
|
|
-
|
|
Amortization of
intangible assets
|
122
|
|
222
|
|
148
|
|
Restructuring
charges
|
-
|
|
3,396
|
|
6
|
|
Total operating expenses
|
24,995
|
|
87,371
|
|
22,516
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
8,113
|
|
(80,983)
|
|
1,951
|
|
|
|
|
|
|
|
|
Other income, net
|
386
|
|
282
|
|
495
|
|
Income (loss) from operations before
income taxes
|
8,499
|
|
(80,701)
|
|
2,446
|
|
Provision (benefit) for income
taxes
|
2,282
|
|
(938)
|
|
923
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
6,217
|
|
$
(79,763)
|
|
$
1,523
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share
|
$
0.15
|
|
$
(1.90)
|
|
$
0.04
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share
|
$
0.15
|
|
$
(1.90)
|
|
$
0.04
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(in thousands)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
114,643
|
|
$
133,106
|
|
Marketable
securities
|
48,804
|
|
44,401
|
|
Accounts receivable,
net
|
61,901
|
|
50,267
|
|
Inventories,
net
|
47,715
|
|
37,118
|
|
Deferred income
taxes
|
9,998
|
|
9,215
|
|
Income taxes
receivable
|
2,125
|
|
-
|
|
Other current
assets
|
6,687
|
|
5,648
|
|
Total current assets
|
291,873
|
|
279,755
|
|
|
|
|
|
|
Property and equipment, net
|
29,577
|
|
30,615
|
|
|
|
|
|
|
Deposits and other
|
9,272
|
|
9,294
|
|
Goodwill and intangibles,
net
|
5,793
|
|
5,982
|
|
Deferred income tax assets,
net
|
16,639
|
|
19,479
|
|
Total assets
|
$
353,154
|
|
$
345,125
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
28,432
|
|
$
23,802
|
|
Other accrued
expenses
|
22,465
|
|
24,176
|
|
Total current liabilities
|
50,897
|
|
47,978
|
|
|
|
|
|
|
Long-term liabilities
|
18,686
|
|
18,813
|
|
|
|
|
|
|
Total liabilities
|
69,583
|
|
66,791
|
|
|
|
|
|
|
Stockholders' equity
|
283,571
|
|
278,334
|
|
Total liabilities and stockholders'
equity
|
$
353,154
|
|
$
345,125
|
|
|
|
|
|
SOURCE Advanced Energy Industries, Inc.