FORT COLLINS, Colo.,
May 3 /PRNewswire-FirstCall/ --
Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced the
completion of its acquisition of PV Powered Inc., a leading
manufacturer of grid-tied PV inverters in the residential,
commercial, and utility-scale markets.
The combined company's comprehensive portfolio of inverter
products will serve commercial projects ranging from 30-kilowatts
to 1 megawatt utility installations, as well as the residential
market with 5-kilowatt and smaller inverters. With the addition of
PV Powered's product line, Advanced Energy will be able to address
the entire spectrum of the emerging and fast-growing solar inverter
market.
"This is an exciting moment in our company as we take the next
steps in our strategy to diversify our revenues and expand our
solar inverter business," said Dr. Hans
Betz, chief executive officer. "By offering one of the
industry's most comprehensive product lines from residential to
utility scale inverters, Advanced Energy is positioned to be one of
the leading worldwide suppliers of inverters."
Under the terms of the agreement, Advanced Energy paid
$50 million in the form of
$35 million in cash and $15 million in Advanced Energy's common stock. In
addition, there is a $40 million
potential earn-out based on PV Powered's full-year 2010 financial
results. Throughout 2010, PV Powered will operate as a wholly-owned
subsidiary, continuing to sell and support its PV Powered branded
inverters.
With the addition of PV Powered, Advanced Energy is revising its
guidance for the second quarter of 2010 to be as follows, excluding
the effect of the amortization of intangibles related to the PV
Powered acquisition:
Total sales of $100 million to $111
million
Fully diluted earnings per share of $0.21
to $0.31
Fully diluted shares of 43.3 million
Forward-Looking Language
Statements in this press release concerning the transaction and
future business, operating and financial condition of the company
PV Powered, including expectations regarding revenues, gross
margins, and operating expenses for future periods, including
achievement of the milestones subject to the earn-out under the
merger agreement 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 amount of the final purchase
price for the acquisition of PV Powered related to the earn-out,
the successful integration of the operations of Advanced Energy and
PV Powered following the closing and our expectations surrounding
the benefits of the transaction; as well as 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
www.sec.gov. Copies may also be obtained from Advanced Energy's
website at 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.
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.
About PV Powered
PV Powered is the innovation leader for grid-tied PV inverters
in the residential, commercial and utility markets, setting the
industry standard for innovation in reliability and efficiency. For
more information on PV Powered, visit www.pvpowered.com.
SOURCE Advanced Energy Industries, Inc.