Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today
announced financial results for the fourth quarter ended December
31, 2010. Reporting record revenue, the company posted fourth
quarter sales of $148.7 million and earnings of $0.45 per diluted
share from continuing operations.
“2010 was a year of significant accomplishments for Advanced
Energy. We responded with speed and flexibility to meet the needs
of our customers during this high growth period in the thin film
and renewable markets,” said Dr. Hans Betz, chief executive
officer. “Advanced Energy has become a clear leader in solar
inverter solutions. Coupled with our industry-leading thin film
products, our expansion into renewables led to our record revenue
quarter, as we further penetrated the inverter market.”
Sales to the renewable inverter market surged ahead in the
fourth quarter, reflecting the wide-ranging applicability of our
extended product portfolio. Inverter sales grew substantially to
$51.7 million, or 34.8% of total sales this quarter, compared to
$37.4 million, or 27% of total sales in the third quarter of 2010.
Sales to the non-semiconductor thin film markets were also
extremely strong at $43.3 million, or 29.1% of total sales,
compared to $41.1 million last quarter. Sales to the semiconductor
market were $40.2 million, or 27.0% of sales compared to $49.4
million last quarter. During a seasonally soft quarter, service
revenue performed well, roughly flat sequentially at $13.4 million,
or 9.0% of total sales, compared to $13.2 million last quarter.
Bookings for the fourth quarter were $113.3 million, compared to
$160.3 million in the third quarter of 2010. We entered the fourth
quarter with record bookings as inverter customers placed orders
for delivery prior to year-end in order to satisfy funding
requirements for various federal incentives and grant programs in
the U.S. and Europe, many of which were expected to be reduced or
ended in 2010, but have since been extended.
Gross margin for the fourth quarter improved sequentially at
43.6% compared to 43.1% in the third quarter of 2010. This was due
in large part to the continued decline in warranty costs,
reflecting continuous improvement in our product quality. Operating
expenses for the fourth quarter increased to $40.8 million compared
to $38.4 million in the third quarter in order to support higher
sales volumes. Net income from continuing operations for the fourth
quarter was $19.7 million or $0.45 per diluted share, compared to
net income from continuing operations of $17.6 million or $0.40 per
diluted share in the third quarter of 2010.
Cash and investments were $140.6 million at the end of the
fourth quarter, compared to $112.4 million in the third quarter of
2010. We generated $34.9 million in cash from operations during the
fourth quarter of 2010.
For the full year 2010, sales nearly tripled to $459.4 million,
compared to $161.8 million in 2009. Net income from continuing
operations for 2010 was $53.6 million or earnings per share of
$1.23, compared to a net loss from continuing operations of $101.8
million, or a loss per share of $2.43 in 2009.
First Quarter 2011 Guidance
The Company anticipates first quarter 2011 results from
continuing operations, to be within the following ranges:
- Sales of $132 million to $142
million
- Gross margin of 41% to 43%
- Earnings per share of $0.32 to
$0.38
Fourth Quarter 2010 Conference Call
Management will host a conference call tomorrow, Tuesday,
February 15, 2011, at 8:30 a.m. Eastern Standard Time to discuss
Advanced Energy's financial results. Domestic callers may access
this conference call by dialing (866) 783-2137. International
callers may access the call by dialing (857) 350-1596. Participants
will need to provide a conference pass code 67334137. For a replay
of this teleconference, please call (888) 286-8010 or (617)
801-6888, and enter the pass code 61436573. The replay will be
available for two weeks following the conference call. A webcast
will also be available on the Investor Relations web page at
http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy (NASDAQ: AEIS - News) is a global leader in
innovative power and control technologies for thin-film
manufacturing and high-growth 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.
Forward-Looking Language
The Company’s expectations with respect to guidance to financial
results for the first quarter ending March 31, 2011 and statements
that are not historical information 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 continuation of RPS
(renewable portfolio standards), the timing and availability of
incentives and grant programs in the U.S. and Europe related to the
renewable energy market, the timing of orders received from
customers, the company's ability to realize benefits from cost
improvement efforts, the ability to source materials and
manufacture products, 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
Twelve Months Ended December 31,
September 30, December 31, 2010
2009 2010 2010
2009 SALES $ 148,653 $ 58,081 $ 140,966 $ 459,414 $
161,846 COST OF SALES 83,910 34,812
80,276 260,215 112,056
GROSS PROFIT 64,743 23,269 60,690 199,199 49,790 43.6 % 40.1 % 43.1
% 43.4 % 30.8 % OPERATING EXPENSES: Research and development 15,275
10,720 16,672 56,604 41,132
Selling, general and administrative
24,586 10,316 20,545 74,543 38,041 Impairment of goodwill - - - -
63,260 Amortization of intangible assets 920 20 1,177 2,864 121
Restructuring charges
- 6 - -
4,376 Total operating expenses 40,781
21,062 38,394 134,011
146,930 INCOME (LOSS) FROM OPERATIONS 23,962
2,207 22,296 65,188 (97,140 )
Other income, net
392 494 1,224
2,221 1,910 Income (loss) from continuing
operations before income taxes 24,354 2,701 23,520 67,409 (95,230 )
Provision for income taxes 4,624 1,025
5,964 13,816 6,582 INCOME
(LOSS) FROM CONTINUING OPERATIONS 19,730 1,676 17,556 53,593
(101,812 ) Gain on sale of discontinued operations, net of
tax 12,531 - - 12,531 - Results from discontinued operations, net
of tax (853 ) (153 ) 2,392 5,068
(893 ) INCOME (LOSS) FROM DISCONTINUED
OPERATIONS, NET OF INCOME TAXES 11,678 (153 )
2,392 17,599 (893 )
NET INCOME (LOSS) $ 31,408 $ 1,523 $ 19,948
$ 71,192 $ (102,705 ) Basic weighted-average
common shares outstanding 43,315 42,032 43,254 42,862 41,966
Diluted weighted-average common shares outstanding 43,796 42,464
43,849 43,419 41,966
EARNINGS PER SHARE: CONTINUING
OPERATIONS: BASIC EARNINGS (LOSS) PER SHARE $ 0.46 $ 0.04 $ 0.41 $
1.25 $ (2.43 ) DILUTED EARNINGS (LOSS) PER SHARE $ 0.45 $ 0.04 $
0.40 $ 1.23 $ (2.43 ) DISCONTINUED OPERATIONS BASIC EARNINGS
(LOSS) PER SHARE $ 0.27 $ (0.00 ) $ 0.06 $ 0.41 $ (0.02 ) DILUTED
EARNINGS (LOSS) PER SHARE $ 0.27 $ (0.00 ) $ 0.05 $ 0.41 $ (0.02 )
NET INCOME (LOSS):
BASIC EARNINGS (LOSS) PER SHARE $ 0.73
$ 0.04 $ 0.46 $ 1.66
$ (2.45 ) DILUTED EARNINGS (LOSS) PER
SHARE $ 0.72 $ 0.04 $
0.45 $ 1.64 $ (2.45 )
CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands)
December 31, 2010 2009 ASSETS Current assets: Cash
and cash equivalents $ 130,914 $ 133,106 Marketable securities
9,640 44,401 Accounts receivable, net 119,893 50,267 Inventories,
net 77,593 28,567 Deferred income taxes 9,303 9,222 Income taxes
receivable 6,061 - Assets held for sale - 26,460 Other current
assets 10,157 5,641 Total current assets 363,561
297,664 Property and equipment, net 34,569 18,687
Deposits and other 8,874 9,295 Goodwill and intangibles, net 96,781
- Deferred income tax assets, net 1,373 19,479 Total
assets $ 505,158 $ 345,125 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $
56,185 $ 23,802 Other accrued expenses 46,141 24,055 Liabilities of
business held for sale - 1,477 Total current
liabilities 102,326 49,334 Long-term liabilities
28,863 17,457 Total liabilities 131,189 66,791
Stockholders' equity 373,969 278,334 Total
liabilities and stockholders' equity $ 505,158 $ 345,125
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jul 2023 to Jul 2024