CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Sales $74,731 $57,444 $262,402 $238,898
Cost of sales (2) 48,100 52,970 174,455 170,138
Gross profit 26,631 4,474 87,947 68,760
Operating expenses:
Research and development 12,750 12,975 51,647 48,995
Sales and marketing 7,095 9,739 31,015 34,940
General and administrative 4,250 7,556 18,324 25,110
Amortization of intangible
assets 1,199 1,904 4,612 5,423
Litigation damages -- -- -- 5,313
Restructuring charges 1,018 5,840 4,306 9,060
Impairment of intangible
assets -- 1,904 1,175 1,904
Total operating expenses 26,312 39,918 111,079 130,745
Income (loss) from operations 319 (35,444) (23,132) (61,985)
Other (expense) income, net (1) (1,957) 1,663 (9,308) (1,707)
Loss before income taxes (1,638) (33,781) (32,440) (63,692)
(Provision) benefit for income
taxes (1) (801) 11,824 (11,801) 22,293
Net loss $(2,439) $(21,957) $(44,241) $(41,399)
Basic and diluted net loss per
share $(0.08) $(0.68) $(1.37) $(1.29)
Basic and diluted weighted-average
common shares outstanding 32,433 32,111 32,271 32,026
(1) In the fourth quarter of 2002, Advanced Energy recorded a gain on the
extinguishment of debt, net of related income taxes, as a result
of the Company's previously announced repurchase of a portion of its
convertible debt. The gain was previously reported as an
extraordinary gain, net of related tax effects. In connection with
the issuance of Statement of Financial Accounting Standards No. 145,
the gain before any tax effect has been reclassified to other
(expense) income. The loss before income taxes and income tax
benefit were adjusted accordingly.
(2) In the fourth quarter of 2002, Advanced Energy recorded charges of
$11.5 million as cost of sales for excess and obsolete inventory and
warranty reserves.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
December 31, December 31,
2003 2002
ASSETS
Current Assets:
Cash and cash equivalents $41,522 $70,188
Marketable securities 93,691 102,159
Accounts receivable 61,927 43,885
Income tax receivable 151 14,720
Inventories 65,703 57,306
Other current assets 5,486 6,828
Deferred income tax assets, net -- 17,510
Total current assets 268,480 312,596
Property and equipment, net 44,725 41,178
Deposits and other 5,630 5,181
Goodwill and intangibles, net 88,943 86,601
Deferred debt issuance costs 3,019 4,091
Demonstration and customer service
equipment, net 3,934 6,086
Total assets $414,731 $455,733
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $23,066 $16,055
Other current liabilities 28,216 31,064
Current portion of capital
leases and senior borrowings 8,582 15,197
Accrued interest payable on
convertible subordinated notes 2,460 2,338
Total current liabilities 62,324 64,654
Long-term Liabilities:
Capital leases and senior
borrowings 6,168 10,665
Other long-term liabilities 2,015 694
Deferred income tax liability,
net 4,672 8,663
Convertible subordinated notes
payable 187,718 187,718
Total long-term liabilities 200,573 207,740
Total liabilities 262,897 272,394
Stockholders' equity 151,834 183,339
Total liabilities and stockholders'
equity $414,731 $455,733
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Twelve Months Ended December 31,
2003 2002
NET CASH USED IN OPERATING ACTIVITIES $(12,986) $(15,305)
NET CASH (USED IN) PROVIDED BY
INVESTING ACTIVITIES (8,590) 24,311
NET CASH USED IN FINANCING ACTIVITIES (8,608) (22,634)
EFFECT OF CURRENCY TRANSLATION ON
CASH 1,518 1,861
DECREASE IN CASH AND CASH EQUIVALENTS (28,666) (11,767)
CASH AND EQUIVALENTS, beginning of
period 70,188 81,955
CASH AND EQUIVALENTS, end of period $41,522 $70,188