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FORT COLLINS, Colo., April 25, 2007—
Lawrence D. Firestone
Advanced Energy Industries, Inc.
Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the first quarter ended March 31, 2007. Sales were $107.3 million for the first quarter of 2007, an increase of 2.7% compared to $104.5 million in the fourth quarter of 2006, and an increase of 14.1% compared with $94.0 million in the first quarter of 2006. Gross profit was $48.3 million, or 45.0% of sales, an increase of 7.6%, compared with $44.9 million, or 42.9% of sales for the fourth quarter of 2006, and 25.1% higher than $38.6 million, or 41.0% of sales in the first quarter of 2006. Operating profit for the first quarter of 2007, which included a $2.8 million restructuring charge related to the closure of our factory in Stolberg, Germany, was $17.9 million, or 16.7% of sales, an increase of 7.8%, compared with $16.6 million, or 15.9% of sales in the fourth quarter of 2006, and an increase of 35.6%, compared to $13.2 million, or 14.0% of sales in the first quarter of 2006.
Net income from continuing operations for the first quarters of 2007 and 2006 was $12.7 million and $12.8 million, respectively, or $0.28 per diluted share for each period; however, the first quarter of 2007 included the above mentioned restructuring charge of $2.8 million, and an effective tax rate of 35% in the first quarter of 2007 compared to a 15% tax rate in the first quarter of 2006.
"We are pleased with our results this quarter and are particularly encouraged by the strength in the semiconductor and solar markets. Semiconductor revenues were sequentially 8% higher than the fourth quarter of 2006, and solar revenues were 103% higher from the prior quarter representing 7% of our overall sales," said Dr. Hans Betz, president and chief executive officer of Advanced Energy. "Our strong operating performance demonstrates the progress of our strategic initiatives including streamlining our operations and leveraging our technology to diversify our business. We remain excited about the potential of the markets that we serve and in our ability to grow."
Second Quarter 2007 Guidance
The Company anticipates second quarter 2007 results to be within the following ranges:
* Sales of $102 million to $106 million.
* Earnings per share of $0.26 to $0.29.
First Quarter 2007 Conference Call
Management will host a conference call today, Wednesday, April 25, 2007 at 5:00 pm Eastern Time to discuss Advanced Energy's financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-679-7720. For a replay of this teleconference, please call 706-645-9291, and enter the pass code 1215631. The replay will be available through May 2, 2007. There will also be a webcast available on the Investor Relations webpage at http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy is a global leader in the development and support of technologies critical to thin film deposition manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. The Company's portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers (OEMs) and end-users around the world.
Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, Advanced Energy is a publicly held company traded on the Nasdaq Global Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.
The Company's expectations with respect to financial results for the second quarter of 2007 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 volatility and cyclicality of the industries the company serves, 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 970-221-4670. 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,
2007 2006 2006
Sales $107,323 $93,950 $104,533
Cost of sales 59,014 55,400 59,639
Gross profit 48,309 38,550 44,894
Research and development 12,035 10,459 12,240
Selling, general and
administrative 15,218 14,405 15,535
Amortization of intangible
assets 324 477 450
Restructuring charges 2,792 29 20
Total operating expenses 30,369 25,370 28,245
Income from operations 17,940 13,180 16,649
Other income, net 1,554 1,833 1,060
Income from continuing operations
before income taxes 19,494 15,013 17,709
(Provision) benefit for income taxes (6,823) (2,252) 21,697
Income from continuing operations 12,671 12,761 39,406
Gain on sale of discontinued assets -- -- 1,000
Income from discontinued operations -- -- 1,000
Net income $12,671 $12,761 $40,406
Net income per basic share
Income from continuing operations $0.28 $0.29 $0.88
Income from discontinued operations $-- $-- $0.02
Basic earnings per share $0.28 $0.29 $0.90
Net income per diluted share
Income from continuing operations $0.28 $0.28 $0.87
Income from discontinued operations $-- $-- $0.02
Diluted earnings per share $0.28 $0.28 $0.89
Basic weighted-average common shares
outstanding 44,941 44,571 44,826
Diluted weighted-average common
shares outstanding 45,636 45,004 45,345
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, December 31,
Cash and cash equivalents $51,073 $58,240
Marketable securities 105,259 85,978
Accounts receivable, net 76,318 74,794
Inventories, net 57,655 52,778
Deferred income taxes 19,677 24,434
Other current assets 3,688 4,503
Total current assets 313,670 300,727
Property and equipment, net 31,647 33,571
Deposits and other 7,690 2,640
Goodwill and intangibles, net 65,681 65,584
Customer service equipment, net 616 832
Deferred income tax assets, net 8,833 8,549
Total assets $428,137 $411,903
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $17,428 $16,310
Other accrued expenses 30,170 36,488
Current portion of capital
leases and senior borrowings 127 131
Total current liabilities 47,725 52,929
Capital leases and senior
borrowings 175 198
Other long-term liabilities 9,616 2,986
Total long-term liabilities 9,791 3,184
Total liabilities 57,516 56,113
Stockholders' equity 370,621 355,790
Total liabilities and stockholders'
equity $428,137 $411,903