For more information, contact:

Danny Herron
Advanced Energy Industries, Inc.
970.407.6570
danny.herron@aei.com
Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com

Advanced Energy Announces Second Quarter Results
  • Revenue of $138.2 million, a 38.1% increase over Q2, 2010

  • Operating Income of $17.3 million, 12.5% of revenue

  • EPS of $0.31 share

FORT COLLINS, Colo., July 25, 2011—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the second quarter ended June 30, 2011. The company posted second quarter sales of $138.2 million, operating income of 12.5%, and earnings of $0.31 per diluted share from continuing operations.


“Our renewables business in the second quarter was pressured by several industry dynamics, including declining panel prices, increasing competition, and changing incentive programs, which impacted our results more than anticipated. We were nonetheless pleased that our thin films business unit was in-line with expectations,” said Dr. Hans Betz, chief executive officer. “Looking at our expectations for the remainder of 2011, we believe the benefits of our diversification strategy become clear. As our thin film business softens with market cyclicality, our renewables business is poised to capture previously-deferred business as customers initiate projects in order to take advantage of tax credits by year-end. Longer-term, we continue to see demand for our utility-scale inverter products in North America and remain confident that Advanced Energy’s strategy of selling based on levelized cost of energy (LCOE), superior uptime performance and best-in-class service offering will continue to differentiate us in the market.”


Thin Film Business Unit
Thin Films business unit sales were $97.3 million versus $85.7 million in the same period of 2010, a 13.5% improvement year over year. Total Thin Film sales met our expectations this quarter, although declined slightly on a sequential basis from $100.1 million in the first quarter of 2011. Strength in our flat panel display market this quarter was somewhat offset by the initial signs of a pause in semiconductor capital spending, as well as the overcapacity and resulting price declines in the solar panel industry.

Renewables Business Unit
Renewables business unit sales were $40.8 million in the quarter versus $14.4 million in the same period of 2010. The significant year-over-year improvement reflects the acquisition of PV Powered and the ongoing growth of the North American solar equipment market. Renewable sales were impacted by several industry dynamics during the quarter, leading to slower than anticipated sequential growth of 9%.

Operating income was $17.3 million or 12.5% of revenue. Net income from continuing operations was $13.5 million or $0.31 per diluted share, compared to net income from continuing operations of $18.8 million or $0.43 per diluted share in the first quarter of 2011.

Bookings for the second quarter were $101.7 million.

Third Quarter 2011 Guidance
The Company anticipates third quarter 2011 results from continuing operations, to be within the following ranges:
  • Sales of $130 million to $145 million

  • Earnings per share of $0.20 to $0.30
Second Quarter 2011 Conference Call
Management will host a conference call tomorrow, Tuesday, July 26, 2011, at 8:30 a.m. Eastern Daylight Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing (866) 362-4820. International callers may access the call by dialing (617) 597-5345. Participants will need to provide a conference pass code 76215669. For a replay of this teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code 29763068. 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 forthin-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 http://www.advanced-energy.com.

Forward-Looking Language
The Company’s expectations with respect to guidance to financial results for the third quarter ending September 30, 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 US and Europe related to the renewable energy market, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment 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 http://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.
###

  ADVANCED ENERGY INDUSTRIES,
   INC.
  CONDENSED CONSOLIDATED STATEMENTS OF
   OPERATIONS (UNAUDITED)
  (in thousands, except per
   share data)


                                        Three Months Ended             Six Months Ended
                                ----------------------------------  ----------------------

                                       June 30,          March 31,         June 30,
                                ----------------------  ----------  ----------------------

                                   2011        2010        2011        2011        2010
                                ----------  ----------  ----------  ----------  ----------

  SALES                          $ 138,154   $ 100,107   $ 137,652   $ 275,806   $ 169,794

  COST OF SALES                     82,777      55,548      75,607     158,384      96,028
                                ----------  ----------  ----------  ----------  ----------
  GROSS PROFIT                      55,377      44,559      62,045     117,422      73,766
                                     40.1%       44.5%       45.1%       42.6%       43.4%
  OPERATING EXPENSES:
   Research and development         17,137      13,515      15,862      32,999      24,657
   Selling, general and
    administrative                  20,001      17,183      20,905      40,906      29,412
   Amortization of intangible
    assets                             921         767         921       1,842         767
                                ----------  ----------  ----------  ----------  ----------

    Total operating expenses        38,059      31,465      37,688      75,747      54,836
                                ----------  ----------  ----------  ----------  ----------

  INCOME FROM OPERATIONS            17,318      13,094      24,357      41,675      18,930


   Other income, net                    92         220         663         755         605
                                ----------  ----------  ----------  ----------  ----------
  Income from continuing
   operations before income
   taxes                            17,410      13,314      25,020      42,430      19,535

  Provision for income taxes         3,898       1,857       6,254      10,152       3,228
                                ----------  ----------  ----------  ----------  ----------
  INCOME FROM CONTINUING
   OPERATIONS                       13,512      11,457      18,766      32,278      16,307

  Results from discontinued
   operations, net of tax               74       2,162         140         214       3,529
                                ----------  ----------  ----------  ----------  ----------

  INCOME FROM DISCONTINUED
   OPERATIONS, NET OF INCOME
   TAXES                                74       2,162         140         214       3,529
                                ----------  ----------  ----------  ----------  ----------


  NET INCOME                      $ 13,586    $ 13,619    $ 18,906    $ 32,492    $ 19,836
                                ==========  ==========  ==========  ==========  ==========

  Basic weighted-average
   common shares outstanding        43,571      42,806      43,440      43,505      42,440
  Diluted weighted-average
   common shares outstanding        44,187      43,327      44,133      44,156      43,004

  EARNINGS PER SHARE:
   CONTINUING OPERATIONS:
    BASIC EARNINGS PER SHARE        $ 0.31      $ 0.27      $ 0.43      $ 0.74      $ 0.38
    DILUTED EARNINGS PER SHARE      $ 0.31      $ 0.26      $ 0.43      $ 0.73      $ 0.38

   DISCONTINUED OPERATIONS
    BASIC EARNINGS PER SHARE        $ 0.00      $ 0.05      $ 0.00      $ 0.00      $ 0.08
    DILUTED EARNINGS PER SHARE      $ 0.00      $ 0.05      $ 0.00      $ 0.00      $ 0.08

   NET INCOME:
    BASIC EARNINGS PER SHARE        $ 0.31      $ 0.32      $ 0.44      $ 0.75      $ 0.47
    DILUTED EARNINGS PER SHARE      $ 0.31      $ 0.31      $ 0.43      $ 0.74      $ 0.46




  ADVANCED ENERGY INDUSTRIES,
   INC.
  CONDENSED CONSOLIDATED
   BALANCE SHEETS
  (in thousands)

                                             December
                                 June 30,      31,

                                   2011        2010
                                ----------  ----------
  ASSETS

  Current assets:
   Cash and cash equivalents     $ 135,564   $ 130,914
   Marketable securities            10,124       9,640
   Accounts receivable, net        128,802     119,893
   Inventories, net                100,392      77,593
   Deferred income taxes             7,689       7,510
   Income taxes receivable           2,388       6,061

   Other current assets             11,689      10,156
                                ----------  ----------
  Total current assets             396,648     361,767

  Property and equipment, net       38,408      34,569

  Deposits and other                 8,795       8,874
  Goodwill and intangibles,
   net                              93,094      96,781
  Deferred income tax assets,
   net                               5,059       3,166
                                ----------  ----------

  Total assets                   $ 542,004   $ 505,157
                                ==========  ==========

  LIABILITIES AND
   STOCKHOLDERS' EQUITY

  Current liabilities:
   Accounts payable               $ 48,828    $ 56,185

   Other accrued expenses           47,130      46,140
                                ----------  ----------
  Total current liabilities         95,958     102,325


  Long-term liabilities             30,393      28,864
                                ----------  ----------

  Total liabilities                126,351     131,189


  Stockholders' equity             415,653     373,968
                                ----------  ----------
  Total liabilities and
   stockholders' equity          $ 542,004   $ 505,157
                                ==========  ==========



  ADVANCED ENERGY INDUSTRIES,
   INC.
  SEGMENT INFORMATION
  (in thousands)


                                        Three Months Ended             Six Months Ended
                                ----------------------------------  ----------------------

                                       June 30,          March 31,         June 30,
                                ----------------------  ----------  ----------------------

                                   2011        2010        2011        2011        2010
                                ----------  ----------  ----------  ----------  ----------
  SALES:
   Thin Films                     $ 97,331    $ 85,697   $ 100,099   $ 197,430   $ 153,120

   Renewables                       40,823      14,410      37,553      78,376      16,674
                                ----------  ----------  ----------  ----------  ----------

    Total Sales                    138,154     100,107     137,652     275,806     169,794
                                ==========  ==========  ==========  ==========  ==========


  OPERATING INCOME:
  Thin Films                      $ 20,042                $ 24,824    $ 44,866

  Renewables                           321                   2,512       2,833
                                ----------              ----------  ----------
  Total segment operating
   income                           20,363                  27,336      47,699
  Corporate expenses               (3,045)                 (2,979)     (6,024)

  Other income, net                     92                     663         755
                                ----------              ----------  ----------
  Income from continuing
   operations before income
   taxes                          $ 17,410                $ 25,020    $ 42,430
                                ==========              ==========  ==========


This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Advanced Energy Industries, Inc.